Shree Nanak Sai & Sons, Rourkela V. ACIT,Rourkela Circle, Rourkela

ITA 84/CTK/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3119 (ITAT-CUTTACK)
• Duration Of Justice: 8 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 15-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 201

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI C.M. GARG, JM & SHRI L.P. SAHU, AM . / ITA NO. 84 /CTK/201 9 ( / ASSESSMENT YEAR : 20 1 0 - 201 1 ) SHREE NANAK SAI & SONS, THROUGH PARTNER - SHRI PRADEEP KUMAR AGARWAL, C/O - T.K.DUTTA, R - 14, CIVIL TOWNSHIP, ROURKELA - 769004 VS. ACIT, ROURKELA CIRCLE, ROURKELA ./ PAN NO. : A BIFS 1791 D ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE B Y : SHRI TUSHAR DUTTA, AR /REVENUE BY : SHRI J.K.LENKA , DR / DATE OF HEARING : 25 / 11 /2019 / DATE OF PRONOUNCEMENT : 26 / 11 /2019 / O R D E R PER L.P.SAHU , A M : TH IS IS AN APPEAL FILED BY THE ASS ESSEE AGAINST THE ORDER OF CIT(A) , SAMBALPUR , DATED 04.07.2017 FOR THE ASSESSMENT YEAR 201 0 - 201 1 ON THE SOLE GROUND REGARDING CONFIRMATION OF ADDITION OF RS.13,77,935/ - MADE BY THE AO ON ACCOUNT OF DIFFERENTIAL IN GROSS RECEIPTS OF SUNDRY DEBTORS LEDGER BA LANCE OF M/S ADHUNIK METALIKS LTD. & GROSS RECEIPT OF AUDITED PROFIT LOSS ACCOUNT. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PARTNERSHIP FIRM FILED ITS RETURN OF INCOME ON 14.10.2010 DECLARING TOTAL INCOME OF RS.21.45.990/ - . THE CASE WAS SELECT ED FOR SCRUTINY AND STATUTORY ITA NO. 84 /CTK/201 9 2 NOTICES WERE ISSUED TO THE ASSESSEE. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO NOTICED THAT FOR PRECEDING ASSESSMENT YEAR 2009 - 2010 WAS UNDER SCRUTINY AND THERE WAS A DIFFERENCE IN GROSS RECEIPTS AS SHOWN BY THE ASS ESSEE IN HIS PROFIT AND LOSS ACCOUNT AND FORM 16 OBTAINED FROM ADHUNIK METALIKS LTD. AND THE SAME WAS RECONCILED BY THE ASSESSEE THAT THE GROSS RECEIPTS AS PER PROFIT AND LOSS ACCOUNT HAS BEEN SHOWN AFTER DEDUCTING THE SERVICE TAX AMOUNT. ACCORDINGLY, THE AO CONSTRUED THAT THE DIFFERENTIAL IN GROSS RECEIPT AT RS.51,14,093/ - IS INCLUSIVE OF THE SERVICE TAX PAYABLE AMOUNT OF RS.37,36,158/ - . THE AO FURTHER NOTED THAT THE ASSESSEE FAILED TO FURNISH ANY RECONCILIATION STATEMENT OR REPLY, ACCORDINGLY, HE ADDED T HE DIFFERENTIAL IN GROSS RECEIPT AT RS.13,77,935/ - TO THE TOTAL INCOME OF THE ASSESSEE AS ALL THE EXPENSES HAVE ALREADY BEEN CLAIMED BY THE ASSESSEE IN ITS PROFIT AND LO S S ACCOUNT. 3. FEELING AGGRIEVED FROM THE ASSESSMENT ORDER, THE ASSESSEE APPEALED BEF ORE THE CIT(A) AND THE CIT(A) HELD THAT THE AO HAS RIGHTLY MADE ADDITION REGARDING DIFFERENTIAL AMOUNT WHICH COULD NOT RECONCILED BY THE ASSESSEE EITHER BEFORE THE AO OR IN THE APPELLATE PROCEEDING. 4. AGGRIEVED FROM THE ORDER OF CIT(A), THE ASSESSEE HAS F ILED APPEAL BEFORE THE INCOME TAX APPELLATE TRIBUNAL. ITA NO. 84 /CTK/201 9 3 5. LD. AR SUBMITTED THAT THE AO WAS NOT JUSTIFIED TO MAKE ADDITION. LD.AR REFERRED TO THE FORM NO.26AS AND SUBMITTED THAT THERE WAS NO DIFFERENCE BETWEEN THE ASSESSEE COMPANY AND ADHUNIK METALIKS LTD. A CCORDINGLY, LD. AR REQUESTED THAT IF A CHANGE IS GIVEN IN THE INTEREST OF JUSTICE TO REPRESENT BEFORE THE AO, THE ASSESSEE WOULD BE ABLE TO RECONCILE THE SAME. 6. ON THE OTHER HAND, LD. DR RELIED ON THE ORDERS OF AUTHORITIES BELOW AND OBJECTED THE REQUEST OF THE ASSESSEE. LD. DR FURTHER SUBMITTED THAT THE ASSESSEE WAS UNABLE TO RECONCILE BEFORE BOTH THE AUTHORITIES BELOW, THEREFORE, THE ORDER OF THE CIT(A) SHOULD BE RESTORED. 7. AFTER HEARING BOTH THE SIDES AND PERUSING THE ENTIRE MATERIAL AVAILABLE ON RECO RD, WE FIND THAT BEFORE US LD. AR OF THE ASSESSEE SUBMITTED VENDOR ACCOUNT STATEMENT FOR THE IMPUGNED YEAR AS WELL AS FORM NO.26AS BUT HE COULD NOT PRODUCE ANY RECONCILIATION. IN THE VENDOR ACCOUNT STATEMENT FILED BEFORE US, WE OBSERVE THAT MORE TRANSACTIO NS ARE REFLECT ING BUT THE ASSESSEE HAS NOT PRODUCED THE RECONCILIATION STATEMENT IN REGARD TO THE DISPUTED AMOUNT . LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N THE INTEREST OF JUSTICE AND CONSIDERING THE REQUEST OF LD. AR OF THE ASSESSEE, WE R EMIT THIS MATTER TO THE FILE OF AO TO DECIDE THE CASE AND THE ASSESSEE IS DIRECTED TO PRODUCE THE REQUIRED DOCUMENTS BEFORE THE AO. NEEDLESS TO SAY, A ITA NO. 84 /CTK/201 9 4 REASONABLE OPPORTUNITY OF BEING HEARD BE GIVEN TO THE ASSESSEE. THE ASSESSEE IS DIRECTED NOT TO SEEK ANY UNNECESSARY ADJOURNMENT. ACCORDINGLY, THE SOLE GROUND RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 8 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 26 / 1 1 / 201 9 . SD/ - ( C.M.GARG ) SD/ - (L.P.SAHU) / JUDICIAL MEMBER / ACCOUNTANT MEMBER CUTTACK ; DATED 26 / 1 1 /201 9 PRAKASH KUMAR MISHRA, SR.P.S. / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) , / ITAT, CUTTACK 1. / THE APPELLANT - SHREE NANAK SAI & SONS, THROUGH PARTNER - SHRI PRADEEP KUMAR AGARWAL, C/O - T.K.DUTTA, R - 14, CIVIL TOWNSHIP, ROURKELA - 769004 2. / THE RESPONDENT - ACIT, ROURKELA CIRCLE, ROURKELA 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//