M/S PRECISION INFOMATIC (MADRAS) PVT LTD, CHENNAI V. DCIT CORPORATE 5 (2), CHENNAI

MA 213/CHNY/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8443 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 14-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 20-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 5(2)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI . . . , , [BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ] M.P. NO.213/CHNY/2019 (IN ./I.T.A. NO.1688/CHNY/2018) ! / ASSESSMENT YEAR : 2014-2015. M/S. PRECISION INFOMATIC (MADRAS) PVT LTD, OLD NO.150, NEW NO.22, HABIBULLAH ROAD, T. NAGAR, CHENNAI 600 017. [PAN AAACP 6434G] VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 5(2) CHENNAI. ( / APPELLANT) ( /RESPONDENT) '# $ % / APPELLANT BY : SHRI. B. RAMAKRISHNAN, FCA &' '# $ % /RESPONDENT BY : SHRI. AR.V. SREENIVASAN, JCIT. ( ) $ * /DATE OF HEARING : 10-01-2020 +,! $ * /DATE OF PRONOUNCEMENT : 14-01-2020 / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER THIS PRESENT MISCELLANEOUS PETITION IS FILED BY THE ASSESSEE- COMPANY PRAYING THAT THE TRIBUNAL HAD FAILED TO C ONSIDER THE STATEMENT OF RECONCILIATION OF TURNOVER IN SERVICE TAX RETURN, VAT RETURN AND DISCLOSED IN THE PROFIT AND LOSS ACCOUNT PLACED AT PAGE MP. NO.213/2019 :- 2 -: NO.4 OF PAPER BOOK. THUS, IT IS SUBMITTED THAT GR OUNDS OF APPEAL NO.2.1 TO 2.4 SHOULD BE RECALLED FOR FRESH ADJUD ICATION. 2. PER CONTRA, LD. DEPARTMENTAL REPRESENTATIVE SUBMI TTED THAT THERE WAS NO MISTAKE IN THE ORDER OF THE TRIBUNAL. 03. WE HEARD THE RIVAL SUBMISSIONS, PERUSED T HE MISCELLANEOUS PETITION AND THE IMPUGNED ORDER. THE TRIBUNAL VIDE PARA 8 HELD AS UNDER:- 8. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. GROUND NO.2, CHALLENGES THE CORRECTNESS OF THE FINDINGS IN DELETING THE ADDITION ON ACCOUNT OF SUPPRESSED TURN OVER. FROM THE PERUSAL OF THE ASSESSMENT ORDER, THE ADDITION ON AC COUNT OF SUPPRESSED TURNOVER WAS MADE TAKING INTO CONSIDERAT ION THE STATEMENTS OF OPENING BALANCE, TOTAL PURCHASES, TO TAL SALES AND CLOSING SALES IN RESPECT OF EACH ITEM, WHICH IS SCH EDULED IN PARA 5 OF THE ASSESSMENT ORDER. THE ASSESSING OFFICER A LSO RECORDED A CATEGORICAL FINDING THAT ASSESSEE HAD ACCEPTED THE FACTUM OF SUPPRESSION OF TURNOVER AND THE ASSESSEE HAD NOT DI SPUTED THE RATE OF GROSS PROFIT APPLIED ON THE SUPPRESSED TURN OVER. IT IS ONLY BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS) APPELLANT COMPANY ADOPTED DIFFERENT STAND SAYING THAT DIFFERE NCE IN TURNOVER HAD ARISEN ON ACCOUNT OF TURNOVER OVERLAPP ING UNDER VAT/SERVICE TAX. THE ASSESSING OFFICER CAME TO A C ONCLUSION THAT DIFFERENCE IN THE TURNOVER IS BASED ON THE QUANTITA TIVE FIGURES I.E. OPENING STOCK, PURCHASES, SALES AND CLOSING STOCK A ND THE STATEMENT IS FURNISHED BY THE ASSESSEE HIMSELF, THE ASSESSING OFFICER RECORDED THE FINDING THAT IT IS ADMITTED B Y THE ASSESSEE DURING THE ASSESSMENT PROCEEDINGS. NO MATERIALS WER E FILED BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS) SHOWING THE QUANTITATIVE DETAILS FILED BY THE ASSESSING O FFICER IS FALSE. THERE IS NOTHING ON RECORD TO SHOW THAT SALES FIGU RE SHOWN IN THE STATEMENT DOES NOT INCLUDE VAT / SERVICE TAX. IN THE CIRCUMSTANCES, THE CONCLUSION DRAWN BY THE LD. COMM ISSIONER OF INCOME TAX (APPEALS) APPEARS TO BE CONTRARY TO THE MATERIAL ON RECORD. THEREFORE, THE FINDINGS OF THE LD. COMMISSI ONER OF INCOME TAX (APPEALS) CANNOT BE SUSTAINED. THEREFORE, WE SET ASIDE THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL S) AND RESTORE THE ORDER OF THE ASSESSING OFFICER ON THIS ISSUE . MP. NO.213/2019 :- 3 -: ON PERUSAL OF THE IMPUGNED ORDER, IT IS CLEAR THAT THE TRIBUNAL HAD NOT CONSIDERED STATEMENT OF RECONCILIATION OF TURNOVER IN SERVICE RETURN, VAT RETURN AND DISCLOSED IN THE PROFIT AND LOSS AC COUNT PLACED AT PAGE NO.4 OF PAPER BOOK. NON CONSIDERATION OF MATE RIAL ON RECORD CONSTITUTE MISTAKE APPARENT FROM THE RECORDS, CAP ABLE OF BEING RECTIFIED IN EXERCISE OF THE POWERS VESTED WITH TR IBUNAL U/S.254 (2) OF THE ACT. THEREFORE, WE RECALL THE APPEAL FOR LIMIT ED PURPOSE OF ADJUDICATING GROUNDS OF APPEAL NO.2 TO 2.4 IN IT A NO.1688/CHNY/2018 FOR ASSESSMENT YEAR 2014-2015. TH E REGISTRY IS DIRECTED TO POST THE APPEAL FOR HEARING IN DUE COU RSE. 4. IN THE RESULT, THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE IS ALLOWED ON ABOVE LINES. ORDER PRONOUNCED ON 14TH DAY OF JANUARY 2020, AT CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( ) (INTURI RAMA RAO) /ACCOUNTANT MEMBER - ) / CHENNAI . / DATED: 14TH JANUARY,2020 KV $ &*01 21!* / COPY TO: 1 . '# / APPELLANT 3. ( 3* () / CIT(A) 5. 16 &*7 / DR 2. &' '# / RESPONDENT 4. ( 3* / CIT 6. 8 9) / GF