DCIT, Circle - 7, Kolkata, Kolkata v. M/s. Pargal Fauna Exports Pvt. Ltd., Kolkata

ITA 1733/KOL/2010 | 2004-2005
Pronouncement Date: 14-12-2010

Appeal Details

RSA Number 173323514 RSA 2010
Assessee PAN AACCP3257H
Bench Kolkata
Appeal Number ITA 1733/KOL/2010
Duration Of Justice 3 month(s) 7 day(s)
Appellant DCIT, Circle - 7, Kolkata, Kolkata
Respondent M/s. Pargal Fauna Exports Pvt. Ltd., Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 14-12-2010
Appeal Filed By Department
Bench Allotted A
Tribunal Order Date 14-12-2010
Assessment Year 2004-2005
Appeal Filed On 06-09-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : KOLKATA () BEFORE . . . . . . . . !'# !'# !'# !'# /AND . .. . . .. .' '' ' $ [BEFORE HONBLE SRI D. K. TYAGI JM & HONBLE SRI C. D. RAO AM] #% #% #% #% / I.T.A NO. 1733/KOL/2010 &'( ')* &'( ')* &'( ')* &'( ')*/ // / ASSESSMENT YEAR : 2004-05 DEPUTY COMMISSIONER OF INCOME-TAX -VS- M/S. PARG OL FAUNA EXPORTS PVT. LTD. CIRCLE-7 KOLKATA. (PA NO. AACCP 3257 H) ( - / APPELLANT ) (. -/ RESPONDENT ) FOR THE APPELLANT: SRI D. K. SONOWAL FOR THE RESPONDENT : SRI A. K. TULSIYAN / / ORDER PER D. K. TYAGI JM ( . . . . . . . . ) THE APPEAL PREFERRED BY THE REVENUE IS DIRECTED AGA INST THE ORDER OF THE LD. CIT(A) KOLKATA DATED 22.06.2010 FOR THE ASSESSMENT YEAR 2 004-05 ON THE SOLE GROUND OF DELETING THE ADDITION MADE U/S. 68 OF THE I. T. ACT. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE AS SESSING OFFICER ASKED FOR BY NOTICE U/S. 142(1) VIZ. (I) BREAK UP OF LIABILITIES FOR G OODS WITH NAMES AND ADDRESS OF PERSONS CONCERNED (II) NAMES AND COMPLETE POSTAL ADDRESSE S OF ALL THE PERSONS/CONCERNS FROM WHOM PURCHASES IN EXCESS OF RS.50 000/- MADE DURING THE YEAR ALONG WITH QUANTITY OF EACH ITEM PURCHASED AND VALUE OF SUCH PURCHASE AGAI NST EACH OF THEM. ALSO FURNISH ONE COPY OF PURCHASE VOUCHER FOR EACH PARTY (III) NAMES AND COMPLETE POSTAL ADDRESSES OF ALL THE PERSONS/CONCERNS TO WHOM SALES IN EXCESS OF RS. 50 000/- MADE DURING THE YEAR ALONG WITH QUANTITY OF EACH ITEM SOLD AND VALUE OF SUCH S ALE AGAINST EACH OF THEM. HE ALSO ASKED TO FURNISH COPIES OF INVOICES IN SUPPORT OF C ERTAIN SALES COPIES OF PURCHASE VOUCHERS INVOLVING LORRY FREIGHT EXCEEDING RS.15 00 0/-. BUT TILL THE DATE OF PASSING OF THE ASSESSMENT ORDER THERE WAS NO ATTEMPT ON THE P ART OF THE ASSESEE TO PRODUCE THE DETAILS AND EXPLANATIONS AS MENTIONED ABOVE. SINCE THE ASSESSE FAILED TO FURNISH EITHER THE DETAILS OF PURCHASES MADE OR LIABILITIES AGAINS T SUCH PURCHASES IT WAS NOT POSSIBLE TO 2 VERIFY THE PURCHASE AND LIABILITIES TOWARDS SUCH PU RCHASES AS CLAIMED IN THE ACCOUNTS. HE ALSO OBSERVED FROM THE BALANCE SHEET AS ON 31.3. 2003 THAT LIABILITY TOWARDS CREDITORS FOR GOODS AS ON THAT DATE WAS RS.9 06 796/- WHEREAS AS ON 31.3.2004 IT WAS RS.34 21 307/-. THE LIABILITY FOR AN AMOUNT OF RS. 25 14 511/- (RS.34 21 307 9 06 796/-) WHICH THE ASSESEE CLAIMED TO HAVE ARISE N DURING THE YEAR WAS THEREFORE TREATED AS UNEXPLAINED CASH CREDIT AS PER THE PROVI SIONS OF SECTION 68 OF THE I. T. ACT. IN FIRST APPELLATE PROCEEDING THE LD. CIT(A) OBTAINED REMAND REPORT FROM THE ASSESSING OFFICER WHICH WAS ALSO FORWARDED TO THE ASSESSEE FO R COMMENTS. AFTER CONSIDERING THE REMAND REPORT AND THE SUBMISSIONS OF THE ASSESSEE THE LD. CIT(A) DELETED THE ADDITION MADE BY THE ASSESSING OFFICER U/S. 68 OF THE I. T. ACT IN RESPECT OF INCREASE IN CREDIT BALANCE OF M/S. J. J. AUTOMOTIV M/S. G. DAS (GADAD HAR) AND M/S. PENGUIN PLASTICS. AGGRIEVED BY THE SAID ORDER THE REVENUE IS IN APPE AL BEFORE US. 4. AT THE TIME OF HEARING BEFORE US THE LD. DR WHI LE RELYING ON THE ORDER OF THE ASSESSING OFFICER SUBMITTED THAT IN THE REMAND PROC EEDINGS THE ASSESSEE HAS FAILED TO RECONCILE THE DIFFERENCE TO THE SATISFACTION OF THE ASSESSING OFFICER DESPITE THAT THE LD. CIT(A) HAS GIVEN RELIEF TO THE ASSESSEE BY ACCEPTIN G THE SUBMISSIONS OF THE ASSESSEE WHICH WAS NOT GIVEN BY THE ASSESSEE BEFORE THE ASSE SSING OFFICER WHILE HE WAS PREPARING HIS REMAND REPORT. HE LASTLY CONCLUDED TH AT THE ORDER OF THE LD. CIT(A) MAY BE SET ASIDE AND THAT OF ASSESSING OFFICER BE RESTO RED. 5. ON THE OTHER HAND THE LD. COUNSEL FOR THE ASSES SEE RELIED ON THE ORDER OF THE LD. CIT(A) AND PRAYED BEFORE THE BENCH TO CONFIRM HIS O RDER. 6. AFTER HEARING THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSING THE MATERIAL AVAILABLE ON RECORD WE FIND FORCE IN THE CONTENTION OF THE L D. DR THAT EVEN DURING THE REMAND PROCEEDING THE ASSESSEE FAILED TO RECONCILE THE DIF FERENCE TO THE SATISFACTION OF THE ASSESSING OFFICER AND DESPITE THAT THE LD. CIT(A) W RONGLY DELETED THE ADDITION SO MADE BY THE ASSESSING OFFICER U/S. 68 OF THE I. T. ACT. HOWEVER TAKING THE SUBMISSIONS OF BOTH THE SIDES IN VIEW WE ARE OF THE CONSIDERED OP INION THAT THE ASSESSEE BE PROVIDED ONE MORE OPPORTUNITY TO RECONCILE THE DIFFERENCE AN D FOR THAT REASON THE MATTER IS RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR F RESH ADJUDICATION AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. WE ORDER ACCORDINGLY. THE APPEAL OF THE REVENUE IS THEREFORE ALLOWED FOR ST ATISTICAL PURPOSES. 3 7. IN THE RESULT THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. 8. THE ORDER IS ANNOUNCED IN THE OPEN COURT ON 14.1 2.10 SD/- SD/- . .. . . .. .' '' ' $ . . (C. D. RAO) (D. K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER ( $ $ $ $) )) ) DATED :14TH DECEMBER 2010 '01 &'23 &4' JD.(SR.P.S.) / 5 .&&6 76)8- COPY OF THE ORDER FORWARDED TO: 1 . - / APPELLANT DCIT CIRCLE-7 KOLKATA. 2 . - / RESPONDENTM/S. PARGAL FAUNA EXPORTS PVT. LTD. 14 KARNANI ESTATE 209 AJC BOSE ROAD KOLKATA-17. 3 . &/' / THE CIT KOLKATA. 4 . &/' ( )/ THE CIT(A) KOLKATA 5 . '?& .&' / DR KOLKATA BENCHES KOLKATA 6 .&/ TRUE COPY /'@/ BY ORDER A #3 /DEPUTY REGISTRAR .