ITO, Ward - 2(3), Kolkata, Kolkata V. M/s. Sutton & Sons (India) Pvt. Ltd., Kolkata

ITA 1563/KOL/2010

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4953 (ITAT-KOLKATA)
• Duration Of Justice: 5 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2016
• Appeal Filed By: Department
• Bench Allotted: C
• Next Hearing Date: 09-02-2016
• Assessment Year: 1999-2000
• Appeal Filed On: 06-08-2010
• Court: TRIBUNAL
• Department Lawyers: SRIDHAR BHATTACHARJEE
• Assessee Lawyers: SOUMITRA CHOW DHURY
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: K OLKATA [BEFORE SHRI MAHAVIR SINGH, JM & SHRI M. BALAGANES H, AM] I.T.A NO.1563/KOL/2010 ASSESSMENT YEAR: 1999-00 INCOME-TAX OFFICER, WD-2(3), KOLKATA. VS. SUTTON & SONS (INDIA) PVT. LTD. (PAN: AADCS6096C) ( APPELLANT ) ( RESPONDENT ) DATE OF HEARING: 09.02.2016 DATE OF PRONOUNCEMENT: 02.03.2016 FOR THE APPELLANT: SHRI SRIDHAR BHATTACHARJEE, JC IT FOR THE RESPONDENT: SHRI SOUMITRA CHOWDHURY, ADV OCATE ORDER PER SHRI MAHAVIR SINGH, JM: THIS APPEAL BY REVENUE IS ARISING OUT OF ORDER OF C IT(A)-I, KOLKATA VIDE APPEAL NO. 331/CIT(A)-1/WD-2(3)/08-09 DATED 07.06.2010. ASSES SMENT WAS FRAMED BY DCIT, CC- XVIII/KOLKATA U/S. 144 OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 1999-00 VIDE HIS ORDER DATED 26.03. 2002. 2. THE ONLY ISSUE IN THIS APPEAL OF REVENUE IS AGA INST THE ORDER OF CIT(A) IN DIRECTING THE AO TO ALLOW BENEFIT OF CARRY FORWARD LOSS CLAIMED BY A SSESSEE AS GENUINE AND ACCORDING TO REVENUE THE SAME WAS NEVER EXAMINED AT THE STAGE OF ASSESSM ENT. FOR THIS, REVENUE HAS RAISED FOLLOWING GROUND NO.3: 3. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CA SE THE LD. CIT(A) HAS ERRED IN DIRECTING THE AO TO ALLOW BENEFITS OF CARRY FORWARD OF LOSS CLAIMED BY THE ASSESSEE GENUINENESS OF WHICH WAS NEVER EXAMINED EITHER AT A SSESSMENT STAGE OR APPELLATE STAGE. 3. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE FILE D ITS RETURN OF INCOME ON 30.12.1999 DECLARING TOTAL LOSS OF RS.99,42,981/-. THE AO FRAMED ASSESS MENT U/S. 144 OF THE ACT DISALLOWING THE CLAIM OF LOSS AS THE ASSESSEE COULD NOT PRODUCE ANY EVIDENCE BEFORE THE AO INCLUDING THE BOOKS OF ACCOUNT. AGGRIEVED, ASSESSEE PREFERRED APPEAL B EFORE CIT(A), WHO ALLOWED THE CLAIM OF THE ASSESSEE BY OBSERVING THAT THE LOSS CLAIMED IS ON A CCOUNT OF EXPENSES WHICH ARE GENUINE. AGGRIEVED, NOW REVENUE IS IN SECOND APPEAL BEFORE T RIBUNAL. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THIS ISSUE WAS NOT EXAMINED AT THE LEV EL OF THE AO OR CIT(A) IN RESPECT TO GENUINENESS OF EXPENDITURE. EVEN THE ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNT BEFORE THE AO OR ANY OTHER DETAILS IN RESPECT TO THESE EXPENSE S. IN SUCH CIRCUMSTANCES, WE ARE OF THE VIEW THAT LET THE ISSUE BE EXAMINED AFRESH AT THE LEVEL OF AO TO DECIDE THE CLAIM OF LOSS TO BE CARRIED 2 ITA NO.1563/KOL/2010 SUTTON & SONS (INDIA) PVT. LTD.. AY 1999-00 2 FORWARD OR NOT. IN TERM OF THE ABOVE, WE SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES AND REMIT THE MATTER BACK TO THE FILE OF AO TO DECIDE THE CLA IM OF LOSS TO BE CARRIED FORWARD OR NOT AFRESH AFTER AFFORDING REASONABLE OPPORTUNITY OF BEING HEA RD TO ASSESSEE. THIS APPEAL OF REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 02.03.2016. SD/- SD/- (M. BALAGANESH) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 2 ND MARCH, 2016 JD. SR. P.S COPY OF THE ORDER FORWARDED TO: 1. APPELLANT ITO, WARD-2(3), KOLKATA. 2. RESPONDENT SUTTON & SONS (INDIA) PVT. LTD., 13/D, RUSSEL STREET, KOLKATA-700071 3. CIT(A), KOLKATA 4. CIT, KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .