D S Metals Pvt. Ltd., Kolkata V. D.C.I.T., Circle - 3(1), Kolkata, Kolkata

ITA 746/KOL/2022

AI Insights

D S Metals Pvt. Ltd. appealed against the order of the Commissioner of Income Tax (Appeals)- NFAC, Delhi, which confirmed the additions made by the AO for the assessment year 2013-14. The first issue pertained to the addition of Rs. 2,60,40,534 based on discrepancies between Form 15CA and the assessee's purchase ledger concerning foreign transactions. The second issue involved the addition of Rs. 14,60,238 related to the sale of motor vehicles, where the AO claimed the assessee failed to provide necessary bills and vouchers. The Tribunal found that the AO had not adequately considered the details provided by the assessee and thus restored both issues to the AO for a fresh examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127230 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 19-03-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 19-12-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation
• Section: 69B

Judgement Text

आयकर अपील य अ धकरण, कोलकाता पीठ ‘ए’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH: KOLKATA ी राजेश क ु मार, लेखा सद य एवं ी संजय शमा या यक सद य के सम [Before Shri Rajesh Kumar, Accountant Member & Shri Sonjoy Sarma, Judicial Member] I.T.A. No. 746/Kol/2022 Assessment Year : 2013-14 D S Metals Pvt. Ltd. (PAN: AAACD 9400 E) Vs. DCIT, Circle-3(1), Kolkata Appellant / (अपीलाथ ) Respondent / ( !यथ ) Date of Hearing / स ु नवाई क$ त&थ 20.03.2023 Date of Pronouncement/ आदेश उ)घोषणा क$ त&थ 31.07.2023 For the Appellant/ नधा /रती क$ ओर से Shri V Surana, A.R For the Respondent/ राज व क$ ओर से Smt. Ranu Biswas, Addl. CITDR ORDER / आदेश Per Shri Rajesh Kumar, AM: This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)- NFAC, Delhi [hereinafter referred to as ‘Ld. CIT(A)’] dated 01.11.2022 for the assessment year 2013-14. 2. Issue raised in ground no. 1 is against the confirmation of addition of Rs. 2,60,40,534/- by the Ld. CIT(A) as made by the AO on account of investments based on Form 15CA. 3. During the course of assessment proceedings, the assessee was called upon to furnish details of foreign transactions undertaken by the assessee for which payments were made in foreign currency (US doller). The assessee submitted that payments were made for the purchase of imported scrap which was a raw material. Thereafter the AO issued show cause notice dated 18.02.2016 which was replied by the assessee 2 I.T.A. No.746/Kol/2022 Assessment Year:2013-14 D S Metals Pvt. Ltd. wherein the copies of Form 15CA were submitted that remittances in the nature of payments of buyers credit and interest were filed however according to the AO the assessee did not submit the details of transactions. It was also observed by the AO that some transactions in Form 15CB have been included more than once in the Departmental ITS. However according to the AO, there was a difference in Form 15CA filed by the assessee as regards foreign transactions and the ledger of purchases as furnished vide letter dated 03.03.2016 which was added to the income of the assessee u/s 69B of the Act. 4. The Ld. CIT(A) dismissed the appeal of the assessee as ex-parte on the ground that on the various dates given to the assessee no replies were filed. 5. After hearing the rival contentions and perusing the material on record, we observe that the assessee has given the details of expenditure incurred in foreign currency in the notes to accounts attached in the audited accounts and also the details of short term borrowings which showed the letter of credit and buyer’s credit from bank at Rs. Nil. From these details, we observe that the AO has not appreciated these facts correctly and came to the wrong conclusion by observing that there is a difference between the purchase of imported items and Form 15CA. In our opinion, issue needs to be examined at the end of the AO once again so that the issue could be appreciated and dealt with correctly. Accordingly, we restore this issue to the file of AO. The assessee is also directed to furnish the necessary evidences before the AO to explain these transactions. The ground is allowed for statistical purposes. 6. Issue raised in ground no. 2 is against the confirmation of addition of Rs. 14,60,238/- by Ld. CIT(A) as made by the AO towards sale of motor vehicle. 7. The AO observed from the computation of depreciation as per Act that the assessee has sold assets of value Rs. 14,60,238/- from the block of assets “vehicles” which was depreciated @ 15% and accordingly called upon the assessee to furnish the details. According to AO since the assessee has failed to produce the bills and vouchers for sale of vehicles, the same was added to the income of the assessee. 3 I.T.A. No.746/Kol/2022 Assessment Year:2013-14 D S Metals Pvt. Ltd. 8. After hearing the rival contentions and perusing the material on record, we note that the AO has not examined the issue with reference to the bills and vouchers and other materials which the assessee may have to corroborate the said sale of assets and therefore the same is restored to the file of AO with the direction to decide the same afresh after examining the evidences which may be furnished by the assessee. The ground is allowed for statistical purpose. 9. In the result, appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 31 st July, 2023 Sd/- Sd/- (Sonjoy Sarma /संजय शमा ) (Rajesh Kumar/राजेश क ु मार) Judicial Member/ या यक सद य Accountant Member/लेखा सद य Dated: 31 st July, 2023 SB, Sr. PS Copy of the order forwarded to: 1. Appellant- D S Metals Pvt. Ltd.,9, Ramsewak Mullick Lane, 2 nd Floor, Kolkata-700007 2. Respondent – DCIT, Circle-3(1), Kolkata 3. Ld. CIT(A)- NFAC, Delhi 4. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata