Eastern Coalfilelds Ltd., Burdwan V. ACIT, CIR-2, ASANSOL, Asansol

ITA 467/KOL/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1743 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2017
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 02-05-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 20-03-2014
• Court: TRIBUNAL
• Department Lawyers: GOULEN HANGSHING
• Assessee Lawyers: ARVIND AGARWAL
• Keywords: Additional evidence; Revised return

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : KOLKATA [BEFORE HONBLE SRI N.V.VASUDEVAN, JM & SHRI M.BA LAGANESH, AM] I.T.A NO. 467/KOL/201 4 ASSESSMENT YEAR : 2006-0 7 EASTERN COALFIELDS LTD. -VS.- A.C.I.T., CIRCLE-2, DIST. BURDWAN ASANSOL. [PAN : AAACE 7590 E] (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI ARVIND AGARWAL, ADVOCATE FOR THE RESPONDENT : SHRI GOULEN HANGSHING, C IT(DR) DATE OF HEARING : 02.05.2017. DATE OF PRONOUNCEMENT : 12.05.2017. ORDER PER N.V.VASUDEVAN, JM THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 15.01.2014 OF C.I.T.(A)-ASANSOL RELATING TO A.Y.2006-07. 2. THIS APPEAL ARISES OUT OF AN ORDER PASSED DETE RMINING THE VALUE OF FRINGE BENEFIT FOR THE PURPOSE OF PAYMENT OF FRINGE BENEFIT TAX UNDER THE PROVISION OF SECTION 115WE(3) OF THE INCOME TAX ACT, 1961 (ACT). 3. THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSIN ESS OF COAL MINING. FOR A.Y.2006- 07 THE ASSESSEE FILED RETURN OF VALUE OF FRINGE BEN EFIT ALONG WITH THE RETURN OF INCOME ON 20.11.2006. THE VALUE OF FRINGE BENEFIT DISCLOSED I N THE RETURN SO FILED WAS RS.22,24,52,306/-. THE RETURN WAS TAKEN UP FOR SCRU TINY U/S 115WE(3) OF THE ACT. IN THE COURSE OF HEARING, BEFORE THE AO THE ASSESSEE SUBMI TTED THAT THE COMPUTATION OF VALUE OF FRINGE BENEFIT AS FILED ON 20.11.2016 WAS ERRONE OUS AND A REVISED COMPUTATION DISCLOSING THE VALUE OF FRINGE BENEFIT AT RS.11,68, 11,113/- WAS FILED. THE REVISED COMPUTATION OF VALUE OF FRINGE BENEFIT WAS OWING TO MISTAKE IN CALCULATION OF FRINGE BENEFIT ON EMPLOYEES WELFARE, CONVEYANCE, TOUR AND TRAVEL AS SUBMITTED IN THE ORIGINAL 2 ITA NO.467/KOL/2014 EASTERN COALFIELDS LTD. A.YR.2006-07 2 RETURN. THE AO DID NOT ENTERTAIN THE REVISED COMPUT ATION OF THE VALUE OF FRINGE BENEFIT FOR THE REASON THAT NO REVISED AUDIT REPORT WAS FUR NISHED IN SUPPORT OF THE REVISED VALUE OF FRINGE BENEFIT. ACCORDINGLY THE AO PASSED AN ORD ER U/S 115WE(3) OF THE ACT DETERMINING THE VALUE OF FRINGE BENEFIT AS DISCLOSE D IN THE RETURN FILED BY THE ASSESSEE AT RS.22,24,52,306/-. 4. THE CIT(A) UPHELD THE ORDER OF AO FOR THE REA SON THAT THE ASSESSEE DID NOT FILE THE REVISED RETURN OF THE VALUE OF FRINGE BENEFIT AS CO NTEMPLATED U/S 115WD(4) OF THE ACT. ACCORDING TO CIT(A) AS LAID DOWN BY THE HONBLE SUP REME COURT IN THE CASE OF GOETZE (INDIA) VS CIT 284 ITR 323 (SC) NO CLAIM CAN BE ENT ERTAINED WITHOUT THE ASSESSEE FILING A REVISED RETURN. THE CIT(A) ACCORDINGLY UPH ELD THE ORDER OF AO FOR THE REASON THAT REVISED RETURN OF VALUE OF FRINGE BENEFIT WA S NOT FILED BY THE ASSESSEE. 5. AGGRIEVED BY THE ORDER OF CIT(A) THE ASSESSEE HAS PREFERRED THE PRESENT APPEAL BEFORE THE TRIBUNAL. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS. THE REST RICTION ON EXAMINATION OF A CLAIM MADE BY AN ASSESSEE WITHOUT FILING A REVISED RETURN IS NOT APPLICABLE TO THE APPELLATE AUTHORITIES UNDER THE ACT AND SUCH RESTRICTION IS A PPLICABLE ONLY TO THE AO ENTERTAINING A CLAIM BY AN ASSESSEE WITHOUT FILING A REVISED RET URN. IT HAS BEEN SO HELD BY THE HONBLE ALLAHABAD HIGH COURT IN THE CASE OF RAJA RA NI GULATI VS CIT CENTRAL TILAK 346 ITR 543 (ALL) AND THE HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS JAI PARABOLIC SPRINGS LTD (2008) 6 DTR 233. FOLLOWING T HE AFORESAID DECISIONS WE HOLD THAT CIT(A) WAS NOT JUSTIFIED IN NOT ADMITTING THE REVISED COMPUTATION OF VALUE OF FRINGE BENEFIT FILED BY THE ASSESSEE. WE HOLD THAT THE SAME OUGHT TO HAVE BEEN CONSIDERED ON MERITS BY CIT(A). 3 ITA NO.467/KOL/2014 EASTERN COALFIELDS LTD. A.YR.2006-07 3 7. THE LD. COUNSEL FOR THE ASSESSEE ALSO FILED AN APPLICATION UNDER RULE 29 OF THE ITAT RULES 1963 IN WHICH HE HAS PRAYED THAT REVISED AUDIT REPORT QUANTIFYING THE VALUE OF FRINGE BENEFIT AS MADE IN THE REVISED COMPUTATIO N OF VALUE OF FRINGE BENEFIT FILED BEFORE AO HAS NOW BEEN OBTAINED AND THE SAME SHOULD BE CONSIDERED BY THE TRIBUNAL AS ADDITIONAL EVIDENCE. IT WAS SUBMITTED BY HIM THA T THE AO REJECTED THE REVISED COMPUTATION OF VALUE OF FRINGE BENEFIT FOR THE REAS ON THAT THE REVISED FIGURES ARE NOT SUPPORTED BY REVISED AUDIT REPORT. IN THE APPLICA TION FOR ADMISSION OF ADDITIONAL EVIDENCE IT HAS BEEN PRAYED THAT THE REVISED AUDIT REPORT COULD NOT BE FILED BEFORE THE LOWER AUTHORITIES FOR REASONS BEYOND THE CONTROL OF THE ASSESSEE. IT HAS BEEN POINTED OUT THAT THE MANAGEMENT WAS APPRAISED OF THE IMPLICATIO NS OF NOT GETTING THE REVISED CALCULATION OF FRINGE BENEFIT CERTIFIED BY REVISED AUDIT REPORT. THE MANAGEMENT EMPLOYED A CHARTERED ACCOUNTANT M/S. M.CHOUDHURY & CO AND OBTAINED A REPORT ON REVISED FRINGE BENEFIT VALUE CALCULATION. IT HAS BE EN PRAYED THAT SINCE THE DETERMINATION OF FRINGE BENEFIT BASED ON THE REVISED CALCULATION HAS TO BE MADE IN ACCORDANCE WITH LAW, THE REVISED AUDIT CERTIFICATE SHOULD BE CONSID ERED AND THE ISSUE DECIDED ON MERITS WITHOUT ANY HINDRANCE OF TECHNICALITIES. 8. WE HAVE CONSIDERED THE REASONS FOR FILING TH E ADDITIONAL EVIDENCE BEFORE THE TRIBUNAL AND ARE SATISFIED THAT ADDITIONAL EVIDENCE IS REQUIRED TO BE ADMITTED FOR CONSIDERATION AS IT IS NECESSARY FOR DETERMINING TH E TRUE TAX LIABILITY OF THE ASSESSEE. THE ADDITIONAL EVIDENCE IS THEREFORE ADMITTED FOR CONSI DERATION. 9. TAKING INTO CONSIDERATION THE FACTS AND CIRC UMSTANCES OF THE CASE WE ARE OF THE VIEW THAT IT WOULD BE JUST AND APPROPRIATE TO SET A SIDE THE ORDER OF CIT(A) ON THIS ISSUE AND REMAND THE QUESTION OF DETERMINATION OF VALUE O F FRINGE BENEFIT TO THE AO FOR FRESH CONSIDERATION IN THE LIGHT OF THE REVISED COMPUTATI ON OF THE VALUE OF FRINGE BENEFIT AND THE REVISED AUDIT REPORT FILED AS ADDITIONAL EVIDEN CE BEFORE THE TRIBUNAL. THE AO WILL DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW AND AFTER AFFORDING OPPORTUNITY OF BEING 4 ITA NO.467/KOL/2014 EASTERN COALFIELDS LTD. A.YR.2006-07 4 HEARD TO THE ASSESEE AND CONSIDERING THE DOCUMENTS REFERRED TO ABOVE. THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURP OSES. 10. IN THE RESULT THE APPEAL OF ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 12.05.2017. SD/- SD/- [M.BALAGANESH] [ N.V.VASUDEVAN ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 12.05.2017. [RG PS] COPY OF THE ORDER FORWARDED TO: 1. EASTERN COALFIELDS LTD., C.M.D. OFFICE, SANKTORI A, P.O.DISHERGARH, DIST. BURDWAN. 2. A.C.I.T., CIRCLE-2, ASANSOL. 3. CIT(A)-ASANSOL 4. C.I.T.-ASANSOL. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER ASSTT.REGISTRAR, ITAT, KOLKATA BENCHES