M/s. Allied Waterproofing Co. , Kolkata V. ITO, Ward - 34(2), Kolkata , Kolkata

ITA 931/KOL/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4332 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 07-03-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 08-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: C J SINGH JCIT LD
• Assessee Lawyers: ANIKESH BANERJEE LD
• Section: 143(3); 40(b)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH : KOLKATA [BEFORE HONBLE SHRI S.S. GODARA, JM ] I .T . A NO. 931 /KOL/2018 A.Y 2014 - 15 M/S. ALLIED WATERPROOFING CO. V/S. I.T.O. WARD 34(2), KOLKATA PAN: AAFFA1854K (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI ANIKESH BANERJEE, ADVOCATE, LD.AR FOR THE RESPONDENT : SHRI C.J. SINGH, J CIT, LD.DR DATE OF HEARING : 07 - 03 - 2019 DATE OF PRONOUNCEMENT: 10 - 0 5 - 2019 ORDER 1. THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 20 1 4 - 15 ARISE S AGAINST THE CIT(A) , 1 0 , KOLKATA S ORDER DATED 15 - 03 - 2018 PASSED IN CASE NO . 281/ CIT(A) - 1 0 /W 34(2)/14 - 15/2016 - 17/KOL. INVOLVING PROCEEDINGS U/S 143(3) OF THE I.T ACT , 1961 (IN SHORT ACT) . HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES FIRST AND FOREMOST SUBSTANTIVE GROUND CHALLENGES THE CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION DISALLOWING ITS PARTNERS REMUNERATION U/S. 40(B) AMOUNTING TO RS.2 , 00,000/ - IN THE COURSE OF ASSESSMENT AS UPHELD IN THE LOWER APPELLATE PROCEEDING S . 3. BOTH PARTIES REITERATED THEIR RESPECTIVE STANDS AGAINST AND IN SUPPORT OF THE IMPUGNED ADDITION. I NOTICE IN THIS BACKDROP OF FACT ASSESSEES PARTNERSHIP DEED FORMING PART OF RECORD AT PAGES 21 - 24 OF THE P/B SUGGESTS THAT ITS PARTNERS REMUNERATIO N HAS BEEN FIXED TO BE NOT EXCEEDING RS. 1,00,000/ - EACH TO BOTH THE PARTNERS. THIS 2 ITA NO. 931/KOL/2018 M/S. ALLIED WATERPROOFING CO. 2 ITA NO. 2129/KOL/2018 M/S. ARTLINE FINANCIAL MANAGEMENT P.LTD CLINCHING FACT HAS NOT BEEN REBUTTED DURING THE COURSE OF HEARING. I THEREFORE DELETE THIS FORMER ADDITION OF RS. 2 LAKHS MADE BY THE LOWER AUTHORITIES U/S. 40(B) OF TH E ACT . 4 . NEXT COMES ASSESSEES LATTER PLEA IN THE NATURE OF ADDITIONAL SUBSTANTIVE GROUND THAT IT IS ONLY THE N.P OF RS.66 , 155/ - I. E LIABLE TO BE ADDED RATHER THAN ENTIRE SUM OF RS. 8 , 26 , 936/ - MADE IN THE LOWER APPELLATE PROCEEDINGS. I MAKE IT CLEAR THAT THERE IS NO ISSUE BETWEEN THE PARTIES ABOUT THE CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION ADDING N.P @ 12% COM ING TO RS.8 , 26 , 936/ - . I CONCLUDE IN THIS FACT THAT ASSESSE E ALREADY DECLARED N.P RATE @ 8% DESERVES TO BE ADJUSTED LEAVING BEHIND ONL Y DIFFERENCE TO BE RS.66,155/ - . I ACCORDINGLY RESTRICT THE IMPUGNED ADDITION TO THE EXTENT OF RS .66,155/ - THE ASSESSE GETS PART RELIEF IN THIS GROUND. 5 . TH IS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE COURT ON 10 - 05 - 2019 SD/ - [ S.S.GODARA ] JUDICIAL MEMBER DATED : 10 - 05 - 2019 **PRADIP, SR. PS C OPY OF THE ORDER FORWARDED TO: 1 . APPELLANT/ ASSESSEE: M/S. ALLIED WATERPROOFING CO. BLOCK - E, 2 ND FL., MERCANTILE BUILDING, 9 LALBAZAR STREET, KOLKATA - 1. 2 . RESPONDENT/ DEPARTMENT: INCOME TAX OFFICER, WARD 3 4( 2 ), KOLKATA AAYKAR BHAWAN POORVA, 9 TH FL, 110 SHANTIPALLY, KOLKATA - 107. 3..C.I.T (A) . - 4. C.I.T. - KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER ASSISTANT REGISTRAR H.O.O/D.D.O KOLKATA