UEI Electronics Private Limited, Bangalore V. Deputy Commissioner of Income tax, Circle - 7(1)(1), Bangalore

ITA 934/BANG/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6957 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 02-05-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3); 142(1); 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES C BENCH: BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA. NO. 9 34 /BANG/201 9 (ASSESSMENT YEAR: 201 4 - 15 ) M/S. UEI ELECTRONICS PVT. LTD., NO.49, 1 ST FLOOR, EAST WING, KHANIJA BHAWAN, RACE COURSE ROAD, BANGALORE - 560 001 PAN : AAACU 9402D VS. DY. COMMISSIONER OF INCOME TAX , CIRCLE 7(1)(1 ) , BANGALORE. (APPELLANT) (RESPONDENT) ASSESSEE BY: NONE. REVENUE BY: SHRI M. RAJASEKHAR, ADDL. CIT (D.R) DATE OF HEARING : 17.07 .2019 DATE OF PRONOUNCEMENT : 31 .07 .2019 O R D E R PER SHRI PAVAN KUMAR GADALE, JM : THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 7, BANGALORE PASSED UNDER SECTION 143(3) AND 250 OF THE INCOME TAX ACT, 1961. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE. THE CASE WAS P OSTED FOR HEARING ON 16.9.2019 AND ALSO DEFECT MEMO WAS ISSUED. SUBSEQUENTLY, FOR THE SPEEDY DISPOSAL OF APPEAL, NOTICE WAS SENT BY RPAD ON 14.06.2019 POSTING THE CASE FOR 2 ITA NO. 9 34 /BANG/201 9 HEARING ON 17.07.2019 AND COPY OF ACKNOWLEDGEMENT ON RECEIPT OF NOTICE DT.21.06 .2019 IS PLACED ON RECORD. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRADING IN AUDIO / VIDEO ACCESSORIES AND F ILED THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2014 - 15 ON 28.11.2014 WITH TOTAL INCOME OF RS.5,83,73,320 AND THE CASE WAS SELECTED FOR SCRUTINY AND NOTICES UNDER SECTION 143(2) AND 142(1) WERE ISSUED. IN COMPLIANCE THERETO, THE LEARNED AUTHORISED REPRESENTATIVE APPEARED BEFORE THE AS SESSING OFFICER FROM TIME TO TIME AND FURNISHED THE DETAILS WHEREAS THE ASSESSING OFFICER FOUND THAT IN THE PROFIT AND LOSS ACCOUNT AN AMOUNT OF RS.55,10,985 WAS CREATED TOWARDS PROVISION FOR SALES RETURN S AND THE ASSESSING 3 ITA NO. 9 34 /BANG/201 9 OFFICER HELD THAT IT IS NOT AN A LLOWABLE EXPENDITURE AND MADE ADDITION AND ASSESSED INCOME OF RS.6,38,84,300 AND PASSED THE ORDER UNDER SECTION 143(3) OF THE ACT DT.29.08.2016. AGGRIEVED BY THE ORDER, THE ASSESSEE FILED AN APPEAL WITH THE CIT(APPEALS). THE CIT(APPEALS) CONFIRMED THE ORDER OF THE ASSESSING OFFICER AND DISMISSED ASSESSEE'S APPEAL. AGGRIEVED BY THE CIT(APPEALS) ORDER, THE ASSESSEE FILED AN APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE AND WE HEARD THE LEARNED DEP ARTMENTAL REPRESENTATIVE. T HE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF CIT(APPEALS). 5. WE, O N PERUSAL OF THE MATERIAL ON RECORD, FOUND THAT THE ASSESSEE HAS DEBITED RS.55,10,985 A S A PROVISION FOR SALES RETURNS IN THE PROFIT AND LOSS ACCOUNT WHEREAS TH E SAID P ROVISION IS RELATING TO SALES MADE DURING THE F.Y. 2013 - 14 AND FILED SUPPORTING DOCUMENTS IN THE FORM OF CREDIT NOTES ISS UED TO THE CUSTOMERS AFTER THE DATE OF B ALANCE S HEET . HENCE T HE ASSESSEE CLAIMED DEDUCTION OF RS. 55,10,985 IN THE CURRENT YEAR AND HAS OFFERED TO TAX IN THE ASSESSMENT YEAR 2015 - 16 . WE FIND THE CIT (APPEALS) HAS DEALT THIS ISSUE AT PAGE 11 PARA 4.2 AS UNDER : 4 ITA NO. 9 34 /BANG/201 9 CONSIDERING THE SUBMISSION OF LD. DR AND THE FINDINGS OF CIT (APPEALS), WE FIND THE O RDER PASSED BY CIT (APPEALS) IS REASONABLE AND WE ARE NOT INCLINED TO INTERFERE WITH THE ORDER OF CIT (APPEALS) AND UPHOLD THE SAME AND DISMISS THE GROUNDS OF APPEAL OF ASSESSEE. 5 ITA NO. 9 34 /BANG/201 9 5. IN THE RESULT, THE ASSESSEE'S APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 3 1 S T JULY, 2019. S D / - S D / - (A.K. GARODIA) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 3 1 .07. 2019. *REDDY GP COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (APPEALS) 4. PR. CIT 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE