Gatiman Transports Pvt. Ltd., Pune V. Income-tax Officer,

ITA 172/PUN/2014

• Counselvise Citation: 17224514 RSA 2014
• Duration Of Justice: 1 year(s) 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 21-04-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 28-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE MS SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO.172/PN/2014 ASSESSMENT YEAR: 2006-07 GATIMAN TRANSPORTS PVT. LTD., 408/9/2, GULTEKADI ROAD, INDUSTRIAL AREA, PUNE 411037 . APPELLANT PAN: AABCG6434A VS. THE INCOME TAX OFFICER, WARD 1(4), PUNE. . RESPONDENT APPELLANT BY : SHRI M.K. KULKARNI RESPONDENT BY : SHRI RAJESH DAMOR DATE OF HEARING : 23-04-2015 DATE OF PRONOUNCEMENT : 29-04-2015 ORDER PER SUSHMA CHOWLA, JM: THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE OR DER OF CIT(A)-I, PUNE DATED 30.09.2013 RELATING TO ASSESSMENT YEAR 2006-0 7 PASSED UNDER SECTION 143(3) OF THE INCOME-TAX ACT, 1961. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LD.CIT(A) ERRED IN SUSTAINING THE ADDITION OF RS.5,58,456/- M ADE BY THE A.O. ORIGINALLY IN HIS ASSESSMENT ORDER EVEN AFTER THE D IFFERENCE ADDED WAS RECONCILED AND EXPLAINED THAT IT OCCURRED DUE TO TY POGRAPHICAL ERROR SO CONFIRMED BY THE DEDUCTOR. THE LD. CIT(A) OUGHT TO HAVE ACCEPTED THE EXPLANATION AND DELETED THE ADDITION. IT BE HELD AC CORDINGLY. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW IT IS UNFORTUNATE THAT THIS HON'BLE TRIBUNAL IN ASSESSEE' S APPEAL NO. 1429/PN/2010 DECIDED ON 15-2-2012 PERTAINING TO THE SAME ASSESSMENT YEAR IN RESPECT OF THE SAME ADDITION HAD HELD THAT THE 'APPROACH OF THE CIT(A) IS NOT JUDICIOUS'. THE LD. CIT(A) DISMISSING THE APPEAL OF THE ASSESSEE PERPETUATED T HE SAME NON-JUDICIOUS APPROACH. THE ADDITION CONFIRMED BY L D. CIT(A) BE DELETED. ITA NO.172/PN/2014 GATIMAN TRANSPORTS PVT. LTD. 2 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE ASSESSEE-APPELLANT IS DEPRIVED OF JUSTICE BY THE AC TION OF THE LD. CIT(A) IN DISMISSING THE APPEAL. 4. THE APPELLANT CRAVES/LEAVE TO ADD, AMEND OR ALTE R ANY OF THE ABOVE GROUNDS OF APPEAL. 3. THE ISSUE RAISED IN THE PRESENT APPEAL IS AGAINS T THE ADDITION OF RS.5,58,456/-. 4. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE ASSE SSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS NOTED THAT THE FRE IGHT RECEIPTS AS PER THE TDS CERTIFICATE ENCLOSED WITH THE RETURN OF INCOME AMOU NTED TO RS.1,69,27,324/- WHEREAS IN THE PROFIT & LOSS ACCOUNT THE GROSS RECE IPT RECEIVED WERE SHOWN AT RS.1,63,68,868/-, THERE WAS A DIFFERENCE OF RS.5,58 ,456/-. THE EXPLANATION OF THE ASSESSEE IN THIS REGARD OF NOT HAVING RECEIVED THE FREIGHT RECEIPTS WAS REJECTED BY THE ASSESSING OFFICER AS THE ASSESSEE WAS FOLLOW ING MERCANTILE SYSTEM OF ACCOUNTING AND AN ADDITION OF RS.5,58,456/- MADE IN THE HANDS OF THE ASSESSEE. THE CIT(A) IN THE APPELLATE PROCEEDINGS AFFIRMED TH E ADDITION OF RS.5,58,456/-. THE ASSESSEE MOVED AN APPEAL BEFORE THE TRIBUNAL ON SURMISE THAT THE ADDITION IS NOT JUSTIFIED WHERE THE ASSESSEE COULD NOT RE-CO NCILE THESE TWO AMOUNTS BEFORE THE ASSESSING OFFICER AND THE CIT(A) HAD REJECTED T HE ADDITIONAL EVIDENCE AND AFFIRMED THE ADDITION. THE TRIBUNAL IN ITA NO.1429 /PN/2010 VIDE ORDER DATED 15.02.2012 DIRECTED THE CIT(A) TO ADMIT THE ADDITIO NAL EVIDENCE AND ADJUDICATE THE ISSUE UNDER CONSIDERATION. HOWEVER, WITH REGAR D TO THE IRREGULARITY TO THE TUNE OF RS.5,695/- ANOTHER OPPORTUNITY WAS GIVEN TO THE ASSESSEE TO RE-CONCILE THE SAME IN SET-ASIDE THE PROCEEDINGS. 5. THE CIT(A) CONSIDERED THE ADDITIONAL EVIDENCE FI LED BY THE ASSESSEE THAT THE DEDUCTOR M/S SAHYADRI STARCH AND INDUSTRIES PVT . LTD. HAD BY AN INADVERTENT ERROR MENTIONED A SUM OF RS.5,55,306/- IN-SPITE OF RS.76,668/-. THE ASSESSEE ALSO PRODUCED LEDGER ACCOUNT EXTRACT OF THE TAX DED UCTOR IN THE BOOKS OF ACCOUNT OF THE ASSESSEE AND ALSO THE ACCOUNT EXTRACT OF THE ASSESSEE IN THE BOOKS OF ITA NO.172/PN/2014 GATIMAN TRANSPORTS PVT. LTD. 3 ACCOUNT OF THE TAX DEDUTOR. THE CIT(A) NOTED THAT THE SUM OF RS.76,668/- WHICH IS STATED TO BE A CORRECT FIGURE DOES NOT APPEAR IN THE LEDGER ACCOUNT. FURTHER, THE ASSESSEE FILED ANOTHER RE-CONCILIATION STATEMEN T WHICH IS REPRODUCED AT PAGE 4 OF THE APPELLATE ORDER. THE CIT(A) NOTED THAT TH ERE WAS A NON-RECONCILIATION IN THE OPENING BALANCE AND CLOSING BALANCE IN THE BOOK S OF ACCOUNT OF THE TAX DEDUCTION AND IN THE BOOKS OF ACCOUNT OF THE ASSESS EE AND FURTHER THERE WAS A DISCREPANCY OF RS.5,695/- DEBITED TO THE ACCOUNT OF THE ASSESSEE BY OTHER PARTY BY WAY OF TDS. SINCE IN THE PRESENT CASE, THE ASSE SSEE HAD NOT PROVIDED ITEM BY ITEM RE-CONCILIATION TO THE ENTRIES IN THE LEDGE R OF THE SAID PARTY IN THE BOOKS OF ACCOUNT OF THE ASSESSEE, THE CIT(A) REJECTED THE PL EA OF THE ASSESSEE AND CONFIRMED THE ADDITION OF RS.5,58,456/-. THE ASSES SEE IS IN APPEAL AGAINST THE ORDER OF THE CIT(A). 6. THE LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESS EE PRODUCED BEFORE US THE SAID CERTIFICATE ISSUED BY THE DEDUCTOR, M/S SA HYADRI STARCH AND INDUSTRIES PVT. LTD. AND POINTED OUT THAT THE AMOUNT WAS INCOR RECTLY MENTIONED IN THE TDS CERTIFICATE AT RS.5,55,306/- IN-SPITE OF 76,668/-. 7. THE LD. DEPARTMENTAL REPRESENTATIVE FOR THE REVE NUE, ON THE OTHER HAND, POINTED OUT THAT THE ASSESSEE HAS FAILED TO PRODUCE THE LEDGER ACCOUNT IN THE BOOKS OF ACCOUNT OF THE SAID PARTY IN WHICH THERE I S A CREDIT OF RS.76,668/-. 8. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSEE HAD FURNISHED TDS CERTIFICATE ISSUED BY M/ S SAHYADRI STARCH AND INDUSTRIES PVT. LTD. VIS--VIS ITS CLAIM OF TAX DED UCTED AT SOURCE OUT OF THE RECEIPTS RECEIVED BY THE ASSESSEE. THE ASSESSING OFFICER NO TED THAT THERE WAS A DISCREPANCY VIS--VIS THE RECEIPTS DECLARED IN THE TDS CERTIFICATE AND THE RECEIPTS SHOWN BY THE ASSESSEE IN BOOKS OF ACCOUNT, THE DIFF ERENCE WAS OF RS.5,58,456/-. THE EXPLANATION OF THE ASSESSEE IN THIS REGARD BEFO RE THE AUTHORITIES BELOW WAS THAT AS AGAINST A CREDIT OF RS.5,55,306/- REFLECTED IN THE TDS CERTIFICATE ISSUED BY ITA NO.172/PN/2014 GATIMAN TRANSPORTS PVT. LTD. 4 THE DEDUCTOR, THE ACTUAL SUM CREDITED BY THE ASSESS EE WAS OF RS.76,668/-. THE CONFIRMATION FROM THE SAID DEDUCTOR HAS BEEN FILED ON RECORD. HOWEVER, THE ASSESSEE HAS FAILED TO PRODUCE THE COPY OF LEDGER A CCOUNT IN BOOKS OF ACCOUNT OF THE SAID PARTY BEFORE US IN WHICH THE SAID SUM OF R S.76,668/- IS REFLECTED. IN CASE FINDING OF THE CIT(A) IN THIS REGARD ARE TO BE CONTROVERTED THAT THE SAID SUM OF RS.76,668/- IS REFLECTED IN THE LEDGER ACCOUNT O F THE ASSESSEE IN THE BOOKS OF M/S SAHYADRI STARCH AND INDUSTRIES PVT. LTD. AND AL SO OF THE PARTY IN THE BOOKS OF ACCOUNT OF THE ASSESSEE, THE SAID VERIFICATION IS N OT POSSIBLE BY US IN THE ABSENCE OF EVIDENCE HAVING BEEN FILED BY THE ASSESSEE. IN VIEW THEREOF, WE REMIT THIS MATTER BACK TO THE FILE OF THE ASSESSING OFFICER FO R THE LIMITED PURPOSE OF VERIFYING WHETHER THE SUM OF RS.76,668/- APPEARS IN THE LEDGE R ACCOUNT OF THE ASSESSEE IN THE BOOKS OF ACCOUNT OF M/S SAHYADRI STARCH AND IND USTRIES PVT. LTD. AND ALSO IN THE ACCOUNT OF M/S SAHYADRI STARCH AND INDUSTRIES P VT. LTD. IN BOOKS OF ACCOUNT OF THE ASSESSEE. IN CASE THE SAID AMOUNT IS INCLUD ED AS THE PART OF THE RECEIPT IN THE BOOKS OF M/S SAHYADRI STARCH AND INDUSTRIES PVT . LTD. THEN THERE IS NO MERIT IN ADOPTING THE SAID SUM OF RS.76,668/- INSTEAD OF RS. 5,58,456/-. THE ASSESSEE IS DIRECTED TO PRODUCE THE NECESSARY EVIDENCE BEFORE T HE ASSESSING OFFICER AND THE ASSESSING OFFICER IS DIRECTED TO VERIFY THE SAME AN D DECIDE THE ISSUE AS PER OUR DIRECTION. HOWEVER, THE ASSESSEE HAVING FAILED TO JUSTIFIABLE EXPLAIN THE DEFICIT OF RS.5,695/-, THE ADDITION TO THAT EXTENT IS UPHELD I N THE HANDS OF THE ASSESSEE. THUS, ON THIS ASPECT ASSESSEE SUCCEEDS FOR STATISTI CAL PURPOSES. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 29 TH DAY OF APRIL, 2015. SD/- SD/- (R.K. PANDA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED: 29 TH APRIL, 2015 SUJEET ITA NO.172/PN/2014 GATIMAN TRANSPORTS PVT. LTD. 5 COPY OF THE ORDER IS FORWARDED TO: - 1) THE ASSESSEE; 2) THE DEPARTMENT; 3) THE CIT(A)-I, PUNE; 4) THE CIT-I, PUNE; 5) THE DR A BENCH, I.T.A.T., PUNE; 6) GUARD FILE. BY ORDER //TRUE COPY// //TRUE COPY// ASSISTANT REGISTRAR I.T.A.T., PUNE