Pagoda Realtors Pvt. Ltd., Kolkata V. D.C.I.T,Circle-1(2), Kolkata

ITA 1490/KOL/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1726 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 19-06-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: SUJAY SEN
• Keywords: Business expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (SMC), KOLKATA [BEFORE SHRI P.M. JAGTAP, VICE PRESIDENT (KZ)] I.T.A. NO. 1490/KOL/2019 ASSESSMENT YEAR: 2013-14 PAGODA REALTORS PVT. LTD...................................................................APPELLANT C/O. M/S. SALARPURIA JAJODIA & CO., 7, C.R. AVENUE, 3 RD FLOOR, KOLKATA 700 072. [PAN: AAECP 4314 R] VS DCIT, CIRCLE 1(2), KOLKATA................................RESPONDENT 54/1, RAFI AHMED KIDWAI ROAD, 5 TH FLOOR, KOLKATA 700 016. APPEARANCES BY: SHRI SUJAY SEN, ADVOCATE APPEARING ON BEHALF OF THE ASSESSEE. SHRI DHRUBAJYOTI ROY, JCIT, SR. DR APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : NOVEMBER 13, 2019 DATE OF PRONOUNCING THE ORDER : DECEMBER 06, 2019 ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) 16, KOLKATA DATED 25.04.2019 AND THE GROUNDS RAISED BY THE ASSESSEE THEREIN READ AS UNDER: 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE AO WAS WHOLLY WRONG AND UNJUSTIFIED IN NOT ALLOWING THE DEDUCTION CLAIMED IN RESPECT OF DEBTS ACTUALLY WRITTEN OFF IN THE BOOKS OF ACCOUNT AMOUNTING TO RS. 12,067/- AND IN VIEW OF THE FACTS AND IN THE CIRCUMSTANCES THE LD. CIT(A) HAD GROSSLY ERRED IN CONFIRMING THE SAID ADDITION OF THE AO FOR THE SUM OF RS. 12,0671- DEBITED BY THE APPELLANT UNDER THE HEAD SUNDRY STOCK AND BALANCE WRITTEN OFF WITHOUT APPRECIATING THE FACT THAT THE SAME IS FULLY ALLOWABLE AS BUSINESS EXPENDITURE HAVING BEEN ACTUALLY WRITTEN OFF WITHOUT APPRECIATING THE FACT THAT THE SAME IS FULLY ALLOWABLE AS BUSINESS EXPENDITURE HAVING BEEN ACTUALLY WRITTEN OFF IN THE BOOKS OF ACCOUNT. 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE AO WAS WHOLLY WRONG AND UNJUSTIFIED IN NOT ALLOWING FULL AND PROPER CREDIT FOR ADVANCE TAX PAYMENT OF RS. 20,00,000/- WHEN ALL EVIDENCES IN RESPECT OF SUCH PAYMENT HAD BEEN PRODUCED BEFORE HIM AND IN VIEW OF THE FACTS AND IN THE CIRCUMSTANCES THE LD. CIT(A) HAD GROSSLY ERRED IN NOT ALLOWING FULL CREDIT OF ADVANCE TAX OF RS. 20,00,000/-, HIMSELF INSTEAD OF DIRECTING THE AO TO VERIFY AND ALLOW WHEN FULL DETAILS AND REMINDERS OF SUCH PAYMENT OF ADVANCE TAX WAS FURNISHED BEFORE HIM ALSO. 2 I.T.A. NO. 1490/KOL/2019 ASSESSMENT YEAR: 2013-14 PAGODA REALTORS PVT. LTD. 2. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS REGARDS ISSUE INVOLVED IN GROUND NO. 1, IT IS OBSERVED THAT THE CLAIM OF THE ASSESSEE FOR DEDUCTION OF RS. 12,607/- ON ACCOUNT OF SUNDRY BALANCES WRITTEN OFF WAS DISALLOWED BY THE AO ON THE GROUND THAT THERE WAS NO EVIDENCE TO SHOW THAT THE AMOUNT SO WRITTEN OFF WAS INCLUDED IN THE INCOME OF THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION OR FOR ANY EARLIER PREVIOUS YEARS. ON APPEAL, THE LD. CIT(A) CONFIRMED THE SAID ADDITION MADE BY THE AO. AT THE TIME OF HEARING BEFORE THE TRIBUNAL, THE LEARNED COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE AMOUNT OF RS. 12,607/- IN QUESTION REPRESENTED DIFFERENCE RELATING TO SOME PARTIES AND THE RECONCILIATION OF THE SAID DIFFERENCE FILED BY THE ASSESSEE BEFORE THE LD. CIT(A) WAS NOT CONSIDERED BY HIM. HE HAS ALSO PLACED ON RECORD A COPY OF WRITTEN SUBMISSION CLAIMED TO BE FILED BEFORE THE LD. CIT(A) CONTAINING SUCH RECONCILIATION. IT IS HOWEVER OBSERVED THAT THE AMOUNT OF RS. 12,607/- WRITTEN OFF BY THE ASSESSEE WAS DISALLOWED BY THE AO FOR THE SPECIFIC REASON THAT THERE WAS NO EVIDENCE FILED BY THE ASSESSEE TO SHOW THAT THE SAID AMOUNT WAS CONSIDERED AS ITS INCOME OF THE ASSESSEE EITHER IN THE YEAR UNDER CONSIDERATION OR IN ANY OF THE PREVIOUS YEAR SO FAR. EVEN IN THE WRITTEN SUBMISSION STATED TO BE FILED BEFORE THE LD. CIT(A) AS WELL AS DURING THE COURSE OF HEARING BEFORE THE TRIBUNAL, NOTHING HAS BEEN BROUGHT ON RECORD ON BEHALF OF THE ASSESSEE TO SHOW THAT THE AMOUNT OF RS. 12,607/- IN QUESTION WAS CONSIDERED AS ITS INCOME EITHER IN THE YEAR UNDER CONSIDERATION OR IN ANY OF THE PREVIOUS YEARS. IT IS THUS CLEAR THAT THE CONDITION STIPULATED IN SECTION 36(1)(VII) IS NOT SATISFIED BY THE ASSESSEE AND THE DEDUCTION CLAIMED BY THE ASSESSEE ON ACCOUNT OF 3 I.T.A. NO. 1490/KOL/2019 ASSESSMENT YEAR: 2013-14 PAGODA REALTORS PVT. LTD. SUNDRY BALANCES WRITTEN OFF CANNOT BE ALLOWED. I, THEREFORE, FIND NO JUSTIFIABLE REASON TO INTERFERE WITH THE IMPUGNED ORDER OF THE LD. CIT(A) CONFIRMING THE ADDITION MADE BY THE AO ON THIS ISSUE AND DISMISS GROUND NO. 1 OF THE ASSESSEES APPEAL. 3. AS REGARD THE ISSUE INVOLVED IN GROUND NO. 2, IT IS OBSERVED THAT THE LD. CIT(A) IN HIS IMPUGNED ORDER HAS SPECIFICALLY DIRECTED THE AO TO ALLOW THE CLAIM OF THE ASSESSEE FOR CREDIT ON ACCOUNT OF ADVANCE TAX OF RS. 19,00,000/- PAID BY THE ASSESSEE AFTER PROPER VERIFICATION. THE LEARNED COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSING OFFICER HOWEVER HAS NOT COMPLIED WITH THIS DIRECTION OF THE LD. CIT(A) AND THE CREDIT FOR THE ADVANCE TAX HAS NOT BEEN GIVEN BY HIM SO FAR. I, THEREFORE, DIRECT THE AO TO VERIFY THE CLAIM OF THE ASSESSEE ON ACCOUNT OF ADVANCE TAX PAID AND ALLOW CREDIT AS CLAIMED BY THE ASSESSEE ON SUCH VERIFICATION. GROUND NO. 2 IS ACCORDINGLY TREATED AS ALLOWED FOR STATISTICAL PURPOSE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 6 TH DECEMBER, 2019. SD/- (P.M. JAGTAP) VICE PRESIDENT DATED: 06/12/2019 BISWAJIT, SR. PS 4 I.T.A. NO. 1490/KOL/2019 ASSESSMENT YEAR: 2013-14 PAGODA REALTORS PVT. LTD. COPY OF ORDER FORWARDED TO: 1. PAGODA REALTORS PVT. LTD., C/O. M/S. SALARPURIA JAJODIA & CO., 7, C.R. AVENUE, 3 RD FLOOR, KOLKATA 700 072. 2. DCIT, CIRCLE 1(2), KOLKATA. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, ASSISTANT REGISTRAR / H.O.O. ITAT, KOLKATA