Appeal Details
Counselvise Citation
[2022] 106 COUNSELVISE.COM (IT) 6801 (ITAT-KOLKATA)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 month(s) 17 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
14-09-2022
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
SMC
Assessment Year
2020-2021
Appeal Filed On
27-06-2022
Judgement Text
ITA No. 378/KOL/2022(A.Y. 2020-21) Traco Enterprises 1 आयकर अपील य अ धकरण IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH, KOLKATA Before Dr. Manish Borad, Accountant Member I.T.A. No. 378/KOL/2022 Assessment Year: 2020-2021 Traco En terprises,.... .............................................................Appellant C/o. Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson L ane, Sui te -213, 2 n d Floor, Kolkata-700069 [PAN: AABFT9441P] -Vs.- ADIT, CPC,.............................................................................Respondent Centralised Processi ng Centre, Income Tax Dep ar tment, Bengaluru-560500, Karn ataka Appearances by: Shri Siddharth Agarwal, Advocate, for the Appellants Shri Vijay Kumar, Addl. CIT, Sr. D.R., for the Respondent D a t e o f c o n c l u d i n g t h e h e a r i n g : S e p t e m b e r 1 4 , 2 0 22 D a t e o f p r o n o u n c i n g t h e o r d e r : S e p t e m b e r 1 5 , 2 0 2 2 आदेश O R D E R T h i s a p p e a l a t t h e i n s t a n c e o f a s s e s s e e f o r a s s e s sm e n t y e a r 2 0 2 0 - 2 1 i s d i r e c t e d a g a i n s t t h e o r d e r o f l d . C o m m i s s i o n e r of I n c o m e T a x ( A p p e a l s ) , N a t i o n a l F a c e l e s s A p p e a l C e n t r e ( N F A C ) , D e l h i d a t e d 2 0 . 0 5 . 2 0 2 2 p a s s e d u n d e r s e c t i o n 2 5 0 o f t h e I n c o m e Ta x A c t , 1 9 6 1 . 2 . A t t h e o u t s e t , l d . C o u n s e l f o r t h e a s s e s s e e s u b mi t t e d t h a t t h e a l l e g e d a d d i t i o n f o r c o n t i n g e n t s a l e s t a x l i a b i l i t y o f R s . 1 5 , 8 8 , 9 6 6 / - i s n o t j u s t i f i e d a s t h e s a m e h a s n o t b e e n r o u t e d t h r o u g h th e P r o f i t & L o s s A c c o u n t . O n t h e o t h e r h a n d , l d . D . R . f a i l e d t o c o n tr o v e r t t h i s f a c t . ITA No. 378/KOL/2022(A.Y. 2020-21) Traco Enterprises 2 3 . I h a v e h e a r d t h e r i v a l c o n t e n t i o n s a n d p e r u s e d th e r e l e v a n t m a t e r i a l p l a c e d b e f o r e m e . I f i n d t h a t t h e C e n t r a l is e d P r o c e s s i n g C e n t r e w h i l e p r o c e s s i n g t h e r e t u r n o f t h e a s s e s s e e f o r A . Y. 2 0 2 0 - 2 1 m a d e a n a d d i t i o n f o r c o n t i n g e n t s a l e s t a x l i a b i l i t y a t R s . 15 , 8 8 , 9 6 6 / - o n t h e b a s i s o f t h e o b s e r v a t i o n o f t h e T a x A u d i t r e p o r t o f t h e a s s es s e e f u r n i s h e d i n F o r m 3 C D b y t h e a u d i t o r . A s s u b m i t t e d b y t h e l d . C o u n s e l f o r t h e a s s e s s e e , r e c t i f i c a t i o n a p p l i c a t i o n w a s f i l e d s t a t i n g t h a t t he t a x a u d i t o r i n a d v e r t e n t l y f i l l e d t h a t c o l u m n a n d t h e s a m e w a s re j e c t e d . A p p e a l b e f o r e t h e l d . C I T ( A p p e a l s ) o n t h i s i s s u e a l s o d i d n o t b r in g a n y r e l i e f t o t h e a s s e s e s e . L d . C o u n s e l f o r t h e a s s e s s e e t o o k m e t h r ou g h t h e a u d i t e d f i n a n c i a l s t a t e m e n t . O n p e r u s a l o f p a g e 4 o f t h e p ap e r b o o k , w h i c h s h o w s t h e m a n u f a c t u r i n g , t r a d i n g a n d P r o f i t & L o s s a c c o u nt f o r t h e y e a r e n d e d o n 3 1 . 0 3 . 2 0 2 0 a n d I f i n d t h a t n o s u c h e x p e n d i t u r e in r e s p e c t o f c o n t i n g e n t s a l e s t a x l i a b i l i t y a t R s . 1 5 , 8 8 , 9 6 6 / - h as b e e n d e b i t e d i n t h e P r o f i t & L o s s A c c o u n t . T h i s f a c t s t a n d s u n c o n t r o v e rt e d b y t h e r e v e n u e a u t h o r i t i e s . U n d e r t h e s e f a c t s a n d c i r c u m s t a n c e s , wh e r e t h e a l l e g e d s u m h a s n o t b e e n c l a i m e d a s e x p e n d i t u r e i n t h e b o o k s o f a c c o u n t , d i s a l l o w a n c e m a d e i n t h e o n - l i n e p r o c e s s i n g i s n o t j u s t i f i e d . I , t h e r e f o r e , s e t a s i d e t h e o r d e r o f l d . C I T ( A p p e a l s ) a n d d e l e t e t h e a d d i t i o n m a d e f o r c o n t i n g e n t s a l e s t a x l i a b i l i t y . 4. In the result, the appeal of the assessee is allowed. O r d e r p r o n o u n c e d i n t h e o p e n C o u r t o n S e p t e m b e r 1 5 t h , 2 0 2 2 . Sd/- (Manish Borad) Accountant Member Kolkata, the 15 t h day of September, 2022 Copies to : (1) Traco En terprises, C/o. Subash Agarwal & Associates, A dvocates, Siddha Gibson, 1, Gibson L ane, Sui te -213, 2 n d Floor, Ko lkata-700069 (2) ADIT, CPC, Centralised Processi ng Centre, Income Tax Dep ar tment, Bengaluru-560500, Karn ataka ITA No. 378/KOL/2022(A.Y. 2020-21) Traco Enterprises 3 (3) Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, (4) Commissioner of Income Tax- , (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.
Mehul