DCIT, CIRCLE-1, SILIGURI, Siliguri V. COSMOS BEVERAGES (P) LTD., Siliguri

ITA 924/KOL/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9847 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 03-06-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 03-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROBIN CHOUDHUR Y
• Assessee Lawyers: A K TIBREWAL
• Keywords: Rejection of books of accounts; Business income; Depreciation; Opportunity of being heard
• Section: 143(3); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B, BENC H KOLKATA BEFORE SHRI S.S.GODARA, JM &DR. A.L.SAINI, AM ./ITA NOS.923&924/KOL/2017 ( / ASSESSMENT YEARS:2012-13 & 2014-15) DCIT, CIRCLE-1, SILIGURI VS. COSMOS BEVERAGES (P) LTD. 1 ST FLOOR, KAPIL CENTRE, 2 ND MILE, SEVOKE ROAD, SILIGURI. ./ ./PAN/GIR NO.: AADCC 5493 M (ASSESSEE) .. (REVENUE) ASSESSEE BY : SHRI ROBIN CHOUDHURY, ADDL. CIT (DR ) RESPONDENT BY : SHRI A. K. TIBREWAL, FCA / DATE OF HEARING : 23/07/2019 /DATE OF PRONOUNCEMENT : 25/09/2019 / O R D E R PER DR. A. L. SAINI: THE CAPTIONED TWO APPEALS FILED BY THE REVENUE, PERTAINING TO ASSESSMENT YEARS2012-13 AND 2014-15 RESPECTIVELY, ARE DIRECTED AGAINST THE COMMON ORDERS PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)- SILIGURI, WHICH IN TURN ARISE OUT OF SEPARATE ASSESSMENT ORDERS PASSED BY THE ASS ESSING OFFICER U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. SINCE THESE APPEALS RELATE TO THE SAME ASSESSEE, DIFFERENT ASSESSMENT YEARS, IDENTICAL AND COMMON ISSUES ARE INVOLVED THEREFORE THESE HAVE BEEN CLUBBED AND HEARD TOGETHER AND A CONSOLIDATED ORDER IS BEING PA SSED FOR THE SAKE OF CONVENIENCE AND BREVITY. THE REVENUES APPEAL IN I. T.A. NO. 923/KOL/2017, FOR A.Y. 2012-13, IS TAKEN AS A LEAD CASE. COSMOS BEVERAGES (P) LT D. ITA NOS.923&924/KOL/2017 ASSESSMENT YEARS:2012-13 & 2014-15 P PP PA AA AG GG GE EE E | || | 2 22 2 3. GROUNDS OF APPEAL RAISED BY THE REVENUE IN I.T.A . NO. 923/KOL/2017, FOR A.Y. 2012-13, ARE AS FOLLOWS: 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT(A) WAS JUSTIFIED BY DELETING THE ADDITION MADE BY THE A.O. IN CONTRARY TO FACTS AND RECORDS AS DISCUSSED IN ASSESSMENT ORDER AS WELL AS IN THE REMAND REPORT. A) RELIANCE IS PLACED ON THE RATIO OF FOLLOWING JUD GMENT: I) KACHWALA GEMS 158 TAXMAN 71 (SC) II) CIT(IV), NAGPUR VS. R BABULAL PODDAR (2014) 45 TAXMAN.COM 223(SC) 2. WHETHER, ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE, THE LD. CIT(A) WAS JUSTIFIED BY DELETING THE ADDITION MADE BY THE A.O. DESPITE THE FACT THAT NO OPPORTUNITY OF BEING HEARD WAS GIVEN TO A.O. BY THE LD. CIT(A) TO DEFEND THE CASE EVEN AFTER THE SUBMISSION OF THE REMAND REPORT . 3. WHETHER THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) WAS JUSTIFIED TO ACCEPT THE PLEA OF THE ASSESSEE WITHOUT CONSIDERING THE REASONS FOR REJECTION THE BOOKS OF ACCOUNTS BY THE A.O. 4. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) WAS JUSTIFIED TO ACCEPT THE ARGUMENT OF THE ASSESSEE TH AT ORIGINAL BILLS AND VOUCHERS WERE KEPT AT SILIGURI OFFICE OF THE COMPA NY WHICH IS IN CONTRARY TO REPORT OF THE DEPARTMENTAL INSPECTOR. EVEN THE SAME BILLS AND VOUCHERS WERE NOT PRODUCED DURING THE COURSE OF SCRUTINY PROCEEDI NGS. 3. BRIEF FACTS QUA THE ISSUE ARE THAT THE ASSESSEE FILED ITS RETURN OF INCOME FOR A.Y. 2012-13 ON 18.03.2013, DECLARING LOSS TO THE TUNE O F RS. 1,57,14,490/-. THE ASSESSEES CASE WAS SELECTED FOR SCRUTINY AND ASSE SSMENT WAS FRAMED BY THE A.O. ON 30.03.2015. THE ASSESSEE COMPANY IS ENGAGED IN T HE BOTTLING OF LIQUOR OF UNITED SPIRITS LTD. AND IS ALLEGEDLY RECEIVING THE RETENTION CHARGES AS PER AGREEMENT. THERE IS ALSO SOME MANUFACTURING ACTIVIT Y OF COSMOS BEVERAGES (P) LTD. PRODUCING THEIR OWN IN HOUSE BRAND BIG BOSS , WHEN USL LINES OF PRODUCTION IS NOT WORKING USING THE SAME INFRASTRUC TURE. THE MAIN BRANDS MANUFACTURED / BOTTLED ARE: DIRECTORS SPECIAL, MCD OWELLS (PRODUCE OF USL) AND BIG BOSS (INHOUSE BRAND). THE TOTAL SALES ARE BOOKE D IN THE NAME OF COSMOS (AS PER AUDITED ACCOUNTS) INCLUDING THE BOTTLED PRODUCT S OF USL. ALL EXPENSES ARE BOOKED BY COSMOS INCLUDING PURCHASES, SALES, LABOR, WAGES RATES AND TAXES ETC. THE BRANDED AND REPUTED PRODUCTS OF USL ARE SOLD BY COSMOS THROUGH THEIR OWN INVOICES. THE AO NOTED THAT ALL SALES AND PURCHASES OF THE MANUFACTURING AND BOTTLING ACTIVITIES OF COSMOS ARE RECORDED AS SALES IN THE ASSESSEE COMPANY'S COSMOS BEVERAGES (P) LT D. ITA NOS.923&924/KOL/2017 ASSESSMENT YEARS:2012-13 & 2014-15 P PP PA AA AG GG GE EE E | || | 3 33 3 BOOKS OF ACCOUNT HENCERAISED MANY DOUBTS. FOR THIS PURPOSE DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE TERMS AND CONDITIONS OF AGREEMENT BETWEEN USL(UNITED SPIRITS PVT. LTD) AND COSMOS WERE EXAMIN ED BY AO.THE RELEVANT PORTION OF THE AGREEMENT IS REPRODUCED BELOW: I) TERMS AND CONDITIONS OF THE AGREEMENT OF COSMOS BEVERAGES PVT. LTD. WITH UNITED SPIRITS PVT. LTD. COSMOS SHALL RECEIVE THE SALE PROCEEDS FOR THE IMFL INVOICED BY THEM. FROM THE SALE PROCEEDS SO RECEIVED COSMOS SHALL BE ENTIT LED TO DEDUCT THE AGGREGATE OF THE FOLLOWING: A) COST OF RS/ENA: THE COST OF RS/ENA SHALL BE THE LANDED COST REQUIRED THEORETICALLY FOR A CASE INCLUDING THE EXCISE ALLOW ABLE WASTAGE IN TRANSIT, STORAGE AND MANUFACTURE OF IMFL; B) COST OF BLENDING MATERIAL: THE COST OF THE BLEND ING MATERIAL INCLUDING SPECIAL SPIRITS, SHALL BE THE ACTUAL LANDED COST AS MAY BE SPECIFIED BY USL FROM TIME TO TIME; C) COST OF PACKAGING MATERIAL: THE COST OF PACKAGIN G MATERIAL INCLUDING BOTTLES, CONTAINERS, CAPS, LABELS, MONOCARTONS, POUCHES, OUT ER CARTONS, ADHESIVES, BOPP TAPE, STRAPPING MATERIAL, CONTAINER SEALING CLIPS, GUM TAPE AND SUCH OTHER PACKAGING MATERIALS AS MAY BE SPECIFIED BY USL FROM TIME TO TIME SHALL BE THE ACTUAL LANDED COST AS SPECIFIED BY USL; D) TAXES, DUTIES, CESS AND FEES: ALL TAXES, DUTIES, CESS AND FEES SHALL BE AS APPLICABLE/NOTIFIED BY STATUTORY AUTHORITIES FROM T IME TO TIME AND AS AGREED TO BY USL. E) FREIGHT & OTHER EXPENSES: ALL OUTWARDS FREIGHT, ESCORT CHARGES, CASH AND OTHER DISCOUNTS, COMMISSION TO SALES PROMOTERS,. BOND FEE S AND LABEL REGISTRATION FEES; F) AGREED RETENTION: AGREED RETENTION TOWARDS EXCIS E LICENSE FEES, FEES FOR ALL LICENSES, CONSENTS AND PERMISSIONS FOR UNINTERRUPTE D OPERATIONS OF THE BOTTLING PLANT, INVESTMENT IN INFRASTRUCTURE, PLANT AND MACH INERY, LABOUR, POWER, FUEL, STAFF ESTABLISHMENT, LOADING, UNLOADING, DIRECT WAG ES, REPAIRS AND MAINTENANCE, INSURANCE, OVERHEADS AT THE BOTTLING P LANT AND OTHER INCIDENTAL EXPENSES AT RATES AGREED BETWEEN BOTH PARTIES AND R EVIEWED PERIODICALLY. THE ABOVE ITEMS OF COST WILL BE APPROVED IN WRITING BY USL. SUCH APPROVAL WILL BE ON COSMOS BEVERAGES (P) LT D. ITA NOS.923&924/KOL/2017 ASSESSMENT YEARS:2012-13 & 2014-15 P PP PA AA AG GG GE EE E | || | 4 44 4 MONTHLY/QUARTERLY BASIS. AFTER DEDUCTING THE AMOUNT S MENTIONED ABOVE, THE BALANCE SHALL BE SENT TO USL. IT IS MADE CLEAR THAT THIS EXCESS AMOUNT BELONGS ONLY TO USL AND NO PART CAN BE DEALT OR WITHHELD FOR ANY REASON WHATSOEVER BY COSMOS. THE ABOVE BASIS OF APPOINTMENT SHALL CONSTI TUTE THE MUTUAL CONSIDERATION OF THE CONTRACTING PARTIES FOR THE PE RFORMANCE UNDER THIS AGREEMENT. 4. THEREAFTER, THE ASSESSING OFFICER EXAMINED THE B OOKS OF ACCOUNTS OF THE ASSESSEE AND HE NOTED MANYDISCREPANCY IN BOTTLING C HARGES AND OTHER EXPENSES. HE ALSO NOTICED THAT THE ASSESSEE PREPARED SELF-MADE I NTERNAL VOUCHERS AND SOME OF THE EXPENSES LIKE MOBILE SET EXPENSES AND OTHER EXP ENSES, THE BILLS THEREOF WERE NOT PRODUCED BY THE ASSESSEE. THE ASSESSEE HAS FAIL ED TO EXPLAIN THE UTILITY OF THE VEHICLE IN THE BUSINESS, THEREFORE THE ASSESSING OF FICER NOTICED THAT THE ASSESSEES ACCOUNTS ARE COMPLEX AND IT IS DIFFICULT TO WORK OU T THE NET INCOME OF THE ASSESSEE. THE ASSESSING OFFICER ALSO NOTED THAT NO SEPARATE A CCOUNTS FOR MANUFACTURING AND BOTTLING ACTIVITY ARE MAINTAINED BY THE ASSESSEE. T HEREFORE, THE ASSESSING OFFICER IN ORDER TO MAKE THE REASONED ASSESSMENT, DEPUTED A N INSPECTOR OF INCOME TAX TO CONDUCT ENQUIRY ABOUT THE NATURE OF BUSINESS AND ME THOD OF ACCOUNTING IN PLACE OF COSMOS BEVERAGES PVT. LTD. THE INSPECTOR SUBMITTED REPORT TO THE ASSESSING OFFICER AND HAVING GONE THROUGH THE REPORT OF THE I NSPECTOR, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEES ACCOUNTS ARE COMPLEX AN D THERE IS NO CONTROL ON PURCHASES AND SALE OF USL PRODUCTS. THE ASSESSING O FFICER ALSO NOTED THAT NO ORIGINAL INVOICES / VOUCHERS WERE PRODUCED AT THE T IME OF HEARING NOR ORIGINAL INVOICES WERE PRODUCED BEFORE THE INSPECTORS DURING THE COURSE OF ENQUIRY PROCEEDINGS AT THE FACTORY PREMISES OF THE ASSESSEE . BESIDES, THE ASSESSING OFFICER ALSO NOTICED OTHER IRREGULARITIES IN THE BOOKS OF A CCOUNTS OF THE ASSESSEE. 5. THE ASSESSING OFFICER BASED ON THE REASONS MENTI ONED ABOVE DID NOT RELY ON THE BOOKS OF ACCOUNTS OF THE ASSESSEE AND THEREFORE HE REJECTED THE BOOKS OF ACCOUNTS OF THE ASSESSEE AND DETERMINED THE PROFIT OF THE AS SESSEE OBSERVING THE FOLLOWING: 6. DETERMINATION OF NET PROFIT: ONCE THE BOOKS OF ACCOUNT OF ASSESSEE ARE REJECTED, THEN, PROFIT HAS TO BE ESTIMATED ON THE BASIS OF PROPER MATERIAL AVAILABLE . NEVERTHELESS, THE ASSESSING COSMOS BEVERAGES (P) LT D. ITA NOS.923&924/KOL/2017 ASSESSMENT YEARS:2012-13 & 2014-15 P PP PA AA AG GG GE EE E | || | 5 55 5 OFFICER IS NOT ENTITLED TO MAKE A PURE GUESS AND MA KE AN ASSESSMENT WITH REFERENCE TO ANY EVIDENCE OR ANY MATERIAL AT ALL. T HERE MUST BE SOMETHING MORE THAN MERE SUSPICION TO SUPPORT AN ASSESSMENT UNDER SECTION 143(3) OF THE ACT. ALTHOUGH THE WORDS 'BEST OF THE JUDGEMENT' ARE USED IN SECTION 144 ALONE, THE ONLY DIFFERENCE BETWEEN THE ASSESSMENT UNDER SECTIO N 143(3) WHERE BOOKS ARE FOUND TO BE UNRELIABLE AND AN ASSESSMENT UNDER SECT ION 144 IS THAT THE ACT HAS CONTEMPLATED A MORE SUMMARY METHOD WHEN THE ASSESSI NG OFFICER IS ACTING UNDER SECTION 144 AND THAT ON ACCOUNT OF DELIBERATE DEFAU LT OF THE ASSESSES. [GUNDA SUBAHIYA V/S. CIT (1939) 7 ITR21 MAD-FB.]. IN VIEW THEREOF, I PROCEED TO COMPLETE THE ASSESSME NT AFTER TAKING INTO ACCOUNT THE MATERIALS AVAILABLE IN RECORDS AND TAKE EVERY EFFOR T THAT THE DETERMINATION OF N.P AND CALCULATION OF TAX THEREON HAS NEXUS TO THE FAC TS AND CIRCUMSTANCES OF THE CASE AND COMPARISON IS MADE TO THE KEY FINANCIAL RA TIOS OF UNITED SPIRITS LIMITED, WHOSE PRODUCTS ARE MANUFACTURED AND SOLD B Y THE ASSESSES. AS DISCUSSED IN PARA 3, THE BOTTLING CHARGES HAS BEEN RECEIVED B Y THE ASSESSEE AND HAS BEEN DEBITED AS OTHER EXPENSE IS TAKEN AS AN EXCLUSIVE I NCOME OF THE ASSESSEE INDEPENDENT OF THE INCOME GENERATED FROM THE MANUFA CTURING OF ITS OWN AS WELL AS USL PRODUCTS. FOR DETERMINATION OF THE NET PROFIT THE KEY FINANCI AL RATIOS OF UNITED SPIRITS LIMITED IS TAKEN AS A BENCH MARK AS ITS FINANCIAL R ATIOS RELATES MOST CLOSELY TO THE ASSESSEE COMPANY. THOUGH, ESTIMATION AND GUESSWORK IS AN INHERENT PROPERLY OF BEST JUDGMENT ASSESSMENT, STILL ADEQUATE PREVENTIVE MEASURES HAVE BEEN REASONABLY TAKEN TO AVOID WILD GUESS WORK. THE NET PROFIT IS CALCULATED @ 4.44% OF THE GROSS TURNOVER, WHICH IS THE AUDITED NET PRO FIT OF USL FOR THE YEAR ENDING MARCH, 2012. COSMOS BEVERAGES (P) LT D. ITA NOS.923&924/KOL/2017 ASSESSMENT YEARS:2012-13 & 2014-15 P PP PA AA AG GG GE EE E | || | 6 66 6 ASSESSED U/S 143(3) OF THE INCOME TAX ACT, 1961 ON A TOTAL INCOME OF RS. 2,12,15,029/-. ALL EXPENSES INCLUDING DEPRECIATION AND AMORTIZATIO N EXPENSES ARE DEEMED TO HAVE BEEN ALLOWED WHILE DETERMINING THE ASSESSED INCOME. ALLO WED CREDIT OF PREPAID TAXES. THEREFORE, THE ASSESSING OFFICER MADE THE ADDITION AT RS. 2,12,15,029/-. 6. AGGRIEVED BY THE ORDER OF THE ASSESSING OFFICER, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) WHO HAS PARTLY DELE TED THE ADDITION MADE BY THE ASSESSING OFFICER, OBSERVING THE FOLLOWING: IT IS SEEN THAT RETENTION MONEY HAS BEEN PAID BY US L LTD. TO THE ASSESSEE AT THE RATE OF RS. 34/- PER BOTTLE. FOR THE WHOLE YEAR, THE ASSESS EE HAS CREDITED RS. 93,95,855/- AS RETENTION CHARGES (94,80,900 85,045 BEING STOCK D AMAGES) WHICH THE ASSESSEE IS GETTING FROM M/S USL LTD. THE AGREEMENT WITH USL CAN BE EFF ECTIVELY ILLUSTRATED WITH FOLLOWING EXAMPLE: ASSUMING THAT ONLY ONE BOTTLE OF LIQUOR IS SOLD DUR ING THE YEAR- COSMOS BEVERAGES (P) LT D. ITA NOS.923&924/KOL/2017 ASSESSMENT YEARS:2012-13 & 2014-15 P PP PA AA AG GG GE EE E | || | 7 77 7 THE WHOLE AGREEMENT IS STRUCTURED IN SUCH A WAY THA T COSMOS RECEIVES ONLY NET RETENTION CHARGE AND NET SURPLUS IS TAKEN AWAY IN THE FORM OF ITMA(INCOME FROM TIE UP MFG ACT). OUT OF THE RS 34/-, BOTTLE FEE RECEIVED BY THE ASSE SSEE, THE ASSESSEE HAS TO MEET DEPRECIATION, FINANCE COST, EMPLOYEE BENEFIT EXPENS ES AND LABOUR WAGE EXPENSES. THEREFORE, THE PROFITABILITY OF THE COSMOS WOULD DE PEND ON THE RATE AT WHICH IT RECEIVES THE BOTTLING CHARGES, NUMBER OF BOTTLE SOLD BY COSM OS AND THE OVERHEADS THAT IS DEPRECIATION, EMPLOYEE EXPENSES, FINANCE COST ETC. TO BE BORNE BY THE ASSESSEE. THE ASSESSEE WOULD BE EARNING A PROFIT IF (A) IT IS ABLE TO MAKE HIGH VOLUME OF SALES AND/OR (B) ITS BOTTLING RATE INCREASES AND / OR (C) ITS OVERHEAD EXPENSES IS LOW. IN THE INSTANT CASE, THE ASSESSEE IS INCURRING A LO SS SINCE ITS OVERHEAD EXPENSES ARE HIGHER COMPARED TO ITS RETENTION FEES. THE MAIN REASON FOR LOSS FOR THE ASSESSEE IS BECAUSE THE ASSESSEE HAS INCURRED DEPRECIATION EXPENSES ON RS. 1.5 CRORES AND FINANCE COST OF RS. 42.51/ - LAKHS IN ADDITION TO SOME OTHER EXPENSES A S AGAINST RETENTION FEE RECEIVED ON RS.94.8 LAKHS. THE FACT OF CREDITING THE RETENTION CHARGES ON THE CREDIT SIDE OF PROFIT AND LOSS ACCOUNT AND DEBITING THE BOTTLING CHARGES OF R S. 94.8 LAKHS TO THE PROFIT & LOSS ACCOUNT IS AN ACCOUNTING JUGGLERY TO SHOW THAT ASSE SSEE IS AN OWNER MANUFACTURER SINCE AS PER WEST BENGAL STATE EXCISE ACT. THE PURCHASE, PRODUCTION AND SALE HAS TO BE IN THE NAME OF THE ASSESSEE ONLY. IT CANNOT BE DONE IN THE NAME OF USL. IN VIEW OF THE ABOVE DISCUSSION, AND THE SUBMISSION OF THE ASSESSEEWE AR E OF THE OPINION THAT THE AO HAS NOT UNDERSTOOD THE ACCOUNTING SYSTEM OF THE ASSESSEE AN D HAS REACHED AN ERRONEOUS CONCLUSIONI AM OF THE VIEW THAT THE BOOKS OF ACCOU NTS OF THE ASSESSEE ARE RELIABLE AND THEREFORE, THE AO HAS, WRONGLY REJECTED THE BOOKS O F ACCOUNTS, AND THEREFORE, ALL THE ADDITIONS MADE CONSEQUENT TO THE REJECTION OF BOOKS OF ACCOUNTS IS HEREBY DELETED. HOWEVER, THE ASSESSING OFFICER HAS POINTED OUT THAT MANY SELF MADE INTERNAL VOUCHERS HAD BEEN PRODUCED WHICH ARE NOT SUPPORTED BY THE OR IGINAL VOUCHERS. THIS WOULD CALL FOR AD HOC DISALLOWANCES. INCLUSION OF BOGUS EXPENSE TH ROUGH SELF-MADE VOUCHERS CANNOT BE RULED OUT. CONSIDERING THE SCALE OF BUSINESS OF THE ASSESSEE AND PRESENCE OF SELF-MADE VOUCHERS, WE ARE OF THE OPINION THAT RS. 5 LAKHS MA Y BE DISALLOWED ON AN ESTIMATED BASIS ON ACCOUNT OF SELF-MADE INTERNAL VOUCHERS. THE ASSESSING OFFICER HAS POINTED OUT THAT HONDA CI TY HAS BEEN PURCHASED AND DEPRECIATION HAS BEEN CLAIMED. PERSONAL USER OF TH E CAR CANNOT BE RULED OUT. THE ASSESSING OFFICER IS DIRECTED TO DISALLOW TWENTY FI VE PER CENT (25%) OF THE MOTOR CAR EXPENSES AND DEPRECIATION OF MOTOR CAR FOR PERSONAL USE. THE ASSESSING OFFICER HAS OBSERVED THAT THE SALE TA X AUTHORITIES HAVE DETERMINED UNDISCLOSED SALES OF RS. 10,67,734/-. THE LD. A/R H AS STATED THAT THIS DETERMINATION WAS DISPUTED BY THE ASSESSEE AND THE SALES TAX APPEAL A UTHORITIES HAVE DECIDED THIS ISSUE IN FAVOUR OF THE ASSESSEE. THE ASSESSING OFFICER IS DI RECTED TO VERIFY THIS CONTENTION OF THE ASSESSEE AND ALLOW APPROPRIATE RELIEF IF THE CONTE NTION IS FOUND TO BE CORRECT. FURTHER SINCE THE ASSESSEE HAS GOT SUBSTANTIAL RELI EF THEREFORE IT HAS NOT PRESSED TECHNICAL GROUNDS AND THEREFORE THE SAME ARE DISMISSED. THIS ADJUDICATION TAKES CARE OF ALL THE GROUNDS RAISED BY THE ASSESSEE. IN VIEW OF THE ABOV E, THE APPEAL IS PARTLY ALLOWED. ASSESSMENT YEAR 2014-15 FACT OF THE CASE FOR THIS ASSESSMENT YEAR IS IDENTI CAL TO THE A.Y. 2012-13. GROUNDS OF APPEAL ARE ALSO SIMILAR. FOLLOWING ORDER FOR A.Y. 2 012-13, THE REJECTION OF BOOKS OF ACCOUNTS BY THE ASSESSING OFFICER IS HELD TO BE NOT TENABLE AND CONSEQUENT ADDITIONS ARE BEING DELETED. SIMILARLY, ADDITION OF RS. 5 LAKHS M AY BE MADE BY THE ASSESSING OFFICER ON COSMOS BEVERAGES (P) LT D. ITA NOS.923&924/KOL/2017 ASSESSMENT YEARS:2012-13 & 2014-15 P PP PA AA AG GG GE EE E | || | 8 88 8 ACCOUNT OF SELF-MADE VOUCHERS AND DISALLOWANCE OF 25% OF THE EXPENSES ON MOTOR CAR AND 25% OF DEPRECIATION ON MOTOR CAR MAY BE MADE. FACT OF THE CASE FOR THIS ASSESSMENT YEAR IS IDENTI CAL TO THE A.Y. 2012-13. GROUNDS OF APPEAL ARE ALSO SIMILAR. FOLLOWING ORDER FOR A.Y 2 012-13, THE REJECTION OF BOOKS OF ACCOUNTS BY THE ASSESSING OFFICER IS HELD TO BE NOT TENABLE AND CONSEQUENT ADDITIONS ARE BEING DELETED. SIMILARLY, ADDITION OF RS. 5 LAKHS M AY BE MADE BY THE ASSESSING OFFICER ON ACCOUNT OF SELF-MADE VOUCHERS AND DISALLOWANCE OF 25% OF THE EXPENSES ON MOTOR CAR AND 25% OF DEPRECIATION ON MOTOR CAR MAY BE MADE FO LLOWING MY ORDER FOR A.Y. 2012-13. IN THE RESULT, APPEAL FOR A.Y. 2014-15 IS PARTLY AL LOWED. 7. AFTER GOING THROUGH THE REASONING AND CONCLUSION REACHED BY THE LD. CIT(A), WE NOTE THAT THERE IS NO INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A). WE NOTE THAT THE ASSESSING OFFICER COULD NOT UNDERSTAND THE ACCO UNTING SYSTEM OF THE ASSESSEE AND THEREFORE HE WRONGLY REJECTED THE BOOKS OF ACCO UNTS OF THE ASSESSEE WHICH IS NOT TENABLE. THAT BEING SO, WE DECLINE TO INTERFERE IN THE ORDER PASSED BY THE LD. CIT(A), HIS ORDER ON THIS ISSUE, IS HEREBY UPHELD AND THE GROUNDS OF APPEAL RAISED BY THE REVENUE ARE DISMISSED. 8. IN THE RESULT, BOTH APPEALS FILED BY THE REVENUE ( ITA NO.923/KOL/2017 AND 924/KOL/2017) ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 25.09.2019 SD/- ( S.S.GODARA ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / DATE: 25/09/2019 ( SB, SR.PS ) COPY OF THE ORDER FORWARDED TO: 1. DCIT, CIRCLE-1, SILIGURI 2. COSMOS BEVERAGES (P) LTD 3. C.I.T(A)- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 6. GUARD FILE. TRUE COPY BY ORDER ASSIST ANT REGISTRAR ITAT, KOLKA TA BENCHES COSMOS BEVERAGES (P) LT D. ITA NOS.923&924/KOL/2017 ASSESSMENT YEARS:2012-13 & 2014-15 P PP PA AA AG GG GE EE E | || | 9 99 9