ACIT, Circle - 50, Kolkata, Kolkata V. M/s. Power System, Kolkata

ITA 994/KOL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 62123 (ITAT-KOLKATA)
• Duration Of Justice: 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2012
• Appeal Filed By: Department
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 08-07-2011
• Court: TRIBUNAL
• Department Lawyers: M TIWARI
• Assessee Lawyers: K R MONDAL
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA () BEFORE , /AND , . !' . #$ ) [BEFORE SHRI MAHAVIR SINGH, JM & SHRI C. D. RAO, AM ] % % % % / I.T.A NO. 994/KOL/2011 &' () &' () &' () &' ()/ // / ASSESSMENT YEAR: 2007-08 DEPUTY COMMISSIONER OF INCOME-TAX, VS. POWER SYST EMS (PAN: AAGFP4761R) CIRCLE-50, KOLKATA. (+, /APPELLANT ) (-.+,/ RESPONDENT ) DATE OF HEARING: 08.06.2012 DATE OF PRONOUNCEMENT: 29.06.2012 FOR THE APPELLANT: SHRI M. TIWARI FOR THE RESPONDENT: SHRI K. R. MONDAL #/ / ORDER PER MAHAVIR SINGH, JM ( , , , , ) THIS APPEAL BY REVENUE IS ARISING OUT OF ORDER OF C IT(A)-XXXII, KOLKATA IN APPEAL NO. 145/CIT(A)-XXXII/09-10/CIR-50/KOL DATED 24.02.2011. ASSESSMENT WAS FRAMED BY DCIT, CIRCLE-50, KOLKATA U/S. 143(3) OF THE INCOME-TAX AC T, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEARS 2007-08 VIDE HIS ORDER D ATED 21.12.2009. 2. THE ONLY ISSUE IN THIS APPEAL OF REVENUE IS AGAI NST THE ORDER OF CIT(A) DELETING THE ADDITION OF RS.11,33,551/- MADE BY AO ON ACCOUNT OF FINE CHARGES AND LATE DELIVERY CHARGES. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. THE AO DURING THE COURSE OF ASSESSMENT PROCE EDINGS MADE DISALLOWANCE OF FINE CHARGES AND LATE DELIVERY CHARGES AT RS.6,34,792/- AND RS.4,98,759/- RESPECTIVELY IN THE ABSENCE OF ANY EVIDENCE. AGGRIEVED, ASSESSEE PREFE RRED APPEAL BEFORE CIT(A). BEFORE CIT(A) IT WAS CLAIMED THAT THE ASSESSEE WAS PRODUCE D COMPLETE ACCOUNT OF THE ASSESSEE INCLUDING ASSESSEES BANK STATEMENT AND COMPLETE RE CONCILIATION. THE CIT(A) IN VIEW OF THIS DELETED THIS ADDITION OF DELIVERY CHARGES AND LATE FINE CHARGES IN TOTALLING TO RS.11,33,551/-. AGGRIEVED, NOW REVENUE IS IN APPEA L BEFORE US. 4. WE FIND THAT THE LATE DELIVERY CHARGES OF RS.4,9 8,759/- HAS BEEN LEVIED BY DIFFERENT COMPANIES FOR DELAYED COMPLETION OF WORK ASSIGNED T O ASSESSEE IN VIEW OF THE AGREEMENT BETWEEN THE PARTIES PER SE AND LATE FINE CHARGES OF RS.6,34,792/- HAS BEEN LEVIED BY MICO LTD. FOR DELAYED PAYMENT IN THE NATURE OF LIQUIDATE D DAMAGES AND NOT FOR ANY INFRACTION OF 2 ITA 994/K/2011 POWER SYSTEMS A.Y. 07-08 LAW. THE ASSESSEE HAS FILED COMPLETE DETAILS BILLW ISE AND AMOUNTWISE IN ASSESSEES PAPER BOOK AT PAGES 12 TO 14 AND ALSO AT PAGE 11 I.E. LAT E DELIVERY CHARGES. THE ASSESSEE HAS ALSO PRODUCED CONTRA ENTRIES INCLUDING THE CONTRA LEDGER S FOR LATE DELIVERY CHARGES I.E. THE PURCHASE ORDERS FROM M/S. HINDALCO INDUSTRIES LTD. AND PURCHASE ORDERS FROM M/S. SIEMENS. IN RESPECT TO LATE FINE CHARGES THE ASSES SEE HAS FILED LEDGER COPY IN ITS ACCOUNT OF MICO AND ALSO FILED THE LEDGER COPY OF THE ASSESSEE IN MICO IN THEIR BOOKS. WE FIND FROM THE ABOVE THAT ALL THE DEDUCTIONS AND CLAIMS ARE MA DE ON ACCOUNT OF LATE DELIVERY CHARGES AND LATE FINE CHARGES. IN OUR VIEW THIS IS NOT A C ASE OF MAKING ANY DISALLOWANCE AND THE CIT(A) HAS RIGHTLY ALLOWED THE CLAIM OF ASSESSEE. W E CONFIRM THE SAME AND THIS ISSUE OF REVENUES APPEAL IS DISMISSED. 5. IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. 6. ORDER PRONOUNCED IN THE OPEN COURT ON 29.06.2012 . SD/- SD/- . !' !'!' !' . #$ , (C. D. RAO) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ( '$ '$ '$ '$) )) ) DATED : 29TH JUNE, 2012 01 &23 4 JD.(SR.P.S.) #/ 5 - 6#(7- COPY OF THE ORDER FORWARDED TO: 1 . +, / APPELLANT POWER SYSTEMS, 735/2, LAKE TOWN, BLOCK -A, KOLKATA-700 089 2 -.+, / RESPONDENT DCIT, CIRCLE-50, KOLKATA. 3 . /& ( )/ THE CIT(A), KOLKATA 4. 5. /& / CIT KOLKATA => -& / DR, KOLKATA BENCHES, KOLKATA . -/ TRUE COPY, #/&?/ BY ORDER, 3 /ASSTT. REGISTRAR . `