DCIT, Circle - 11(1), , Kolkata V. M/s. Hindustan Steelworks Construction Limited , Kolkata

ITA 1997/KOL/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2983 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 18-11-2020
• Assessment Year: 2013-2014
• Appeal Filed On: 18-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAUL CIT LD
• Assessee Lawyers: SWARAJ KUMAR LD
• Section: 143(3); 201; 13

Judgement Text

1 ITA NO . 1997/KOL/2018 & C.O NO. 1997/KOL/2018 AY 20 13 - 14 HINDUSTAN STEELWORKS CONSTRUCTION LTD. IN THE INCOME TAX APPELLATE TRIBUNAL , C BENCH, KOLKATA [ BEFORE SHRI J.SUDHAKAR REDDY , AM AND S MT. MADHUMITA ROY , JM ] I.T.A. NO. 1997 /KOL/2018 ASSESSMENT YEAR: 20 1 3 - 14 DCIT, CIRCLE 11(1), KOLKATA VS. M/S. HINDUSTAN STEELWORKS CONSTRUCTION LTD. PAN : AAACH9524R APP ELLANT RESPONDENT C.O NO. 16 /KOL/20 20 [ A/O ITA NO. 1997/KOL/2018] ASSESSMENT YEAR:20 13 - 14 M/S.HINDUSTANSTEELWORKS CONSTRUCTION LTD. PAN : AAACH9524R VS. DCIT, CIRCLE 11(1), KOLKATA CROSS OBJECTOR/ APPELLANT - ASSESSEE RESPONDENT /DEPAR TMENT DATE OF HEARING (VIRTUAL) 1 8 - 11 - 2020 DATE OF PRONOUNCEMENT 1 8 - 11 - 2020 FOR THE APPELLANT SHRI SUPRIYO PAUL, ADDL. CIT, LD.DR FOR THE RESPONDENT SHRI SWARAJ KUMAR, LD.AR ORDER PER SMT. MADHUMITA ROY, JM THE INSTANT APPEAL AND CO RRESPONDING CROSS OBJECTION FILED BY THE REVENUE AND ASSESSEE ARE DIRECTED AGAINST THE ORDER DATED 2 6 - 06 - 2018 PASSED BY THE LD. CIT(A) - 4 , KOLKATA ARISING OUT OF ASSESSMENT ORDER DATED 10 - 03 - 2016 PASSED BY THE DCIT (THE AO) , CIR - 11(1), KOL U/S. 143(3) OF TH E INCOME T AX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ) FOR THE A SSESSMENT Y EAR S 201 3 - 14 . 2. THE DELETION OF ADDITION MADE BY THE LD. AO AMOUNTING TO RS. 3,36,40,289/ - ON ACCOUNT OF PROVISION WRITTEN BACK HAS BEEN CHALLENGED BEFORE US BY T HE REVENUE. 2 ITA NO . 1997/KOL/2018 & C.O NO. 1997/KOL/2018 AY 20 13 - 14 HINDUSTAN STEELWORKS CONSTRUCTION LTD. 3. THE APPELLANT ASSESSEE BEING A PUBLIC SECTOR UNDERTAKING LIMITED COMPANY CARR YING ON THE BUSINESS OF STEEL PLANT CONSTRUCTION JOBS IN VARIOUS PARTS OF THE COUNTRY FILED ITS RETURN OF INCOME DECLARING THE INCOME AT LOSS AT RS. 14,13,62 ,940/ - . DURING THE COURSE OF ASSESSMENT PROCEEDINGS UPON PERUSAL OF THE COMPUTATION OF TOTAL INCOME, IT WAS FOUND THAT THE ASSESSEE HAS CLAIMED DEDUCTION OF RS. 3,36,40,289/ - ON ACCOUNT OF PROVISION MADE IN EARLIER YEAR AND DISALLOWED IN THAT YEAR NOW NO LONGER REQUIRED WRITTEN BACK DEDUCTED. THE ASSESSEE WAS ISSUED A SHOW - CAUSE AS TO WHY THE AMOUNT ON ACCOUNT OF PROVISION WRITTEN BACK MAY NOT BE ADDED . IT WAS SUBMITTED BY THE ASSESSEE THAT THE PROVISION FOR DOUBTFUL DEBT ETC HAS BEEN ADDED BACK IN COM PUTATION OF EARLIER YEARS . H OWEVER, THE DEDUCTION HAS BEEN CLAIMED IN THE COMPUTATION OF THIS YEAR, WHICH WAS NOT FOUND ACCEPTABLE BY THE LD. AO AND PROVISION FOR WRITTEN BACK OF RS.3,36,40,289/ - WAS DISALLOWED, WHICH WAS IN TURN, DELETED BY THE LD. CIT(A) . HENCE, THE INSTANT APPEAL BEFORE US. 4. AT THE TIME OF HEARING OF THE INSTANT APPEAL, THE LD. COUNSEL APPEARING FOR THE ASSESSEE SUBMITTED BEFORE US THAT THE ISSUE IS COVERED IN THE CASE OF ASSESSEE ITSELF BY AN ORDER/JUDGMENT DATED 31 - 12 - 2019 PASS ED BY THE C O - ORDINATE B ENCH IN ITA NOS. 297 & 388/KOL/2018 BOTH FOR THE AY 2011 - 12., COPY WHEREOF HAS ALSO BEEN SUPPLIED TO US. ON THE OTHER HAND, THE LD. DR FAILS TO CONTROVERT SUCH SUBMISSIONS MADE BY THE LD.AR . 5. WE HAVE H EARD RESPECTIVE SUBMISSIO NS MADE BY THE PARTIES. WE HAVE ALSO PERUSED THE RELEVANT MATERIALS AVAILABLE ON RECORD INCLUDING THE ORDER PASSED BY THE BY THE C O - ORDINATE B ENCH IN ITA NOS. 297 & 388/KOL/2018 BOTH FOR THE AY 2011 - 12. RELEVANT PARAGRAPH DEALING WITH THE IDENTICAL ISSUE IS REPRODUCED HEREINBELOW: - 5. GROUND NO. 1 IS ON THE ISSUE OF VIOLATION OF RULE 46A OF THE INCOME TAX RULES, 1962 ( RULES ) BY THE LD. CIT(A). WE FIND NO SUCH VIOLATION. THE ASSESSEE HAD NOT CLAIMED DEDUCTION IN ITS COMPUTATION OF INCOME ON P ROVISIONS MADE AND SIMILARLY, WHEN SUCH PROVISIONS WERE WRITTEN BACK, IT HAD NOT OFFERED THE SAME AS INCOME. THUS, AT PARA 4 PAGE 3 OF THE ORDER, THE LD. CIT(A) DELETED THE ADDITION. WE FIND NO INFIRMITY IN THE SAME. HENCE, THIS GROUND OF THE REVENUE IS D ISMISSED. 3 ITA NO . 1997/KOL/2018 & C.O NO. 1997/KOL/2018 AY 20 13 - 14 HINDUSTAN STEELWORKS CONSTRUCTION LTD. 6. THUS, RESPECTFULLY RELYING UPON THE RATIO LAID DOWN BY THE CO - ORDINATE BENCH , WE FIND NO SUBSTANCE IN THE CASE MADE OUT BY THE REVENUE AS STATED HEREINABOVE AND IN THE ABSENCE OF MERIT FOUND IN THE APPEAL PREFERRED BY THE REVENUE, WE DISMISS THE SAME. THE APPEAL FILED BY THE REVENUE IS DISMISSED. C.O NO. 16/KOL/2020 (ITA NO. 1997/KOL/2018 FOR THE AY 2013 - 14) 7. SINCE CROSS OBJECTION FILED BY THE ASSESSEE IN SUPPORT OF THE ORDER OF THE LD. CIT(A), WHICH WE HAVE ALREAD Y UPHELD IN DISMISSING THE APPEAL OF THE REVENUE, THE CROSS OBJECTION FILED BY THE ASSESSEE NEEDS NO FURTHER CONSIDERATION. THE SAME IS THUS, DISMISSED. 8 . IN THE RESULT, THE APPEAL OF THE REVENUE AND CROSS OBJECTION OF THE ASSESSEE BOTH ARE DISMI SSED . ORDER IS PRONOUNCED IN THE OPEN COURT ON 18 TH NOVEMBER, 2020 SD/ - SD/ - ( J.SUDHAKAR REDDY ) ( MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 18 TH NOVEMBER, 2020 **PP (SR.P.S.) COPY OF THE ORDER FORWARD ED TO: 1. RESPECTIVE APPELLANT / REVENUE: DCIT, CIRCLE - 11(1) P - 7 CHOWRINGHEE SQUARE, 6 TH FL., KOLKATA - 69. 2 RESPONDENT / ASSESSEE: M/S. HINDUSTAN STEEL WORKS CONSTRUCTION LTD 5/1 COMMISSARIAT ROAD, HASTINGS, KOLKATA - 22. 3. 4. 5. CIT(A), CIT - , DR, ITAT, KOLKATA. / TRUE COPY, BY ORDER, ASSISTANT REGISTRAR