ITO, Ward-33(4), Kolkata, Kolkata V. M/S. Sheong Shi Tannery, Kolkata

ITA 1599/KOL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99707 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2015
• Appeal Filed By: Department
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 30-07-2014
• Court: TRIBUNAL
• Department Lawyers: SNEHOTPAL DUTTAJCIT
• Assessee Lawyers: D K BANDOPADHYAYFCA
• Section: 40A(3); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH SMC , KOLKATA [BEFORE HON BLE SHRI MAHAVIR SINGH, JM ] IT A NO.1599/KOL/2014 ASSESSMENT YEAR : 2007 - 08 ( A PPELLANT ) (RESPONDENT) I.T.O., WARD - 33 (4) - VERSUS - M/S. SHEONG SHI TANNERY KOLKATA KOLKATA (PAN: AAM FS 7671 P) FOR THE APPELLANT: SHRI SNEHOTPAL DUTTA,JCIT FOR THE RESPONDENT: SHRI D.K.BANDOPADHYAY,FCA DATE OF HEARING : 30 .07 .2015. DATE OF PRONOUNCEMENT : 05.08.2015. ORDER THIS APPEAL OF ASSESSEE ARISES FROM THE ORDER OF LD. CIT(A) - XIX, KOLKATA IN APPEAL NO . 76/CIT(A) - XIX/WARD - 33(4)/KOL/12 - 13 DATED 23.05.2014 . ASSESSMENT WAS FRAMED BY I.T.O., WARD - 33(4 ), KOLKATA U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REF ERRED TO AS THE ACT ) FOR A.Y . 2007 - 08 VIDE ITS ORDER DATED 18.12.2009. 2. THE ONLY ISSUE TO BE ADJUDICATED IN THIS APPEAL IS AS TO WHETHER THE LD. CIT(A) IS RIGHT IN DELETING THE ADDITION MADE IN THE SUM OF RS.,20,46,300/ - U/S 40A(3) OF THE ACT ON ASSESSED INCOME OF RS.1,32, 800/ - . 3. THE BRIEF FACTS OF THE CASE ARE AS FOLLOWS : - THE ASSESSEE IS A PARTNERSHIP FIRM ENGAGED IN THE BUSINESS OF TANNERY AND DURING THE ASSESSMENT YEAR UNDER REVIEW HAD PURCHASED RAW HIDE FOR THE PURPOSE OF ITS BUSINESS AND MADE PAYMENT OF RS.1 ,02,31,000/ - TO SIX PARTIES IN TOTAL IN CASH /BEARER CHEQUES. THIS WAS FOUND BY THE LD. AO AND DISALLOWANCE U/S 40A(3) WAS MADE @20% OF THE SAID CASH PAYMENTS. ITA NO. 1599/KOL/2014 M/S. SHEONG SHI TANNERY A.YR. 20 07 - 08 2 AGGRIEVED AGAINST THIS ORDER, THE ASSESSEE CHALLENGED THIS ISSUE BEFORE THE LD. CIT(A), WHO DEL ETED THE ADDITION ON THE FOLLOWING FACTS : - I)IN THE REMAND REPORT SUBMITTED BY THE LD.AO ON 15.01.2014 THE LD.AO HAD CONFIRMED THAT ASSESSEE HAD MADE PURCHASES FRO M PARTIES IN UTTAR PRADESH . THE AO HAD STATED THAT IDENTITY OF THOSE PARTIES HAVE BEEN CON FIRMED BY THE GRAM PANCHAYAT PRADHAN OF RATHERI GRAM PANCHAYAT OF DISTRI CT MUZAFFARNAGAR, UTTAR PRADESH; II)THE SELLERS HAVE GIVEN AFFIDAVIT CONFIRMING THEIR ADDRESSE S AND SALE TO THE ASSESSEE FIRM; III)CERTIFICATE FROM A VETERINARY DOCTOR, DR.B.K.ANAND, M UZAFFARNAGR, UTTAR PRADESH CONFIRMING THE FACT THAT THE SELLERS ARE PRODUCERS OF RAW HIDE AND SLAUGHTERIN G WAS DONE UNDER HIS SUPERVISION; AND . IV)CONFIRMATION FROM THE SELLERS THAT PAYMENTS WERE RECEIVED BY THEM IN CASH. BASED ON THE AFORESAID FACTS , THE LD. CIT(A) CONFIRMED THAT GENUINENESS OF THE TRANSACTIONS IS NOT TO BE DOUBTED AND FROM THE BOOKS OF ACCOUNTS AND LEDGER S THAT WERE PRO DUCED BEFORE THE LD. CIT(A), IT WAS ASCERTAINED BY THE LD. CIT(A) THAT NO PAYMENTS E XCEEDING RS.20,000/ - IN CASH WERE MA DE BY THE ASSESSEE FIRM EVEN ON A SINGLE DAY WARRANT ING ANY DISALLOWANCE U/S 40A(3) OF THE ACT. MOREOVER, IT WAS ALSO SEEN BY THE LD. CIT(A) THAT THE SUBJECT MENTIONED PAYMENT FALLS SQUARELY UNDER THE EXCEPTION TO RULE 6DD(E)(II) OF IT RULES, 1962 WHICH IS REPRODUCED HEREIN BELOW FOR THE SAKE OF CONVENIENCE : - 6DD(E)(II) WHERE THE PAYMENT IS MADE FOR THE PURCHASE OF (II) THE PRODUCE OF ANIMAL HUSBANDRY( INCLUDING LIVESTOCK, MEAT, HIDES, AND SKINS) OR DAIRY OR POULTRY FARMING; OR ON THESE GROUNDS T HE LD. CIT(A) DELETED THE ADDITION. AGGRIEVED BY THIS ORDER, THE REVENUE IS IN APPEAL BEFORE THIS TRIBUNAL. 4. SHRI SNEHOTPAL DUTTA, JCIT APPEARED ON BEHALF OF THE REVENUE AND SHRI D.K.BANDYOPADHYAY, FCA APPEARED ON BEHALF OF THE ASSESSEE. ITA NO. 1599/KOL/2014 M/S. SHEONG SHI TANNERY A.YR. 20 07 - 08 3 5. THE LD. DR WAS NOT ABLE TO REFUTE ANY OF THE FACTS AND EVIDENCES STATED BY THE LD. CIT(A) IN HIS APPELLATE ORDER. 6. I HAVE HEARD THE RIVAL SUBMISSIONS. SINCE NO FRESH MATERIALS ENCOUNTERING THE FACTS MENTIONED IN THE ORDER OF THE LD. CIT(A) ARE BRO UGHT ON RECORD/ARGUED BY THE LD. DR DURING THE COURSE OF HEARING BEFORE ME, I AM NOT INCLINED TO INTERFERE WITH THE ORDER OF THE LD. CIT(A). HENCE, THIS GROUND OF APPEAL BY THE REVENUE IS DISMISSED. 7. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMI SSED. O RDER PRONOUNC ED IN TH E COURT . SD/ - [MAHAVIR SINGH] JUDICIAL MEMBER DATE: 05.08.2015. R.G.(.P.S.) COPY OF THE ORDER FORWARDED TO : 1 . M/S. SHEONG SHI TANNERY, 47, SOUTH TANGRA ROAD, KOLKATA - 700046. 2 THE I.T.O., WARD - 33(4 ), KOLKATA. 3 . THE CIT, 4. THE CIT(A) - XIX, KOLKATA. 5 . DR, KOLKATA BENCHES, KOLKATA TRUE COPY , BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES