M/s Macneill Engineering Ltd, South 24 Parganas V. D.C.I.T Cir - 1,kolkata, Kolkata

ITA 1993/KOL/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4540 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 12-07-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 21-06-2013
• Court: TRIBUNAL
• Department Lawyers: RAJAT KR KUREEL
• Assessee Lawyers: ANIKESH BANERJEE LD
• Section: 142(1); 144

Judgement Text

ITA NO. 1993/KOL/13 M/S. MACNEILL ENGINEERING LTD 1 IN THE INCOME TAX APPELLATE TRIBUNAL,A BENCH, KOLKATA BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER AND SHRI S.S.VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NO.1993/KOL/2013 A.Y: 2006-07 M/S.MACNEILL ENGINEERING LTD VS. DCIT,CIR-1, KOLK ATA PAN: AABCM7149L (APPELLANT) (RESPONDENT) APPEARANCES BY: SHRI ANIKESH BANERJEE, ADVOCATE, LD.AR FOR THE ASSESSEE SHRI RAJAT KR. KUREEL, JCIT, SR. D.R FOR THE REVENUE DATE OF CONCLUDING THE HEARING : 12-07- 2016 DATE OF PRONOUNCING THE ORDER : 16-09-2016 O R D E R SHRI S.S. VISWANETHRA RAVI, JM :- THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 28-03-2013 OF THE COMMISSIONER OF INCOME TAX(APPEALS),XXIV, KOLKATA FOR THE ASSESSMENT YEAR 2006-07. 2. IN THIS APPEAL, THE ASSESSEE HAS RAISED THE FOLL OWING EFFECTIVE GROUNDS:- 1. FOR THAT THE LD. ASSESSING AUTHORITY DID NOT ISSUE ANY NOTICE U/S. 144 FOR SHOW CAUSE FOR BEST OF HIS JUDGMENT DU RING THE ASSESSMENT PROCEEDINGS. HENCE, THE ASSESSMENT U/S. 144 IS BARRED BY LAW. 2. FOR THAT CALCULATION OF THE TAXABLE FRINGE BENEFIT OF RS.14,45,127/- BE DELETED. ITA NO. 1993/KOL/13 M/S. MACNEILL ENGINEERING LTD 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A COMPANY DEALING IN THE MANUFACTURE OF FORKLIFT, MATERIAL H ANDLING EQUIPMENTS AND ENGINEERING GOODS AND FILED ITS RETU RN OF FRINGE BENEFITS FOR THE AY UNDER CONSIDERATION ON 18-12-0 6 DECLARING VALUE OF FRINGE BENEFITS OF RS.8,85,940/-. IT WAS P ROCESSED U/S. 115WE(1) AND AS PER RETURN, ASSESSEE IS LIABLE TO PAY FBT OF RS.2,98,207/- BUT AT THE TIME OF PROCESSING OF FRIN GE BENEFITS WAS TAKEN AT RS. NIL. SINCE THERE IS ESCAPEMENT OF TAXABLE FRINGE BENEFITS, ASSESSMENT WAS REOPENED U/S. 115WG BY ISSUING NOTICE U/S. 115WH BY RECORDING REASONS FOR RE-OPENING THE CASE. IN RESPONSE TO SUCH NOTICE, THE AR OF THE ASSESSEE APPEARED ON 26.08.09 AND REQUESTED TIME TO FILE WRI TTEN SUBMISSION, BUT, DID NOT FILE. 4. THEREAFTER, A NOTICE U/S. 142(1) WAS ISSUED WHER EIN AN EXPLANATION SOUGHT WHY TRAVELLING EXPENDITURE OF RS.72,25,638/- SHOULD NOT BE CONSIDERED FOR THE PUR POSE OF FBT AS THE SAME AS NOT BEEN SHOWN IN THE RETURN. THE NO TICE WAS HANDED OVER TO THE AR, BUT NO COMPLIANCE WAS RECEIV ED FOR THE ASSESSEE, THEREBY, THE ASSESSMENT WAS COMPLETED U/S .115WF TO THE BEST OF AOS JUDGMENT AT RS.23,31,067/-. 5. IN FIRST APPEAL BEFORE THE CIT-A, THE ASSESSEE C OULD NOT PRODUCE ANY EXPLANATION IN SUPPORT OF GROUNDS O F APPEAL AND THE CIT-A CONFIRMED THE ADDITION OF THE AO.THE OBSERVATION OF WHICH IS AS UNDER:- ITA NO. 1993/KOL/13 M/S. MACNEILL ENGINEERING LTD 3 2.1 I HAVE CAREFULLY CONSIDERED THE OBSERVATION OF THE ASSESSING OFFICER IN THE ASSESSMENT ORDER. I HAVE CAREFULLY C ONSIDERED THE FACTS OF THE CASE AND ALSO PERUSED THE ORDER PASSED U/S. 115WF/115WG. DURING THE COURSE OF APPELLATE PROCEED INGS, THE APPELLANT ASSESSEE HAS NOT FURNISHED ANY EXPLANATIO N IN SUPPORT OF THE GROUND OF APPEAL. CONSIDERING THE FACTS OF THE CASE, I AM OF THE VIEW THAT THE ASSESSING OFFICER HAS CORRECTLY ADDED BACK THE AMOUNT OF RS.14,45,127/- ON ACCOUNT OF TAXABLE FRINGE BENE FIT IS CONFIRMED. THIS GROUND OF APPEAL IS DISMISSED. 6. AT THE OUTSET, IT IS NOTICED THAT THE ASSESSEE C OULD NOT PRODUCE ANY MATERIAL EVIDENCE THAT REQUIRES IN SUPP ORT OF THE IMPUGNED ADDITION. IT IS ALSO NOTICED THAT THE AUTH ORITIES BELOW HAS AFFORDED OPPORTUNITIES TO THE ASSESSEE, BUT, TH E ASSESSEE COULD NOT AVAIL THE SAME IN ITS FAVOUR IN PROSECUTI NG ITS CASE BEFORE THE AUTHORITIES BELOW. THE LD.AR PRAYED THAT ONE MORE OPPORTUNITY MAY BE ACCORDED FINALLY TO THE ASSESSEE AND SOUGHT TO REMAND THE CASE TO THE FILE OF CIT-A. THE LD. DR RELIED ON THE ORDER OF CIT-A. IN VIEW OF THE DISCUSSION OF TH E ABOVE AND TAKING INTO CONSIDERATION THE SUBMISSIONS OF THE LD .AR AND IN THE INTEREST OF JUSTICE, WE SET ASIDE THE IMPUGNED ORDER DT:28- 03-2013 AND REMIT THE CASE TO THE FILE OF CIT-A FOR FRESH ADJUDICATION BY AFFORDING AN OPPORTUNITY TO THE ASS ESSEE. WE ALSO DIRECT THE ASSESSEE TO COOPERATE WITH THE PROC EEDINGS WITHOUT SEEKING ANY FURTHER ADJOURNMENTS AND WE ALS O GIVE LIBERTY TO ASSESSEE TO FILE EVIDENCE, IF ANY, IN SU PPORT OF THE IMPUGNED MATTER. THUS, THE APPEAL OF THE ASSESSEE I S ALLOWED FOR STATISTICAL PURPOSES. ITA NO. 1993/KOL/13 M/S. MACNEILL ENGINEERING LTD 4 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH SEPTEMBER, 2016. SD/- SD/- P . M.JAGTAP S.S.VISWANETHRA RA VI ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 16 /09/2016 1. THE APPELLANT/ ASSESSEE: M/S. MACNEILL ENGINE ERING LTD BHASA, DIAMOND HARBOUR ROAD, BISHNUPUR, KONCHOWKI, 24 PGS(S ),PIN- 743503. 2 . THE RESPONDENT/ DEPARTMENT: THE DCIT, CIR - 1 , AAYKAR BHAWAN 7 TH FLOOR, P-7 CHOWRINGHEE SQUARE, KOL-69. 3. CIT 4. CIT(A) 5. THE DEPARTMENTAL REPRESENTATIVE 6. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGIS TRAR ** PRADIP SPS INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA COPY OF THE ORDER FORWARDED TO:-