M/S. BLUE BIRD TECHNICKS PRIVATE LIMITED,KOLKATA V. DCIT, CIRCLE 7(1), KOLKATA

ITA 2256/KOL/2025

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The case revolves around an appeal by M/s Blue Bird Technicks Pvt Ltd against the order of the Addl./JCIT(A)-12, Mumbai, which disallowed a commission payment of Rs.51,37,428/- to M/s Dharavee Enterprises Pvt. Ltd., claiming it as a bogus commission. The Tribunal examined evidence including the existence and business activities of M/s Dharavee Enterprises Pvt. Ltd., and found that the company was active, had filed tax returns, and was recognized by the revenue for tax purposes. The Tribunal concluded that the AO's findings were not substantiated by adequate evidence, leading to the decision to allow the appeal and delete the addition made by the AO.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791152 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 07-10-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANTANU GHOSH
• Assessee Lawyers: SOUMITRA CHOUDHURY
• Keywords: TDS; Bogus

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.2256/KOL/2025 (निर्धारण वर्ा / Assessment Year : 2015-2016) M/s Blue Bird Technicks Pvt Ltd Plot 9B, Uttara Commercial Complex, Kolkata, West Bengal-700067 Vs DCIT, Circle-7(1), Kolkata PAN No. :AADCB 3601 J (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by Shri Soumitra Choudhury, Advocate रधजस्व की ओर से /Revenue by : Shri Santanu Ghosh, Sr. DR सुनवाई की तारीख / Date of Hearing : 11/12/2025 घोषणा की तारीख/Date of Pronouncement : 11/12/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the ld. Addl./JCIT(A)-12, Mumbai, dated 07.08.2025 for the assessment year 2015-2016. 2. It was submitted by the Ld.AR that the assessee is in the business of supply of telecom and signal parts to Indian Railways. It was submission that the total income of the assessee was for the impugned assessment was Rs.70,01,266/-. It was submission that in the course of assessment, the AO disallowed an amount of Rs.51,37,428/- paid by the assessee to M/s Dharavee Enterprises Pvt. Ltd. as commission claiming the same as bogus commission . The Ld.AR submitted that the actual commission paid was of Rs.57,72,416/-. The Ld.AR drew our attention to the confirmation on accounts provided by M/s Dharavee Enterprises Pvt. Ltd., which reads as follows:- Printed from counselvise.com ITA No.2256/KOL/2025 2 3. It was submission that the difference between Rs.57,722,416/- and the disallowed amount of Rs.51,37,428/- represented the service tax payment and the TDS deducted in respect of M/s Dharavee Enterprises Pvt. Limited. It was submission that in the course of assessment the AO mentioned that he had sent the inspector to verify the address the said commission agent and he had also issued notice u/s.133(6) of the Act. It was submission that the Inspector of the AO seems to have mentioned that Printed from counselvise.com ITA No.2256/KOL/2025 3 the company does not exist. It was also the submission that the in response to the said notice u/s.133(6) of the Act the AO mentions that one Shri Dinesh Kumar Singh had come to the office of the AO and has mentioned that he does not know what the transactions are. The Ld. AR drew our attention to page 7 of the paperbook, which is the copy of return of income in the case of M/s Dharavee Enterprises Pvt. Ltd. for the assessment year 2015-16 which shows the income of Rs.9,32,270/- and the refund claim of Rs.18,87,510/-. Copy of the acknowledgement of the return filed for A.Y.2015-2016 reads as follows :- Printed from counselvise.com ITA No.2256/KOL/2025 4 4. It was the submission that the company’s existence is also proved by the company master data at shown at page 9 which is reads as follows:- 5. It was submission that the said Dinesh Kumar Singh is not a Director as mentioned in the master company data. It was submission that the auditor report is also available along with the balance sheet and P & L account. The company is also having revenue from operations, employee benefits and its administrative expenses as also cost of materials consumed, where there is purchase of trading goods and labour charges. Printed from counselvise.com ITA No.2256/KOL/2025 5 It was submission that the said Inspector’s report has not been provided to the assessee. 6. At this point, the Ld. Sr DR was requested to verify what was happened to the return filed by the said M/s Dharavee Enterprises Pvt. Limited for the assessment year 2015-16 and the ld.Sr.DR has placed before us the intimation u/s.143(1) of the Act is which reads as follows:- Printed from counselvise.com ITA No.2256/KOL/2025 6 Printed from counselvise.com ITA No.2256/KOL/2025 7 Printed from counselvise.com ITA No.2256/KOL/2025 8 Printed from counselvise.com ITA No.2256/KOL/2025 9 Printed from counselvise.com ITA No.2256/KOL/2025 10 Printed from counselvise.com ITA No.2256/KOL/2025 11 Printed from counselvise.com ITA No.2256/KOL/2025 12 7. It was submitted by the Ld.Sr.DR that the said M/s Dharavee Enterprises Pvt Ld. is a sham concerned. It was the prayer that the addition made by the AO and confirmed by the Ld.JCIT is liable to be upheld. 8. We have considered the rival submissions. At the outset, a perusal of the intimation issued u/s.143(1) of the Act by the CPC in respect of return filed by M/s Dharavee Enterprises Pvt. Limited for the assessment year 2015-16 shows refund of Rs.20,27,720/-. Further a perusal of the last page of the said intimation shows that the said refund has been adjusted against the demand of Rs.4,69,24,170/- raised by the revenue for the assessment year 2102-13 vide an assessment order 24/03/2015 passed u/s.144 of the Act. Thus, even as per the revenue records, M/s. Dharavee Enterprises Pvt. Ltd. does exit. A perusal of the company master data shows that the date of incorporation of the said company is in 1997. The last balance sheet is of 2022. The company is did active. The impugned assessment year is 2015-16. The assessee has also paid the service tax and the TDS and the revenue has also recognised the refund and as also provided for the adjustment for the refund in the case of M/s Dharavee Enterprises Pvt. Ltd. Printed from counselvise.com ITA No.2256/KOL/2025 13 A perusal of the P & L account and balance sheet of the assessee also shows business activities of the said M/s Dharavee Enterprises Pvt Ltd.. This being, so we are of the view that the finding of the AO that M/s Dharavee Enterprises Pvt. Ltd. is a sham company and that the payment of the commission to the M/s Naravi enterprise is bogus does not stand to a reason and consequently we delete addition as made by the AO and as confirmed by the Ld.CIT(A). 9. In the result, appeal of the assessee is allowed Order dictated and pronounced in the open court on 11/12/2025. Sd/- (RAJESH KUMAR) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 11/12/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "