M/s.Lan Mark Shops(India) P. Ltd, Cochin V. The ACIT, Cochin

ITA 56/COCH/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96727 (ITAT-COCHIN)
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 13-10-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 21-01-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K P GOPAKUMAR
• Assessee Lawyers: RADHESH C BHAT
• Keywords: Revised return

Judgement Text

ITA NO . 56/C/2015 1 IN THE INCOME TAX APPEL L A TE T R IBUNAL COCHIN BENCH , COCHIN BEFORE S/SH RI B P JAIN , A M & G EORGE GEORGE.K , J M ITA NO . 56/COCH/2015 (ASST YEAR 2010 - 11 ) M/S LAN MARK SHOPS (INDIA) P LTD D - 31/670 PARVATHI NILAYAM S A ROAD,VYTILLA KOCHI 682 019 VS THE ASST COMMR OF INCOME TAX CIRCLE 1(2) KOCHI ( APPELLANT) (RESPONDENT) PAN NO. AABCL0490M ASSESSEE BY SHRI RADHESH C BHAT REVENUE BY SH K P GOPAKUMAR, SR DR DATE OF HEARING 13 TH OCT 2015 DATE OF PRONOUNC EMENT 13 TH , OCT 2015 OR D ER PER B P JAIN, AM : THIS APPEAL AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 27.9.2014 OF THE CIT(A ) - II KOCHI AND RELATES TO THE AY 2010 - 11. 2 THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PRIVATE LIMIT ED COMPANY ENGAGED IN THE BUSINESS OF TRADING AND MARKETING OF CONSUMER ELECTRONICS GOODS THROUGH FRANCHISEE NET WORKS. THE ASSESSEE FILED ITS RETURN ON 15.10.2010 DECLARING A TOTAL INCOME OF RS. 66,60,646/ - . THE RETURN WAS REVISED ON 31.3.2012 AS IN THE ORIGINAL RETURN DIVIDEND DISTRIBUTION TAX PAID DETAILS WERE OMITTED TO BE INCLUDED. THE DETAILS WERE CALLED FOR EXAMINED AND V ERIFIED ON A ITA NO . 56/C/2015 2 TEST CHECK BASIS. THE ASSESSEE SUBMITTED COMPUTATION OF INCOME STATEMENT WHERE THE TOTAL INCOME WAS COMPUTED AT RS.73,66,684/ - AS COMPARED TO THE INCO M E RETURNED AT RS. 66,60,646/ - . THERE WAS A DIFFERENCE OF RS. 7,06,038/ - FOUND BY THE AO BETWEEN THE INCOME RETURNED AND THE COMPUTATION OF INCOME STATEMENT. THE ASSESSEE WAS ASKED TO FURNISH THE EXPLANATION FOR THE SAID DIFFERENCE; BUT THE SAME WAS NOT SUBMITTED AND THE AO ACCORDINGLY MADE THE DI SALLOWANCE. 2.1 BEFORE THE CIT(A) , THE LD COUNSEL FOR THE ASSESSEE ARGUED THAT THE SAID COMPUTATION OF INCOME WAS SOME KIND OF ROUGH CALCULATION ; HOWEVER, THE LD CIT(A) WAS OF THE VIEW THAT THE ASSESSEE DID NOT SUBMIT THE EXPLANATI ON AND IN THE ABSENCE OF THE SAME, HE CONFIRMED THE ACTION OF THE AO. 3 BEFORE US, T HE LD COUNSEL FOR THE ASSESSEE ARGUED THAT ALONG WITH THE REVISED RETURN OF INCOME, RECONCILIATION STATEMENT WAS SUBMITTED , WHICH WAS NOT CONSIDER ED EITHER BY THE A O OR BY THE LD CIT(A) WHICH IS AVAILABLE ON RECORD. IF THE SAME IS CONSIDERED AND EXAMINED THEN TH E RETURN , WHICH WAS E - FILED BEFORE THE IN COME TAX DEPARTMENT , WILL FIND NO DIFFERENCE WITH THE COMPUTATION OF INCOME. ACCORDINGLY, HE P RAYED THAT THE MATTER MAY BE SEN T BACK TO THE CIT( A) TO CONSIDER THE SAID RECONCILIATION STATEMENT AND DE CIDE THE SAME AS PER LA W. THE LD DR, ON THE OTHER HAND RELIED ON THE ORDERS OF THE AUT HORITIES BELOW. ITA NO . 56/C/2015 3 4 WE HAVE HEARD THE RIVAL SUBMISSION S AND PERUSED THE RELEVANT MATERIAL ON RECORD. THE UNDISPUTED FACTS IN THE PRESENT CASE ARE TH AT THE ASSESSEE FILED ITS REVISED RETURN ALONG WI TH THE RETURN FILED ORIGINALLY . A NOTE ON THE DIFFERENCE BETWEEN THE ORIGINAL RETURN AND THE REVISED RETURN WAS FILED ALONG WITH THE REVISED RETURN AS REQUIRED U/S 139( 5 ) OF THE I T ACT ; B UT THE SAME WAS NOT CONSIDERED EITHER BY THE AO OR BY THE LD CITIA). IN VIEW OF THE ABOVE, WE CONSIDER IT FIT TO SEND THE MATTER BACK TO THE FILE OF THE LD CIT(A) WHO SHALL CONSIDER THE RECONCILIATION STATEMENT SUBMITTED AL ONG WITH THE REVISED RETURN AND DECIDE THE ISSUE AS PER LAW. IT IS ORDERED ACCORDINGLY. 5 IN THE RESULT THE APPEAL FILE D BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 1 3 TH DAY OF OCT 2015 . SD/ - SD/ ( GEORGE GEORGE K ) ( B P JAIN ) JUDICIAL MEMBER ACCOUNTANT MEMBER COCHIN: DATED 13 TH OCT 2015 RAJ* ITA NO . 56/C/2015 4 COPY TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT , 5 . DR 6 . GUARD FILE BY ORDER ASSISTANT REGISTRAR ITAT, COCHIN