DCIT,Circle-12, Kolkata, Kolkata V. M/s Hoob International Pvt. Ltd., Kolkata

ITA 400/KOL/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83029 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2014
• Appeal Filed By: Department
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 13-03-2012
• Court: TRIBUNAL
• Department Lawyers: IMLIMEREN JAMIR
• Assessee Lawyers: MANISH TIWARI
• Keywords: Opportunity of being heard; Additional evidence; Assessment record
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH A , KOLKATA [BEFORE HONBLE SRI SHAMIM YAHYA, AM & HONBLE SR I GEORGE MATHAN, JM] ITA NO.400/KOL/2012 ASSESSMENT YEAR : 2007-08 ( APPELLANT ) (RESPONDENT) D.C.I.T., CIRLE-12, -VS- M/S.HOBB INTERNATIONAL PVT.LTD. KOLKATA KOLKATA (PAN:AAACH 6347 Q) FOR THE APPELLANT SHRI IMLIMEREN JAMIR, JCIT, SR.DR FOR THE RESPONDENT SHRI MANISH TIWARI, FCA DATE OF HEARING : 05.08.2014 DATE OF PRONOUNCEMENT : 07. 08.2014. ORDER PER SHRI SHAMIM YAHYA, AM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST ORD ER OF LD. C.I.T.(A)- XII, KOLKATA DT. 07.12.2011 AND PERTAIN TO ASSESSMENT YE AR 2007-08. 2. THE GROUNDS OF APPEAL READ AS UNDER :- 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE, THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW IN DELETING THE DISALLOWANCE BEING THE FREIGHT CHARGES BY ACCEPTING AND CONSIDERING ADDITIONAL EVIDENCE DURING THE COURSE O F APPELLATE PROCEEDINGS IGNORING THE PROVISIONS OF RULE 46A. 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE, THE LD.CIT(A) HAS ERRED ON FACTS AND IN LAW BY DELETING THE DISALLOWANCE OF SE RVICE CHARGES AND CONVERSION CHARGES BY ACCEPTING ADDITIONAL EVIDENCE DURING THE COURSE OF APPELLATE PROCEEDINGS IGNORING THE PROVISIONS OF RULE 46A. 3. IN THIS CASE THE AO DISALLOWED FREIGHT CHARGES, SERVICE CHARGES AND CONVERSION CHARGES PAID BY THE ASSESSEE ON THE GROUND THAT THE ASSESSEE HAS NEITHER FURNISHED ANY EVIDENCE IN SUPPORT OF THE EXPENDITURE NOR ANY EVID ENCE HAS BEEN FURNISHED REGARDING DEDUCTION OF TDS. BEFORE THE LD. CIT(A) AS REGARDS DISALLOWANCE OF FREIGHT CHARGES THE ASSESSEE SUBMITTED THAT PAYMENT WAS MADE TO FO REIGN SHIPPING COMPANIES. IT WAS ITA.NO.400/KOL/2012 M/S HOBB INTERNATIONAL P VT.LTD., KOLKATA A.YR.2007-08 2 ALSO SUBMITTED THAT AS PER CBDT CIRCULAR NO.723 NO TDS U/S 194C OF THE ACT IS APPLICABLE ON FREIGHT CHARGES PAID TO FOREIGN COMPA NIES. CONSIDERING THIS THE LD. CIT(A) ALLOWED THE ASSESSEES CLAIM. 3.1. AS REGARDS SERVICE CHARGES AND CONVERSION CHAR GES THE LD.CIT(A) ACCEPTED THE ASSESSEES CLAIM THAT THE ASSESSEE HAD SUBMITTED NE CESSARY DETAILS BEFORE THE AO AND TDS WERE ALSO DEDUCED. ACCORDINGLY THE LD. CIT(A) D IRECTED THE AO TO DELETE THESE ADDITONS. AGAINST THE ABOVE ORDER THE REVENUE IS IN APPEAL BE FORE US. 4. WE HAVE HEARD BOTH THE COUNSEL. THE MAIN CONTENT ION OF THE REVENUE IS THAT THE LD. CIT(A) HAS ALLOWED ASSESSEES CLAIMS BY ACC EPTING ADDITIONAL EVIDENCES DURING THE COURSE OF APPELLATE PROCEEDINGS IGNORING THE PR OVISION OF RULE 46A. IN THIS REGARD THE LD. DR ALSO PRODUCED THE ASSESSMENT RECORDS. TH E LD.AR WAS ALSO ALLOWED TO EXAMINE THE SAME. NO SUBMISSION BY THE ASSESSEE ON THE IMPUGNED SUBJECTS WERE AVAILABLE IN THE RECORDS. UNDER THESE CIRCUMSTANCES , WE ACCEPT THE REVENUES CONTENTION THAT ADDITIONAL EVIDENCES ON WHICH ASSES SEES CLAIM HAS BEEN ALLOWED SHOULD ALSO BE PRODUCED BEFORE AO FOR HIS EXAMINATI ON. ACCORDINGLY WE REMIT THIS ISSUE TO THE FILE OF AO. THE AO SHALL CONSIDER THE ISSUE AFRESH IN THE LIGHT OF THE SUBMISSIONS MADE BEFORE LD. CIT(A). NEEDLESS TO SAY , ASSESSEE SHALL BE GIVEN ADEQUATE OPPORTUNITY OF BEING HEARD. 5. IN THE RESULT APPEAL OF THE REVENUE STANDS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 07.08.2014. SD/- SD/- [ GEORGE MATHAN ] [SHAMIM YAHYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 07.08.2014. R.G.(.P.S.) ITA.NO.400/KOL/2012 M/S HOBB INTERNATIONAL P VT.LTD., KOLKATA A.YR.2007-08 3 COPY OF THE ORDER FORWARDED TO: 1. M/S.HOBB INTERNATIONAL PVT.LTD., 1, AJC BOSE ROAD, KOLKATA-700020. 2 D.C.I.T., CIRCLE-12, KOLKATA. 3 . CIT(A)-XII, KOLKATA 4. CIT KOLKATA 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY, BY ORDER, ASST. REGISTRAR , ITAT, KOLKATA BENCHES