ACIT, Circle - 25, Kolkata, Kolkata V. Sri Wakil Ahmed, Kolkata

ITA 1976/KOL/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7530 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 05-09-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AGAINST DATED PASSED
• Keywords: Assessment record
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH A, KOLKATA BEFORE SH. J.SUDHAKAR REDDY, ACCOUNTANT MEMBER & SH.S.S.VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO.1976/KOL/2017 (ASSESSMENT YEAR-2013-14) ORDER PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER THIS APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 30.05.2017 PASSED BY CIT(A)-7, KOLKATA U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT ACT) FOR AY 2013-14. 2. THE ONLY ISSUE IS TO BE DECIDED AS TO WHETHER THE CIT(A) IS JUSTIFIED IN DELETING THE ADDITION MADE ON ACCOUNT OF WAGES & LABOUR CHARGES IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. HEARD BOTH PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS NOTED FROM THE ASSESSMENT RECORD THAT THE AO COMPARED THE EXPENDITURE INCURRED ON ACCOUNT OF WAGES AND LABOUR CHARGES WITH THAT OF A.Y. 2012-13 AND HELD THE EXPENDITURE CLAIMED FOR THE YEAR UNDER CONSIDERATION IS HIGHLY INFLATED AND EXAGGERATED AND FOR NON-FURNISHING OF PROOF, THE AO DISALLOWED 50% OF SAID CLAIM EXPENDITURE. THE CIT(A) WHILE DELETING THE SAID ADDITION OBSERVED THAT IN THE ABSENCE OF COMPARABLE CASES, THE ADDITION MADE BY THE AO IS NOT JUSTIFIED. BEFORE US, LD.AR SUBMITTED THAT IN EARLIER YEAR AND ACIT, CIRCLE-25, 1 ST FLOOR, AAYAKAR BHAWAN DAKSHIN, 2, GARIAHAT ROAD (SOUTH), KOLKATA-700068. V S SRI WAKIL AHMED, 38/1A, G.J.KHAN ROAD, KOLKATA-700039. PAN-ADAPA9332Q (APPELLANT) (RESPONDENT) APPELLANT BY SH. SANKAR HALDER, JCIT, SR.DR RESPONDENT BY SH. MIRAJ D SHAH, AR DATE OF HEARING 22.11.2018 DATE OF PRONOUNCEMENT 16.01.2019 ITA NO.1976/KOL/2017 (ASSESSMENT YEAR-2013-14) PAGE | 2 SUBSEQUENT YEAR, THE REVENUE ACCEPTED NET PROFIT @ 8% AND ACCORDINGLY PRAYED TO ADOPT THE SAME FOR THE YEAR UNDER CONSIDERATION. WE FIND FORCE IN THE ARGUMENTS OF LD.AR AND, THEREFORE, THE ORDER OF CIT(A) IS SET ASIDE AND WE DIRECT THE AO TO ADOPT THE NET PROFIT RATE @ 8% AND PASS ORDER ACCORDINGLY. THEREFORE, WE DEEM IT PROPER TO REMAND THE MATTER TO THE FILE OF AO FOR HIS FRESH CONSIDERATION. THUS, GROUNDS RAISED BY THE REVENUE ARE ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 16.01.2019. SD/- SD/- (J.SUDHAKAR REDDY) (S.S.VISWANETHRA RAVI) ACCOUNTANT MEMBER JUDICIAL MEMBER [ DATE:- 16 .01.2019 *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT- ACIT, CIRCLE-25, 1 ST FLOOR, AAYAKAR BHAWAN DAKSHIN, 2, GARIAHAT ROAD (SOUTH), KOLKATA-700068. 2. RESPONDENT- SRI WAKIL AHMED, 38/1A, G.J.KHAN ROAD, KOLKATA-700039. 3. CIT-KOLKATA 4. CIT(APPEALS)-KOLKATA 5. DR: ITAT -KOLKATA BENCHES BY ORDER AR/H.O.O ITAT, KOLKATA