DCIT, Circle - 33 Kolkata, Kolkata V. M/s. Chang High Tannery, Kolkata

ITA 2255/KOL/2010

• Counselvise Citation: 225523514 RSA 2010
• Duration Of Justice: 3 year(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2014
• Appeal Filed By: Department
• Bench Allotted: C
• Next Hearing Date: 05-07-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 23-12-2010
• Court: TRIBUNAL
• Department Lawyers: K K DAS LD JCITSR
• Assessee Lawyers: SOUMITRA CHOUDHURY LD
• Section: 40A(3)

Judgement Text

, C , INCOME TAX APPELLATE TRIBUNAL, BENCH- C KOLKATA ( ) BEFORE . . , SHRI P.K.BANSAL, ACCOUNTANT MEMBER !' /AND #$#% 1 ' , SHRI GEORGE MATHAN, JUDICIAL MEMBER '( / ITA NO. 2255/KOL/2010 A.Y 2003-04 DCIT, CIRCLE-33, KOLKATA - ! - - VERSUS - . M/S. CHANG HING TANNERY PAN: AACFC 4080C ( '* / APPELLANT ) ( +,'* / RESPONDENT ) '* . / FOR THE APPELLANT /SHRI K.K.DAS, LD. JCIT/SR.DR +,'* . / FOR THE RESPONDENT: / SHRI SOUMITRA CHOUDHURY, ADVOCATE, LD.AR /!0 1 2 /DATE OF HEARING : 15-01-2014 34 1 2 /DATE OF PRONOUNCEMENT:17 -01-2014 / ORDER #$#% 1 ' , SHRI GEORGE MATHAN, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS), XX, KOLKATA IN APPEAL NO. 407/CIT(A)- XX/CIR-33/08-09/KOL DATED 25-10-2010 FOR THE ASSES SMENT YEAR 2003-04. 2. SHRI K.K.DAS, LEARNED JCIT(DR) REPRESENTED ON B EHALF OF THE REVENUE AND . SHRI SOUMITRA CHOUDHURY, ADVOCATE, LEARNED AR RE PRESENTED ON BEHALF OF THE ASSESSEE. 3. IN THE REVENUES APPEAL, THE REVENUE HAS RAISED THE FOLLOWING GROUND OF APPEAL:- 1. THAT THE CIT(A) ERRED IN DELETING THE ADDITION O F RS.47,38,800/-, BEING PAYMENTS MADE TO SUPPLIERS OF HIDES AND SKIN, BY FAILING TO APPRECIATE THAT THE SUPPLIERS O F HIDES AND SKINS WERE NOT THE ACTUAL PRODUCERS OF HIDES AND SKINS AS REQUIRED FOR CLAIMING EXEMPTION UNDER RULE 6DD(F)(II) AS WELL AS BOARDS CIRCULAR NO.8 OF 2006. ITA NO.2255/KOL/10-M/S. CHANG HING TANNERY 2 4. IT WAS SUBMITTED BY THE LEARNED JCIT/SR.DR THAT THE ONLY ISSUE IN THE APPEAL WAS AGAINST THE ACTION OF THE LD. CIT(A) IN DELETIN G THE ADDITION OF RS.47,38,800/- MADE BY THE AO BY INVOKING THE PROVISIONS OF SECTIO N 40A(3) OF THE I.T ACT 1961 IN RESPECT OF PAYMENTS MADE BY THE ASSESSEE TO THE SUP PLIERS OF HIDES AND SKIN. IT WAS THE SUBMISSION THAT THE LD.CIT(A) HAS ACCEPTED THE CONTENTION OF THE ASSESSEE THAT THE PAYMENTS WERE EXEMPTED FROM THE PURVIEW OF PRO VISIONS OF SECTION 40A(3) OF THE ACT IN VIEW OF RULE 6DD(F)(II) OF THE I.T RULES 196 2. HE HAS VEHEMENTLY SUPPORTED THE ORDER OF THE AO. 5. IN REPLY, THE LEARNED AR FOR THE ASSESSEE HAS SU BMITTED THAT THE ISSUE WAS SQUARELY COVERED BY THE DECISION OF THE CO-ORDINAT E BENCH OF THIS TRIBUNAL IN THE CASE OF TIRUPATI NANDAN DAMANI VS. ITO, W 36(4), KOLKAT A IN ITA NO.1740/KOL/09 DATED 26-04-2012 FOR THE A.Y 2005-06, WHEREIN THE CO-OR DINATE BENCH OF THIS TRIBUNAL FOLLOWING THE DECISION OF THE HONBLE JURISDICTION AL CALCUTTA HIGH COURT IN THE CASE OF CIT, KOLKATA-XI VS. M/S. CPL TANNERY REPORTED (2009 ) 318 ITR 0179(CAL) HAS HELD THAT RULE 6DD(F)(II) IS APPLICABLE. THE CO-ORDINA TE BENCH OF THIS TRIBUNAL HAS HELD AS FOLLOW:- 10. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IT I S NOTICED THAT THE PAYMENTS MADE TO THE SUPPLIERS OF HIDES AND SKINS ARE COVERED BY THE PROVISIONS OF RULE 6DD(F)( II) OF THE I.T RULES, 1962, AS IT STOOD FOR THE RELEVANT ASSESSME NT YEAR. IT IS ALSO NOTICED THAT THE ISSUE IS SQUARELY COVERED BY THE SAID DECISION OF THE HONBLE JURISDICTIONAL CALCUTTA HIG H COURT IN THE CASE OF CPL TANNERY (REFER SUPRA). IN THE CIRCUMST ANCES, RESPECTFULLY FOLLOWING THE SAID DECISION OF THE HO NBLE JURISDICTIONAL CALCUTTA HIGH COURT IN THE CASE OF C PL TANNERY (REFER SUPRA), THE ADDITIONS MADE BY THE ASSESSING OFFICER AND SUSTAINED BY THE LEARNED COMMISSIONER OF INCOME-TA X (APPEALS) ON ACCOUNT OF DISALLOWANCE MADE BY INVOKING THE PRO VISIONS OF SECTION 40A(3) OF THE ACT STANDS DELETED. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS IT IS NOTICED THAT THE ISSUE IS SQUARELY COVERED BY THE SAID DECISION OF THE HONBL E JURISDICTIONAL CALCUTTA HIGH COURT IN THE CASE OF CPL TANNERY (REFER TO SUPRA) A ND THE LD.CIT(A) HAS ALSO FOLLOWED THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF M/S. CPL TANNERY IN ITA NO.2472/KOL/2003, WHICH HAS BEEN UPHELD BY THE HONBLE ITA NO.2255/KOL/10-M/S. CHANG HING TANNERY 3 JURISDICTIONAL CALCUTTA HIGH COURT IN THE CASE OF CPL TANNERY (REFER TO SUPRA), THE FINDING OF THE LD.CIT(A) ON THIS ISSUE STANDS UPHEL D. 7. IN THE RESULT, APPEAL OF THE REVENUE IN ITA N O. 2255/KOL/2010 FOR THE ASSESSMENT YEAR 2003-04 STANDS DISMISSED. 5 / 6 / 7 58 THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT 17-01 -14 SD/- SD/- ** PRADIP SPS 1 +..9 :94; / COPY OF THE ORDER FORWARDED TO: 1. . '* / THE APPELLANT : DCIT,CIRCLE-33, 10B, MIDDLETON R OW, 3 RD FL., KOL-71. 2 +,'* / THE RESPONDENT- M/S. CHANG HING TANNERY 77 MATH ESWARTALA ROAD, KOL-46. 3 4. . . / THE CIT, . ( )/ THE CIT(A) 5 . !<.7 +. / DR, KOLKATA BENCH 6 . GUARD FILE . + ,9 +./ TRUE COPY, // BY ORDER, 5 '# /ASSTT REGISTRAR ( . . , ) ( P.K.BANSAL, ACCOUNTANT MEMBER ) ( #$#% 1 ' , ) (GEORGE MATHAN, JUDICIAL MEMBER) ( (( ( 2 2 2 2 ) )) ) DATE 17-01-14