Emarald Logistic Private Limited , Kolkata V. I.T.O.Ward-5(3), Kolkata

ITA 1711/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9460 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 16-12-2019
• Assessment Year: 2015-2016
• Appeal Filed On: 19-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 143(3)

Judgement Text

ITA NO. 1711/KOL/2019 ASSESSMENT YEAR: 2015-2016 EMARALD LOGISTIC PVT. LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B(SMC) BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT I.T.A. NO. 1711/KOL/2019 ASSESSMENT YEAR: 2015-2016 EMARALD LOGISTIC PVT. LIMITED,..................... ..................................APPELLANT 14/2, OLD CHINA BAZAR STREET, ROOM NO. 168, 2 ND FLOOR, KOLKATA-700001 [PAN: AABCE7425P] -VS.- INCOME TAX OFFICER,................................ ......................................RESPONDENT WARD-5(3), KOLKATA, AAYAKAR BHAWAN, P/7, CHOWRINGHEE SQUARE, KOLKATA-700069 APPEARANCES BY: SHRI GOPAL RAM SHARMA, ADVOCATE, FOR THE APPELLANT SHRI JAYANTA KHANRA, JCIT, SR. D.R., FOR THE RESPON DEN T DATE OF CONCLUDING THE HEARING : DECEMBER 16, 2019 DATE OF PRONOUNCING THE ORDER : JANUARY 08, 2020 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-2, KOLKATA DAT ED 21.05.2019 AND THE SOLITARY ISSUE INVOLVED THEREIN RELATES TO THE DISALLOWANCE OF RS.12,51,880/- MADE BY THE ASSESSING OFFICER AND CO NFIRMED BY THE LD. CIT(APPEALS) OUT OF OTHER EXPENSES. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF SHIPPING AGENT AND INTERNATIONAL FR EIGHT FORWARDER. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION W AS FILED BY IT ON 29.09.2015 DECLARING TOTAL INCOME OF RS.1,99,060/-. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE-COMPANY WAS CA LLED UPON BY THE ASSESSING OFFICER TO PRODUCE THE BOOKS OF ACCOUNT A ND THE RELEVANT SUPPORTING DOCUMENTARY EVIDENCE FOR VERIFICATION. T HE ASSESSEE-COMPANY, ITA NO. 1711/KOL/2019 ASSESSMENT YEAR: 2015-2016 EMARALD LOGISTIC PVT. LIMITED 2 HOWEVER, FAILED TO COMPLY WITH THE SAID REQUIREMENT . IN THE ABSENCE OF BOOKS OF ACCOUNT AND OTHER SUPPORTING DOCUMENTARY E VIDENCE, THE ASSESSING OFFICER HELD THAT OTHER EXPENSES CLAIMED BY THE ASSESSEE AGGREGATING TO RS.1,25,18,793/- WERE NOT VERIFIABLE AND A DISALLOWANCE OF RS.12,51,880/- BEING 10% OF THE SAID EXPENSES WAS M ADE BY HIM IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN O RDER DATED 27.12.2017. ON APPEAL, THE LD. CIT(APPEALS) CONFIRM ED THE SAID DISALLOWANCE MADE BY THE ASSESSING OFFICER OBSERVIN G THAT IN THE ABSENCE OF BOOKS OF ACCOUNT AND OTHER SUPPORTING DOCUMENTAR Y EVIDENCE, THE CLAIM OF THE ASSESSEE FOR OTHER EXPENSES WAS NOT FU LLY VERIFIABLE. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 3. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE LIMITED CONTENTION RAISED BY THE LD. COUNSEL FOR THE ASSESSEE IS THAT PROPER AND SUFFICIENT OPPORTUNITY WAS NOT AFFORDED BY THE ASSESSING OFFICER TO THE AS SESSEE DURING THE COURSE OF ASSESSMENT PROCEEDINGS TO PRODUCE THE BOO KS OF ACCOUNT AND THE RELEVANT DOCUMENTARY EVIDENCE IN ORDER TO SUPPO RT AND SUBSTANTIATE ITS CLAIM FOR OTHER EXPENSES. HE HAS CONTENDED THAT THE ASSESSEE-COMPANY IS IN A POSITION TO PRODUCE THE SAME FOR VERIFICATI ON BEFORE THE ASSESSING OFFICER AND URGED THAT AN OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE BY SENDING THE MATTER BACK TO THE ASSESSING OFFICER. S INCE THE LD. D.R. HAS ALSO NOT RAISED ANY OBJECTION FOR SENDING THE MATTE R BACK TO THE ASSESSING OFFICER FOR PROPER VERIFICATION, I SET ASIDE THE IM PUGNED ORDER PASSED BY THE LD. CIT(APPEALS) ON THIS ISSUE CONFIRMING THE D ISALLOWANCE MADE BY THE ASSESSING OFFICER OUT OF OTHER EXPENSES AND RES TORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING THE SAME AFRESH AFTER GIVING THE ASSESSEE PROPER AND SUFFICIENT OPPORTUNITY TO PRODU CE THE BOOKS OF ACCOUNT AND RELEVANT DOCUMENTARY EVIDENCE TO SUPPOR T AND SUBSTANTIATE ITS CLAIM FOR OTHER EXPENSES. AS UNDERTAKEN BY THE LD. COUNSEL FOR THE ASSESSEE, THE ASSESSEE SHALL MAKE DUE COMPLIANCE BE FORE THE ASSESSING ITA NO. 1711/KOL/2019 ASSESSMENT YEAR: 2015-2016 EMARALD LOGISTIC PVT. LIMITED 3 OFFICER AND SHALL EXTEND ALL THE POSSIBLE COOPERATI ON IN ORDER TO ENABLE THE ASSESSING OFFICER TO COMPLETE THE ASSESSMENT AF RESH EXPEDITIOUSLY. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON JANUARY 08, 2 020. SD/- (P.M. JAGTAP) VICE-PR ESIDENT) KOLKATA, THE 8 TH DAY OF JANUARY, 2020 COPIES TO : (1) EMARALD LOGISTIC PVT. LIMITED, 14/2, OLD CHINA BAZAR STREET, ROOM NO. 168, 2 ND FLOOR, KOLKATA-700001 (2) INCOME TAX OFFICER, WARD-5(3), KOLKATA, AAYAKAR BHAWAN, P/7, CHOWRINGHEE SQUARE, KOLKATA-700069 (3) COMMISSIONER OF INCOME TAX (APPEALS)-2, KO LKATA; (4) COMMISSIONER OF INCOME TAX- , KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.