M/s Singhvahini Vinijya Pvt Ltd, Howrah V. C.I.T Kolkata - I, Kolkata

ITA 2013/KOL/2013

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1608 (ITAT-KOLKATA)
• Duration Of Justice: 4 year(s) 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 25-06-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DAVID Z CHAWNGTHU CITSR

Judgement Text

ITA NO.1933/KOL/2013 & C.O.NO.44/KOL/2017 M/S. BENG AL WATERPROOF LTD. A.Y.2005-06 1 IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH C KOL KATA [BEFORE HONBLE SHRI J.SUDHAKAR REDDY, AM & SHRI S.S.VISWANETHRA RAVI, JM ] ITA NO.1933/KOL/2013 ASSESSMENT YEAR : 2005-06 D.C.I.T., CIRCLE-7, -VERSUS- M/S BENGAL WA TERPROOF LTD. KOLKATA KOLKATA (PAN: AABCB 2876 R) (APPELLANT) (RESPONDENT) C.O.NO.44/KOL/2017 ITA NO.1933/KOL/2013 ASSESSMENT YEAR : 2005-06 M/S. BENGAL WATERPROOF LTD. -VERSUS- D.C.I.T., CIR CLE-7, KOLKATA KOLKATA (PAN: AABCB 2876 R) (CROSS OBJECTOR) (RESPONDENT) FOR THE REVENUE: SHRI DAVID Z. CHAWNGTHU, ADDL. CIT(SR.DR) FOR THE ASSESSEE: NONE DATE OF HEARING : 10.08.2017. DATE OF PRONOUNCEMENT : 23.08.2017. ORDER PER J.SUDHAKAR REDDY, AM: THIS IS AN APPEAL BY THE REVENUE DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX-(A)-XXIV, KOLKATA RELAT ING TO A.Y. 2005-06 ON THE FOLLOWING GROUNDS : : 1) 'THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE, THE LD. CIT(APPEALS)- XXIV, KOLKATA, HAS ERRED IN LAW AS WELL AS IN FACTS IN DELETING THE LOAN AMOUNT OF RS 35,00,000.' 2) 'THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE, THE LD. CIT(APPEALS)- XXIV, KOLKATA, HAS ERRED IN LAW AS WELL AS IN FACTS IN DELETING THE INTEREST EXPENSES OF RS.4,23,182 ON THE LOAN AMOUNT OF RS 35 ,00,000.' 3) 'THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE, THE LD. CIT(APPEALS)- XXIV, KOLKATA, HAS ERRED IN LAW AS WELL AS IN FACTS IN ALLOWING MISCELLANEOUS EXPENSES OF RS 14,20,176.' ITA NO.1933/KOL/2013 & C.O.NO.44/KOL/2017 M/S. BENG AL WATERPROOF LTD. A.Y.2005-06 2 THE ASSESSEE HAS FILED THE CROSS OBJECTION. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE DESP ITE ISSUE OF NOTICE BY RPAD. THERE WAS NO APPLICATION MOVED BY THE ASSESSEE FOR ADJOUR NMENT EITHER. UNDER THE CIRCUMSTANCES WE DISPOSE OF THE CASE EX-PARTE ON ME RITS QUA AFTER HEARING THE LD. DEPARTMENTAL REPRESENTATIVE. 3. HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE . THE LD. CIT(A) IN THIS CASE GRANTED RELIEF TO THE ASSESSEE OF A SUM OF RS.35,00 ,000/- OUT OF AN ADDITION OF RS.60,00,000/- MADE U/S 68 OF THE INCOME TAX ACT, 1 961 (ACT). THE LD. CIT(A) NOTES THAT THE AO HAS NOT SUBMITTED THE REMAND REPORT DES PITE SEVERAL REMINDERS. HE DELETED THE ADDITION BASED ON ORIGINAL CONFIRMATION LETTERS FILED BY THE ASSESSEE FROM MS. STAR CREDIT PVT. LTD., M/S. RAIMCOM SALES LTD AND M./S. UDIT FINANCE & LEASING CO.LTD. THE BALANCE OF THE ADDITION WAS CONFIRMED. 4. IN OUR VIEW THE AO SHOULD HAVE BEEN GIVEN ADEQ UATE OPPORTUNITY TO VERIFY THIS EVIDENCE FILED BY THE ASSESSEE. HENCE WE SET ASIDE THIS ISSUE TO THE FILE OF AO FOR FRESH ADJUDICATION IN ACCORDANCE WITH LAW. ACCORDINGLY GR OUND NO.1 RAISED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. 5. GROUND NO.2 RAISED BY THE REVENUE IS CONSEQUE NTIAL IN NATURE. 6. GROUND NO.3 IS ON THE ISSUE OF MISCELLANEOUS EXPENSES. THE FIRST APPELLATE AUTHORITY IN HIS ORDER RESTRICTED THE DISALLOWANCE ON THE GROUND THAT THE AO FAILED TO FURNISH THE REMAND REPORT. WE ARE OF THE OPINION TH AT THIS ISSUE SHOULD ALSO BE SENT BACK TO THE AO FOR FRESH ADJUDICATION IN ACCORDANCE WITH LAW. IN OUR VIEW, THE LD. CIT(A) HAS NOT GIVEN ADEQUATE OPPORTUNITY TO THE AO . 7. IN THE RESULT GROUND NO.2 RAISED BY THE REVE NUE IS ALLOWED FOR STATISTICAL PURPOSES. 8. IN THE RESULT THE APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO.1933/KOL/2013 & C.O.NO.44/KOL/2017 M/S. BENG AL WATERPROOF LTD. A.Y.2005-06 3 9. THE CROSS OBJECTION OF THE ASSESSEE IS DELA YED BY 1380 DAYS. THE ASSESSEE FILED AN APPLICATION FOR CONDONATION OF DELAY. AFTER PERU SING THE SAME WE ARE OF THE CONSIDERED VIEW THAT THIS IS NOT A FIT CASE FOR CON DONATION OF DELAY. HENCE THE DELAY IS NOT CONDONED AND THE CROSS OBJECTION FILED BY THE A SSESSEE IS NOT ADMITTED. 10. IN THE RESULT THE CROSS OBJECTION FILED B Y THE ASSESSEE IS DISMISSED. O RDER PRONOUNCED IN THE COURT ON 23.08.2017. SD/- SD/- [S.S.VISWANETHRA RAVI] [ J.SUDHAKAR REDDY ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 23.08.2017. [RG PS] COPY OF THE ORDER FORWARDED TO: 1.M/S. BENGAL WATERPROOF LTD., 4 TH FLOOR, DUCKBACK HOUSE, 41, SHAKESPEARE SARANI, KOLKATA-700017. 2. D.C.I.T., CIRCLE-7, KOLKATA 3. C.I.T. (A)-XXIV, KOLKATA 4. C.I.T.-III, KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER, SENIOR PRIVATE SECRETARY HEAD OF OFFICE/D.D.O, ITAT KOLKATA BENCHES