Appeal details
Counselvise Citation
[2017] 126 COUNSELVISE.COM (IT) 6487 (ITAT-VISAKHAPATNAM)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
4 year(s) 7 month(s) 10 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
29-11-2017
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
DB
Next Hearing Date
28-06-2017
Assessment Year
2007-2008
Appeal Filed On
18-04-2013
Judgement Text
, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , ACCOUNTANT MEMBER . / I . T .A.NO. 920 / H / 201 3 ( / ASSESSMENT YEAR: 20 0 7 - 0 8 ) THE ASST.COMMISSIONER OF INCOME TAX CIRCLE - 2(2) HYDERABAD VS. M/S ENCORE LOGISTICS PVT. LTD. GF, 24 - 1 - 20, THOMPSON STREET VISAKHAPATNAM [ PAN : AAACE8340C] ( / APPELLANT) ( / RESPONDENT) ./ I.T.A.NO. 253 / VIZ /201 3 ( / ASSESSMENT YEAR:20 07 - 08 ) M/S ENCORE LOGISTICS PVT. LTD. GF, 24 - 1 - 20, THOMPSON STREET VISAKHAPATNAM [ PAN : AAACE8340C] VS. THE DCIT, CIRCLE - 3(1) VISAKHAPATNAM / APPELLANT BY : SHRI T.S.N.MURTHY , D R / RESPONDENT BY : S HRI C.SUBRAHMANYAM , A R / DATE OF HEARING : 1 7 . 11 .2017 / DATE OF PRONOUNCEMENT : 29 . 11 .2017 2 ITA NO . 920 / H /201 5 AND ITA 253/VIZ/2013 M/S ENCORE LOGISTICS PRIVATE LIMITED, VISAKHAPATNAM / O R D E R PER D.S. SUNDER SINGH , ACCOUNTANT MEMBER : 1 . THESE CROSS APPEAL S ARE FILED BY THE REVENUE AS WELL AS THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME - TAX (APPEALS), VISAKHAPATNAM VIDE ITA NO. 289 / 0 9 - 10 / ACIT,C - 3(1)/VSP/2012 - 13 DATED 27 . 0 3 .201 3 FOR THE ASSESSMENT YEAR 20 0 7 - 0 8 . 2. THE REVENUE HAS RAISED FOUR GROUNDS IN THE APPEAL. GROUND NOS.1 AND 4 ARE GENERAL IN NATURE WHICH DOES NOT REQUIRE SPECIFIC ADJUDICATION. 3. GROUND NO.2 IS RELATED TO THE ADDITION OF SUNDRY CREDITORS AMOUNTING TO RS.4,44,30,750/ - IN THE NAME OF TOLIA OVERSEAS PVT. LTD AND GROUND NO.3 IS RELATED TO THE ADDITION OF RS.1,21,82,232/ - . 4. THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF TRADING IN MINERALS LIKE COAL, IRON ORE, ROCK PHOSPHATE AND SULPUHR , FILED ITS RETURN OF INCOME DECLARING TOTAL INCOME OF RS.29,89,471/ - . THE CASE WAS SELECTED F OR SCRUTINY AND DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING 3 ITA NO . 920 / H /201 5 AND ITA 253/VIZ/2013 M/S ENCORE LOGISTICS PRIVATE LIMITED, VISAKHAPATNAM OFFICER (AO) CALLED FOR VARIOUS DETAILS INCLUDING THE BOOKS OF ACCOUNTS AND THE ASSESSE E FAILED TO PRODUCE THE BOOKS OF ACCOUNTS AND THE INFORMATION CALLED FOR BY THE AO . T HE AO COMPLETED THE ASSESSMENT AS PER THE INFORMA TION AVAILABLE ON RECORD DETERMINING THE TOTAL INCOME OF RS.9,25,13,690/ - AS UNDER: (I) ESTIMATION OF INCOME @2% ON TOTAL TURNOVER RS.2,02,46,040/ - (II) UNEXPLAINED CREDITORS RS.7,22,67,651/ - 4.1. UNEXPLAINED CREDITORS: THE AO FOUND FROM THE B ALANCE SHE ET THAT THE SUNDRY CREDITORS ARE OUTSTANDING AT RS.19,64 ,12,823/ - , BUT THE ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNTS TO VERIFY THE CORRECTNESS OF THE SUNDRY CREDITORS. THE ASSESSEE PRODUCED THE CONFIRMATION LETTERS TO THE EXTENT OF RS.12,87,70,172/ - IN RESPECT OF AMOUNTS DUE TO M/S BHATIA INTERNATIONAL LIMITED, INDORE RS.12,41,45,172/ - AND RS.46,25,000/ - IN RESPECT OF TOLIA OVERSEA S PVT. LTD. 5. WITH REGARD TO THE CREDIT OUTSTANDING IN THE NAME OF TOLIA OVERSEAS PVT. LTD., A SUM OF RS.4,44,30,750/ - WAS SHOWN TO HAVE BEEN OUTSTANDING AG A IN S T THE SALES MADE TO THE ASSESSE E COMPANY OVER AND ABOVE THE AMOUNT 4 ITA NO . 920 / H /201 5 AND ITA 253/VIZ/2013 M/S ENCORE LOGISTICS PRIVATE LIMITED, VISAKHAPATNAM CONFIRMED BY THE CREDITOR. ON VERIFICATION THE AO FOUND THAT THE TRANSACTION WAS RELATED TO 23/04/2007 RELEVANT TO THE SUBSEQUENT ASSESSMENT YEAR BUT NOT RELATED TO THE YEAR UNDER CONSIDERATION, BUT THE ASSESSEE HAD CLAIMED THE SAME TO BE PURCHASES MADE DURING THE ASSESSMENT YEAR U NDER CONS IDERATION I.E. BEFORE 31.03.2007 . ACCORDING TO THE ASSESSEE, THE PURCHASES WERE MADE DURING THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR 2007 - 08 AND ACCOUNTED BY THE ASSESS E E IN THE SAME YEAR, W HEREAS THE CREDITOR H A S ACCOUNTED THE SALE TRANSACTION IN THE SUBSEQUENT ASSESSMENT YEAR. T HE AO DID NOT BELIEVE THE PURCHASE TRANSACTIONS AND ON THE BASIS OF CONFIRMATION LETTER THE DIFFERENCE AMOUNT OF RS.4,44,30,750/ - BROUGHT TO TAX U/S 41(1) OF THE INCOME TAX ACT. 5.1. THE ASSESS EE HAD SHOWN OUTSTANDING SUNDRY CREDITORS OF RS.19,64,12,823/ - AND FURNISHED THE CONFIRMATION LETTERS IN RESPECT OF M/S BHATIA INTERNATIONAL LTD. FOR RS.12,41,45,172/ - AND RS.46,25,000/ - IN RESPECT OF TOLIA OVERSEAS PVT. LTD. HOWEVER, THE AO M ADE THE ADDITION OF RS.7,22,67,651/ - WITHOUT FURNISHING ANY DETAILS OR THE BREAK UP . THE AO TREATED THE LIABILITY CEASED TO HAVE BEEN EXIST ED FOR TAXING THE SAME U/S 41(1) OF I.T.ACT. THE SUM OF RS.7,22,67,651/ - WAS INCLUSIVE OF THE CREDIT OF 5 ITA NO . 920 / H /201 5 AND ITA 253/VIZ/2013 M/S ENCORE LOGISTICS PRIVATE LIMITED, VISAKHAPATNAM RS.4,44,30 ,750/ - RE LATING TO M/S TOLIA OVERSEAS PVT. LTD. CITED. THE AO HAS TAKEN THE BALANCING FIGURE FROM THE BALANCE SHEET AND THE CONFIRMATIONS FURNISHED BY THE ASSESSEE. 6. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE WENT ON APPEAL BEFORE THE CIT (A) AND FURNISHED THE DETAILS OF CURRENT LIABILITIES. THE CIT (A) HELD THAT THE ADDITION CANNOT BE MADE U/S 41(1) OF I.T.ACT AND IT IS LEGALLY UN TENABLE. SINCE THE TRANSACTION OF RS.4,44,30,750/ - WAS RELATED TO THE IMPUGNED ASSESSMENT YEAR THE LD. CIT (A) HELD THAT THE LIABILITY HAS NOT CEASED TO EXIST AND ACCORDINGLY DELETED THE ADDITION OF RS.4,44,30,750/ - . OUT OF THE ADDITION MADE BY THE AO UNDER THE SUNDRY CREDITORS OF RS. 7,22,67,650 / - UPHELD THE ADDITION OF RS.1,56,54,669/ - AND DELETED THE BALANCE ADDITION . 7. AGGRIEVED BY THE ORDER OF THE CIT(A), THE REVENUE HAS FILED THE APPEAL BEFORE THIS TRIBUNAL. DURING THE APPEAL HEARING, THE LD.DR ARGUED THAT DURING THE ASSESSMENT PROCEEDINGS, THE ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNTS AND THE RELEVANT DOC UMENTS AND AS PER TH E BALANCE SHEET, THE COMPANY HAD OUTSTANDING SUNDRY CREDITORS OF RS.19,64,12,823 AND 6 ITA NO . 920 / H /201 5 AND ITA 253/VIZ/2013 M/S ENCORE LOGISTICS PRIVATE LIMITED, VISAKHAPATNAM FU RNISHED THE CONFIRMATION TO THE TUNE OF RS.12,87,70,172/ - AND DID NOT FURNISH THE CONFIRMATION FOR THE BALANCE AMOUNT. LD.DR SUBMITTED THAT IN THE CASE OF TOLIA OVERSEAS LTD THOUGH ASSESS E E STATED TO HAVE MADE THE PURCHASES DURING THE YEAR , THERE WAS NO EVIDENCE TO ESTABLISH THE SAME AND IT WAS ACCOUNTED BY THE VENDOR O N 23.04.2007 IN THE SUBSEQUENT ASSESSMENT YEAR . T HE ASSESSEE HAS SHOWN THE LIABILITY OF RS.4,44,30,750/ - , AND THERE IS NO EVIDENCE TO ESTABLISH THE SAME, HENCE, ARGUED THAT THE AO HAS RIGHTLY MADE THE ADDITION WHICH REQUIRED TO BE UPHELD. WITH REGARD TO THE BALANCE ADDITION THE LD.DR ARGUED THAT THE ASSE SS E E HAD NEITHER FURNISHED THE CONFIRMATIONS NOR PRODUCED THE BOOKS OF ACCOUNTS, HENCE THE AO HAS NO OTHER ALTERNA TIVE EXCEPT TO DISBELIEVE THE OUTSTAND CREDITS HENCE SUBMITTED THAT THE AO HAS RIGHTLY MADE THE ADDITION WHICH REQUIRED TO BE UPHELD. 8. ON THE OTHER HAND, LD.AR ARGUED THAT THE ASSESSEE HAS MADE THE PURCHASES OF RS.4,44,30,750/ - ON 26.03.2007 AND DULY ACCOUNTED FOR IN THEIR BOOKS OF ACCOUNTS. THE VENDOR HAS ACCOUNTED FOR THE SAME IN THE SUBSEQUENT YEAR FOR WHICH THE ASSESSEE CANNOT BE MAD E RESPONSIBLE. THE ASSESSEE HAS C ORRECTLY ACCOUNTED, HENCE THE SALE SHOULD BE ACCEPTED. THE 7 ITA NO . 920 / H /201 5 AND ITA 253/VIZ/2013 M/S ENCORE LOGISTICS PRIVATE LIMITED, VISAKHAPATNAM LD.AR FURTHER ARGUED THAT THE TRANSACTION IS RELATED TO THE PURCHASES MADE DURING THE ASSESSMENT YEAR UNDER CONSIDERATION AND THE AO CANNOT MAKE THE ADDITION U/ S 41(1) OF I.T.ACT, THEREFORE, THE LD.AR ARGUED THAT THE ADDITION MADE IN RESPECT OF TOLIA OVERSEAS LTD. REQUIRES NO INTERFERENCE F ROM THE ORDER OF THE LD.CIT(A). WITH REGARD TO THE BALANCE ADDITION OF RS.2,78,36,901/ - , THE LD.AR EXPLAINED THAT THERE WAS A MISTAKE IN THE ADDITION MADE BY THE AO WHICH WAS EXPLAINED BEFORE THE CIT (A) . ACCORDING TO THE ASSESSEE, THE CREDITORS AS PER THE BALANCE SHEET WAS RS.20,64,12,823/ - BUT NOT 19.64,12,853 / - AND THE DETAILS OF SUNDRY CREDITO RS AS PER THE ORDERS OF THE AO AND THE LD.CIT(A) ARE AS UNDER : ASSESSING OFFICER: SUNDRY CREDITORS RS.19,64,12,823/ - ( - ) BHATIA INTL. RS.12,41,45,172/ - ( - ) TOLIA OVERSEAS LTD. RS. 46,25,000/ - ADDITION MADE U/S 41(1) AS PER CIT(A) RS.7,22,67,650/ - SUNDRY CREDITORS FOR PURCHASE & OTHERS RS.20,64,12,823/ - ( - ) BHATIA INTL. RS.12,41,45,172/ - ( - ) TOLIA OVERSEAS LTD. RS. 4,90,55,750/ - 8 ITA NO . 920 / H /201 5 AND ITA 253/VIZ/2013 M/S ENCORE LOGISTICS PRIVATE LIMITED, VISAKHAPATNAM TO BE EXPLAINED RS.3,32,11,900/ - RELATING TO CAPITAL GOODS RS. 37,61,923/ - RELATING TO CURRENT YEAR PURCHASE RS.1,37,95,308/ - BA LANCE FOR WHICH CONFIRMATION NO FILED RS. 1,56,54,669/ - 8.1. THE LD.CIT(A) HAS CONFIRMED THE AMOUNT OF RS.1,56,54,669/ - FOR WHICH NO CONFIRMATION WAS FILED BY THE ASSESSEE. THE LD.AR ARGUED THAT THE ASSESSEE HAS FURNISHED THE ENTIRE DETAILS BEFORE THE LD. CIT(A ) AN D ADDITION SHOULD NOT HAVE BEEN CONFIRMED BY THE LD.CIT (A) U/S 41(1) OF I.T.ACT. FURTHER, THE LD.AR ARGUED THAT WHEN THE INCOME IS ESTIMATED ON GROSS SALES NO FURTHER ADDITION REQUIRED TO BE MADE U/S 41(1) OF I.T.ACT. AND ACCORDING TO TH E LD.AR THE ADDITION CONFIRMED BY THE LD.CIT(A) REQUIRED TO BE DELETED. 9. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD. IN THIS CASE, THE AO MADE THE ADDITION OF RS.7,22,67,650/ - RELATING TO THE SUNDRY CREDITORS FOR PURCHASES. OUT OF THE AMOUNT OF RS.7,22,67,650/ - , THE ADDITION IN RESPECT OF TOLIA OVERSEAS PVT. LTD WAS AN AMOUNT OF RS.4,44,30,750/ - . THE ASSESSEE HAD FURNISHED THE CONFIRMATION LETTER S IN RESPECT OF THE CREDIT BALANCE OF RS.12,87,70,172/ - AND THE BALANCE 9 ITA NO . 920 / H /201 5 AND ITA 253/VIZ/2013 M/S ENCORE LOGISTICS PRIVATE LIMITED, VISAKHAPATNAM REMAI NED TO BE EXPLAINED WAS RS.6,76,42,651/ - (RS.19,64,12,823 - 12,87,70,172) BUT NOT 7,22,67,651/ - . BEFORE THE CIT(A) THE ASSESS E E HAD CLAIMED THAT THE SUNDRY CREDITORS FOR PURCHASE & OTHERS WAS RS.20,64,12,823/ - AND LD.CIT(A) CONFIRMED THE AMOUNT OF RS.1,56,54, 669/ - FOR NOT FURNISHING THE CONFIRMATIONS. FOR READY REFERENCE WE EXTRACT RELEVANT PART OF THE CIT(A) AS UNDER: 5.2. IT WAS REPRESENTED THAT THE CURRENT LIABILITIES ON ACCOUNT OF PURCHASES AND OTHER WAS RS.20,64,12,823/ - AND NOT RS.19,64,12,823/ - . OF WHICH CONFIRMATION LETTERS WERE FILED FOR TRANSACTION WITH M/S BHATIA INTERNATIONAL LIMITED, INDORE (OF RS.12,41,45,172/ - ) AND TOLIA OVERSEAS PVT. LTD (OF RS.4,90,55,750/ - ) WITH THE AO. THE CREDIT TRANSACTION ITH BHATIA INTL. OF RS.12,41,45,172/ - WAS ACCEPTED BY THE AO. IN THE CONFIRMATION LETTER TOLIA OVERSEAS PVT. LTD HAS SHOWN RS.46,25,000/ - AS DUE FROM THE APPELLANT. HOWEVER, AS PER THE BOOKS OF THE APPELLANT THE LIABILITY TO TOLIA OVERSEAS PVT. LTD WAS SHOWN AT RS.4,90,55,750/ - . THE APPELLANT HAD EXPLAINED TO THE AO THAT AN INVOICE OF RS.4,44,30,750/ - WAS ACCOUNTED BY THE APPELLANT IN THE YEAR ENDED 31.03.2007, WHERE AS M/S TOLIA OVERSEAS LTD. HAD ACCOUNTED THE SAME ON 23.04.20076. IT WAS ALSO EXPLAINED THAT AS THE APPELLANT HAD RECEIVED THE STOCK, IT WAS ACCOUNTED IN THE FINANCIAL YEAR ITSELF, AND FURTHER AS IT WAS BILLED IT WAS NOT DISCLOSED AS STOCK. HOWEVER THE A O DID NOT ACCEPT THE EXPLANATION AND MADE THE ADDITION AS FOLLOWS : SUNDRY CREDITORS RS.19,64,12,823/ - ( - ) BHATIA INTL. RS.12,41,45,172/ - ( - ) TOLIA OVERSEAS LTD. RS. 46,25,000/ - RS.7,22,67,650/ - A SUM OF RS.7,22,67,650/ - WAS ADDED TO THE TOTAL INCOME U/S.41(1) OF THE I.T.ACT DURING THE APPELLATE PROCEEDINGS, THE APPELLANT SUBMITTED THE POSITIONS AS FOLLOWS. SUNDRY CREDITORS FOR PURCHASE & OTHERS RS.20,64,12,823/ - ( - ) BHATIA INTL. RS.12,41,45,172/ - ( - ) TOLIA OVERSEAS LTD. RS. 4,90,55,750/ - 10 ITA NO . 920 / H /201 5 AND ITA 253/VIZ/2013 M/S ENCORE LOGISTICS PRIVATE LIMITED, VISAKHAPATNAM TO BE EXPLAINED RS.3,32,11,900/ - RELATING TO CAPITAL GOODS RS. 37,61,923/ - RELATING TO CURRENT YEAR PURCHASE RS.1,37,95,308/ - BALANCE FOR WHICH CONFIRMATION NOT FILED RS. 1,56,54,669/ - 9.1. FROM THE DETAILS GATHERED FROM THE ORDER OF THE LD.CIT(A) , IT APPEARS THAT THE CREDITORS FOR PURCHASE AND OTHERS WERE RS.20,64,12,823/ - BUT NOT RS.19,64,12,823/ - AND THE SUNDRY CREDITORS TO BE EXPLAINED WAS RS.3,32,11,900/ - APART FROM TOLIA OVERSEAS AND THE AO MADE THE ADDITION OF RS.7 ,22,67,650/ - . BEFORE T HE CIT(A) THE ASSESSEE EXPLAINED THAT T HE ASSESSEE HA D PURCHASED THE CAPITAL GOODS FOR RS. 37,61,923/ - AND CURRENT YEAR PURCHASES WERE RS.1,37,95,308/ - AND BALANCES FOR WHICH CONFIRMATION REQUIRED WAS 1,56,54,669/ - . THOUGH THERE WAS DIFFERENCE IN TOTAL SU NDRY CREDITORS AND BALANCE TO BE EXPLAINED THE LD.CIT(A) HAS NOT CALLED FOR THE REMAND REPORT. THE ASSESSE E HAS NOT PRODUCED THE BOOKS OF ACCOUNTS TO SUBSTANTIATE THE CLAIM OF SUNDRY CREDITOR EITHER BEFORE THE AO OR BEFORE THE CIT(A). EVEN IN THE CASE OF TOLIA OVERSEAS THE ASSESSE E HAS NOT FURNISHED THE EVIDENCE TO SHOW THAT THE PURCHASES WERE MADE BY THE ASSESSE E IN THE YEAR UNDER CONSIDERATION WITH LR, DELI VERY NOTE AND THE PURCHASE BILL AND THE BOOKS OF ACCOUNTS ETC.. IT IS OBLIGATION ON THE PART OF THE ASSESSE E TO ESTABLISH THAT THE PURCHASES IN FACT WAS MADE IN THE YEAR UNDER CONSIDERATION AND THE EXISTENCE OF LIABILITY. 11 ITA NO . 920 / H /201 5 AND ITA 253/VIZ/2013 M/S ENCORE LOGISTICS PRIVATE LIMITED, VISAKHAPATNAM 9.2. THE DIFFERENCE IN THE SUNDRY CREDITORS WORKED OUT BY THE LD.CIT(A) AND THE ASSESSING OFFICER WAS NEITHER RECONCILED NOR EXPLAIN ED BY THE LD.DR. THERE WAS DIFFERENCE IN THE QUANTUM . THE CIT(A) WORKED OUT THE DIFFERENCE AT RS.3,32,11,900/ - WHEREAS AS PER AO I T WORK ED OUT TO RS.2,78,36,901/ - . P URCHASE OF CAPITAL GOODS WAS FIRST TAKEN UP BY THE ASSESSEE BEFORE CIT(A) BUT THE SAME WAS NOT EXPLAINED BEFORE THE AO AND NOT CONSIDERED BY THE AO. ALL THE ABOVE DIFFERENCE AND ISSUES REQUIRED TO BE VERIFIED FROM THE ASSESSEES BOOKS OF ACCOUNTS AND TO BE CROSS VERIFIED FROM THE CREDITORS BOOKS OF ACCOUNTS WHICH EXERCISE WAS NOT DONE BY THE AO BECAUSE OF NON COOPERATION FROM THE ASSESS E E. THEREFORE, WE ARE OF THE CONSIDERED OPINION THAT THE ENTIRE ISSUE NEEDS TO BE REMITTED BACK TO THE FILE OF AO TO MAKE THE DETAILED VERIFICATION AND DECIDE THE ISSUE A FRESH ON MERITS. ACCORDINGLY WE REMIT THE MATTER BACK TO THE FILE OF THE AO WITH A DIRECTION TO EXAM INE THE ENTIRE ISSUE AND CONSIDER THE ISSUE AFRESH ON MERITS. THE ASSESSEE SHOULD COOPERATE AND SUBMIT THE INFORMATION TO THE AO. ITA NO.253/VIZ/2013 10. THE ASSESSEE HAS RAISED APPEAL WITH REGARD TO THE ESTIMATION OF INCOME AND THE ADDITION S U/S 41(1). THE ASSESSEE ARGUED THAT ONCE THE 12 ITA NO . 920 / H /201 5 AND ITA 253/VIZ/2013 M/S ENCORE LOGISTICS PRIVATE LIMITED, VISAKHAPATNAM INCOME IS ESTIMATED NO SEPARATE ADDITION SHOULD BE MADE. THE AO HAS ESTIMATED INCOME @2% ON GROSS SALES OF RS.101,23,02,244/ - WHICH WORKED OUT TO RS.2,02,46,040/ - FOR NON PRODUCTION OF BOOKS OF ACCOUNTS AND THE RELEVANT D ETAILS. T HE ASSESSEE WENT ON APPEAL BEFORE THE CIT(A) AND THE LD.CIT(A) CONFIRMED THE ESTIMATION MADE BY THE AO. HOWEVER, BEFORE THE LD.CIT(A), THE ASSESSEE HAS NOT OBJECTED FOR ESTIMATION OF INCOME, BUT REQUESTED FOR REASONABLE ESTIMATION OF INCOME . HOWE VER THE LD.CIT(A) CONFIRMED THE ESTIMATION OF INCOME. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE IS IN APPEAL BEFORE THIS TRIBUNAL CHALLENGING THE REASONABLENESS OF ESTIMATION OF INCOME AS WELL AS THE ADDITION CONFIRMED BY THE CIT (A) U/S 41(1) RELATIN G TO SUNDRY CREDITORS. 10.1. IN THE REVENUES APPEAL, WE HAVE SET ASIDE THE ORDER OF THE CIT (A) S INCE THE ISSUE WITH REGARD TO THE ESTIMATION OF INCOME IS INTER LINKED WITH THE ADDITION MADE BY THE AO U/S 41(1), WE ARE OF THE CONSIDERED OPINION THAT THE EST IMATION OF INCOME ALSO REQUIRED TO BE RE MITTED BACK TO THE FILE OF THE AO AND DECIDE THE ISSUE AFRESH ON MERITS AFTER CONSIDERING THE SUBMISSIONS MADE BY THE ASSESSEE. ACCORDINGLY , WE REMIT THE ENTIRE ASSESSMENT TO THE FILE OF THE AO FOR DENOVO CONSIDERA TION. 13 ITA NO . 920 / H /201 5 AND ITA 253/VIZ/2013 M/S ENCORE LOGISTICS PRIVATE LIMITED, VISAKHAPATNAM 11. I N THE RESULT, APPEALS OF THE ASSESSEE AS WELL AS REVENUE ARE ALL O WED FOR STATI STI CAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 29 TH NOV 2017 . SD/ - SD/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 29 . 11 .2017 L. RAMA, SPS / COPY OF THE ORDER FORWARDED TO: - 1. / THE APPELLANT - THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 2(2), HYDERABAD 2 . / THE RESPONDENT M/S ENCORE LOGISTICS PVT. LTD., GF, 24 - 1 - 20, THOMPSON STREET, VISAKHAPATNAM 3. THE COMMISSIONER OF INCOME TAX - 1, VISAKHAPATNAM 4 . THE COMMISSIONER OF INCOME TAX (APPEALS) , VISAKHAPATNAM 5 . , , / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM
