SRI Debasish Das Gupta, Kolkata V. ITO,Ward-30(2), Kolkata, Kolkata

ITA 247/KOL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99687 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2015
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 12-02-2014
• Court: TRIBUNAL
• Section: 143(3); 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH SMC KOLKATA [BEFORE HON BLE S HRI MAHAVIR SINGH, JM ] ITA NO . 247 /KOL/2014 ASSESSMENT YEAR : 2008 - 09 ( A PPELLANT ) (RESPONDENT) SRI DEBASISH DAS GUPTA - VERSUS - I.T.O., WARD - 30(2 ) , KOLKATA KOLKATA (PAN: ADSPD 6339 A) FOR THE APPELLANT: NONE FOR THE RESPONDENT: SHRI SANJAY MUKHERJEE, JCIT DATE OF HEARING : 22 .07.2015 . DATE OF PRONOUNCEMENT : 11.08.2015. ORDER THIS APPEAL OF ASSESSEE ARISES FROM THE ORDER OF LD. CIT(A) - XIV , KOLKATA IN APPEAL NO . 132/CIT(A) - XIV / 2010 - 11 DATED 07 .11 . 2013 . ASSESSMENT WAS FRAMED BY I.T.O., WARD - 30(2) U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REF ERRED TO AS THE ACT ) FOR A.YR . 2008 - 09 VIDE ITS ORDER DATED 28.10.2010. 2. THE BR IEF FACTS OF THE CASE ARE THAT THE ASSESSEE HAD DECLARED TAXABLE INCOME OF RS.84,983/ - UNDER THE HEAD INCOME FROM BUSINESS OR PROFESSION . THE LD. AO CONSIDERED A SUM OF RS.54,690/ - AS BOGUS SUNDRY CREDITORS AND ADDED THE SAME IN THE ASSESSMENT. SIMILARL Y, HE DISALLOWED A SUM OF RS.1,88,216/ - U/S 40(A)(IA) OF THE ACT IN RESPECT OF FREIGHT CHARGES PAID TO SHREYA ENTERPRISES. SIMILARLY, A SUM OF RS.2,84,240/ - WAS DISALLOWED U/S 40(A)(IA) OF THE ACT IN RESPECT OF BREAD CUTTING AND PACKING CHARGES PAID BY THE ASSESSEE. AGGRIEVED BY THIS, THE ASSESSEE CHALLENGED THESE ISSUES BEFORE THE LD. CIT(A). IT WAS PLEADED BEFORE THE LD. CIT(A) THAT OUT OF THIS SUM OF RS.54,690/ - THE ASSESSEE HAD , IN FACT , MADE PAYMENT TO THE CONCERNED SUNDRY CREDITOR VIDE CHEQUE NO.982 129 DRAWN ON U.B.I. FOR A SUM OF RS.53,700/ - ON 03.04.2008 AND HENCE THE SAID SUNDRY ITA NO. 247/KOL/2014 SRI DEBASISH DAS GUPTA . A.YR. .2008 - 09 2 CREDITOR IS GENUINE IN NATURE. THE LD. CIT(A) WHILE DISPOSING OF THIS ISSUE DID NOT GIVE ANY FINDING FOR DISMISSAL OF THIS GROUND AND SIMPLY RESORTED TO UPHOLDING THE DISA LLOWANCE MADE BY THE LD. AO. IN RESPECT OF ADDITION IN THE SUM OF RS. 1,88,216/ - BEING DISALLOWANCE OF FREIGHT CHARGES U/S 40(A)(IA) OF THE ACT, THE LD. CIT(A) SIMILARLY WITHOUT ADDUCING ANY REASON UPHELD THE DISALLOWANCE MADE BY THE LD. AO WITHOUT GIVING H IS INDEPENDENT FINDING ON THE IMPUGNED ISSUE. IN RESPECT OF DISALLOWANCE OF BREAD CUTTING AND PACKING CHARGES , IN THE SUM OF RS.2,84,240/ - U/S 40(A)(IA) OF THE ACT IT WAS ARGUED THAT THE SAID SUM WAS PAID TO 11 PERSONS AND ACCORDINGLY THE PROVISION S OF SE CTION 194C R.W.S. 40(A)(IA) OF THE ACT ARE NOT APPLICABLE FOR THE ASSESSMENT YEAR UNDER APPEAL . HOWEVER, IT WAS ALSO OBSERVED THAT NO MASTER PAY ROLL WAS PRODUCED EITHER BEFORE THE LD. AO OR BEFORE THE LD. CIT(A) TO SUBSTANTIATE THE CONTENTIONS OF THE ASS ESSEE IN THIS REGARD. ACCORDINGLY, THE LD. CIT(A) SOUGHT TO DISMISS THIS ISSUE. AGGRIEVED BY THIS ORDER, THE ASSESSEE CHALLENGED ALL THE THREE ISSUES BEFORE THIS TRIBUNAL ON THE FOLLOWING GROUNDS : - 1. FOR THAT THE LD. COMMISSIONER OF APPEAL DID NOT APPL Y HIS MIND PROPERLY TO THE FACTS OF THE CASE AND WRONG IN CONFIRMING THE ADDITION OF RS.54,690/ - BEING THE AMOUNT PAYABLE TO THE CREDITOR ON A WRONG OBSERVATION. 2. FOR THAT THE LD. COMMISSIONER OF APPEAL ERRED IN FACTS AND LAW IN CONFIRMING THE ADDITION O F RS.1,88,216/ - TREATING THE SAME AS DELIVERY CHARGES AND THE APPELLANT HAS NOT DEDUCTED T.D.S. 3. FOR THAT THE LD. COMMISSIONER OF APPEAL DID NOT APPLY HIS MIND PROPERLY TO THE FACTS OF THE CASE AND WRONG IN HOLDING THE VIEW THAT PAYMENT OF RS.2,84,240/ - PAID TO DIFFERENT WORKERS ON CONTRACTUAL BASIS AND AS SUCH IT HAS VIOLATED SECTION 40(A)(IA). THE ADDITION OF RS.2,84,240/ - DISALLOWING THE CLAIM OF BREAD CUTTING CHARGES IS WRONG. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. SHRI SANJAY MUKHERJEE, JCIT, THE LD. DR APPEARED ON BEHALF OF THE REVENUE, WHO VEHEMENTLY SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 4. I HAVE HEARD THE LD. DR AND PERUSED THE MATERIALS AVAILABLE ON RECORD. FROM THE FACTS AND CIRCUMSTANCES OF THE CASE, I DEEM IT FIT AND APPROPRIA TE, IN THE INTEREST OF JUSTICE, TO SET ASIDE THE ISSUES TO THE FILE OF THE LD. CIT(A) FOR PASSING A SPEAKING ORDER IN RESPECT OF GROUND NOS.1 AND 2 RAISED BY THE ASSESSEE BEFORE ME AND IN RESPECT OF ITA NO. 247/KOL/2014 SRI DEBASISH DAS GUPTA . A.YR. .2008 - 09 3 GROUND NO.3 RAISED BY THE ASSESSEE THE ASSESSEE BE GIVEN ONE MORE OPPORTUNITY TO PRODUCE THE RELEVANT MATERIALS BEFORE THE LD. CIT(A) IN SUPPORT OF HIS CONTENTIONS WITH REGARD TO THE PAYMENT OF RS.2,84,240/ - AS BREAD CUTTING AND PACKING CHARGES. NEEDLESS TO MENTION, THE ASSESSEE BE GIVEN REASONABLE OPPORTUNITY O F BEING HEARD. 5 . IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNC ED IN TH E COURT . SD/ - [MAHAVIR SINGH] JUDICIAL MEMBER DATE: 11.08.2015. R.G.(.P.S.) COPY OF THE ORDER FORWARDED TO : 1 . SRI DEBASISH DAS GUPTA, 37/1B, HINDUSTHAN ROAD, KOLKATA - 700029. 2 I.T.O., WARD - 30(2 ), KOLKATA. 3 . THE CIT, 4. THE CIT(A) - XIV, KOLKATA. 5 . DR, KOLKATA BENCHES, KOLKATA TRUE COPY , BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES