Rista Fisheries & Infrastructure Ltd., Kolkata V. Pr.C.I.T.-4, Kolkata

ITA 792/KOL/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 5065 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 04-09-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 16-04-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR A K NAYAK
• Assessee Lawyers: K M ROY
• Keywords: Depreciation; TDS
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A, BENCH KOLKATA BEFORE SHRI S. S. GODARA, JM & DR. A. L. SAINI, AM ./I.T.A NO.792/KOL/2019 ( [ [ / ASSESSMENT YEAR: 2014-15) RISTA FISHERIES & INFRASTRUCTURE LTD. 282, D.H. ROAD, WEST BENGAL. VS. ITO, WARD-13(4), KOLKATA. ./ ./PAN/GIR NO.: AAECR6032J (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI K. M. ROY, FCA RESPONDENT BY : DR. A. K. NAYAK, CIT-DR / DATE OF HEARING : 04/09/2019 /DATE OF PRONOUNCEMENT : 22/11/2019 / O R D E R PER SHRI S. S. GODARA: THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2014-15 ARISES AGAINST THE COMMISSIONER OF INCOME TAX - 4, KOLKATA DATED 25.02.2019 PASSED INVOLVING PROCEEDINGS U/S 263 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. WE ADVERT TO THE BASIC RELEVANT FACTS. THIS ASSESSEES IS A COMPANY DEVELOPING INFRASTRUCTURE AS WELL AS ACTING AS A COMMISSION AGENT. IT FILED ITS RETURN ON 15.02.2015 DECLARING TOTAL INCOME OF RS.13,202/-. THE ASSESSING OFFICER THEREAFTER FRAMED REGULAR ASSESSMENT IN ISSUE IN ITS CASE DATED 15.11.2016 DETERMINING ITS TAXABLE INCOME AT RS.4,62,480/- AFTER MAKING VARIOUS DISALLOWANCE/ADDITIONS. I.T.A NO.792/KOL/2019 RISTA FISHERIES & INFRASTRUCTURE LTD. PAGE | 2 3. CASE FILE SUGGESTS THAT THE PCIT THEREAFTER INITIATED THE IMPUGNED REVISION PROCEEDINGS AFTER TERMING THE ABOVE REGULAR ASSESSMENT AS ERRONEOUS CAUSING PREJUDICE TO INTEREST OF THE REVENUE SINCE THE ASSESSING OFFICER HAD FAILED TO MAKE THE NECESSARY ENQUIRY/EVIDENCE IN RESPECT OF TDS DEDUCTION ON INTEREST PAYMENT OF RS.19,90,807/- U/S 194A OF THE ACT. LEARNED AUTHORIZED REPRESENTATIVE SUBMITS THAT THE ASSESSEE DULY PUT ITS APPEARANCE IN REVISION PROCEEDINGS AND SOUGHT TO JUSTIFY THE ABOVE REGULAR ASSESSMENT ON THE GROUND THAT THE SAME WAS NEITHER ERRONEOUS NOR ANY PREJUDICE CAUSED TO INTEREST OF REVENUE. THE PCIT HAS DECLINED THE SAME BY OBSERVING THAT THE ASSESSING OFFICER HAD NOT CONDUCTED ENQUIRY REGARDING NON-DEDUCTION OF TDS U/S 194A OF THE ACT AND THEREFORE, THE IMPUGNED ASSESSMENT IS ERRONEOUS CAUSING PREJUDICE TO INTEREST OF THE REVENUE AS PER SECTION 263(1) EXPLANATION 2(C) OF THE ACT. THIS LEAVES THE ASSESSEES AGGRIEVED. 4. MR. ROY VEHEMENTLY SUBMITS DURING THE COURSE OF HEARING THAT THE PCIT HAS ERRED IN LAW AND ON FACTS IN ASSUMING HIS REVISIONAL JURISDICTION VESTED U/S 263 OF THE ACT. HE PLACES ON RECORD THE ASSESSEES INCOME TAX RETURN ACKNOWLEDGMENT, AUDIT REPORT, BALANCE SHEET, STATEMENT OF P&L A/C, DEPRECIATION CHARGED, NOTES OF ACCOUNTS REGARDING THE IMPUGNED ASSESSMENT YEAR AND SUBMITS THAT THE ASSESSING OFFICER HAD DULY EXAMINED THE ASSESSEES IMPUGNED INTEREST EXPENDITURE IN VIEW OF THE SPECIFIC FIGURE INCLUDING INTEREST ON RETURN ON LOAN AMOUNTING TO RS.2225006/- AND THEREFORE, THE PCIT HAS ERRED IN HOLDING THAT THERE WAS A FAILURE ON HIS PART IN CARRYING OUT NECESSARY ENQUIRIES DURING THE COURSE OF ASSESSMENT. WE FIND NO REASON TO AGREE WITH THE ASSESSEES FOREGOING ARGUMENTS. HONBLE APEX COURTS LANDMARK DECISION IN M/S MALABAR INDUSTRIES CO. VS. CIT [2000] 243 ITR 83 (SC) AND M/S GEE VEE ENTERPRISES VS. UOI (1975) 99 ITR 279 (DEL) HOLD THAT AN ASSESSMENT HAS TO BE BOTH ERRONEOUS AS WELL AS PREJUDICE TO INTEREST OF THE REVENUE IN CASE THE ASSESSMENT OF REVISIONAL JURISDICTION U/S 263 OF THE ACT AND THAT LACK OF ENQUIRY ON ASSESSING OFFICERS PART DURING THE COURSE OF SCRUTINY IS COVERED IN THE TWO SPECIFIED EXPRESSIONS. WE MAKE IT CLEAR THAT THE ASSESSEE HAS NOT EVEN FILED THE ASSESSING OFFICERS SHOW-CAUSE NOTICE ISSUE DURING SCRUTINY THAT I.T.A NO.792/KOL/2019 RISTA FISHERIES & INFRASTRUCTURE LTD. PAGE | 3 HE HAD CONDUCTED ANY SUCH ENQUIRY ON THE ABOVE STATED INTEREST OR TDS DEDUCTION ISSUE. WE CONCLUDE IN THIS FACTUAL AND LEGAL BACKDROP THAT THE PCIT HAS RIGHTLY TAKEN RECOURSE TO REVISIONAL JURISDICTION VESTED U/S 263 OF THE ACT. WE THEREFORE AFFIRM THE SAME. IT IS MADE CLEAR THAT THE ASSESSEE SHALL BE AFFORDED ADEQUATE OPPORTUNITY OF HEARING IN THE CONSEQUENTIAL ASSESSMENT PROCEEDINGS BEFORE THE ASSESSING OFFICER. 5. THIS ASSESSEES APPEAL IS DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 22.11.2019. SD/- ( A. L. SAINI ) SD/- (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER /KOLKATA; / DATE:22/11/2019 RS, SR. PS / COPY OF THE ORDER FORWARDED TO : TRUE COPY BY ORDER ASSISTANT REGISTRAR, I.T.A.T, KOLKATA BENCHES, KOLKATA . 1. THE APPELLANT - RISTA FISHERIES & INFRASTRUCTURE LTD. 2. THE RESPONDENT- ITO, WARD-13(4), KOLKATA. 3. ( ) / THE CIT(A), KOLKATA [SENT THROUGH EMAIL] 4. / CIT 5. , , / DR, ITAT, KOLKATA [SENT THROUGH EMAIL] 6. [ / GUARD FILE.