ITO, WD-25(3), KOLKATA, Kolkata V. West Bengal Co- Operative Marketing Federation Ltd., Kolkata

ITA 365/KOL/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6637 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 04-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAURABH KUMAR
• Assessee Lawyers: N C MONDAL
• Keywords: Rule of consistency

Judgement Text

1 ITA NO.365/KOL/2016 THE W.B.STATE CO-OPERATIVE MARK ETING FEDERATION LTD. A.Y.2008-09 IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH C KOL KATA [BEFORE HONBLE SHRI J.SUDHAKAR REDDY, AM & SHRI S.S.VISWANETHRA RAVI, JM ] ITA NO.365/KOL/2016 ASSESSMENT YEAR : 2008-09 I.T.O., WARD-25 (3) -VERSUS- THE WEST BENGAL STA TE KOLKATA COOPERATIVE MARKETING FEDERATION LTD., KOLKATA (PAN: AABAT 0010 H) (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI SAURABH KUMAR, ADDL. CI T, SR.DR FOR THE RESPONDENT: SHRI N.C.MONDAL, AR DATE OF HEARING :23.04.2018. DATE OF PRONOUNCEMENT : 27.06.2018. ORDER PER S.S.VISWANETHRA RAVI, JM THIS IS AN APPEAL BY THE REVENUE AGAINST THE ORDER DATED 22.12.2015 PASSED BY C.I.T-(A)-7, KOLKATA FOR A.Y.2008-09. 2. THE ONLY ISSUE TO BE DECIDED IS AS TO WHETHER T HE CIT(A) IS JUSTIFIED IN DELETING THE ADDITION MADE ON ACCOUNT OF COMMISSION IN THE F ACTS AND CIRCUMSTANCES OF THE CASE. 3. WE FIND THAT THE CIT(A) CONSIDERED THE ISSUE AN D HELD THAT THE COMMISSION ALLEGED TO HAVE BEEN PAID BY THE ASSESSEE IS NOT IN THE NAT URE OF COMMISSION AND ON AN EXAMINATION OF BILLS IN RESPECT OF SALE OF FERTILIS ERS, THE CIT(A) HELD THAT IT WAS A DISCOUNT ON CASH MEMO OR BILL ON THE SALE OF FERTIL ISERS TO CO-OPERATIVE SOCIETY NO DEDUCTION OF TDS IS REQUIRED. THE RELEVANT PORTION OF WHICH IS REPRODUCED HEREIN BELOW :- 3.2 (II) I HAVE CONSIDERED THE SUBMISSION MADE BY THE APPELLANT AND FIND SUFFICIENT FORCE IN THE ARGUMENT. THE ASSESSING OFF ICER HAS DISALLOWED THE 2 ITA NO.365/KOL/2016 THE W.B.STATE CO-OPERATIVE MARK ETING FEDERATION LTD. A.Y.2008-09 EXPENDITURE U/S 40(A)(IA) BY PLACING THE RELIANCE O N THE NOMENCLATURE IN THE P&L A/C. THE AMOUNT OF RS.8,60,97,686/- WAS NOT IN THE NATURE OF COMMISSION IT WAS DISCOUNT ALLOWED ON CASH MEMO OR BILL ON THE SALE O F FERTILIZERS TO THE CO- OPERATIVE SOCIETIES. THE APPELLANT PRODUCED SOME OF THE BILLS AND I VERIFIED THE SAME. IN THE SAME FACTS AND CIRCUMSTANCES THE CIT(A ) ALLOWED THE ASSESSEES APPEAL FOR THE A.Y.2009-10, RELEVANT PART OF EXTRAC T OF CIT(A) WAS REPRODUCED IN APPELLANTS SUBMISSION. FOLLOWING THE RULE OF CONSISTENCY I DE LETE THE ADDITION MADE BY THE A.O. AMOUNTING TO RS.8,60,97,686/- U/S 40(A)(IA) OF THE ACT. THE APPELLANTS GROUND ON THIS ISSUE IS ALLOWED. 4. IT IS NOTED FROM THE FINDING OF CIT(A) ABOVE IN THE EARLIER YEARS FOR A.Y.2006- 07 AND 2009-10 AND THE DEPARTMENT OF REVENUE ACCEPT ED AND ALLOWED DEDUCTION ON THE SAME ISSUE. THE LD. DR DID NOT BRING ON RECORD ANY MATERIAL CONTRARY TO THE ORDERS FOR A.Y.2006-07 AND 2009-10. THEREFORE WE FIND NO I NFIRMITY IN THE ORDER OF CIT(A). ACCORDINGLY THE GROUNDS RAISED BY THE REVENUE IS DI SMISSED. 5. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMI SSED. O RDER PRONOUNCED IN THE OPEN COURT ON 27.06.2018. SD/- SD/- [J.SUDHAKAR REDDY] [ S.S.VISWANETHRA RAVI ] ACCOUNTANT MEMBER JUDICIAL MEMBE R DATED : 27.06.2018. [RG SR.PS] COPY OF THE ORDER FORWARDED TO: 1.THE WEST BENGAL CO-OPERATIVE MARKETING FEDERATION LTD., SOUTHEND CONCLAVE, 3 RD FLOOR, 1582, RAJDANGA MAIN ROAD, KOLKATA-700007. 2. I.T.O., WARD-25(3), KOLKATA. 3. C.I.T.(A)-7, KOLKATA 4. C.I.T.- 9, KOLKATA.. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER, 3 ITA NO.365/KOL/2016 THE W.B.STATE CO-OPERATIVE MARK ETING FEDERATION LTD. A.Y.2008-09 SENIOR PRIVATE SECRETARY HEAD OF OFFICE/D.D.O., ITAT, KOLKATA BENCHES