ACIT, C-5(1), Chandigarh V. M/s Venus Remedies Ltd., Panchkula

ITA 1529/CHANDI/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7429 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 29-05-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 06-12-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PHANI KISHORE; V K KATARIA
• Assessee Lawyers: S C GUPTA ITP JASPAL SHARMA
• Keywords: Revenue expenditure; TDS; Set aside
• Section: 143(3); 154

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH B , CHANDIGARH !, ' !# $% & ' ( ) * +, ,- !# BEFORE: SHRI SATBIR SINGH GODARA,JUDICIAL MEMBER AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO.1529/CHD/2018 / ASSESSMENT YEAR : 2012-13 THE A.C.I.T., CIRCLE 5(1), CHANDIGARH. M/S VENUS REMEDIES LTD., SCO 857, CABIN NO.10, 1 ST FLOOR, NAC, MANIMAJRA, CHANDIGARH. ./ PAN NO.AAACV6524H / APPELLANT / RESPONDENT /ASSESSEE BY : S/SHRI S.C. GUPTA, ITP &JASPAL SHARMA, ADV. ! / REVENUE BY : S/SHRI PHANI KISHORE, CIT DR & V.K. KATARIA, SR. DR ' # $ /DATE OF HEARING : 29.05.2019 %&'( $ /DATE OF PRONOUNCEMENT: 23.07.2019 /ORDER PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-2, CHANDIGARH [(IN SHORT CIT(A)] DATED 28.09.2018 PASSED U/S 250(6) OF THE INCOME TAX ACT, 1961 (HERE INAFTER REFERRED TO AS ACT), RELATING TO ASSESSMENT YEAR 2012-13. ITA NO.1388/CHD/2018 A.Y.2013-14 2 2. THE GROUNDS RAISED BY THE REVENUE READ AS UNDER: (I) WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER OF LD.CIT(A) IS NOT PERVERSE IN SETTING A SIDE THE ISSUE AND DIRECTING THE AO TO VERIFY THE CLAIM OF THE ASSESSEE AND COMPUTE THE MAT WHEREAS THE ISSUE OF COMPUTATION OF BOOK PROFIT AND MAT IS PENDING BEFORE HIM VIDE ORDER OF HON'BLE ITAT IN ITA NO.L241/CHD/2017 DATED 22.01.2018 ? (II) WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CASE THE ORDER OF LD.CIT(A) IS NOT PERVERSE IN SETTING A SIDE THE ISSUE AND DIRECTING THE AO TO VERIFY THE CLAIM OF THE ASSESSEE AND COMPUTE THE MAT WITHOUT ADJUDICATING ALL THE FACTS WHICH WERE AVAILABLE BEFORE HIM? (III) WHETHER IN THE FACTS AND CIRCUMSTANCES OF TH E CASE, THE ORDER OF LD CIT(A) IS NOT PERVERSE IN SETTING A SIDE THE MATTER AND DIRECTING THE AO TO VERIFY THE CLAIM OF THE ASSESSEE AND COMPUTE THE MAT WHEN AS PER SECTION 251(1) OF THE INCOME TAX ACT, CIT(A) CANNOT BE SET ASIDE TO ASSESSING OFFICER SINCE THAT REQUIRES EXAMINATION OF SUPPORTING DOCUMENTS NOT ON RECORD? (IV) WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER OF LD. CIT(A) IS NOT PERVERSE IN DIRECTIN G VERIFICATION OF A CLAIM WHICH INVOLVED THE ISSUE OF DEFERRED REVENUE EXPENDITURE, PENDING FOR ADJUDICATION BEFORE CIT(A), AGAINST AN APPLICATION BY TAXPAYER U/S 154 REJECTED BY AO AND SET ASIDE BY ITAT TO CIT(A) WHICH WAS PENDING FOR ADJUDICATION WITH HIM ? (V) WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER OF LD CIT(A) IS NOT PERVERSE IN DIRECTING THE AO TO VERIFY THE CLAIM OF THE ASSESSEE AND COMPUTE THE MAT WHEN COMPUTATION FILED BEFORE CIT(A) INVOLVES CLAIM WHICH WAS NOT A PART OF THE E-FILED RETURN AND THE REPORT AS PER RULE 40B IN FORM 29BB? (VI) WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER OF LD. CIT(A) IS NOT PERVERSE IN DIRECTING TH E AO TO VERIFY THE CLAIM OF THE ASSESSEE AND COMPUTE THE MA T WHEN THE HON'BLE ITAT IN THIS CASE HAS CLEARLY HELD THAT ITA NO.1388/CHD/2018 A.Y.2013-14 3 IT WAS HIS BOUNDEN DUTY TO ADJUDICATE THE CASE AND NOT TO RESTORE THE MATTER TO ASSESSING OFFICER VIDE ORD ER OF HON'BLE ITAT IN ITA NO.L241/CHD/2017 DATED 22.01.2018 ? (VII) WHETHER IN THE FACTS AND CIRCUMSTANCES OF TH E CASE, THE ORDER OF LD. CIT(A) IS NOT PERVERSE IN DIRECTING TH E AO TO VERIFY THE CLAIM OF THE ASSESSEE AND COMPUTE THE MA T WHEN THE TAXPAYER WAS CLAIMING BROUGHT FORWARD MAT CREDIT WHICH CAN BE ALLOWED IF THE TAX PAYABLE IS U NDER OTHER PROVISIONS IS MORE THAN THE MAT, WHEREAS IN T HIS YEAR TAX HAD BEEN PAID/PAYABLE PER MAT? (VIII) WHETHER IN THE FACTS AND CIRCUMSTANCES OF T HE CASE, THE ORDER OF LD. CIT(A) IS NOT PERVERSE IN ACCEPTING TA X PAYER'S RELIANCE ON THE DECISION OF THE HON'BLE SC IN CIT VS. KARNATAKA SOAPS AND DETERGENTS WHICH IS NOT APPLICABLE TO THE CASE OF THE ASSESSEE AS THE ASSES SEE HAD MADE NO CLAIM IN THE RETURN OF INCOME? (IX) IT IS PRAYED THAT THE ORDER OF LD. CIT(A) BE SET ASIDE AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED. (X) THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROUNDS OF APPEAL BEFORE THE APPEAL IS HEARD OR IS DISPOSED OFF. 3. AT THE OUTSET ITSELF, IT WAS POINTED OUT THAT TH E SOLITARY GRIEVANCE OF THE REVENUE WAS AGAINST THE DIRECTION GIVEN BY THE CIT(A) TO THE AO TO COMPUTE THE MAT TAX PAYABLE BY THE ASSESSEE, AFTER VERIFYING THE CLAIM OF THE ASSESSEE . IT WAS POINTED OUT THAT IN THE VARIOUS GROUNDS RAISED BY T HE REVENUE, THIS WAS THE ONLY GRIEVANCE. 4. TAKING US THROUGH THE FACTS OF THE CASE, IT WAS POINTED OUT THAT AFTER FRAMING THE ASSESSMENT ON THE ASSESS EE U/S 143(3) OF THE ACT AT RS.10,01,28,000/-, THE A.O. HA D RAISED A ITA NO.1388/CHD/2018 A.Y.2013-14 4 DEMAND OF RS.10,47,14,270/- AND NO TAX COMPUTATION SHEET HAD BEEN ISSUED. IT WAS POINTED OUT THAT THERE WAS NOTHING IN THE ASSESSMENT ORDER ALSO TO INDICATE AS TO HOW THE DEMAND HAD BEEN COMPUTED AT A FIGURE WHICH WAS MORE THAN THE INCOME ASSESSED. ACCORDINGLY, THE ASSESSEE RAI SED A GROUND AGAINST THE DEMAND RAISED BY THE A.O. ,IN TH E APPEAL FIELD BEFORE THE CIT(A). THE LD.CIT(A) DIRECTED THE A.O. TO VERIFY THE CLAIM OF THE ASSESSEE AND COMPUTE THE MA T ACCORDINGLY, AND IF ANY CREDIT WAS DUE TO THE ASSES SEE AS PER LAW, HE DIRECTED THE SAME BE GIVEN TO THE ASSESSEE. OUR ATTENTION WAS DRAWN TO PARA NOS.8.1 & 8.2 OF THE CI T(A)S ORDER AS UNDER: 8.1 DURING APPELLATE PROCEEDINGS AR OF THE ASSESSEE FILED WRITTEN SUBMISSIONS, RELEVANT PORTIO N OF WHICH IS REPRODUCED BELOW: 'THE AO RAISED THE DEMAND AT RS. 10.47,14,270 AGAINST ASSESSEE VIDE NOTICE OF DEMAND DATED 28.12.2017 UNDER SECTION 156 WITHOUT ISSUING ANY TAX COMPUTATION SHEET. THERE IS NOTHING IN THE ASSESSMENT ORDER TO INDICATE AS TO HOW THE DEMAND OF RS.10,47,14,270/- HAS BEEN COMPUTED ON REGULAR INCOME OF RS.10,01,28,924/- COMPUTED BY THE AO AND NIL BOOK PROFIT. THERE IS NO INDICATION AS TO HOW T HE DEMAND HAS EXCEEDED EVEN THE ASSESSED INCOME AND HOW MUCH CREDIT HAS BEEN ALLOWED FOR TAXES PAID BY WAY OF TDS, ADVANCE TAX, SELF ASSESSMENT TAX, POST ASSESSMENT TAX AND OUT OF ACCUMULATED MAT CREDIT. THE AO MAY BE DIRECTED TO TAKE THE BOOK PROFIT AT RS.5,51,89,019 AND COMPUTE MAT. FURTHER THE AO MAY BE DIRECTED TO COMPUTE TAX PAYABLE/REFUNDABLE AFTER GIVING CREDIT OF ACCUMULATED MAT IF AVAILABLE AND A FTER ITA NO.1388/CHD/2018 A.Y.2013-14 5 GIVING CREDIT OF TAXES ALREADY PAID. THE AO MAY ALS O BE DIRECTED TO GIVE COMPUTATION SHEET. ' 8.2 I HAVE CONSIDERED THE SUBMISSION OF THE ASSESSE E. THE ASSESSEE VIDE THE SAID GROUND HAS CONTEND ED THAT THE AO HAS COMPUTED DEMAND AT RS.10,47,14, 270/- WITHOUT ISSUING COMPUTATION SHEET ON THE INC OME OF RS.10,01,28,924/- AND TAKING BOOK PROFIT AS 'NIL' A S AGAINST A BOOK PROFIT AT RS.5,51,89,019/- CLAIMED B Y THE ASSESSEE. IN VIEW OF THE SUBMISSION OF THE ASSESSEE , THE AO IS DIRECTED TO VERIFY THE CLAIM OF THE ASSESSEE AND COMPUTE THE MAT ACCORDINGLY AND IF ANY CREDIT IS DU E TO THE APPELLANT AS PER LAW, THE SAME SHOULD BE GIVEN TO THE APPELLANT. THE GROUND OF APPEAL IS ALLOWED FOR STAT ISTICAL PURPOSES. 5. THE LD. DR CONTENDED THAT AS PER THE PROVISIONS OF SECTION 251(1) OF THE ACT THE CIT(A) COULD NOT REMA ND ANY MATTER TO THE A.O. AND, THEREFORE, THE IMPUGNED DIR ECTION GIVEN BY THE CIT(A) WAS NOT AS PER LAW. 6. THE LD. COUNSEL FOR ASSESSEE, ON THE OTHER HAND, SUPPORTED THE ORDER OF THE CIT(A). 7. WE HAVE CONSIDERED THE RIVAL CONTENTIONS. THE SO LE GRIEVANCE OF THE REVENUE IS AGAINST THE DIRECTION G IVEN BY THE CIT(A) TO THE A.O. TO COMPUTE THE TAX PAYABLE U NDER MAT AND AFTER VERIFYING THE CLAIM OF THE ASSESSEE OF IT S BOOK PROFITS AMOUNTING TO RS.5,51,89,019/.CONSIDERING TH E PLEADINGS MADE BY THE REVENUE, WE SET ASIDE THE OR DER OF THE LD.CIT(A) GIVING AFORESTATED DIRECTION AND AT THE SAME TIME, WE ALSO DIRECT THE CIT(A) TO ADJUDICATE THE ISSUE H IMSELF ITA NO.1388/CHD/2018 A.Y.2013-14 6 AFTER CALLING FOR A REMAND REPORT ON THE FACTS OF T HE ISSUE FROM THE A.O. 8. IN THE RESULT, THE APPEAL OF THE REVENUE, THEREF ORE, STANDS ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- ' ( ) * + (SATBIR SINGH GODARA ) (ANNAPURNA GUPTA) '# / JUDICIAL MEMBER -# / ACCOUNTANT MEMBER /' /DATED: 23 RD JULY, 2019 * * &) *+ ,+ / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ' - / CIT 4. ' - ( )/ THE CIT(A) 5. +./ 0 , $ 0 , 123/4 / DR, ITAT, CHANDIGARH 6. /3 5# / GUARD FILE &) ' / BY ORDER, ! / ASSISTANT REGISTRAR