DCIT, CC-1(4), KOLKATA, Kolkata V. M/s Aparna Distributors Pvt. Ltd., Kolkata

ITA 1503/KOL/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4450 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2016
• Appeal Filed By: Department
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 18-12-2015
• Court: TRIBUNAL
• Department Lawyers: UDAY KUMAR SARDAR
• Assessee Lawyers: VARSHA JALAN
• Keywords: Tax effect

Judgement Text

I.T.A. NO. 1503/KOL./2015 ASSESSMENT YEAR: 2008-2009 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA C(SMC) BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER I.T.A. NO. 1503 /KOL/ 2015 ASSESSMENT YEAR: 2008-2009 DEPUTY COMMISSIONER OF INCOME TAX,................. ................APPELLANT CENTRAL CIRCLE-1(4), KOLKATA, AAYAKAR BHAWAN POORVA, 110, SHANTI PALLY, KOLKATA-700 107 -VS.- M/S. APARNA DISTRIBUTORS (P) LIMITED,.............. ................RESPONDENT 82A, SAMBHUNATH PANDIT STREET, KOLKATA-700 020 [PAN: AACCA 7617 G] APPEARANCES BY: SHRI UDAY KUMAR SARDAR, JCIT, D.R., FOR THE DEPARTMENT MS. VARSHA JALAN, ADVOCATE, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : JULY 26, 2016 DATE OF PRONOUNCING THE ORDER : JULY 26, 2016 O R D E R THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-4, KOLKATA DAT ED 23.09.2015 FOR THE ASSESSMENT YEAR 2008-09 ON THE FOLLOWING GROUND S:- (1) THE LD. CIT(A) ERRED IN LAW AS WELL AS ON FACTS IN RESTRICTING DISALLOWANCE OF EXPENDITURE UNDER THE HEAD DIRECT DISTRIBUTION CHARGES, AS THE A.O. HAS ADDED DISALLOWANCE ON THE BASIS OF DISCREPANCIES WHICH THE ASSESSEE COULD NOT SUBSTANTIATE AND THE LD. CIT(A) ALSO DID NOT RAISE ANY QUESTION IN THE APPEAL BUT RESTRICTED THE DISALLOWANCE TO 10% OF TOTAL EXPENDITURE WITHOUT ANY BASIS. (2) THE LD. CIT(A) ERRED IN LAW AS WELL AS ON FACTS WHE N HE DIRECTED THE AO TO RESTRICT THE DISALLOWANCE OF SALES INCENTIVE EVEN WHEN THE ASSESSEE COULD ONLY PROVIDE EVIDENCE IN THE FORM OF SELF MADE CREDIT NOTES AND LEDGER COPIES WITHOUT ANY EVIDENCE THAT I.T.A. NO. 1503/KOL./2015 ASSESSMENT YEAR: 2008-2009 PAGE 2 OF 3 SUCH INCENTIVES WERE OFFERED TO THE PARTIES CONCERNED OR BY WAY OF CONFIRMATION FROM THE PARTIES, WHEN ATTEMPT TO GATHER RESPONSE FROM THOSE PARTIES BY WAY OF NOTICES U/S 133(6), FAILED. IN VIEW OF THE ABOVE, THE 2 ND APPEAL AGAINST THE APPEAL ORDER VIDE NO. 193/CIT(A)-4/WARD- 12(3)/KOL/14-15 FOR THE ASSESSMENT YEAR 2008-09 IS SUGGESTED. MOREOVER, THE TAX EFFECT IS ALSO MORE THAN THE PRESCRIBE LIMIT OF RS. 4 LAKH FOR FILING APPEAL BEFORE THE ITAT AS PER BOARDS INSTRUCTION NO. 5/2014 DATED 09.02.2011. 2 AS POINTED OUT BY THE LD. COUNSEL FOR THE ASSESSE E AT THE OUTSET, THE TAX EFFECT INVOLVED IN THIS APPEAL OF THE REVENUE I S LESS THAN THE REVISED MONETARY LIMIT RECENTLY FIXED BY THE CBDT VIDE CIRC ULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 AT RS.10,00,000/- FOR FILING THE AP PEAL BY THE REVENUE BEFORE THE TRIBUNAL AND THIS POSITION CLEAR LY EVIDENT FROM THE GROUNDS RAISED BY THE REVENUE IN THIS APPEAL IS NOT DISPUTED EVEN BY THE LD. D.R. IN CIRCULAR NO. 21/2015 (SUPRA) RECENTLY I SSUED BY THE CBDT, THE MONETARY LIMIT FOR FILING THE APPEAL BY THE REVENUE BEFORE THE TRIBUNAL HAS BEEN INCREASED TO RS.10,00,000/- AND AS CLARIFI ED IN THE SAID CIRCULAR, THE SAID MONETARY LIMIT IS APPLICABLE RETROSPECTIVE LY EVEN TO THE APPEALS PENDING BEFORE THE TRIBUNAL. THE CBDT HAS ALSO INST RUCTED THAT SUCH PENDING APPEALS BELOW THIS SPECIFIED TAX LIMIT OF R S.10,00,000/- MAY BE WITHDRAWN/ NOT PRESSED. KEEPING IN VIEW THE INSTRUC TION GIVEN BY THE CBDT VIDE CIRCULAR NO. 21/2015 DATED 10.12.2015, WH ICH IS SQUARELY APPLICABLE IN THE PRESENT CASE, THE APPEAL FILED BY THE REVENUE IN THIS CASE IS TREATED AS WITHDRAWN/NOT PRESSED AND DISMIS SED ACCORDINGLY. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON JULY 26, 2016 . SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER KOLKATA, THE 26 TH DAY OF JULY, 2016 I.T.A. NO. 1503/KOL./2015 ASSESSMENT YEAR: 2008-2009 PAGE 3 OF 3 COPIES TO : (1) DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(4), KOLKATA, AAYAKAR BHAWAN POORVA, 110, SHANTI PALLY, KOLKATA-700 107 (2) M/S. APARNA DISTRIBUTORS (P) LIMITED, 82A, SAMBHUNATH PANDIT STREET, KOLKATA-700 020 (3) COMMISSIONER OF INCOME TAX (APPEALS)-4, KOLKAT A; (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.