M/s. Rukmani Agencies , Kolkata V. ITO, Ward - 47(4), Kolkata , Kolkata

MA 69/KOL/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2853 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 14 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 11-03-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Assessee Lawyers: P K HIMMATSINGHKA
• Section: 133A; 254(2); 13

Judgement Text

M.A. 69/KOL/2020 (IN ITA NO. 1 248/KOL/2018) ASSESSM ENT YEAR: 2012-2013 RUKMANI AGENCIES 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A BENCH, KOLKATA [VIRTUAL COURT HEARING] BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER & SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER M.A. NO. 69/KOL/2020 (IN I.T.A. NO. 1248/KOL/2018) ASSESSMENT YEAR: 2012-2013 RUKMANI AGENCIES,................ ................ ...................................... APPLICANT C/O. P.K. HIMMATSINGHKA, AA-4, SALT LAKE, KOLKATA-700064 [PAN:AAFFR0072C] -VS.- INCOME TAX OFFICER,................................ .................................... RESPONDENT WARD-47(4), KOLKATA, APPEARANCES BY: SHRI P.K. HIMMATSINGHKA, ADVOCATE, APPEARED ON BEHA LF OF THE ASSESSEE SMT. RANU BISWAS, ADDL. CIT , APPEARED ON BEHALF OF THE REVENUE DATE OF CONCLUDING THE HEARING : NOVEMBER 20, 2020 DATE OF PRONOUNCING THE ORDER : NOVEMBER 25, 2020 O R D E R PER SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER :- THIS ASSESSEES MISCELLANEOUS APPLICATION FILED UN DER SECTION 254(2) OF THE INCOME TAX ACT, 1961; IN SHORT THE A CT SEEKS TO RE- CALL/RECTIFY THE TRIBUNALS ORDER DATED 11.12.2019 PARTLY ALLOWING THE MAIN APPEAL ITA NO. 1248/KOL/2018. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEE HAS RAISED THE FOLLOWING SUBSTANTIV E GROUNDS IN THE INSTANT MISCELLANEOUS APPLICATION:- M.A. 69/KOL/2020 (IN ITA NO. 1 248/KOL/2018) ASSESSM ENT YEAR: 2012-2013 RUKMANI AGENCIES 2 3. ITO WARD 47(4), KOLKATA CONDUCTED SURVEY OPERAT ION U/S 133A ON 18-01-2012, FOUND NO STOCK OF SAREE (FABRIC ), DRAWN PROFIT & LOSS A/C UPTO DATE OF SURVEY 18-01-2012, T REATED THE ALL STOCK OF SAREE AS SOLD AND DETERMINED FABRIC SA LES AMOUNTING TO RS. 1,38,26,283 AT 8% PROFIT IN TERMS OF QUESTION - 9 OF STATEMENT RECORDED. COPIES OF STATEMENTS WER E ALREADY AVAILABLE IN PAPER BOOK-I PAGE 6 TO 9 (RELEVANT POI NT AT PAGE AT 8). COPY OF PROFIT & LOSS A/C DRAWN BY ITO 47(4), K OLKATA IS ALSO AVAILABLE AT PAGE 13 OF PAPER BOOK-I, ENCLOSIN G HEREIN AGAIN AS ANNEXURE 'B' FOR READY REFERENCE AND CONVE NIENCE OF HON'BLE BENCH. BREAK UP SAREE SALES RS.1,38,26,283 IS ALSO MENTIONED AT PAGE 6 OF CIT(A) ORDER, ANNEXED HEREIN AT ANNEXURE 'C'. 4. HON'BLE BENCH OF THE TRIBUNAL DIRECTED TO ASSESS THE IMPUGNED DEPOSITS @ 8%, WHEREAS LD ITO 47(4) HIMSEL F AT THE TIME OF SURVEY ALREADY DETERMINED THE SALES OF SARE E (FABRIC) IN THE PROFIT & LOSS A/C UPTO DATE OF SURVEY RS.1,38,2 6,283 AT 8% PROFIT, WHICH AMOUNTS TO DOUBLE ADDITION ON RS.1,38 ,26,283 BEING ALREADY SALES DETERMINED BY THE LD AO AT 8% P ROFIT. 5. REMAINING AMOUNT OF SALES DEPOSITS RS. 19,38,717 (RS. 1,57,65,000-RS. 1,38,26,283) INTO BANK WAS NOT IN D ISPUTE SINCE STOCK WAS FOUND OF OTHER CONSUMER PRODUCTS AND SALE S OF THOSE WERE DETERMINED BY THE SURVEY TEAM AND INCLUDED IN PROFIT & LOSS A/C DRAWN BY THE SURVEY TEAM. 6. YOUR PETITIONER STATES THAT IF THE ORDER DATED 1 1/12/2019 PASSED BY HON'BLE ITAT IS NOT MODIFIED/ RECTIFIED O R CLARIFIED, YOUR PETITIONER WOULD SUFFER IRREPARABLE LOSS AND I NJURY. 2. LD. COUNSELS FIRST AND FOREMOST PLEA DURING THE COURSE OF HEARING AND IN THE LIGHT OF THE ABOVE EXTRACTED PLEADINGS I S THAT THE DEPARTMENTAL AUTHORITIES THEMSELVES HAD ASSESSED THE ASSESSEE FI RM AT THE RATE OF 8% ON SOLE OF SAREES (FABRICS) AND THEREFORE OUR DIREC TIONS IN THE MAIN ORDER DATED 11.12.2019 TO THE ASSESSING OFFICER THAT IT W OULD BE FURTHER ASSESSED @ 8% REPRESENTING THE PROFIT ELEMENT, AMOU NTS TO DOUBLE ADDITION. THE REVENUE IS FAIR ENOUGH IN NOT DISPUTI NG THE FACT THAT SUCH A DOUBLE ADDITION OF THE VERY INCOME IS NOT SUSTAINAB LE IN LAW. WE THEREFORE MAKE IT CLEAR THAT OUR IMPUGNED DIRECTIONS IN PARAG RAPH NO. 6 OF THE TRIBUNALS ORDER DATED 11.12.2019 SHALL NOT RESULT IN ANY DOUBLE ADDITION OF THE VERY AMOUNT TO THE TUNE OF RS.1,38,26,283/-. NECESSARY COMPUTATION SHALL BE FINALIZED AT THE ASSESSING OFF ICERS STAND. M.A. 69/KOL/2020 (IN ITA NO. 1 248/KOL/2018) ASSESSM ENT YEAR: 2012-2013 RUKMANI AGENCIES 3 3. NEXT COMES THE LATTER ISSUE OF REMAINING SUM TO THE TUNE OF RS.19,38,717/- (RS.1,57,65,000/- - RS.1,38,26,283/- ) DEPOSITED IN ASSESSEES ACCOUNT. LD. COUNSEL STATED THE ASSESSEE S REVISED PROFIT & LOSS ACCOUNT (ANNEXURE B) MAKES IT CLEAR THAT THE SAME R EPRESENTED ITS SALES IN COSMETIC BUSINESS. WE FIND MERIT IN THE ASSESSEE S PLEA SINCE THE SURVEY AUTHORITIES HAD THEMSELVES TREATED THE SAID REMAINING SUM AS IN RELATION TO THE SALE OF COSMETIC PRODUCTS ONLY WHIC H HAD ALREADY BEEN INCLUDED IN THE ABOVESTATED P&L ACCOUNT. THE ASSESS ING OFFICER IS THEREFORE DIRECTED NOT TO ADD THE IMPUGNED SUM AS U NEXPLAINED. 4. THIS ASSESSEES MISCELLANEOUS APPLICATION 69/KOL /2020 IS ALLOWED IN THE ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON NOVEMBER 25, 2020. SD/- SD/- (J. SUDHAKAR REDDY) (SATBEER SINGH GODAR A) ACCOUNTANT MEMBER JUDICIAL MEMBER KOLKATA, THE 25 TH DAY OF NOVEMBER, 2020 COPIES TO : (1) RUKMANI AGENCIES, C/O. P.K. HIMMATSINGHKA, AA-4, SALT LAKE, KOLKATA-700064 (2) INCOME TAX OFFICER, WARD-47(4), KOLKATA (3) COMMISSIONER OF INCOME TAX (APPEALS)-14. KOLKAT A; (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.