S.K. LOGISTICS, THANE V. ASST CIT CIR 3, KALYAN

ITA 2625/MUM/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 2577 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: J
• Assessment Year: 2011-2012
• Appeal Filed On: 11-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHOUDHARY ARUNKUMAR SINGH
• Assessee Lawyers: HARI S RAHEJA
• Keywords: TDS
• Section: 143(3)

Judgement Text

AAYAKR APILAIYA AIQAKRNA AAYAKR APILAIYA AIQAKRNA AAYAKR APILAIYA AIQAKRNA AAYAKR APILAIYA AIQAKRNA G NYAAYAPIZ MAMUBA[ NYAAYAPIZ MAMUBA[ NYAAYAPIZ MAMUBA[ NYAAYAPIZ MAMUBA[- -- - MAO. MAO. MAO. MAO. IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUM BAI . BEFORE SRI MAHAVIR SINGH, JM AND SRI M BALAGANESH, AM AAYAKR APILA SAM AAYAKR APILA SAM AAYAKR APILA SAM AAYAKR APILA SAM . / ITA NO. 2625/MUM/2017 ( INAQA-ARNA BAYA- / ASSESSMENT YEAR 2011-12) S.K. LOGISTICS BUILDING NO. B-3, BK & KK DEVELOPERS CITY LINK WAREHOUSING COMPLEX MUMBAI NASIK HIGHWAY SURVEY NO. 120-121, VADPE VILLAGE THANE-421302 VS. ASST. COMMISSIONER OF INCOME TAX CIRCLE 3, 2 ND FLOOR, RANI MANSION MURBAD ROAD, KALYAN (W), 421301 ( APILAAQAI APILAAQAI APILAAQAI APILAAQAI - -- - / APPELLANT) .. ( P`%YAQAAI P`%YAQAAI P`%YAQAAI P`%YAQAAI- -- - / RESPONDENT) . / PAN NO. AB0FS1001Q ! / APPELLANT BY : SHRI HARI S RAHEJA, AR #$ ! / RESPONDENT BY : SHRI CHOUDHARY ARUN KUMAR SINGH, DR ! () / DATE OF HEARING: 27 - 02 - 2019 ! () / DATE OF PRONOUNCEMENT : 7 - 0 3 - 2019 AADOSA AADOSA AADOSA AADOSA / O R D E R / PER MAHAVIR SINGH, JM: THIS APPEAL FILED BY THE ASSESSEE IS ARISING OUT OF THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-2, THANE [IN S HORT CIT(A)], IN ITA 2 ITAS NO. 2625/MUM/2017 NO 627/14-15 VIDE ORDER DATED 27.1.2017. THE ASSESS MENT WAS FRAMED BY THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-3 KALY AN (IN SHORT ACIT / AO) FOR THE A.Y. 2011-12 VIDE ORDER DATED 21.03.20 14 UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT) . 2. THE ONLY ISSUE IN THIS APPEAL OF THE ASSESSEE IS AGAINST THE ORDER OF THE CIT(A) IN SUSTAINING THE ADDITION OF 11,53,224/- ON ACCOUNT OF DIFFERENCE APPEARING IN FORM 26AS FOR WHICH THE ASS ESSEE HAS FILED RECONCILIATION. FOR THIS, THE ASSESSEE HAS RAISED THE FOLLOWING TWO GROUNDS: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW , THE LD CIT(A) ERRED IN SUSTAINING ADDITION OF 11,53,224/- TO THE TOTAL INCOME OF THE APPELLANT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES. OF THE CA SE AND IN LAW THE LEARNED CIT(A} ERRED IN HOLDING THAT THE PLEA OF TH E APPELLANT THAT CERTAIN AMOUNTS THOUGH APPEARING IN FORM 26AS FOR ASSESSMEN T YEAR 2011-12 UNDER APPELLANTS PAN ARE REFLECTED/ADJUSTED IN SUBS EQUENT YEARS IS NOT TENABLE IN THE ABSENCE OF VALID EXPLANATIONS WHEN I N FACT THE APPELLANT HAD FURNISHED THE NECESSARY SUPPORTING AND THUS THE CIT(A) ERRED IN DIRECTING THAT A SUM OF 11,53,224/- BE TAXED IN ASSESSMENT YEAR 2011- 12 ITSELF. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND GONE THROUG H THE FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE ASSESS ING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS NOTICED THAT THERE IS DISCREPANCY IN THE BOOKS OF ACCOUNT VIS--VIS FORM NO.26AS IN RESPECT TO INTEREST INCOME, SERVICE TAX, REIMBURSEMENT OF EXPENSES AND EXCESS A MOUNT PAID BY THE ASSESSEE. WHEN THESE FACTS WERE POINTED OUT, THE A SSESSEE COULD NOT RECONCILE BEFORE THE ASSESSING OFFICER AND HENCE, T HE ASSESSING OFFICER 3 ITAS NO. 2625/MUM/2017 MADE VARIOUS ADDITIONS. AGGRIEVED, THE ASSESSEE PR EFERRED APPEAL BEFORE THE CIT(A) AND BEFORE THE CIT(A), THE ASSESSEE RECO NCILED MAXIMUM ENTRIES AND THE CIT(A) DELETED THE ADDITION IN RES PECT OF RECONCILED ENTRIES BUT SUSTAINED THE ADDITION TO THE EXTENT OF 11,53,224/-, THE DETAILS OF WHICH ARE AS UNDER: :A. EXCESS AMOUNT PAID BY THE PARTY DURING THE AY 2 011-12 AND ADJUSTED (DEDUCTED) BY THE PARTY IN AY 2012-13. C. EXCESS AMOUNT PAID BY THE PARTY DURING AY 2011-1 2 AND ADJUSTED (DEDUCTED) BY THE PARTY IN AY 2012-13. D. EXCESS AMOUNT PAID BY THE PARTY DURING AY 2011-1 2 AND ADJUSTED (DEDUCTED) BY THE PARTY IN AY 2012-13. E. 43,000/- REPORTED BY THE PARTY TWICE. 4. THE ASSESSEE NOW BEFORE US FILED RECONCILIATION TO THE EXTENT OF 11,10,224/-. LD COUNSEL ALSO FILED CONFIRMATORY LE TTERS RECEIVED FROM 3 PARTIES NAMELY(I) M/S. PHARMACEUTICALS PVT LT., (II ) FULFORT INDIA LTD AND (III) ORGANON INDIA LTD.,, WHO HAVE CONFIRMED THE MISTAKE IN THE TDS DEDUCTION IN SUPPORT OF VARIOUS PAYMENTS MADE BY THEM. AFTER THE CONFIRMATORY LETTERS RECEIVED FROM THE PARTIES, THE FOLLOWING IS THE POSITION: NAME OF THE PARTY AS PER 26AS SERVICE CH.INCL.S.T AX AS PER ASSESSEE S BOOK SERVICE CH.INCLUDIN G S.TAX ACCOUNTED BY THIRD PARTY IN 12-13 REIMBURSE MENT INCLUDING S.TAX ON WHICH TDS DEDUCTED BY THIRD PARTY TOTAL BALAN CE EXCES S/SHOR T OTHER ADJUSTMEN T M/S. PHARMACEUTI CAL PVT LTD. 3234338 4399884 1835264 303373 286799 3 366345 (29) 366374 FULFORD LTD. 4204137 4699835 - 137922 483775 7 366380 6 366374 ORGANON INDIA LTD. 4591655 4072084 - 142100 421418 4 377471 5 377476 TOTAL 13030130 13171803 1835264 583395 119199 34 1110196 (28) 1110224 4 ITAS NO. 2625/MUM/2017 5. WE FIND THAT THE ASSESSEE HAS CLAIMED THAT THE A DJUSTMENT TO THE EXTENT OF 11,10,224/- IS EXPLAINED IN VIEW OF THE FACT THAT T HE ABOVE THREE ENTITIES HAVE CONFIRMED MISTAKE IN THE TDS DEDUCTIO N AND IN SUPPORT OF THE SAME, THEY HAVE RECTIFIED THEIR FORM 26AS. LET THE SE ENTRIES BE EXAMINED BY THE ASSESSING OFFICER AND THESE DETAILS BE PRODU CED BEFORE THE ASSESSING OFFICER BY THE ASSESSEE. HENCE, IN TERMS OF ABOVE, MATTER IS RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER QUA THIS GROUND ONLY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 7 -03-2 019 . SD/- SD/- ( . / M BALAGANESH) ( /MAHAVIR SINGH) ( / ACCOUNTANT MEMBER) ( / JUDICIAL MEMBER) MUMBAI, DATED: 7 - 03-2019 . BKP/SR.PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. #$ / THE RESPONDENT. 3. % /( ( ) / THE CIT(A) 4. % /( / CIT 5. 23 #(&45 , ) 45 , % / DR, ITAT, MUMBAI 6. 67 / GUARD FILE. / BY ORDER, $2( #( //TRUE COPY//= / ( ASSTT. REGISTRAR) !', % / ITAT, MUMBAI 5 ITAS NO. 2625/MUM/2017