ACIT 2(1), MUMBAI V. BATLIBOI LTD, MUMBAI

ITA 272/MUM/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7965 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 18-01-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 11-01-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARESH KUMAR BALODIA
• Assessee Lawyers: V MOHAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRIR.S.SYAL, AM AND SMT.ASHAVIJAYARAGHAVAN, JM ITA NO.272/MUM/2010 :ASST.YEAR 2005-2006 THE ASSTT.COMMISSIONER OF INCOME-TAX (OSD) 2(1) MUMBAI. VS. M/S.BATLIBOI LIMITED BHARAT HOUSE, 5 TH FLOOR 104 BOMBAY SAMACHAR MARG FORT, MUMBAI 400 001. PAN : AAACB4408L. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI NARESH KUMAR BALODIA RESPONDENT BY : SHRI V.MOHAN O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 21.10.2009 RELATE TO ASSESSMENT YEAR 2005-2006. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE DELETION OF ADDITION OF RS.23,49,527 BEING CONTRACT RECEIPT IN RESPECT OF W HICH TDS WAS DEDUCTED AND DELETION OF ADDITION OF RS.1,61,559 BEING THE AMOUN T OF RECEIPT BY THE ASSESSEE AS PER INFORMATION AVAILABLE WITH THE A.O. BRIEFLY STA TED THE FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER RECEIVED INFORMATION THROUGH THE ANNUAL INFORMATION RETURN (AIR) OF VARIOUS CONCERNS, WHICH INDICATED THAT TH E ASSESSEE HAD RECEIVED CERTAIN AMOUNTS FROM WHICH TAX WAS DEDUCTED AT SOURCE. TOTA L OF SUCH REPORTED PAYMENTS FOR PREVIOUS YEAR RELEVANT TO ASSESSMENT YEAR UNDER CONSIDERATION WAS RS.57,47,043. THE ASSESSEE WAS CALLED UPON TO RECON CILE ITS RECEIPTS WITH THOSE REFLECTED IN AIR. THE ASSESSEE WAS ABLE TO VERIFY T HE PAYMENTS WITH THE TDS CERTIFICATES IN RESPECT OF CERTAIN PARTIES. IT WAS EXPLAINED THAT IN RESPECT OF THESE ENTRIES, THE INCOME WAS DECLARED AS PER TDS CERTIF ICATES WHICH WAS DECLARED IN SUBSEQUENT YEARS AND HENCE THEY WERE NOT OFFERED FO R TAXATION IN THIS YEAR. THE ITA NO.272/MUM/2010 M/S.BATLIBOI LIMITED. 2 A.O. DID NOT ACCEPT THE ASSESSEES CONTENTION ON TH E GROUND THAT AIR CLEARLY MENTIONED THAT THE PAYMENTS WERE RECEIVED BY THE AS SESSEE FROM VARIOUS PARTIES PERTAINING TO ASSESSMENT YEAR UNDER QUESTION. THESE ENTRIES TOTALED RS.23,49,527. SIMILAR POSITION PREVAILED REGARDING THE AMOUNT OF RS.1,61,559 WHICH WAS ALSO ADDED TO THE ASSESSEES INCOME. WHEN THE MATTER CAM E UP BEFORE THE LEARNED CIT(A), IT WAS ARGUED ON BEHALF OF THE ASSESSEE TH AT THE A.O. HAD NOT AGREED WITH THE STATEMENT MADE BEFORE HIM THAT THE INCOME WAS A LREADY DISCLOSED IN THE RESPECTIVE YEARS WHEN THE INCOME WAS RECEIVED. IT W AS ALSO STATED THAT THE BENEFIT OF TDS WAS AVAILED WHEN THE TDS CERTIFICATES WERE R ECEIVED BY THE ASSESSEE. THE ASSESSEE ALSO PRODUCED CERTIFICATE FROM STATUTORY A UDITORS. AGREEING WITH THE ASSESSEES CONTENTION THE LEARNED CIT(A) DIRECTED T O DELETE THE ADDITION. THAT IS HOW THE REVENUE IS IN APPEAL BEFORE US. 3. ON AN EARLIER OCCASION THIS MATTER CAME U P BEFORE THE TRIBUNAL WHEN THE LEARNED DEPARTMENTAL REPRESENTATIVE WAS DIRECTED TO FORWARD COPY OF PAPER BOOK FILED BY THE ASSESSEE, ON THE BASIS OF WHICH THE LD . CIT(A) HAD GRANTED RELIEF, FOR OBTAINING REMAND REPORT FROM THE ASSESSING OFFICER AFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE. THE LEARNED DEPARTMENTAL REPRESENTATI VE HAS PLACED ON RECORD A COPY OF THE REMAND REPORT PURSUANT TO THE DIRECTION OF T HE TRIBUNAL. THE LAST LINES OF THIS REMAND REPORT DATED 11.03.2011 READS : AS PER YOUR HONOUR DIRECTIONS, THE DETAILS FILED WERE NOW VERIFIED AND AFTER VERIFICATION, THE CONTENTION OF THE ASSESSEE HAS BEEN FOUND CORRECT. FROM THE ABOVE REMAND REPORT I T BECOMES CLEAR THAT THE RECONCILIATION WHICH ASSESSEE COULD NOT FILE AT THE ASSESSMENT STAGE BUT WAS FILED BEFORE THE FIRST APPELLATE AUTHORITY RECONCILING TH E ITEMS OF INCOME HAVE BEEN FOUND TO BE ACCEPTABLE BY THE ASSESSING OFFICER. IN SUCH A SITUATION THERE REMAINS NOTHING FOR SUSTAINING THE ADDITION. WE, THEREFORE, UPHOLD THE IMPUGNED ORDER. ITA NO.272/MUM/2010 M/S.BATLIBOI LIMITED. 3 4. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS 25 TH DAY OF MARCH, 2011 . SD/- SD/- (ASHAVIJAYARAGHAVAN) (R.S.SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI : 25 TH MARCH, 2011. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) IV, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.