Shree Ram Exports, Mahuva V. The ACIT, CPC, Banglore

ITA 2937/AHD/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7317 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 28-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(1); 201; 44AB; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH BEFORE: SHR I MAHAVIR PRASAD , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER SHREE RAM EXPORTS NESVAD, SAVARKUNDLA ROAD MAHUVA - 364290 PAN: AAVFS0844B (APPELLANT) VS THE ACIT , CPC , BANGALORE (RESPONDENT) REVENUE BY : S H RI B.L. MEENA , SR. D . R. ASSESSEE BY: SHRI MEHUL K. PATEL , A.R. DATE OF HEARING : 10 - 07 - 2 019 DATE OF PRONOUNCEMENT : 23 - 07 - 2 019 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 2015 - 16 , ARI SES FROM ORDER OF THE CIT(A) - 6, AHMEDABAD DATED 1 2 - 10 - 2 017 , IN PROCEEDINGS UNDER SECTION 1 4 3(1) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2 . THE SOLITARY GROUND OF APPEAL OF THE ASSESSEE IS AGAINST THE DECISION OF LD. CIT(A) IN HOLDING THAT CPC, BANGALORE IS JUSTIF IED IN DISALLOWING U/S. 143(1), A SUM OF RS. 6,30,000/ - PAID AS REMUNERATION TO PARTNER. I T A NO . 2937 / A HD/20 17 A SS ESSMENT YEAR 2015 - 16 I.T.A NO. 2937 /AHD/20 17 A.Y. 2015 - 16 PAGE NO SHREE RAM EXPORTS VS. ACIT 2 3. THE FACT IN BRIEF IS THAT ASSESSEE IS A REGISTERED FIR M AND FILED ITS RETURN OF INCOME ON 29 TH SEP, 2015 DECLARING TOTAL INCOM E AT RS. 7 , 63 , 850/ - . THE CPC HAS PROCESSED THE AFORESAID RETURN OF INCOME ON 9 TH APRIL, 2016 AND COMPUTED THE TOTAL AGGREGATE INCOME OF THE ASSESSEE AT RS. 13 , 93 , 850/ - AS AGAINST AGGREGATE INCOME OF RS. 7 , 63 , 850/ - PROVIDED BY THE ASSESSEE IN THE RETURN O F INCOME . T HE ASSSESSEE HAS FILED APPEAL BEFORE THE LD. CIT(A). 4. THE LD. CIT(A) HAS REJECTED THE APPEAL OF THE ASSESSEE ON THE GROUND THAT ASSESSEE HAS CLAIMED REMUNERATION PAID TO TWO PARTNERS AT RS. 7 ,50,000/ - IN THE P & L ACCOUNT, H OWEVER, A S PER THE DETAIL FILED IN THE INCOME RETURNED THE REMUNERATION PAID TO PARTNERS WAS SHOWN AT RS. 1,20,000/ - . 5 . DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE US, THE LD. COUNSEL HAS FILED PAPER BOOK COMPRISING COPY OF RETURN OF INCOME , C OM PUT ATION OF INCOME , AUDITED RETURN AND ACCOUNTS, COMPUTATION OF INCOME , AUDITED ACCOUNTS FOR ASSESSMENT YEAR 2012 - 13 ETC. THE L D . COUNSEL HAS SUBMITTED THAT AS PER AUDIT REPORT U/S. 144AB OF THE ACT , REMUNERATION OF RS. 6,30,000/ - WAS PAID TO THE PARTNER AND IT IS INCORRECTLY DISALLOWED U/S. 143(1) OF THE ACT. THEREFORE, THE CLAIM OF PAYMENT OF REMUNERATION TO PARTNER IS TO BE ALLOWED. ON THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF LOWER AUTHORITIES. 6 . WE HAVE HEARD BOTH T HE SIDES AND PERUSED THE MATERIAL ON RECORD. WE HAVE GONE THROUGH T HE INTIMATION U/S. 143(1) OF TH E ACT ISSUED BY THE CPC, BANGALORE. IT IS NOTICED AS PER THE COPY OF INCOME TAX RETURN FILED BY THE ASSESSEE. THE ASSESSEE HAS TOTAL INCOME AT RS. 7 , 63 , 850 / - WHICH WAS I.T.A NO. 2937 /AHD/20 17 A.Y. 2015 - 16 PAGE NO SHREE RAM EXPORTS VS. ACIT 3 ENHANCED TO RS. 13 , 93 , 850/ - BY THE ORDER OF CPC U/S. 143(1) DATED 9 TH APRIL, 2016. IN THIS CONNECTION, WE HAVE FURTHER NOTICED THAT ASSESSEE HAS NOT BEEN GIVEN ANY OPPORTUNITY TO EXPLAIN THE DISCREPANCY WHICH WAS DETECTED BY THE CPC. THE LD. CIT(A) HAS HELD THAT ASSESSEE HAS INADVERTENTLY MENTIONED RS. 1,20,000/ - AS REMUNERATION PAID TO PARTNERS WHILE ACTUAL PAYMENT OF RS. 7,50,000/ - WAS MADE TO THE PARTNERS AS REMUNERATION. WITH T H E ASSISTANCE OF LD. REPRESENTATIVES , WE HAVE GONE THROUGH T HE PAPER BOOK FILED BY THE LD. COUNSEL AND HE HAS DEMONSTRATED BY REFERRING P A GE NO. 45 AND OTHER PAGES OF AUDIT REPORT 44AB THAT ASSESSEE HAS PAID REMUNERATION TO THE PARTNER TO THE AMOUNT OF RS. 7,50,000/ - WHICH WAS INADVERTENTLY REPORTED AT 1,20,000/ - . SINCE THESE PRIMARY INFORMATION AND DOCUMENT HAS NOT BEEN EXAMINED BY THE ASSESSING OFFICER, THEREFORE, WE CONSIDER IT APPROPRIATE TO RESTORE THIS ISSUE TO THE FILE OF ASSESSING OFFICER TO DECIDE DE - NOVO AFTER EXAMINATION AND VERIFICATION OF THE RECORD AND INFORMATION TO BE SUPPLIED BY THE ASSESSEE. ACCORDINGLY, THE MATTER IS RESTORED TO THE FILE OF THE ASSESSING OFFICER AS DIRECTED ABOVE. THEREFORE, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 7 . IN THE RESULT, THE APPEAL OF TH E ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PR ONOUNCED IN THE OPEN C OURT ON 2 3 - 07 - 201 9 SD/ - SD/ - ( MAHAVIR PRASAD ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 23 /07 /2019 / COPY OF ORDER FORWARDED TO: - I.T.A NO. 2937 /AHD/20 17 A.Y. 2015 - 16 PAGE NO SHREE RAM EXPORTS VS. ACIT 4 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,