RMV IT Services , Kolkata V. ACIT (OSD),Ward-4(1), Kolkata

ITA 516/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0596 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 15-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAUL
• Keywords: Depreciation
• Section: 143(3); 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C, BENC H KOLKATA BEFORE SHRI S.S.GODARA, JM &DR. A.L.SAINI, AM ./ITA NO.516/KOL/2019 ( / ASSESSMENT YEAR: 2015-16) RMV IT SERVICES (P) LTD. C/O, SUBASH AGARWAL & ASSOCIATES, ADVOCATES SIDDHA GIBSON, 1, GIBSON LANE, SUITE-213, 2 ND FLOOR, KOLKATA- 700069 VS. ACIT(OSD), WARD-4(1), KOLKATA ./ ./PAN/GIR NO.: AAGCR 8130 B (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUBASH AGARWAL, ADVOCATE RESPONDENT BY : SHRI SUPRIYO PAUL, JCIT / DATE OF HEARING : 27/02/2020 /DATE OF PRONOUNCEMENT : 17/06/2020 / O R D E R PER DR. A.L. SAINI, AM: THE CAPTIONED APPEAL FILED BY THE ASSESSEE, PER TAINING TO ASSESSMENT YEAR 2015-16, IS DIRECTED AGAINST THE ORDER PASSED BY TH E COMMISSIONER OF INCOME TAX (APPEAL)-2, KOLKATA, IN APPEAL NO. 10587/CIT(A)-2/2 017-18, WHICH IN TURN ARISES OUT OF AN ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 20/ 12/2017. 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE R EADS AS FOLLOWS: RMV IT SERVICES (P) LTD. ITA NO. 516/KOL/2019 ASSESSMENT YEAR:2015-16 P PP PA AA AG GG GE EE E | || | 2 22 2 1. FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, THE LD. CIT(A) GROSSLY ERRED IN CONFIRMING THE DISALLOWANCE OF DEP RECIATION OF RS. 14,33,621/- MADE BY THE ASSESSING OFFICER. 2. THE APPELLANT CRAVES LEAVE TO ADD FURTHER GROUND S OF APPEAL OR ALTER THE GROUNDS AT THE TIME OF HEARING. 3. BRIEF FACTS QUA THE ISSUE ARE THAT DURING THE SC RUTINY PROCEEDING, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE COMPANY HAS CLAIM ED DEPRECIATION OF RS.43,07,373/- IN ITS RETURN OF INCOME FOR THE A.Y. 2015-16. FROM THE DETAILS, IT WAS NOTED THAT ALL THE ASSETS WERE PURCHASED DURING THE F.Y.2014-15 RELEVANT TO A.Y.2015-16, DURING THE COURSE OF ASSESSMENT PROCEE DINGS, THE ASSESSEE HAS FILED THE COPIES OF PURCHASE BILLS OF THE ASSETS IN SUPPO RT OF HIS CLAIM. ON VERIFICATION OF SUCH PURCHASE BILLS, IT WAS NOTED BY ASSESSING OFFI CER THAT SOME OF THE BILLS ARE NOT PROPER, BILLS WERE UNSIGNED, UNSTAMPED, DETAILS/NOM ENCLATURES SUCH AS MODEL NO, MAKING COMPANY OF BLOCK OF ASSESTS UNDER COMPUTER C ATEGORY WERE NOT MENTIONED IN THE BILLS, SOME BILLS WERE CASUALLY HAND WRITTEN WITHOUT ANY ADDRESS AND SEEMS TO BE NOT GENUINE. ACCORDINGLY, AO ISSUED A SHOW CA USE NOTICE DATED 07-12-2017 TO THE ASSESSEE. THE SAID SHOW CAUSE LETTER IS REPR ODUCED BELOW:- IN THE FINANCIAL YEAR 2014-15, THE ASSESSEE COMPANY HAS CLAIMED DEPRECIATION OF RS.43,07,373/-. IN SUPPORT OF YOUR CLAIM, YOU HAVE SUBMITTED THE COPIES OF PURCHASE BILLS OF THE ASSETS. ON VERIFICATION OF PU RCHASE BILLS, IT WAS NOTED THAT SOME OF THE PURCHASE BILLS ARE NOT PROPER. SOME OF THE BILLS WERE UNSIGNED, UNSTAMPED, NO PAYMENTS DETAILS WERE MENTIONED, NO P ROPER DETAILS/NOMENCLATURES OF THE ITEMS WERE MENTIONED SUCH AS MODEL NO, MAKE OF THE COMPANY, YEAR OF MAKE, SOME BILLS WERE CASUALLY HAND WRITTEN. DETAIL S OF SUCH PURCHASE BILLS ARE AS BELOW: RMV IT SERVICES (P) LTD. ITA NO ASSESSMENT YEAR: RMV IT SERVICES (P) LTD. ITA NO . 516/KOL/2019 ASSESSMENT YEAR: 2015-16 P PP PA AA AG GG GE EE E | || | 3 33 3 FROM THE ABOVE OBSERVATIONS, AN AMOUNT OF RS. 14,33 ,621/ DEPRECIATION IS PROPOSED TO BE DISALLOWED, DETAILS OF WHICH ARE AS FOLLOWS: AS SUCH, THE ABOVE SAID PURCHASE BILLS AS SUBMITTED BY THE ASSESSEE ARE NOT GENUINE AND ACCORDINGLY, DEPRECIATION AMOUNTING TO RS. 14,3 3,621/ CLAIMED ON THE ABOVE ASSETS 4. AGGRIEVED BY THE ORDER OF ASSESSING OFFICER, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) WHO HAS CONFIRMED THE ORDER PASSED BY THE ASSESSING OFFICER OBSERVING THE FOLLOWINGS: I HAVE CONSIDERED THE GROUNDS OF APPEAL, STATEMENT OF FA OF THE ASSESSING OFFICER FRAMED IN THE LIGHT OF THE MATERIALS AVAILABLE ON RECORD BEFORE THE ASSESSING OFFICER DURING THE ASSESSMENT PROCEEDINGS. THE AO HAS MENTIONED THAT COPIES OF BILLS WERE SUBMITTED BUT I T WAS NOTED THAT SOME O PURCHASES BILLS ARE NO PROPER. SOME OF THE BILLS WE RE UNSIGNED. UNSTAMPED, NO PAYMENT DETAILS WERE MENTIONED, NO PROPER DETAILS / NOMENCLATURES OF THE ITEMS WERE MENTIONED SUCH AS MODEL NO , MAKE OF COMPANY Y EAR OF MAKE AND SOME BILLS WERE CASUALLY H AND WRITTEN. THE AO HAS ALSO GIVEN DETAILS OF SUCH BILLS IN THE ASSESSMENT ORDER AT PAGE 2 AND 3. I AGREE WITH THE VIEW AS TAKEN BY THE AO IN THE MATTER. KEEPING IN VIEW OF THE FACTS AS MENTIONED A BOVE, IN THE ABSENCE OF ANY COGENT MATERIAL EVIDENCE, I DO OFFICER AND THE SAME IS HEREBY UPHELD. IN VIEW OF A BOVE, THIS GROUND OF APPEAL IS DISMISSED. 5. AGGRIEVED BY THE ORDER OF THE LD. CIT(A) THE ASS ESSEE IS IN APPEAL BEFORE US. 6. THE LD. COUNSEL FOR T HE ASSESSEE HAS RELIED ON THE AUTHORITIES BELOW AND ON THE OTHER HAND THE LD. DR HAS PRIMARILY REITERATED THE STAND TAKEN BY THE ASSESSING OFFICER WHICH WE HAVE ALREADY NOTED IN OUR EARLIER PARA AND THE SAME IS NOT BEING REPEATED FOR THE SAK E RMV IT SERVICES (P) LTD. ITA NO ASSESSMENT YEAR: FROM THE ABOVE OBSERVATIONS, AN AMOUNT OF RS. 14,33 ,621/ DEPRECIATION IS PROPOSED TO BE DISALLOWED, DETAILS OF WHICH ARE AS FOLLOWS: AS SUCH, THE ABOVE SAID PURCHASE BILLS AS SUBMITTED BY THE ASSESSEE ARE AND ACCORDINGLY, DEPRECIATION AMOUNTING TO RS. 14,3 3,621/ CLAIMED ON THE ABOVE ASSETS WAS DISALLOWED BY ASSESSING OFFICER. 4. AGGRIEVED BY THE ORDER OF ASSESSING OFFICER, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) WHO HAS CONFIRMED THE ORDER PASSED BY THE ASSESSING OFFICER OBSERVING THE FOLLOWINGS: I HAVE CONSIDERED THE GROUNDS OF APPEAL, STATEMENT OF FA CTS AS WELL AS THE ORDER OF THE ASSESSING OFFICER FRAMED IN THE LIGHT OF THE MATERIALS AVAILABLE ON RECORD BEFORE THE ASSESSING OFFICER DURING THE ASSESSMENT PROCEEDINGS. THE AO HAS MENTIONED THAT COPIES OF BILLS WERE SUBMITTED BUT I T WAS NOTED THAT SOME O PURCHASES BILLS ARE NO PROPER. SOME OF THE BILLS WE RE UNSIGNED. UNSTAMPED, NO PAYMENT DETAILS WERE MENTIONED, NO PROPER DETAILS / NOMENCLATURES OF THE ITEMS WERE MENTIONED SUCH AS MODEL NO , MAKE OF COMPANY Y EAR OF MAKE AND SOME BILLS AND WRITTEN. THE AO HAS ALSO GIVEN DETAILS OF SUCH BILLS IN THE ASSESSMENT ORDER AT PAGE 2 AND 3. I AGREE WITH THE VIEW AS TAKEN BY THE AO IN THE MATTER. KEEPING IN VIEW OF THE FACTS AS MENTIONED A BOVE, IN THE ABSENCE OF ANY COGENT MATERIAL EVIDENCE, I DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE ASSESSIN G OFFICER AND THE SAME IS HEREBY UPHELD. IN VIEW OF A BOVE, THIS GROUND OF APPEAL IS 5. AGGRIEVED BY THE ORDER OF THE LD. CIT(A) THE ASS ESSEE IS IN APPEAL BEFORE US. HE ASSESSEE HAS RELIED ON THE SUBMISSION AUTHORITIES BELOW AND ON THE OTHER HAND THE LD. DR HAS PRIMARILY REITERATED THE STAND TAKEN BY THE ASSESSING OFFICER WHICH WE HAVE ALREADY NOTED IN OUR EARLIER PARA AND THE SAME IS NOT BEING REPEATED FOR THE SAK E OF BREVITY. RMV IT SERVICES (P) LTD. ITA NO . 516/KOL/2019 ASSESSMENT YEAR: 2015-16 P PP PA AA AG GG GE EE E | || | 4 44 4 FROM THE ABOVE OBSERVATIONS, AN AMOUNT OF RS. 14,33 ,621/ - ON ACCOUNT OF DEPRECIATION IS PROPOSED TO BE DISALLOWED, DETAILS OF WHICH ARE AS FOLLOWS: AS SUCH, THE ABOVE SAID PURCHASE BILLS AS SUBMITTED BY THE ASSESSEE ARE TREATED AS AND ACCORDINGLY, DEPRECIATION AMOUNTING TO RS. 14,3 3,621/ - AS 4. AGGRIEVED BY THE ORDER OF ASSESSING OFFICER, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) WHO HAS CONFIRMED THE ORDER PASSED BY THE ASSESSING CTS AS WELL AS THE ORDER OF THE ASSESSING OFFICER FRAMED IN THE LIGHT OF THE MATERIALS AVAILABLE ON RECORD BEFORE THE ASSESSING OFFICER DURING THE ASSESSMENT PROCEEDINGS. THE AO HAS MENTIONED THAT COPIES OF BILLS WERE SUBMITTED BUT I T WAS NOTED THAT SOME O F THE PURCHASES BILLS ARE NO PROPER. SOME OF THE BILLS WE RE UNSIGNED. UNSTAMPED, NO PAYMENT DETAILS WERE MENTIONED, NO PROPER DETAILS / NOMENCLATURES OF THE ITEMS WERE MENTIONED SUCH AS MODEL NO , MAKE OF COMPANY Y EAR OF MAKE AND SOME BILLS AND WRITTEN. THE AO HAS ALSO GIVEN DETAILS OF SUCH BILLS IN THE ASSESSMENT ORDER AT PAGE 2 AND 3. I AGREE WITH THE VIEW AS TAKEN BY THE AO IN THE MATTER. KEEPING IN VIEW OF THE FACTS AS MENTIONED A BOVE, IN THE ABSENCE OF ANY NOT FIND ANY INFIRMITY IN THE ORDER OF THE ASSESSIN G OFFICER AND THE SAME IS HEREBY UPHELD. IN VIEW OF A BOVE, THIS GROUND OF APPEAL IS 5. AGGRIEVED BY THE ORDER OF THE LD. CIT(A) THE ASS ESSEE IS IN APPEAL BEFORE US. MADE BEFORE THE AUTHORITIES BELOW AND ON THE OTHER HAND THE LD. DR HAS PRIMARILY REITERATED THE STAND TAKEN BY THE ASSESSING OFFICER WHICH WE HAVE ALREADY NOTED IN OUR EARLIER RMV IT SERVICES (P) LTD. ITA NO. 516/KOL/2019 ASSESSMENT YEAR:2015-16 P PP PA AA AG GG GE EE E | || | 5 55 5 7. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY GON E THROUGH THE SUBMISSION PUT FORTH ON BEHALF OF THE ASSESSEE ALONG WITH THE DOCU MENTS FURNISHED AND THE CASE LAWS RELIED UPON, AND PERUSED THE FACT OF THE CASE INCLUDING THE FINDINGS OF THE LD CIT(A) AND OTHER MATERIALS AVAILABLE ON RECORD. WE NOTE THAT AT THE OUTSET ITSELF, THE LD. COUNSEL FOR THE ASSESSEE HAS FAIRLY AGREED WITH THE BENCH THAT OUT OF RS. 14,33,621/-, RS. 1,00,000/- MAY BE DISALLOWED ON AC COUNT OF MISCELLANEOUS DEFICIENCY OR DIFFERENCES. THE LD. D.R. FOR THE REV ENUE HAS ALSO AGREED WITH THE BENCH THAT IN ORDER TO COVER THE MISCELLANEOUS DEFI CIENCIES A MINIMUM OF RS. 1,00,000/- MAY BE DISALLOWED. THEREFORE OUT OF RS. 14,33,621/- WE DISALLOW RS. 1,00,000/- AND BALANCE OF RS. 13,23,621/-, IS DIREC TED TO BE DELETED. 8. BEFORE PARTING, IT IS NOTED THAT THE ORDER IS BE ING PRONOUNCED AFTER 90 DAYS OF HEARING. HOWEVER, TAKING NOTE OF THE EXTRAORDINARY SITUATION IN THE LIGHT OF THE COVID-19 PANDEMIC AND LOCKDOWN, THE PERIOD OF LOCKD OWN DAYS NEED TO BE EXCLUDED. FOR COMING TO SUCH A CONCLUSION, WE RELY UPON THE DECISION OF THE CO- ORDINATE BENCH OF THE MUMBAI TRIBUNAL IN THE CASE O F DCIJT VS JCB LIMITED IN ITA NO 6264/MUM/2018 AND ITA NO. 6103/MUM/2018 FOR A.Y. 2013-14 ORDER DATED 14.05.2020. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS P ARTLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 17.06 .2020 SD/- ( S.S.GODARA ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER /KOLKATA; / DATE: 17/06/2020 ( SB, SR.PS ) RMV IT SERVICES (P) LTD. ITA NO. 516/KOL/2019 ASSESSMENT YEAR:2015-16 P PP PA AA AG GG GE EE E | || | 6 66 6 COPY OF THE ORDER FORWARDED TO: 1. RMV IT SERVICES (P) LTD. 2. ACIT, (OSD), WARD-4(1), KOLKATA 3. C.I.T(A)- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 6. GUARD FILE. TRUE COPY BY ORDER ASSIST ANT REGISTRAR ITAT, KOLKA TA BENCHES