Eximpo Tea Limited , Kolkata V. ITO, Ward - 4(4), , Kolkata

ITA 1989/KOL/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9327 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 17-09-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RADHEY SHYAM
• Assessee Lawyers: A N KESHARI
• Keywords: Business income

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: KOLKATA BEFORE: SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER I.T.A NO.1989/KOL/2018 (ASSESSMENT YEAR: 2012-13) EXIMPO TEA LIMITED APPELLANT [PAN:AAACE 6546 Q] VS ITO, WARD-4(4), KOLKATA RESPONDENT FOR THE APPELLANT : SHRI A. N. KESHARI, FCA FOR THE RESPONDENT : SHRI RADHEY SHYAM, CIT, DR DATE OF HEARING : 01.04.2019 DATE OF PRONOUNCEMENT : 03.04.2019 ORDER PER SHRI S.S. VISWANETHRA RAVI, JM: THIS APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 02.05.2018 PASSED BY THE COMMISSIONER OF INCOME TAX(APPEALS)-2, KOLKATA FOR THE ASSESSMENT YEAR 2012-13. 2. THE ONLY ISSUE IS TO BE DECIDED IS AS TO WHETHER THE CIT(A) IS JUSTIFIED IN CONFIRMING THE ADDITION MADE BY THE ASSESSING OFFICER U/S 40A(7) OF THE ACT. 3. HEARD BOTH PARTIES AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE LD. AR SUBMITS THAT THE ASSESSEE CLAIMED DEDUCTION ON ACCOUNT OF GRATUITY PAYABLE FOR ASSESSMENT YEAR 2012-13 TO THE EXTENT OF RS.37,33,773/- AND THE SAID SUM IS BECOME PAYABLE, IS EVIDENT FROM PROFIT AND LOSS A/C AND BALANCE SHEET FOR FINANCIAL YEAR 2011-12 RELEVANT TO ASSESSMENT YEAR 2012-13. THE ASSESSING OFFICER I.T.A NO.1989/KOL/2018 ASSESSMENT YEAR: 2012-13 EXIMPO TEA LIMITED 2 WITHOUT CONSIDERING THE EVIDENCES DISALLOWED THE PROVISION OF RS.13,63,795/- AND NO REFERENCE WHATSOEVER MADE IN THE ASSESSMENT ORDER. THE ASSESSEE CHALLENGED THE SAME BEFORE THE CIT(A) AND IN SPITE OF MAKING CLEAR SUBMISSIONS IN RESPECT OF CLAIM WITH SUPPORTING DOCUMENTS, THE CIT(A) CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER ARBITRARILY. HE REFERRED TO THE PAGE NO.4 OF THE IMPUGNED ORDER AND ARGUED THE MATTER MAY BE REMANDED TO THE FILE OF ASSESSING OFFICER FOR HIS FRESH CONSIDERATION AS THERE WAS NO REASONS GIVEN BY THE ASSESSING OFFICER. THE LD. DR DID NOT CONTROVERT THE SAME AND REPORTED NO OBJECTION IN REMANDING THE MATTER TO THE FILE OF ASSESSING OFFICER. 4. IT IS EVIDENT FROM THE IMPUGNED ORDER THAT THE ASSESSEE SUBMITTED THAT THE DEDUCTION IS ALLOWABLE IN COMPUTING BUSINESS INCOME IN RESPECT OF PAYMENT OF GRATUITY IS PAYABLE DURING THE PREVIOUS YEAR. AS POINTED OUT BY THE LD. AR, NO DISCUSSION OR REFERENCE WAS EVER MADE BY THE ASSESSING OFFICER AND IT IS ALSO EVIDENT THAT THE CIT(A) ARBITRARILY CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER BY OBSERVING THAT IN THE ABSENCE OF ANY COGENT MATERIAL. WE FIND THAT THE ASSESSEE MADE SUBMISSIONS BEFORE THE CIT(A) AND SUPPORTING THE SAME FILED COMPUTATION OF TOTAL INCOME, AUDITORS REPORT, BALANCE SHEET, PROFIT & LOSS ACCOUNT AND NOTES OF FINANCIAL STATEMENT BEFORE US. IN VIEW OF THE SAME AS THERE WAS NO FINDING BY THE ASSESSING OFFICER TO THE EFFECT DENYING THE DEDUCTION, THEREFORE, WE DEEM IT PROPER TO REMAND THE MATTER TO THE FILE OF ASSESSING OFFICER FOR HIS FRESH CONSIDERATION. THE ASSESSEE IS AT LIBERTY TO FILE EVIDENCES, IF ANY, IN SUPPORT OF ITS CLAIM. THUS GROUND RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. I.T.A NO.1989/KOL/2018 ASSESSMENT YEAR: 2012-13 EXIMPO TEA LIMITED 3 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 03.04.2019. SD/- SD/- [DR. A. L. SAINI] [S.S. VISWANETHRA RAVI] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 03.04.2019 PLACE : KOLKATA RS, SR.PS COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT EXIMPO TEA LIMITED., 3-B, LAL BAZAR STREET, 2 ND FLOOR, KOL- 1. 2 RESPONDENT ITO, WARD-4(4), KOLKATA. 3 . THE CIT(A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA //TRUE COPY// BY ORDER, ASSISTANT REGISTRAR, ITAT, KOLKATA