M/s. Mahabir Steel Supply Co. , Kolkata V. ITO, Ward - 44(2), Kolkata , Kolkata

ITA 765/KOL/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6184 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 23-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJOY MUKHERJEE
• Section: 133(6); 194C

Judgement Text

1 ITA NO.765/KOL/2018 M/S MAHABIR STEEL SUPPLY CO. A. Y.2011-12 IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH SMC K OLKATA [BEFORE HONBLE SHRI N.S.SAINI, AM ] ITA NO.765/KOL/2018 ASSESSMENT YEAR : 2011-12 M/S MAHABIR STEEL SUPPLY CO. -VERSUS- I.T.O., WAR D 44 (2) KOLKATA KOLKATA (PAN:AAHFM 6914 C) (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI NIRMAL KAUSHIK, FCA FOR THE RESPONDENT: SHRI SANJOY MUKHERJEE, ADDL.CIT DATE OF HEARING : 12.07.2018. DATE OF PRONOUNCEMENT : 13.07.2018. ORDER PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST T HE ORDER DATED 03.01.2018 OF C.I.T-(A)-13, KOLKATA FOR A.Y. 2011-12. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL OF THE A SSESSEE IS THAT THE CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.1,01,723/- M ADE BY THE ASSESSING OFFICER ON ACCOUNT OF DIFFERENCE WITH GROSS RECEIPTS FROM CONT RACT AND COMMISSION U/S 194C AND U/S 194H AS PER 26AS AND AS PER BOOKS OF ACCOUNT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS ING OFFICER OBSERVED THAT DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE HAS RECEI VED RS.8,49,510/- FROM M/S RAMCO CEMENTS LTD BIFURCATED AS RS.4,08,250/- AND RS.4,41 ,260/- ON ACCOUNT OF CONTRACT AND COMMISSION U/S 194C AND U/S 194H RESPECTIVELY. HE O BSERVED THAT ON GOING THROUGH THE PROFIT AND LOSS ACCOUNT OF THE ASSESSEE FIRM IT IS OBSERVED THAT THE ASSESSEE FIRM DISCLOSED A FIGURE OF RS.7,47,787/- BIFURCATED AS R S.1,00,693/-, RS.2,05,834/- AND RS.4,41,260/- ON ACCOUNT OF SALES PROMOTION, CONTR ACTS AND COMMISSION. INFORMATION 2 ITA NO.765/KOL/2018 M/S MAHABIR STEEL SUPPLY CO. A. Y.2011-12 WAS CALLED FOR U/S 133(6) OF THE ACT FROM M/S. RAMC O CEMENTS LTD AND IN COMPLIANCE THERETO THEY CONFIRMED CONSOLIDATED PAYMENT OF RS.8 ,49,510/-. THE ASSESSING OFFICER FURTHER OBSERVED THAT THE AUTHORISED REPRESENTATIVE CATEGORICALLY ADMITTED HIS INCAPACITY TO RECONCILE THE SAME AND THEREFORE HE M ADE ADDITION OF RS.1,01,723/- (RS.849510/- - 7,47,787/-) TO THE INCOME OF THE ASS ESSEE. 4. ON APPEAL THE CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER ON THE GROUND THAT THE AUTHORISED REPRESENTATIVE ADMITTED HIS INCAPACITY TO RECONCILE THE SAME AND AGREES THE DEVIANCY IN REALITY OF THE DIFF ERENCE AMOUNT OF RS.1,01,723/-. 5. BEFORE ME THE AUTHORISED REPRESENTATIVE OF THE A SSESSEE SUBMITTED THAT IT WILL BE OBSERVED FROM PAGES 5 AND 6 OF THE PAPER BOOK WH EREIN COPY OF THE LEDGER ACCOUNT OF CONTRACT IS FILED AND IT WILL BE SEEN THAT THE A SSESSEE DURING THE YEAR HAS RECEIVED TOTAL AMOUNT OF RS.4,08,250/- ON ACCOUNT OF CONTRA CT AND IT WILL BE SEEN THAT THERE IS A DEBIT OF RS.2,02,460/- IN THE SAME ACCOUNT WHICH WA S THE AMOUNT PAID AS EXPENSES ON BEHALF OF M/S. RAMCO CEMENTS LTD. THE NET AMOUNT OF RS.2,05,834/- HAS BEEN SHOWN IN THE PROFIT AND LOSS ACCOUNT WHICH CAN BE VERIFIE D FROM PAGE 7 OF THE PAPER BOOK WHERE IN THE PROFIT AND LOSS ACCOUNT IS PLACED. HE FURTHER SUBMITTED THAT FROM THE PROFIT AND LOSS ACCOUNT IT WILL BE SEEN THAT THE AS SESSEE HAS SHOWN COMMISSION RECEIPT OF RS.4,41,260/-. THUS IT WAS HIS SUBMISSION THAT T HE ASSESSEE HAS SHOWN THE GROSS RECEIPTS OF RS.8,49,510/- AND THERE IS NO DISCREPAN CY IN THE FIGURES WITH THE BOOKS OF ACCOUNT AND FORM NO.26AS. HE ARGUED THAT THE ASSESS ING OFFICER CONFUSED HIMSELF BY TAKING THE FIGURES OF SALES PROMOTION SHOWN IN THE PROFIT AND LOSS ACCOUNT AT RS.1,00,693/-, CONTRACT RECEIPT OF RS.2,05,834/- AN D COMMISSION RECEIPT OF RS.4,41,260/- AND AGGREGATING THE SAME AS RS.7,47,7 87/- AND CONSIDERING THE BALANCE AMOUNT OF RS.1,01,723/- AS DIFFERENCE BETWEEN RS.8, 49,510/- AND RS.7,47,787/- AS UNEXPLAINED AND MAKING ADDITION OF THE SAME TO THE INCOME OF THE ASSESSEE. 6. LEARNED DEPARTMENTAL REPRESENTATIVE AGREED WITH THE ABOVE SUBMISSIONS OF THE AUTHORISED REPRESENTATIVE OF THE ASSESSEE. 3 ITA NO.765/KOL/2018 M/S MAHABIR STEEL SUPPLY CO. A. Y.2011-12 7. IN THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE I AM OF THE CONSIDERED OPINION THAT THE ASSESSEE HAS SHOWN GROSS RECEIPTS FROM A C OMPANY M/S. RAMCO CEMENTS LTD OF RS.8,49,510/- IN ITS BOOKS OF ACCOUNT. THE SUM O F RS.4,08,250/- IS CREDITED IN THE LEDGER ACCOUNT OF CONTRACT AND THE SAME ACCOUNT CON TAINS DEBIT OF RS.2,02,416/- ON ACCOUNT OF EXPENSES INCURRED ON BEHALF OF THE COMPA NY M/S. RAMCO CEMENTS LTD AND THE NET FIGURE OF RS.2,05,834/- IS SHOWN IN THE PRO FIT AND LOSS ACCOUNT. FURTHER THE COMMISSION RECEIPT OF RS.4,41,260/- IS ALSO REFLECT ED AS INCOME IN THE PROFIT AND LOSS ACCOUNT. THEREFORE I SET ASIDE THE ORDERS OF THE LO WER AUTHORITIES AND DELETE THE ADDITION OF RS.1,01,723/- AND ALLOW THE GROUNDS OF APPEAL. 8. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLO WED. O RDER PRONOUNCED IN THE OPEN COURT ON 13.07.2018. SD/- [ N.S.SAINI ] ACCOUNTA NT MEMBER DATED : 13.07.2018. [RG SR.PS] COPY OF THE ORDER FORWARDED TO: 1.M/S MAHABIR STEEL SUPPLY CO., C/O SRI JITENDRA KA USHIK, ADVOCATE, 19-D, MUKTARAM BABU STREET, KOLKATA-700007. 2. I.T.O., WD-44(2), KOLKATA 3. C.I.T.(A)-13, KOLKATA 4. C.I.T.- 15, KOLKATA.. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER, SENIOR PRIVATE SECRETARY HEAD OF OFFICE/D.D.O., ITAT, KOLKATA BENCHES 4 ITA NO.765/KOL/2018 M/S MAHABIR STEEL SUPPLY CO. A. Y.2011-12