DCIT, Circle - 10(1), Kolkata, Kolkata V. M/s. Bengal Chemicals & Pharmaceuticals Ltd., Kolkata

ITA 1590/KOL/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1436 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 24-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHRUBAJYOTI ROY JCIT SRDR
• Assessee Lawyers: H V BHARDWAJ
• Keywords: Revised return

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH A KOLKATA BEFORE SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO.1590/KOL/2018 ASSESSMENT YEAR: 2012-13 DCIT, CIRCLE-10(1), P-7, CHOWRINGHEE SQUARE, 3 RD FLOOR, KOLKATA-69 / V/S . M/S BENGAL CHEMICALS & PHARMACEUTICALS LTD., 6 GANESH CHANDRA AVENUE, KOLKATA-700 013 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI DHRUBAJYOTI ROY, JCIT SR-DR /BY RESPONDENT SHRI H.V. BHARDWAJ, AR /DATE OF HEARING 02-12-2019 /DATE OF PRONOUNCEMENT 13-12-2019 /O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2012-13 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-4, KOLKATAS O RDER DATED 03.04.2018 PASSED IN CASE NO.306/CIT(A)-4/KOL/2015-16 INVOLVING PROCE EDINGS U/S143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE(S) PERUSED. 2. FOR THE REASON STATED IN THE REVENUES CONDONATI ON PETITION DATED 20.08.2018 EXPLAINING DELAY OF ONE DAY IN FILING AND ON ACCOUN T OF THE ASSESSEES NO OBJECTION THERETO, WE HOLD THAT THE IMPUGNED DELAY IS NEITHER HAS INTENTIONAL NOR DELIBERATE. WE ACCORDINGLY ACCEPT REVENUES CONDONATION PLEADINGS. ITS MAIN APPEAL IS NOW TAKEN UP FOR ADJUDICATION ON MERITS. ITA NO.1590/KOL/2018 ASSESSMENT YEAR 2012-13 DCIT,CIR-10(1) KOL. VS M/S BENGAL CHEMICALS & PHARMACEUTICALS LTD. PAGE 2 3. THE REVENUE RAISES THE FOLLOWING THREE SUBSTANTI VE GROUNDS IN THE INSTANT APPEAL:- (I) THE LD. CIT(A) ERRED IN DETERMINING BUSINESS L OSS TO THE TUNE OF RS.32,21,08,968/- BY DIRECTING THE AO TO CONSIDER THE REVISED COMPUTATION OF INCOME SUBMITTED BY THE ASSESSEE. (II) THE LD. CIT(A) ERRED IN DIRECTING THE AO TO CO NSIDER THE REVISED FIGURES OF PROVISION FOR GRATUITY AND LEAVE SALARY WHICH HAS B EEN DEBITED AT RS.18,72,032/- ONLY IN THE REVISED ACCOUNTS WHEREAS THE ASSESSEE-COMPANY ITSELF NOT CONSIDERED THE FIGURES OF ANNUAL REPORT, IN SPITE OF SEVERAL OPPORTUNITY AFTER PUBLICATION OF ANNUAL REPORT, DTD . 30.06.2014. (III) THE LD. CIT(A) ERRED IN DIRECTING THE AO TO T AKE THE REVISED INTEREST INCOME OF RS.10,02,44,000/- 4. IT EMERGES DURING THE COURSE OF HEARING THAT THE REVENUES SOLE SUBSTANTIVE GRIEVANCE FORMING SUBJECT-MATTER ALL THE ABOVE EXTR ACTED THREE SUBSTANTIVE GROUNDS IS THAT HE CIT(A) HAS ERRED IN LAW AS WELL AS ON FACTS IN DIRECTING THE ASSESSING OFFICER TO CONSIDER THE ASSESSEES REVISED COMPUTATION. LEA RNED DEPARTMENTAL REPRESENTATIVE QUOTES HON'BLE APEX COURTS LANDMARK DECISION IN GOOTEZE (INDIA) LTD. VS. CIT (2006) 284 ITR 323 (SC) THAT SUCH A CLAIM; NOT ACCOMPANIED BY A REVISED RETURN BEFORE THE ASSESSING OFFICER, IS NOT LIABLE TO BE ACCEPTED. WE FIND NO MERIT IN REVENUES INSTANT SOLE SUBSTANTIVE GRIEVANCE. THEIR LORDSHIPS HOLD IN THE ABOVE STATED CASE LAW ITSELF THAT THE SAME NOWHERE IMPINGES UPON THE JURISDICTION OF APPELLATE AUTHORITY(IES) TO ENTERTAIN SUCH A CLAIM AS PER LAW. COUPLED WITH THI S, WE NOTICE THAT THE ASSESSEE HAD BEEN FILING ITS RETURN AND TAX AUDITED REPORT ON TH E BASIS OF PROVISIONAL ACCOUNTS FOLLOWED BY A REVISED TOTAL INCOME AT LATER STAGE O N THE BASIS OF AUDITED ACCOUNTS FOR MORE THAN THE PRECEDING TEN ASSESSMENT YEAR(S) TILL FINANCIAL YEAR 2013-14. ALL SUCH REVISED COMPUTATIONS HAVE BEEN DULY ACCEPTED AS PER CASE RECORDS. 5. LEARNED DEPARTMENTAL REPRESENTATIVE FURTHER FAIL S TO DISPUTE THAT THERE IS NO LOSS CAUSED TO THE REVENUES INTEREST SINCE CIT(A) HAS I SSUED DIRECTIONS TO THE ASSESSING OFFICER TO ASCERTAIN ASSESSEES TAXABLE INCOME AS P ER THE REVISED COMPUTATION AFTER NECESSARY FACTUAL VERIFICATION ON ALL THE THREE ISS UES. ALL THESE CLINCHING ASPECTS HAVE GONE UNREBUTTED FROM THE REVENUE SIDE. WE FIND IN T HIS FACTUAL BACKDROP THAT THIS CO- ITA NO.1590/KOL/2018 ASSESSMENT YEAR 2012-13 DCIT,CIR-10(1) KOL. VS M/S BENGAL CHEMICALS & PHARMACEUTICALS LTD. PAGE 3 ORDINATE BENCHS DECISION IN M/S VIDULA CHEMICALS & MANUFACTURING INDUSTRIES LTD . IN ITA NO.2108/KOL/2014 HAS ALREADY DECLINED THE REVENUES IDENTICAL ARGUM ENTS CHALLENGING THE CIT(A)S SIMILAR DIRECTIONS ISSUED TO THE ASSESSING OFFICER. BE THAT AS IT MAY, WE CONCLUDE THAT THE ASSESSING OFFICER IS Y ET TO ASSESS THE ASSESSEES TAXABLE INCOME ON THE BASIS OF SAID REVISED COMPUTATION. WE THEREFORE UPHOLD THE CIT(A)S DIRECTIONS UNDER CHALLENGE. THE ASSESSING OFFICER IS DIRECTED TO FINALIZE HIS CONSEQUENTIAL ASSESSMENT AS PER LAW. 6. THIS REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 13/12/2019 SD/- SD/- ( ') () ') (J.SUDHAKAR REDDY) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER *DKP-SR.PS * - 13/12/2019 / KOLKATA / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-DCIT, CIR-10(1),P-7, CHOWRINGHEE SQ. KOL KATA-69 2. /RESPONDENT-M/S BENGAL CHEMICALS & PHARMACEUTICALS LTD., 6, GANESH CHANDRA AVENUE, KOLKATA-13 3. - . / CONCERNED CIT 4. . - / CIT (A) 5. / ))- , - /DR, ITAT, KOLKATA 6. 3 / GUARD FILE. BY ORD ER/ , /TRUE COPY/ -,