West Bengal Housing Infrastructure Development Corporation Ltd., Kolkata V. DCIT, Circle -14(2), Kolkata, Kolkata

ITA 811/KOL/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9825 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 25-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR A K NAYAK
• Assessee Lawyers: SAURABH BAGARIA ADV B R DUTTA
• Keywords: TDS; Set aside
• Section: 234B; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA A BENCH, KOLKATA (BEFORE SRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER & SRI S.S. GODARA, JUDICIAL MEMBER) I.T.A. NO. 811/KOL/2018 ASSESSMENT YEAR: 2014-15 M/S. WEST BENGAL HOUSING INFRASTRUCTURE DEVELOPMENT CORPORATION LTD.................... APPELLANT [PAN : AAACW 4115 F] VS. DY. COMMISSIONER OF INCOME TAX, CIRCLE-14(2), KOLKATA...........................RESPONDENT APPEARANCES BY: SHRI SAURABH BAGARIA, ADV., B.R. DUTTA, FCA & RITESH GOEL, ADV., APPEARED ON BEHALF OF THE ASSESSEE. DR. A.K. NAYAK, CIT, APPEARED ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : SEPTEMBER 11 TH , 2019 DATE OF PRONOUNCING THE ORDER : SEPTEMBER 20 TH , 2019 ORDER PER J. SUDHAKAR REDDY, AM :- THIS IS AN APPEAL FOR THE ASSESSMENT YEAR (AY FOR SHORT) 2014-15. THE GROUNDS OF THE APPEAL ARE AS FOLLOWS: 1. THAT THE LD. CIT (APPEALS) WAS WRONG IN UPHOLDING THE ACTION OF THE ASSESSING OFFICER IN MAKING AN ADDITION OF RS.136,00,10,224 BEING INTEREST EARNED ON FIXED DEPOSITS WHICH HAD BEEN REDUCED BY THE APPELLANT FROM ITS PROJECT COST. 2. THAT WITHOUT PREJUDICE TO THE CONTENTION RAISED IN GROUND NO. 1 ABOVE, THE LD. CIT(APPEALS) ERRED IN NOT PROPERLY APPRECIATING THE NEXUS OF INTEREST EARNED ON FIXED DEPOSITS WITH THE BUSINESS ACTIVITIES OF THE APPELLANT AND THUS HE WAS WRONG IN CONFIRMING THE ADDITION OF RS. 136,00,10,224 MADE BY THE ASSESSING OFFICER. 3. THAT THE LD. CIT(APPEALS) WAS WRONG IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN MAKING AN ADDITION OF RS.2,32,18,572 ON THE BASIS OF HIS RECONCILIATION MADE WITH THE DETAILS AVAILABLE IN FORM NO. 26AS. 4. THAT WITHOUT PREJUDICE TO THE CONTENTION RAISED IN GROUND NO. 3 ABOVE, THE LD. CIT (APPEALS) FAILED TO APPRECIATE THAT THE ASSESSING OFFICER HAD WRONGLY ADDED AN EXCESS SUM OF RS.92,44,988 TO THE APPELLANTS INCOME. 5. THAT THE LD. CIT(APPEALS) WAS WRONG IN NOT DISPOSING OF THE APPELLANTS GROUND OF APPEAL IN RELATION TO THE SHORT CREDIT OF RS.2,50,00,000 OUT OF THE ADVANCE TAX PAYMENTS AGGREGATING TO RS.5,50,00,000 MADE BY THE APPELLANT. 6. THAT THE LD. CIT(APPEALS) WAS WRONG IN NOT DISPOSING OF THE APPELLANT S GROUND OF APPEAL RELATING TO THE LEVYING OF INTEREST OF RS.35,47,698 U/S 234B. 2 I.T.A. NO. 811/KOL/2018 ASSESSMENT YEAR: 2014-15 M/S. WEST BENGAL HOUSING INFRASTRUCTURE DEVELOPMENT CORPORATION 7. THAT THE APPELLANT CRAVES LEAVE TO ADD, MODIFY OR WITHDRAW ANY GROUND OR GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING OF THE APPEAL. 2. GROUND NOS. 1 & 2 OF THE APPEAL ARE IDENTICAL TO THE GROUNDS RAISED BY THE REVENUE AS GROUND NO. 3 IN ITA NO. 246/KOL/2017. THE ASSESSEE ALSO RAISED ADDITIONAL GROUNDS ON THIS ISSUE. CONSISTENT WITH THE VIEW TAKEN BY US ON THIS ISSUE FOR THE AY 2011-12, WE SET ASIDE THE MATTER TO THE FILE OF THE ASSESSING OFFICER (AO FOR SHORT) FOR FRESH ADJUDICATION IN ACCORDANCE WITH LAW, AS PER THE DIRECTION GIVEN BY US WHILE DISPOSING OFF THIS MATTER IN THE EARLIER ASSESSMENT YEARS. IN THE RESULT, THESE GROUNDS ARE ALLOWED FOR STATISTICAL PURPOSES. 3. GROUND NOS. 3, 4 & 5 ARE ON THE ISSUE OF ADDITIONS MADE ON THE GROUND THAT RECONCILIATION WAS NOT MADE BETWEEN THE TDS CLAIMED AND TURNOVER DISALLOWED, WHEN COMPARED TO THE DATE IN FORM NO. 26AS. WE FIND THAT A NUMBER OF MISTAKES HAVE BEEN COMMITTED IN THIS RECONCILIATION. TURNOVERS WERE TAKEN AS PER FORM NO. 26AS WHILE TDS HAS BEEN DENIED. UNDER THESE CIRCUMSTANCES WE SET ASIDE THE MATTER TO THE FILE OF THE AO FOR FRESH ADJUDICATION IN ACCORDANCE WITH LAW. THE AO IS DIRECTED TO APPLY THE CONSISTENT METHOD OF ACCOUNTING FOLLOWED BY THE ASSESSEE FOR INCOME RECOGNITION. HE SHALL ALSO FOLLOW THE LAW FOR GRANT OF CREDIT FOR TDS. IN THE RESULT, THIS GROUND OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4. GROUND NO. 6 IS AGAINST LEVY OF INTEREST U/S 234B OF THE ACT. LEVY OF INTEREST IS COMPENSATORY IN NATURE AND HENCE THIS GROUND IS DISMISSED AS SUCH. 5. GROUND NO. 7 IS GENERAL IN NATURE. 6. IN THE RESULT, THIS APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. KOLKATA, THE 20 TH SEPTEMBER, 2019. SD/- SD/- [S.S. GODARA] [J. SUDHAKAR REDDY] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 20.09.2019 BIDHAN 3 I.T.A. NO. 811/KOL/2018 ASSESSMENT YEAR: 2014-15 M/S. WEST BENGAL HOUSING INFRASTRUCTURE DEVELOPMENT CORPORATION COPY OF THE ORDER FORWARDED TO: 1. M/S. WEST BENGAL HOUSING INFRASTRUCTURE DEVELOPMENT CORPORATION, HIDCO BHABAN, 35-1111, MAJOR ARTERIAL ROAD, NEW TOWN, KOLKATA-700 156. 2. DY. COMMISSIONER OF INCOME TAX, CIRCLE-14(2), KOLKATA. 3. CIT(A)- 18, KOLKATA. (SENT THROUGH MAIL) 4. CIT- 5. CIT(DR), KOLKATA BENCHES, KOLKATA. (SENT THROUGH MAIL) TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES