Sri Samrat Malakar, Siliguri V. I.T.O Wd - 2(3),kolkata, Siliguri

ITA 776/KOL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83101 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 11-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAVID Z CHAWNGTHU
• Assessee Lawyers: NARAYAN SAHA
• Keywords: Reasonable cause

Judgement Text

I.T.A. NO.: 776/ KOL. / 2013 ASSESSMENT YEAR : 2009-2010 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER I.T.A. NO.: 776/ KOL./ 2013 ASSESSMENT YEAR : 2009-2010 SRI SAMRAT MALAKAR,................................ .................APPELLANT S/O. LATE JITEN MALAKAR, SREE MAA SARANI, SOUTH BABUPARA, SILIGURI, WEST BENGAL [PAN : AILPM 4243 Q] -VS.- INCOME TAX OFFICER,................................ ..............RESPONDENT WARD-2(3), SILIGURI AAYAKAR BHAWAN, MATIGARA-734 010 APPEARANCES BY: SHRI NARAYAN SAHA, ADVOCATE, FOR THE APPELLANT SHRI DAVID Z. CHAWNGTHU, ADDL.CIT, SR. D.R., FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : AUGUST 19, 2014 DATE OF PRONOUNCING THE ORDER : 02.09.2014 O R D E R PER SHRI MAHAVIR SINGH, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS ARISING OUT O F THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS), SILIGURI IN A PPEAL NO. 177/CIT(A)/SIG./2011-12 DATED 05.11.2012 FOR THE AS SESSMENT YEAR 2009-10. 2. AT THE OUTSET, IT IS NOTICED THAT THE APPEAL OF THE ASSESSEE IS TIME BARRED BY 83 DAYS AND THE ASSESSEE HAS FILED CONDON ATION PETITION STATING THE FOLLOWING REASONS:- THIS IS MY HUMBLE SUBMISSION BEFORE YOUR HONOUR TH AT MY COUSIN BROTHER BIPLAB MALAKAR, S/O. LATE NAREN MALA KAR I.T.A. NO.: 776/ KOL. / 2013 ASSESSMENT YEAR : 2009-2010 PAGE 2 OF 4 RECEIVED THE CIT(APPEALS)S ORDER FROM MY LAWYER SR I NARAYAN SAHA ON 21.11.2012 AND HE EXPIRED ON 30.11. 2012 AND WE ARE JOINT FAMILY AND DUE TO UNNATURAL DEATH OF MY SAID BROTHER, I WAS VERY BUSY WITH THE ADMINISTRATI ON TO FIND OUT THE REASON OF DEATH AND ALSO DUE TO NO KNO WLEDGE OF THAT ORDER I COULD NOT TAKE NECESSARY STEPS TO F ILE THE APPEAL IN TIME. 3. IN VIEW OF THE ABOVE REASONS STATED BY THE ASSES SEE IN THE CONDONATION PETITION, I FIND REASONABLE CAUSE. HENC E DELAY IS CONDONED AND THE APPEAL IS ADMITTED. 4. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGA INST THE ORDER OF LD. CIT(APPEALS) CONFIRMING THE ADDITION OF REIMBURSEME NT EXPENSES MADE BY THE ASSESSING OFFICER TREATED AS RECEIPTS FROM M /S. AARTHIK COMMERCIAL PVT. LTD. 5. I HAVE HEARD RIVAL CONTENTIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. I FIND THAT THE ASSESSIN G OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS NOTICED THAT THE A SSESSEE HAS RECEIVED A SUM OF RS.2,81,102/- FROM M/S. AARTHIK COMMERCIAL PVT. LTD, A UNIT OF RELIANCE GROUP OF COMPANIES. THE ASSESSING OFFICER TREATED THE SAME AS COMMISSION FOR OPERATING ONE RETAIL FUEL OUTLET AT BIDHAN NAGAR, DIST. DARJEELING. THE ASSESSING OFFICER NOTED FROM THE IT S DATA EXTRACTED ONLINE THROUGH ITS DEPARTMENT ON AST. THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO EXPLAIN THE SAME AND THE ASSESSEE STATE D THAT THE RECEIPT OF RS.2,81,102/- FROM M/S. AARTHIK COMMERCIAL PVT. LTD . IS NOTHING BUT REIMBURSEMENT OF EXPENSES ON ACCOUNT OF STAFF SALAR Y AND OTHER EXPENSES. AS THE ASSESSEE COULD NOT PRODUCE THE EVIDENCE BEFO RE THE ASSESSING OFFICER, HE MADE THE ADDITION. 6. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT(APPEALS), WHO ALSO CONFIRMED THE ADDITION. AGGRIEVED, NOW ASS ESSEE IS IN APPEAL BEFORE ME. I.T.A. NO.: 776/ KOL. / 2013 ASSESSMENT YEAR : 2009-2010 PAGE 3 OF 4 7. I FIND FROM THE FACTS OF THE CASE THAT THE ASSES SEE HAS RECEIVED A SUM OF RS.2,81,102/- FROM M/S. AARTHIK COMMERCIAL P VT. LTD., A UNIT OF RELIANCE GROUP OF COMPANIES. THE ASSESSEE HAS PRODU CED A COPY OF CERTIFICATE FROM M/S. AARTHIK COMMERCIAL PVT. LTD. STATING THAT THIS IS MERELY A REIMBURSEMENT OF EXPENSES ON ACCOUNT OF WA GES, REPAIRS, ETC. COMPLETE DETAILS OF PAYMENT ARE GIVEN BY M/S. AARTH IK COMMERCIAL PVT. LTD. IN THEIR LETTER DATED 30.10.2012 AND THE RELEV ANT DETAILS READ AS UNDER:- BILL NO. BILL DATE BILL AMOUNT DESCRIPTION SGT/RPM/APR/0809 01.05.2008 326.00 REPAIRS-APRIL 08 SGT/RPM/APR/0809 01.05.2008 86,852.00 MONTHLY BILL OF WAGES/COMP ETC. APRIL 08 SGT S /RPM T / MAY /08 30.05.2008 899.00 REPAIRS-MAY 08 SGT S / OP R B / MAY /08 30.05.2008 80,987.00 MONTHLY BILL OF WAGES/COMP. ETC. MAY 08 SGTS/OPR/MAY 30.05.2008 79,418.00 RETRENCHMENT COMP - MAY 08 SGTS/FSRPM/MAY/08 30.05.2008 32,620.00 FINAL SETTLEMENT OF REPAIRS & MAINTENANCE APR-MAY 08 THE ASSESSEE HAS ALSO MADE PAYMENT OF THE EXPENSES AND HE HAS FILED DETAILS OF PAYMENT BEFORE THE LOWER AUTHORITIES ALS O. I FIND THAT THE ASSESSEE HAS EXPLAINED THAT THE RECEIPTS ARE NOT CO MMISSION INCOME BUT THESE ARE REIMBURSEMENT OF EXPENSES, WHICH THE ASSE SSEE HAS ACTUALLY INCURRED. EVEN M/S. AARTHIK COMMERCIAL PVT. LTD. HA S ALSO GIVEN UNDERTAKING OR CERTIFICATE THAT THESE ARE REIMBURSE MENT OF EXPENSES AND I.T.A. NO.: 776/ KOL. / 2013 ASSESSMENT YEAR : 2009-2010 PAGE 4 OF 4 NOT AS COMMISSION. IN VIEW OF THE ABOVE FACTS AND C IRCUMSTANCES, I FIND FORCE IN THE ARGUMENT OF THE ASSESSEE AND HENCE THE ADDITION IS DELETED. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND DAY OF SEPTEMBER, 2014. SD/- MAHAVIR SINGH (JUDICIAL MEMBER) KOLKATA, THE 2 ND DAY OF SEPTEMBER, 2014 COPIES TO : (1) SRI SAMRAT MALAKAR, S/O. LATE JITEN MALAKAR, SREE MAA SARANI, SOUTH BABUPARA, SILIGURI, WEST BENGAL (2) INCOME TAX OFFICER, WARD-2(3), SILIGURI AAYAKAR BHAWAN, MATIGARA-734 010 (3) CIT (4) CIT(A) (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ETC ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.