Rajpath Service Station, Howrah V. I.T.O.,Ward-48(1), Kolkata

ITA 1670/KOL/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0670 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 12-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA JCIT LD
• Assessee Lawyers: MANISH TIWARI FCAAR
• Keywords: Business income; TDS
• Section: 133(6); 44AB

Judgement Text

1 ITA NO. 1670/KOL/2019 RAJPATH SERVICE STATION, AY 2014-15 1 IN THE INCOME TAX APPELLATE TRIBUNAL C-SMCBENCH: KOLKATA [BEFORE SHRI A. T. VARKEY, JM ] I.TA NO. 1670/KOL/2019 A.Y 2014-15 RAJPATH SERVICE STATION PAN: AADFR 4883P VS. I.T.O., WARD 48(1), KOLKATA PORT BLAIR APPELLANT RESPONDENT DATE OF HEARING 26.11.2019 DATE OF PRONOUNCEMENT 20.12.2019 FOR THE APPELLANT SHRI MANISH TIWARI, FCA,AR FOR THE RESPONDENT SHRI JAYANTA KHANRA, JCIT, LD. SR.DR ORDER PER SHRI A.T. VARKEY, JM THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT (A), 14, KOLKATA DATED 10-04-2019 FOR THE ASSESSMENT YEA R 2014-15. 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE AS UNDER:- 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, LD. C.I.T. (A) HAS IGNORED THE REMAND REPORT OF AO IN RESPECT OF SALE MADE MIS ASH OKA BUILDCON LTD AND DISMISSED THE APPEAL RELYING ON SALE AS PER ITS DATA, WHICH I S UNJUSTIFIED AND CONTRARY TO LAW .. 2. THAT LD. C.I.T. (A) HAS NOT MENTIONED THE REASON FOR IGNORING THE REMAND REPORT IN HIS ORDER, PARTICULARLY WHEN AO. HAS EXAMINED THE S ALES FIGURE FROM M/S ASHOKA BUILDCON LTD BY ISSUING NOTICE TO THE SAID COMPANY U/S 133(6) OF INCOME TAX ACT, WHICH IS AGAINST THE LAW AND NORMAL JUSTICE. 3. THAT LD. C.LT. (A) DURING APPEAL PROCEEDINGS HAS NOT CALLED FOR ANY EXPLANATION FOR THE DISCREPANCIES BETWEEN THE SALES FIGURE AS PER I TS & SALE FIGURE CONFIRMED IN THE REMAND REPORT. MOREOVER, NEITHER DURING ASSESSMENT STAGE NOR DURING APPEAL STAGE, ITS DATA WAS MADE AVAILABLE TO THE APPELLANT, WHICH IS UNJUSTIFIED AND AGAINST THE NORMAL JUSTICE. 4. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, LD. C.LT. (A) IS WRONG AND UNJUSTIFIED IN CONFIRMING THE ACTION OF AO. WHO ASS ESSED THE UNDISCLOSED INCOME OF THE APPELLANT FIRM OF RS 9,09,201/- IN THE ASSESSMENT A S SUPPRESSED SALE, BASED ON THE ITS DATA. 5. THAT THE APPELLANT CRAVES LEAVE TO ADD, ALTER, A DDUCE OR AMEND ANY GROUND OR GROUNDS ON OR BEFORE THE DATE OF HEARING OF THE APP EAL. 2 ITA NO. 1670/KOL/2019 RAJPATH SERVICE STATION, AY 2014-15 2 3. THE MAIN GRIEVANCE OF THE ASSESSEE IS THAT THE L D. CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF THE AO, WHO ASSESSED UNDIS CLOSED OF THE ASSESSEE FIRM OF RS.9,09,201/- IN THE ASSESSMENT AS SUPPRESSED SALES BASED ON ITS DATA. 4. BRIEF FACTS OF THE CASE AS NOTED BY THE AO ARE THAT DURING THE YEAR UNDER CONSIDERATION, IT WAS SEEN FROM THE ITS DATA THAT THE ASSESSEE HAD MADE SALES TO M/S. ASHOKA BUILDCON LIMITED AMOUNTING TO RS. 8,74,00,95 7/-. THE ASSESSEE WAS DIRECTED TO PRODUCE THE LEDGER OF THE ABOVE MENTIONED PARTY. ON PERUSAL OF THE LEDGER COPY, IT WAS OBSERVED THAT THE TOTAL SALE AS SHOWN BY THE AS SESSEE WAS RS. 8,64,91,756/-. SO, A DIFFERENCE OF RS. 9,09,201/- WAS FOUND. HENCE, ACCO RDING TO AO, THE ASSESSEE HAS SUPPRESSED ITS SALES BY RS. 9,09,201/- AND SINCE TH E ASSESSEE HAS ALREADY BOOKED ALL THE INCIDENTAL EXPENSES, THE AMOUNT OF RS. 9,09,201 /- WAS TAKEN AS UNDISCLOSED PROFIT OF THE ASSESSEE AND ADDED TO THE TOTAL INCOME OF TH E ASSESSEE. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A), WHO WAS PLEASED TO CONFIRM THE SAME AFTER REPRODUCING THE REMAND REPORT OF AO BY OBSERVING AS UNDER:- THE AO IN THE REMAND REPORT HAD CONFIRMED THAT THE TOTAL TRANSACTION OF ASHOKA BUILDCON LTD. WITH THE APPELLANT WAS ONLY RS.864917 56/- DURING THE YEAR. HOWEVER, AS PER ITS DATA, THE APPELLANT HAD MADE TOTAL SALES OF RS.8,74,00,957/-. THE A/R OF THE APPELLANT COULD NOT EXPLAIN THE DISCREPANCIES OF RS .9,09,201/- DURING APPEAL PROCEEDINGS. THEREFORE, THE ADDITION AMOUNTING TO RS.9,09,201/- IS CONFIRMED. THIS GROUND OF APPEALS FAILS AND, THEREFORE, IS NOT ALLO WED. 5. I HAVE HEARD THE PARTIES AND PERUSED THE RECORD S. I NOTE THAT THE ASSESSEE IS PARTNERSHIP FIRM, WHICH IS ENGAGED IN RETAIL DISTRI BUTOR OF H.S.D & M.S PRODUCTS FROM I.O.C. (INDIAN OIL CORPORATION LTD) IN THE NAME AN D STYLE M/S. RAJPATH SERVICE STATION. I FIND THAT ASSESSEES ACCOUNTS ARE AUDITE D AND TAX AUDIT REPORT (TAR) U/S. 44AB OF THE ACT WAS DULY FILED. THE ASSESSEE HAS DE CLARED TOTAL INCOME OF RS. 8,23,830/-. THE AO COMPLETED SCRUTINY ASSESSMENT DE TERMINING TOTAL INCOME AT RS. 17,33,030/- BY MAKING ADDITION OF RS. 9,09,201/- ON ACCOUNT OF ALLEGED UNDISCLOSED PROFIT ON SUPPRESSED SALES IN CONNECTION WITH TRANS ACTION OF M/S. ASHOKA BUILDCON LIMITED. IT IS NOTED THAT BASED ON THE DIFFERENCE BETWEEN M/S. ASHOKA BUILDCON LIMITED AS PER ITS DETAILS AND AS PER LEGER OF THE APPELLANT/ASSESSEE FIRM AN AMOUNT OF RS. 9,09,201/- WAS ADDED. WHEN THE AO CONFRONTED TH E ASSESSEE IN RESPECT OF 3 ITA NO. 1670/KOL/2019 RAJPATH SERVICE STATION, AY 2014-15 3 DISCREPANCY/ DIFFERENCE OF SALE MADE TO M/S. ASHOKA BUILDCON LIMITED IN THE LIGHT OF THE TDS DETAILS AND AS PER LEDGER OF THE ASSESSEE F IRM, THE ASSESSEE FILED LEDGER COPIES OF THE ASSESSEE FIRM AS PER BOOKS OF ACCOUNT AND LE DGER COPY OF THE ASSESSEE FIRM IN RESPECT OF M/S. ASHOKA BUILDCON LIMITED. THE DIFFER ENCE BETWEEN TWO LEDGER RECONCILIATION IS AS UNDER:- DATE AS PER LEDGER PARTICULARS AMOUNT/RS (A) TOTAL CREDIT (AGAINST PURCHASE APPELLANT FIRM) AS PER LEDGER OF M/S ASHOKA BULLDCON LTD 9,20,21,074/- 01/04/2013 LESS: OPENING BALANCE (PAYABLE) CARRI ED FORWARD FROM EARLIER YEAR 31.39,296/ - 8,81,51,778/- 01/04/2013 LESS: DEPOSIT WITH RAJPATH SERVICE ST ATION 7,30,000/- 8,81,51,778/- 15/04/2013 LESS: CANCELLATION OF PAYMENT MADE ON 4/ 04/13 TOTAL PURCHASE DURING FIN. YR. 2013-14(A) 16,59,034/- 8,64,92,744/- (B) TOTAL DEBIT (AGAINST SALES TO M/S, ASHOK A BUILDCON) AS PER LEDGER OF APPELLANT FIRM 9,03,61,050/ - 01/04/2013 LESS: OPENING BALANCE (RECEIVABLE) CA RRIED FORWARD FROM EARLIER YEAR 38,69,294/- TOTAL SALES DURING THE FIN. YR. 2013-14 (B) 8,6 4,91,756/- DIFFERENCE CA) MINUS (B) 988/- IT WAS EXPLAINED WITH THE HELP OF THE AFORESA ID RECONCILIATION THAT THE DIFFERENCE IN TOTAL PURCHASE FROM THE ASSESSEE FIRM AS PER LEDGE R OF M/S. ASHOKA BUILDCON LTD WAS ONLY TO THE TUNE OF RS.988/- AS AGAINST SALES RECOR DED BY THE ASSESSEE FIRM IN ITS BOOKS OF ACCOUNTS. THUS, THE PRAYER OF ASSESSEE IS THAT T HE ADDITION ON THE SCORE OF UNDISCLOSED SALES OF RS. 9,09,201/- NEEDS TO BE DEL ETED OR IN THE ALTERNATIVE, THE ASSESSEE HAD SUBMITTED THAT ENTIRE DIFFERENCE OF RS .9,09,201/- EVEN IF EXISTING, CANNOT BE ADDED IN ITS ENTIRETY AND ONLY PROFIT ELEMENT OF THE UNDISCLOSED SALES COULD BE ADDED. 4 ITA NO. 1670/KOL/2019 RAJPATH SERVICE STATION, AY 2014-15 4 6. AFTER HEARING BOTH THE SIDES, IT IS NOTED THAT T HE ASSESSEE HAS RECONCILED THE DIFFERENCE AND THE REMAINING DIFFERENCE IS ONLY TO THE TUNE OF RS.988/-. SINCE LD. DR COULD NOT POINT OUT ANY MISTAKE IN THE RECONCILIATI ON MADE BY THE ASSESSEE (SUPRA), I DIRECT DELETION OF THE ADDITION OF RS.9,09,201/-. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 20TH DECEMBER, 2019 SD/- A.T. VARKEY JUD ICIAL MEMBER DA TED 20 -12-2019 PP(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. APPELLANT/ASSESSEE: M/S. RAJPATH SERVICE STATION G ROUND FL., NH-6, JADURBERIA, ULUBERIA, HOWRAH-711316. 2 RESPONDENT/REVENUE: THE I.T.O., WARD-48(1), 3 GOVT PL (W), KOLKATA-700 001. 3. CIT, 4. CIT(A), KOLKATA. 5. DR, KOLKATA BENCHES, KOLKATA **PP/SPS TRUE COPY BY BY ORDER ASSISTANT REGISTRAR ITAT KOLKATA