I.T.O Wd - 36(2),kolkata, Kolkata V. Shankar Prasad Shaw, Kolkata

ITA 566/KOL/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1598 (ITAT-KOLKATA)
• Duration Of Justice: 4 year(s) 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-07-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 18-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 148

Judgement Text

I.T.A. NO. 566/KOL./2013 ASSESSMENT YEAR : 2004-2005 PAGE 1 OF 5 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA C BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NO. 566/KOL/ 2013 ASSESSMENT YEAR: 2004-2005 INCOME TAX OFFICER,................................ ............................APPELLANT WARD-36(2), KOLKATA, AAYAKAR BHAWAN POORVA, 110, SHANTI PALLY, 8 TH FLOOR, ROOM NO. 811, E.M. BYEPASS, KOLKATA-700 107 -VS.- SHANKAR PRASAD SHAW,............................... ........................RESPONDENT 11A, POLLOCK STREET, 3 RD FLOOR, KOLKATA-700 001 [PAN: ALYPS 1471 Q] APPEARANCES BY: SHRI KALYAN NATH, ADDL. CIT, SR. D.R., FOR THE DEPA RTMENT N O N E, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : JULY 03, 2017 DATE OF PRONOUNCING THE ORDER : JULY 07, 2017 O R D E R PER SHRI P.M. JAGTAP, A.M. .: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-XX, KOLKATA DA TED 10.12.2012 AND THE SOLITARY ISSUE INVOLVED THEREIN RELATES TO THE DELETION BY THE LD. CIT(APPEALS) OF THE ADDITION OF RS.4,51,338/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF ALLEGED SUPPRESSION OF CONTRA CT RECEIPTS BY THE ASSESSEE. 2. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUA L, WHO IS ENGAGED IN THE BUSINESS OF TRANSPORTATION AND PROVIDING FLEET SERVICES UNDER THE I.T.A. NO. 566/KOL./2013 ASSESSMENT YEAR : 2004-2005 PAGE 2 OF 5 NAME AND STYLE OF HIS PROPRIETARY CONCERN M/S. WEST ERN ROADWAYS. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION W AS FILED BY HIM ON 30.10.2004 DECLARING TOTAL INCOME OF RS.4,29,280/- INCLUDING INCOME OF RS.85,290/- FROM LONG-TERM CAPITAL GAIN. THE SAID R ETURN WAS INITIALLY PROCESSED BY THE ASSESSING OFFICER UNDER SECTION 14 3(1). HE, HOWEVER, FOUND SUBSEQUENTLY FROM THE VERIFICATION OF THE REL EVANT TDS CERTIFICATE THAT THE ASSESSEE HAD RECEIVED CONTRACT AMOUNT OF R S.1,31,16,529/- FROM M/S. B.P.C. LIMITED WHILE THE AMOUNT OF CONTRACT RE CEIPTS RECEIVED FROM M/S. B.P.C. LIMITED WAS SHOWN AT RS.1,26,90,838/- I N THE PROFIT & LOSS ACCOUNT OF THE ASSESSEE. THE ASSESSMENT, THEREFORE, WAS REOPENED BY THE ASSESSING OFFICER AND A NOTICE UNDER SECTION 148 WA S ISSUED BY HIM, IN REPLY TO WHICH A LETTER WAS FILED BY THE ASSESSEE S TATING THAT THE RETURN FILED BY HIM ON 30.10.2004 BE TREATED AS THE RETURN FILED IN RESPONSE TO NOTICE UNDER SECTION 148. DURING THE COURSE OF ASSE SSMENT PROCEEDINGS, IT WAS EXPLAINED BY THE ASSESSEE THAT THE DIFFERENCE O F RS.4,25,691/- IN THE CONTRACT RECEIPTS FROM M/S. B.P.C. LIMITED WAS NOTH ING BUT THE AMOUNT RELATING TO EARLIER YEAR, WHICH WAS RECEIVED IN THE YEAR UNDER CONSIDERATION. IN SUPPORT OF THIS EXPLANATION, BALA NCE-SHEET FOR THE EARLIER YEAR WAS ALSO FILED BY THE ASSESSEE. HOWEVE R, THIS EXPLANATION OF THE ASSESSEE WAS NOT FOUND ACCEPTABLE BY THE ASSESS ING OFFICER IN THE ABSENCE OF PROPER DOCUMENTS AND HE PROCEEDED TO MAK E THE ADDITION OF RS.4,51,338/- TO THE TOTAL INCOME OF THE ASSESSEE B Y TREATING THE SAME AS THE SUPPRESSED CONTRACT RECEIPTS IN THE ASSESSMENT COMPLETED UNDER SECTION 147/148 VIDE AN ORDER DATED 30.12.2010. 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 147/148, AN APPEAL WAS PREFERRED BY THE ASSESSEE BE FORE THE LD. CIT(APPEALS) AND AFTER CONSIDERING THE SUBMISSIONS MADE BY THE ASSESSEE AS WELL AS THE MATERIAL AVAILABLE ON RECORD, THE LD . CIT(APPEALS) DELETED THE ADDITION OF RS. 4,51,338/- MADE BY THE ASSESSIN G OFFICER ON ACCOUNT OF ALLEGED SUPPRESSED CONTRACT RECEIPTS FOR THE FOLLOW ING REASONS GIVEN IN PARAGRAPH NO 3.2 OF HIS IMPUGNED ORDER:- I.T.A. NO. 566/KOL./2013 ASSESSMENT YEAR : 2004-2005 PAGE 3 OF 5 3.2. I HAVE PERUSED THE ASSESSMENT ORDER AND CONSIDERED THE SUBMISSION OF THE APPELLANT. I HAVE GONE THROUGH THE SUBMISSION MADE BY THE APPELLANT CAREFU LLY AND FOUND THAT THE APPELLANT FOLLOWED MERCANTILE SYSTEM OF ACCOUNTING AND THEREBY BILLS FOR SERVICE CHARGES RAISED ON M/S. B.P.C. LIMITED WAS DULY ACCOUNTED FOR. THE AO HAD MADE THE ADDITION ON THE BASIS OF TDS CERTIFICATE ONLY. AMOUNT OF SERVICE CH ARGES PAID AS SHOWN IN TDS CERTIFICATE INCLUDES SOME AMOU NT OF SERVICE CHARGES RECEIVABLE FOR EARLIER YEARS ALS O. AS THE APPELLANT HAD ALREADY INCLUDED SUCH CHARGES IN EARLIER YEARS ON MERCANTILE BASIS SO INCLUSION THER EOF, IN THE YEAR OF PAYMENT IS A DOUBLE TAXATION. IN VIE W OF THE FACTS AND CIRCUMSTANCES OF THE CASE AS DISCUSSE D ABOVE, THE ADDITION MADE IS NOT JUSTIFIED, HENCE, T HE ADDITION MADE ON THIS GROUND IS ALLOWED. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE REVENUE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING FIXED IN THIS CASE, NONE APPEARED ON BEHALF OF THE ASSESSEE. THIS APPEAL OF THE REVENUE IS, THEREF ORE, BEING DISPOSED OF EX-PARTE QUA THE RESPONDENT-ASSESSEE AFTER HEARING THE ARGUMENT S OF THE LD. D.R. AND PERUSING THE RELEVANT MATERIAL AVAILAB LE ON RECORD. 5. THE MAIN CONTENTION RAISED BY THE LD. D.R. IS TH AT THE LD. CIT(APPEALS) IS NOT JUSTIFIED IN DELETING THE ADDIT ION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DIFFERENCE IN CONTR ACT RECEIPT FROM M/S. B.P.C. LIMITED IN THE ABSENCE OF PROPER DOCUMENTARY EVIDENCE FILED BY THE ASSESSEE TO RECONCILE THE SAID DIFFERENCE. HE HAS A LSO CONTENDED THAT IF AT ALL THE CONTRACT RECEIPTS OF RS.4,51,338/- WERE REL ATED TO THE EARLIER YEARS AS CLAIMED BY THE ASSESSEE, CLAIM FOR THE CORRESPON DING TDS MADE FROM THE SAID AMOUNT SHOULD HAVE BEEN MADE BY THE ASSESS EE IN THAT YEAR AND NOT IN THE YEAR UNDER CONSIDERATION. WE ARE UNABLE TO ACCEPT THIS CONTENTION OF THE LD. D.R. IT IS OBSERVED THAT ALL THE RELEVANT DETAILS IN RESPECT OF TRANSACTIONS MADE WITH B.P.C. LIMITED WE RE FURNISHED BY THE ASSESSEE BEFORE THE LD. CIT(APPEALS) TO SHOW THAT T HE BILLS OF THE VALUE OF RS.1,26,90,838/- ONLY WERE RAISED BY THE ASSESSEE O N M/S. B.P.C. LIMITED. I.T.A. NO. 566/KOL./2013 ASSESSMENT YEAR : 2004-2005 PAGE 4 OF 5 THE SAID DETAILS FURNISHED BY THE ASSESSEE ALSO REV EALED THAT THE TOTAL AMOUNT RECEIVED BY THE ASSESSEE FROM M/S. B.P.C. LI MITED WAS MUCH MORE THAN THE AMOUNT OF BILLS RAISED AND THAT WAS DUE TO THE SUBSTANTIAL OPENING BALANCE RECEIVABLE BY THE ASSESSEE FROM M/S . B.P.C. LIMITED, WHICH WAS ON ACCOUNT OF BILLS RAISED IN THE EARLIER YEARS. THE DETAILS FURNISHED BY THE ASSESSEE THUS WERE SUFFICIENT TO S HOW THAT THE AMOUNT OF CONTRACT RECEIPTS PERTAINING TO THE YEAR UNDER CONS IDERATION WAS ONLY RS.1,26,90,838/- AS CREDITED BY THE ASSESSEE IN HIS PROFIT & LOSS ACCOUNT AND THE DIFFERENCE OF RS.4,51,338/- AS NOTICED BY T HE ASSESSING OFFICER FROM THE RELEVANT TDS CERTIFICATE WAS ON ACCOUNT OF CONTRACT RECEIPTS PERTAINING TO THE EARLIER YEARS. AS REGARDS THE CLA IM MADE BY THE ASSESSEE FOR TDS CREDIT, IT IS OBSERVED THAT THE SAME WAS MA DE ON THE BASIS OF TDS CERTIFICATE ISSUED BY M/S. B.P.C. LIMITED AND SINCE THE AMOUNT OF RS.4,51,338/- PERTAINING TO THE EARLIER YEARS WAS I NCLUDED BY B.P.C. LIMITED IN THE TDS CERTIFICATE ISSUED FOR THE YEAR UNDER CONSIDERATION, THE AMOUNT OF TDS CORRESPONDING TO THE SAID AMOUNT WAS CLAIMED BY THE ASSESSEE IN THE YEAR UNDER CONSIDERATION. AS SUCH, CONSIDERING ALL SUCH FACTS OF THE CASE, WE FIND NO INFIRMITY IN THE IMPU GNED ORDER OF THE LD. CIT(APPEALS) DELETING THE ADDITION OF RS.4,51,338/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF THE ALLEGED SUPPRES SED CONTRACT RECEIPTS AND UPHOLDING THE SAME, WE DISMISS THIS APPEAL FILE D BY THE REVENUE. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON JULY 07, 2017 . SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT ME MBER KOLKATA, THE 7 TH DAY OF JULY, 2017 COPIES TO : (1) INCOME TAX OFFICER, WARD-36(2), KOLKATA, AAYAKAR BHAWAN POORVA, 110, SHANTI PALLY, 8 TH FLOOR, ROOM NO. 811, E.M. BYEPASS, KOLKATA-700 107 I.T.A. NO. 566/KOL./2013 ASSESSMENT YEAR : 2004-2005 PAGE 5 OF 5 (2) SHRI SHANKAR PRASAD SHAW, 11A, POLLOCK STREET, 3 RD FLOOR, KOLKATA-700 001 (3) COMMISSIONER OF INCOME TAX (APPEALS)-XX, KOLK ATA (4) COMMISSIONER OF INCOME TAX ,KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, HEAD OF OFFICE/DDO INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.