Nellimarla Jute Mills Co. Ltd., , Kolkata V. DCIT, Circle - 1(2), , Kolkata

ITA 2131/KOL/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6017 (ITAT-KOLKATA)
• Duration Of Justice: 11 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 09-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RADHEY SHYAM
• Keywords: Set aside
• Section: 43B; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA B BENCH, KOLKATA (BEFORE SRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER & SRI S.S. GODARA, JUDICIAL MEMBER) I.T.A. NO. 2131/KOL/2018 ASSESSMENT YEAR: 2014-15 NELLIMARLA JUTE MILLS CO. LTD.......................................................................................................... APPELLANT [PAN : AABCN 5591 M] VS. DCIT, CIRCLE- 1(2), KOLKATA...................................................................................RESPONDENT APPEARANCES BY: SH. SUBASH AGARWAL, ADV., APPEARED ON BEHALF OF THE ASSESSEE. SH. RADHEY SHYAM, CIT, APPEARED ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : SEPTEMBER 18 TH , 2019 DATE OF PRONOUNCING THE ORDER : OCTOBER 1 ST , 2019 ORDER PER J. SUDHAKAR REDDY, AM :- THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, KOLKATA (CIT(A) FOR SHORT) DATED 26.07.2018 PASSED U/S 250 OF THE INCOME TAX ACT, 1961 (THE ACT FOR SHORT), ON THE FOLLOWING GROUNDS: 1. THAT THE LD. CIT (APPEALS) ERRED IN CONFIRMING THE ADDITION OF RS. 1,06,07,911/- AS UNPAID SALES TAX INVOKING SEC 43B OF THE ACT, WHEN SUCH PAYMENT WAS ALLOWED TO BE DEFERRED BY THE GOVT, OF ANDHRA PRADESH. 2. THAT LD. CIT (APPEALS) WAS WRONG IN NOT CONSIDERING THE RELEVANT ORDERS OF GOVT, OF ANDHRA PRADESH IN PERMITTING THE DEFERMENT OF SALES TAX COLLECTED BY THE APPELLANT AND SAME BE DEEMED TO HAVE BEEN PAID. 3. THAT THE ADDITION OF RS. 1,06,07,911/- MADE BY LD. A.O. AND CONFIRMED BY LD. CIT (APPEALS) IS CONTRARY TO THE ORDERS OF GOVT, OF ANDHRA PRADESH AND SETTLED LEGAL POSITION ON THE ISSUE. 4. WE MAY ADD, ALTER, AMEND OR WITHDRAW ANY GROUNDS OF APPEAL ON OR BEFORE THE DATE OF HEARING. 2. AFTER HEARING RIVAL CONTENTIONS, WE ARE CONVINCED WITH THE SUBMISSIONS OF THE PARTIES THAT THE ISSUE HAS TO BE RESTORED TO THE FILE OF THE ASSESSING OFFICER (AO FOR SHORT) FOR FRESH ADJUDICATION IN ACCORDANCE WITH LAW, AS THE AO MAY HAVE TO MAKE ENQUIRIES AND EXAMINE THE ORDERS OF THE GOVERNMENT OF ANDHRA PRADESH AS WELL AS THE 2 I.T.A. NO. 2131/KOL/2018 ASSESSMENT YEAR: 2014-15 NELLIMARLA JUTE MILLS CO. LTD. LATEST CBDT CIRCULAR ON THIS SOLE ISSUE OF DEFERMENT OF SALES TAX. THE AO AS WELL AS THE LD. CIT(A) HAVE NOT CONSIDERED THE CBDT CIRCULAR NO. 674 DATED 29.12.1993. 3. THE LD. DR SUBMITTED THAT, THE ISSUE MAY BE SET ASIDE FOR THE EXAMINATION BY THE AO. 4. IN VIEW OF THE ABOVE, WE RESTORE THE MATTER TO THE FILE OF THE AO FOR FRESH ADJUDICATION IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. KOLKATA, THE 1 ST OCTOBER, 2019. SD/- SD/- [S.S. GODARA] [J. SUDHAKAR REDDY] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 01.10.2019 BIDHAN COPY OF THE ORDER FORWARDED TO: 1. NELLIMARLA JUTE MILLS CO. LTD., 3A, SHAKESPEARE SARANI, KOLKATA- 700 071. 2. DCIT, CIRCLE- 1(2), KOLKATA. 3. CIT(A)-1, KOLKATA. (SENT THROUGH MAIL) 4. CIT- 5. CIT(DR), KOLKATA BENCHES, KOLKATA. (SENT THROUGH MAIL) TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES