Udit Financial Services Pvt. Ltd., Kolkata V. D.C.I.T.,Circle-6(1), Kolkata

ITA 2607/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4481 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 18-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA
• Assessee Lawyers: K M ROY
• Section: 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA SMC BENCH, KOLKATA [BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER] I.T.A. NO. 2607/KOL/2019 ASSESSMENT YEARS: 2012-13 UDIT FINANCIAL SERVICES PVT. LTD......................................................................................APPELLANT [PAN: AAACU 3326 N] VS. DCIT, CIRCLE-6(1), KOLKATA.....................................................................RESPONDENT APPEARANCES BY: SH. K.M. ROY, CA, APPEARED ON BEHALF OF THE ASSESSEE. SH. JAYANTA KHANRA, JCIT, SR. DR, APPEARED ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : FEBRUARY 10 TH , 2020 DATE OF PRONOUNCING THE ORDER : FEBRUARY 26 TH , 2020 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)-2, KOLKATA [CIT(A) FOR SHORT] DATED 03.10.2019 U/S 250 OF THE INCOME TAX ACT, 1961 (THE ACT FOR SHORT) FOR AY 2012-13. 2. THE ASSESSEE IN THIS CASE HAS OFFERED TO TAX AN AMOUNT OF 10 LAKH UNDER THE INCOME DECLARATION SCHEME, 2016. THE AMOUNT OF 10 LAKH, WAS ORIGINALLY CLAIMED AS A DEDUCTION BEING PAYMENT OF COMMISSION. THIS DECLARATION WAS ACCEPTED BY THE PR.CIT-2, KOLKATA IN FORM NO.-4 ON 06.10.2017. THE ASSESSEE HAS CLAIMED THAT SERVICE TAX OF 1,03,000/- WAS COLLECTED FROM IT BY M/S. SILVER POINT INFRATECH LTD. TO WHOM THE ALLEGED COMMISSION WAS PAID AND THAT M/S. SILVER POINT INFRATECH LTD. HAS PAID THE AMOUNT IN QUESTION AS SERVICE TAX. THIS SERVICE TAX PAYMENT WAS CLAIMED AS A DEDUCTION. 3. THE REVENUES CONTENTION IS THAT WHEN THE PAYMENT OF COMMISSION ITSELF IS NOT GENUINE, THE PAYMENT OF SERVICE TAX TO M/S. SILVER POINT INFRATECH LTD. IS ALSO A BOGUS PAYMENT. 4. WHEN THE SERVICE TAX IN QUESTION HAS BEEN PAID TO THE SERVICE TAX DEPARTMENT BY M/S. SILVER POINT INFRATECH LTD., AND THE SAME HAS BEEN RECOVERED FROM THE ASSESSEE, THIS 2 I.T.A. NO. 2607/KOL/2019 ASSESSMENT YEARS: 2012-13 UDIT FINANCIAL SERVICES PVT. LTD. SHOULD BE ALLOWED AS AN EXPENSE AND NO ADDITION CAN BE MADE. HENCE, THE SAME IS DELETED AND THE APPEAL OF THE ASSESSEE IS ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. KOLKATA, THE 26 TH FEBRUARY, 2020. SD/- [J. SUDHAKAR REDDY] ACCOUNTANT MEMBER DATED: 26.02.2020 BIDHAN COPY OF THE ORDER FORWARDED TO: 1. UDIT FINANCIAL SERVICES PVT. LTD., 7, ESPLANADE MANSIONS, 14, GOVT. PLACE (EAST), WEST BENGAL-700 069. 2. DCIT, CIRCLE-6(1), KOLKATA. 3. CIT(A)-2, KOLKATA. (SENT THROUGH E-MAIL) 4. CIT- 5. CIT(DR), KOLKATA BENCHES, KOLKATA. (SENT THROUGH E-MAIL) TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES