IFB Industries Limited.., Kolkata V. I T O Wd - 12(2), Kolkata, Kolkata

ITA 1672/KOL/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 78381 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2014
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 16-11-2012
• Court: TRIBUNAL
• Assessee Lawyers: MD NIZAMUDDIN
• Keywords: Opportunity of being heard; Corroborative evidences

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH C , KOLKATA [BEFORE HONBLE SRI MAHAVIR SINGH, JM & HONBLE S RI SHAMIM YAHYA, AM ] ITA NO.1672/KOL/2012 ASSESSMENT YEAR : 2005-06 ( APPELLANT ) (RESPONDENT) IFB INDUSTRIES LIMITED. -VS- I.T.O., WARD-12(2), KOLKATA KOLKATA (PAN:AAACI 6561 R) FOR THE APPELLANT MD.NIZAMUDDIN FOR THE RESPONDENT SHRI VIVEK VERMA, JCIT, SR.DR DATE OF HEARING : 09.07.2014 DATE OF PRONOUNCEMENT : 09. 07.2014. ORDER PER SHRI SHAMIM YAHYA, AM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST ORDER OF LD. C.I.T.(A)- CENTRAL-XXXVI, KOLKATA DATED 08.08.2012 AND PERTAIN S TO ASSESSMENT YEAR 2005-06. 2. THE GROUNDS OF APPEAL IN THIS APPEAL READ AS UN DER :- 1. FOR THAT THE ORDER OF THE LD.CIT(A) IS ARBITRAR Y, ILLEGAL AND BAD IN LAW. 2. FOR THAT THE LD. CIT(A) ERRED IN ENHANCING THE D ISALLOWANCE UNDER HEAD OTHER SUNDRY EXPENSES WITHOUT ANY BASIS AND TOTALLY SURM ISE AND CONJECTURE. 3. FOR THAT THE LD. CIT(A) ARBITRARILY DISALLOWED A SUM OF RS.1,56,01,500/- BEING 50% OF THE AMOUNT CLAIMED UNDER HEAD OTHER SUNDRY EXPENSE S PURELY ON ESTIMATE BASIS. 4. FOR THAT THE LD. CIT(A) WAS TOTALLY UNJUSTIFIED IN NOT AT ALL CONSIDERING THE DISALLOWANCE OF RS.15,60,000/- BEING 5% OF OTHER S UNDRY EXPENSES IN A SUMMARY MANNER AND ON ESTIMATE BASIS. 5. FOR THAT THE LD. CIT(A) WAS NOT JUSTIFIED IN CON SIDERING THE APPELLANTS PRAYER FOR ADJOURNMENT OF CASE FOR FILING DOCUMENTS AND EVIDEN CE AS THE APPELLANT COMPANY WAS UNDER PROCESS OF INSTALLING SAP COMPUTING PROGRA ME FOR THE ACCOUNT AND DOCUMENTS INVOLVING ALL THE 15(FIFTEEN) BRANCHES SPREAD ALL O VER INDIA. 6. FOR THAT THE FACTS AND CIRCUMSTANCES OF THE CASE THE ORDER OF THE C.I.T.(A) BE MODIFIED AND THE ASSESSEE BE GIVEN THE RELIEF PRAYED FOR. 7. FOR THAT THE ASSESEE CRAVES LEAVE TO ADD, ALTER OR AMEND ANY GROUND BEFORE OR AT THE TIME OF HEARING. 3. IN THIS CASE THE ASSESSEE IS ENGAGED IN THE MANU FACTURING OF AUTO PARTS AND HOME APPLIANCES. IN THE PROFIT AND LOSS ACCOUNT FOR THE ASSESSMENT YEAR UNDER APPEAL ITA.NO.1672/KOL/2012 IFB INDUSTRIES LTD. A.YR.2005-06 2 A SUM OF RS.3,12,03,000/- WAS DEBITED UNDER THE NAR RATION OTHER SUNDRY EXPENSES. THE AO OBSERVED THAT DETAILS OF EXPENSES SO DEBITED COULD NOT BE FURNISHED AND DOCUMENTARY EVIDENCE WAS NOT PRODUCED IN SUPPORT TH EREOF. HE THUS CAME TO THE CONCLUSION THAT THE EXPENSES SO CLAIMED WERE NOT VO UCHED OR VERIFIABLE AND DISALLOWED 5 TH THEREOF. 4. UPON ASSESSEES APPEAL IN THIS REGARD, THE LD. C IT(A) NOTED THAT THE ASSESSEE HAS NOT SUBMITTED FULL PARTICULARS AND DOCUMENTARY EVIDENCES. HENCE HE WENT ON TO ENHANCE THE DISALLOWANCE MADE BY THE AO TO THE TUNE OF 50% OF SUCH EXPENSES. ACCORDINGLY THE LD. CIT(A) MADE DISALLOWANCE OF RS .1,56,01,500/- IN PLACE OF THE SUM OF RS.15,60,000/-. AGAINST THE ABOVE ORDER THE ASSESSEE IS IN APPEAL B EFORE US. 5. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE R ECORDS. WE FIND THAT THE ABOVE DISALLOWANCE HAS BEEN MADE BY THE AUTHORITIES BELOW AS THE ASSESSEE HAS FAILED TO PRODUCE SUPPORTING EVIDENCES IN SUPPORT OF THE E XPENDITURE INCURRED. WE AGREE THAT DHORS SUPPORTING MATERIAL EXPENSES CLAIMED CANNOT BE ALLOWED. HOWEVER, THE LD. COUNSEL OF THE ASSESSEE HAS PLEADED BEFORE US THAT THE MATTER MAY BE REMITTED TO THE FILE OF AO AND THE ASSESSEE SHALL PRODUCE THE REQU ISITE INFORMATION AND DOCUMENTS. HENCE HE PLEADED THAT THE MATTER MAY BE REMITTED TO THE FILE OF THE AO. THE LD. DR IS HEARD. 5.1. UPON CAREFUL CONSIDERATION WE FIND THAT THE DI SALLOWANCE HAS BEEN MADE AS THE SUPPORTING EVIDENCE FOR THE EXPENSE CLAIM OF THE AS SESSEE WAS NOT PRODUCED BEFORE THE AUTHORITIES BELOW. NOW THE ASSESSEES COUNSEL IS UN DERTAKING THAT HE SHALL PRODUCE NECESSARY DOCUMENTS BEFORE THE AUTHORITIES BELOW. HENCE, IN OUR CONSIDERED OPINION, INTEREST OF JUSTICE WILL BE SERVED IF THE MATTER IS REMITTED TO THE FILE OF THE AO. THE AO IS DIRECTED TO CONSIDER THE ISSUE AFRESH AFTER GIVI NG THE ASSESSEE ADEQUATE OPPORTUNITY OF BEING HEARD. ITA.NO.1672/KOL/2012 IFB INDUSTRIES LTD. A.YR.2005-06 3 6. IN THE RESULT THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 09.07.2014. SD/- SD/- [ MAHAVIR SINGH ] [SHAMIM YAHYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 09.07.2014. R.G.(.P.S.) COPY OF THE ORDER FORWARDED TO: 1. IFB INDUSTRIES LIMITED, 14, TARATOLLA ROAD, KOLKATA -700088. 2 I.T.O., WARD-12(2), KOLKATA 3 . CIT(A)-XXXVI, KOLKATA 4. CIT - KOLKATA. 5. CIT-DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES