Mahaprabhu Cold Storage (P) Ltd., Hooghly V. JCIT, Range 1 & 2, Hooghly, Hooghly

ITA 560/KOL/2009

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 48135 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2011
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 12-05-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 16-04-2009
• Court: TRIBUNAL
• Department Lawyers: A K PRAMANICK
• Assessee Lawyers: V N DUTTA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA () BEFORE . . , ! '# '# '# '# /AND ' # , ! ) [BEFORE HONBLE SHRI S. V. MEHROTRA, AM & HONBLE S RI MAHAVIR SINGH, JM] #$ #$ #$ #$ / I.T.A NO. 560/KOL/2009 %& ''( %& ''( %& ''( %& ''(/ // / ASSESSMENT YEAR: 2005-06 MAHAPRABHU COLD STORAGE (P) LTD. VS. JOINT COMMISS IONER OF INCOME-TAX, (PAN-AACCM 1293 J) RANGE-1&2, HOOGHLY ( *+ /APPELLANT ) (,-*+/ RESPONDENT ) *+ . / / FOR THE APPELLANT: SHRI V. N. DUTTA ,-*+ . / / FOR THE RESPONDENT: SHRI A. K. PRAMANICK 0 / ORDER PER MAHAVIR SINGH, JM/ ' # ' # ' # ' # , ! ! ! ! : THIS APPEAL BY ASSESSEE IS ARISING OUT OF THE ORDER OF CIT(A)-XXXVII, KOLKATA IN APPEAL NO.340/CIT(A)-XXXVII/RANGE-1HG/07-08 VIDE DA TED 05.02.2009. THE ASSESSMENT WAS FRAMED BY JCIT, RANGE-1&2, HOOGHLY U/S.143(3) O F THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2005- 06 VIDE HIS ORDER DATED 28.12.2007. 2. THE ONLY ISSUE IN THIS APPEAL OF THE ASSESSEE IS AGAINST THE ORDER OF CIT(A) RESTRICTING THE ADDITION OF RENT FOR STORAGE OF POTATOES IN COLD ST ORAGE AT RS.12,16,100/-. FOR THIS, ASSESSEE HAS RAISED FOLLOWING TWO GROUNDS: 1. FOR THAT THE AUTHORITIES BELOW WITHOUT REJECTIN G THE BOOKS OF ACCOUNT THE ADDITION OF INCOME RS.12,16,100/- MADE IN THE TRADING ACCOUNT I S OPPOSED TO REQUIREMENT OF LAW AND BAD IN LAW. 2. FOR THAT BOTH THE AUTHORITIES BELOW MAKING THE A DDITION ON ACCOUNT OF RENT RECEIVED IS WITHOUT BASIS AND WITHOUT BRINGING ANY MATERIAL ON RECORD. THE CONTENTION IS WITHOUT BASIS AND WITHOUT BRINGING ANY MATERIAL ON RECORD. THE CONTENTION OF THE AUTHORITIES BELOW NEITHER TENABLE IN LAW NOR IN FACT SINCE THE ASSESSEE HAD NOT RECEIVED THE IMPUGNED AMOUNT OF RS.12,16,100/-. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. THE ASSESSING OFFICER NOTED THAT THE ASSESSEE HAS F URNISHED DETAILS OF QUANTITY OF POTATOES KEPT IN COLD STORAGE BUT THAT WAS NOT THE CORRECT QUANTI TY. ACCORDINGLY, ASSESSING OFFICER RECORDED THE STATEMENT OF ACCOUNTANT AND HELD THAT POTATOES STORED IS AT 1,17,872 QNTL. AND RENT RECEIVED IS RS.80/- PER QNTL. ACCORDINGLY, HE QUANTIFIED TH E RENT AT RS.94,29,760/- AS AGAINST THE RECEIPT 2 ITA 560/K/2009 MAHAPRABHU COLD STORAGE (P) LTD. A.Y.05-06 DISCLOSED BY ASSESSEE AT RS.72,22,665/-. ACCORDING LY, THE ASSESSING OFFICER ADDED DIFFERENTIAL AMOUNT OF RS.22,07,095/-. AGGRIEVED, ASSESSEE PREF ERRED APPEAL BEFORE CIT(A). THE ASSESSEE BEFORE CIT(A) CONTENDED THAT IT HAS RECEIVED RENT A S PER THE GOVT. OF WEST BENGAL ORDER @ RS.75/- PER QNTL INCLUDING LOADING AND UNLOADING CH ARGES. CIT(A) NOTED THAT THE ASSESSEE HAS STORED 1,24,099.50 QNTL OF POTATOES AND THE RELEVAN T WORKING AS SUBMITTED BEFORE HIM BY THE ASSESSEE AND REPRODUCED IN HIS ORDER READS AS UNDER : BAGS (50KG.) LOADED IN F/Y 2003-04 BAGS UNLOADED IN F/Y 2004-05 OUR NET RENT PER BAG (RS.) RENT COLLECTION 248199 BAGS (I.E.124099.50 QNTL.) 248199 BAGS (I.E. 124099.50 QNTL.) 34.00 1. 221479 BAGS @ 34.00 PER BAG 2. 10069 BAGS @ 15.00 PER BAGS 3. 16651 BAGS @ 20.50 PER BAG BECAUSE OF POOR AND DRASTIC MARKET AND THE RENTIERS DID NOT TURN UP TO COLLECT THEIR STOCK RS. 7530286.00 RS. 151035.00 RS. 341345.50 TOTAL RS.8022666.50 LESS: TOTAL REBATE ALLOWED RS. 800000.00 NET RENT AS PER P/L A/C. (AUDITED) RS.7222666 .50 THE CIT(A) AFTER APPLYING RENT RECEIVABLE PER QNTL. AT RS.68/- WORKED OUT THE RENT RECEIVED AT RS.84,38,766/- AS AGAINST RENT DISCLOSED BY THE ASS ESSEE AT RS.72,22,666/- AND THEREBY DIRECTED THE ASSESSING OFFICER TO RESTRICT THE ADDITION AT R S.12,16,100/-. AGGRIEVED, NOW ASSESSEE IS IN APPEAL BEFORE US. 4. WE FIND THAT THE ASSESSEES CLAIM OF REBATE OF R S. 8 LAC HAS BEEN DISALLOWED ON THE BASIS THAT IT COULD NOT FURNISH ANY EVIDENCE IN RESPECT T O THIS REBATE AND THE ASSESSEE COULD NOT SUBSTANTIATE REGARDING LOWER RENT CHARGES. BUT THI S IS ALSO A FACT THAT THE LOWER AUTHORITIES HAVE NOT REACHED ON A DEFINITE CONCLUSION WHAT IS THE QU ANTITY OF THE POTATOES KEPT IN COLD STORAGE. THE ASSESSING OFFICER HAS BROUGHT OUT THREE SETS OF QUANTITY OF POTATOES KEPT IN COLD STORAGE WHICH IS AS UNDER: QUANTITY OF POTATO IN QUINTALS AS PER STATEMENT UNDER OATH OF THE ACCOUNTANT 11 7872 ANNEXURE ON NOTES SIGNED BY THE AUDITOR 110492 QUANTITY AS DECLARED IN SHOW CAUSE REPLY 124099 .50 THE ASSESSEE HAS GIVEN COMPUTATION OF RENT CHARGED BY IT AT RS.80/- PER QNTL AND THE RELEVANT COMPUTATION QUA 50 KGS BAG IS AS UNDER: A) RENT RS.34.00 B) INSURANCE RS. 2.00 3 ITA 560/K/2009 MAHAPRABHU COLD STORAGE (P) LTD. A.Y.05-06 C) LOADING CHARGES RS. 1.75 D) UNLOADING CHARGES RS. 1,75 E) MARKETING FEES RS. .50 TOTAL RS.40.00 EVEN NOW BEFORE US, THE ASSESSEE COULD NOT SUBSTANT IATE WHAT IS THE RATE OF RENT PER QNTL, WHETHER THE GOVT. OF WEST BENGAL RATE OF RS.75/- PE R QNTL OR THE INFORMATION SUBMITTED BY ASSESSEE @ RS.80/- PER QNTL OR APPLIED BY CIT(A) AT RS.68. THIS FACT NEEDS VERIFICATION. EVEN AS REGARDS TO QUANTITY OF POTATOES KEPT IN COLD STO RAGE FOR THE YEAR UNDER CONSIDERATION ALSO NEEDS VERIFICATION BECAUSE THERE IS VARIANCE. ACCOR DINGLY, WE SET ASIDE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION. THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. 6. ORDER PRONOUNCED IN OPEN COURT ON 3.6.11. SD/- SD/- . . ! ' '' ' # # # # , ! (S. V. MEHROTRA) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ( 1 1 1 1) )) ) DATED 3RD JUNE, 2011 '23 %45 6' JD.(SR.P.S.) 0 . ,7 87'9- COPY OF THE ORDER FORWARDED TO: 1 . *+ / APPELLANT M/S. MAHAPRABHU COLD STORAGE (P) LTD., VILL. HARUA, P.O. GHOLDIGHURI, DIST. HOOGHLY-712401. 2 ,-*+ / RESPONDENT, JCIT, RANGE-1&2, HOOGHLY. 3 . 0% ( )/ THE CIT(A), KOLKATA 4. 0% / CIT, KOLKATA 5 . '? ,% / DR, KOLKATA BENCHES, KOLKATA -7 ,/ TRUE COPY, 0%@/ BY ORDER, #5 /ASSTT. REGISTRAR .