Flexi Pack India Pvt. Ltd., , Kolkata V. DCIT, Circle - 10(1), Kolkata , Kolkata

ITA 1531/KOL/2018

AI Insights

The case involves Flexi Pack India Pvt. Limited, which appealed against the order of the Commissioner of Income Tax (Appeals)-4, Kolkata, confirming an addition of Rs. 20,00,000 under section 68 of the Income Tax Act to the assessee's income for the Assessment Year 2012-2013. The assessee had initially filed a return declaring a lower income, which was subsequently increased by the Assessing Officer. The assessee's appeal to the CIT(Appeals) was unsuccessful, leading to the current appeal before the Income Tax Appellate Tribunal. However, the assessee later approached the Settlement Commission, which passed an order on the taxability of income, including the relevant assessment year, based on a search conducted after the assessment. The Tribunal noted the assessee's withdrawal of the appeal and did not delve into the substantive issues, leaving the matter as concluded by the assessee's decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129027 (ITAT-KOLKATA)
• Duration Of Justice: 5 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 24-09-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 16-07-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 68; 143(3)

Judgement Text

ITA No. 1531/KOL/2018 Assessment Year : 2012-2013 Flexi Pack India Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President & Dr. Manish Borad, Accountant Member I.T.A. No. 1531/KOL/2018 Assessment Year: 2012-2013 Flexi Pack India Pvt. Limited,....................Appellant 113/1B, Hazra Road, Kolkata-700026 [PAN: AAACF4400G] -Vs.- Deputy Commissioner of Income Tax,........Respondent Circle-10(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances by: Shri Amit Agarwal, Advocate, appeared on behalf of the assesseee Shri B.K. Singh, JCIT (Sr. DR), appeared on behalf of the Revenue Date of concluding the hearing : September 25, 2023 Date of pronouncing the order : September 25, 2023 O R D E R Per Shri Rajpal Yadav, Vice-President (KZ):- The present appeal was listed for hearing before the Tribunal on 24 t h August, 2023 and the Tribunal has passed the following order:- “24.08.2023: The present appeal is directed at the instance of assesseee against the order of ld. Commissioner ITA No. 1531/KOL/2018 Assessment Year : 2012-2013 Flexi Pack India Pvt. Limited 2 of Income Tax (Appeals)-4, Kolkata dated 15 th May, 2018 passed for A.Y. 2012-13. 2. The assessee has filed its return of income electronically on 14.09.2012 declaring total income of Rs.70,74,280/-. The ld. Assessing Officer has passed an assessment order under section 143(3) on 18.03.2015 and determined the taxable income of the assessee at Rs.97,16,470/-. He made a major addition of Rs.20,00,000/- under section 68 of the Income Tax Act. 3. Dissatisfied with the assessment order, the assessee carried the matter in appeal before the ld. CIT(Appeals) and the appeal to the ld. CIT(Appeals) has been decided by the impugned order on 15.05.2018. The ld. CIT(Appeals) has confirmed the major addition of Rs.20,00,000/-, which was made by the ld. Assessing Officer with the help of section 68 of the Income Tax Act. Apart from this addition, there is other small disallowance. 4. The ld. Counsel for the assessee at the very outset submitted that the assessee had approached the Settlement Commission and Settlement Commissioner has decided the taxability of income including A.Y. 2012-13 vide order dated 21.07.2023. It is pertinent to observe that application before the Settlement Commission was filed on 23.12.2019 and determination of income by virtue of this order of Settlement Commission is out of the search carried out upon the assessee on 24.01.2019. Therefore, we confronted the ld. Counsel for the assessee how this order is applicable upon the regular assessment of income passed prior to the search conducted upon the assessee. The ld. Counsel sought time to explain this position and hearing is adjourned to 25 th September, 2023. Copy of this Order-sheet be supplied to both the parties. Sd/- Sd/- (Rajesh Kumar) (Rajpal Yadav) Accountant Member Vice-President (KZ) 2. Today, the ld. Counsel for the assessee prayed that the assessee is not interested in prosecuting this appeal and it be dismissed as withdrawn. He failed to give any explanation with regard to our query mentioned above ITA No. 1531/KOL/2018 Assessment Year : 2012-2013 Flexi Pack India Pvt. Limited 3 and submitted that after the Settlement Commission’s order though passed on the basis of outcome of a search conducted subsequently, the determination of taxable income has attained finality. Since the assessee does not want to press this appe al and prayed for its dismissal, therefore, we do not make any comments, though we have our reservation about the claim made by the assessee. It is for the Revenue to take into consideration all these facts and circumstances. This appeal of the assessee is dismissed as withdrawn. The observations made by us will not impair or injure the case of Assessing Officer or will cause any prejudice to the defence/explanation of the assessee. This appeal of the assessee is to be treated as withdrawn and accordingly dismissed. 3. In the result, the appeal of the assessee is dismissed. Order pronounced in the open Court on September 25, 2023. Sd/- Sd/- (Manish Borad) (Rajpal Yadav) Accountant Member Vice-President(KZ) Kolkata, the 25 th day of September, 2023 Copies to : (1) Flexi Pack India Pvt. Limited, 113/1B, Hazra Road, Kolkata-700026 ITA No. 1531/KOL/2018 Assessment Year : 2012-2013 Flexi Pack India Pvt. Limited 4 (2) Deputy Commissioner of Income Tax, Circle-10(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 (3) Commissioner of Income Tax (Appeals)-4, Kolkata, (4) Commissioner of Income Tax , (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.