Holy Remedies (P) Ltd., CHENNAI v. ITO Corp. Ward 2(3), CHENNAI

ITA 282/CHNY/2019 | 2014-2015
Pronouncement Date: 09-03-2021 | Result: Allowed

Appeal Details

RSA Number 28221714 RSA 2019
Assessee PAN AACCH2157G
Bench Chennai
Appeal Number ITA 282/CHNY/2019
Duration Of Justice 2 year(s) 1 month(s) 3 day(s)
Appellant Holy Remedies (P) Ltd., CHENNAI
Respondent ITO Corp. Ward 2(3), CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 09-03-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 09-03-2021
Last Hearing Date 16-07-2019
First Hearing Date 15-12-2020
Assessment Year 2014-2015
Appeal Filed On 05-02-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A B ENCH CHENNAI . ! . ! ' BEFORE SHRI DUVVURU RL REDDY JUDICIAL MEMBER AND SHRI G. MANJUNATHA ACCOUNTANT MEMBER ./ I.T.A.NO.282/CHNY/2019 ( / ASSESSMENT YEAR: 2014-15) M/S. HOLY REMEDIES PVT.LTD C/O. R.T.VIJAYARAGHAVAN 64 BLOCK B-9 MADELY 2 ND STREET T.NAGAR CHENNAI-17. VS THE INCOME TAX OFFICER CORPORATE WARD-2(3) CHENNAI. PAN:AACCH 2157G ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. R.T.VIJAYARAGHAVAN C.A /RESPONDENT BY : MR. G.CHANDRABABU ADDL CIT /DATE OF HEARING : 27.01.2021 /DATE OF PRONOUNCEMENT : 09.03.2021 / O R D E R PER G.MANJUNATHA ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGA INST ORDER OF LEARNED CIT(A)-5 CHENNAI DATED 20.12.201 8 AND PERTAINS TO ASSESSMENT YEAR 2014-15. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. YOUR APPELLANT SUBMITS THAT THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) IS AGAINST THE FACTS OF THE CASE AND BAD IN LAW. 2. YOUR APPELLANT SUBMITS THAT THE AUTHORITIES B ELOW HAD NOT CONSIDERED PROPERLY THE FACTS RELATING TO THE CASE OF YOUR APPELLANT AND THE EVIDENTIARY VALUE OF THE DOCUMENT S PRODUCED AT THE TIME OF PERSONAL HEARING. 2 ITA NO.282/CHNY/2019 3. YOUR APPELLANT OUGHT TO HAVE CONSIDERED THE S UBMISSIONS OF THE APPELLANT BOTH AT THE TIME OF BEARINGS BEFOR E THE LEARNED ASSESSING OFFICER AND BEFORE THE HONOURABLE COMMISS IONER OF INCOME TAX (APPEALS). 4. YOUR APPELLANT SUBMITS THAT THE COMMISSIONER O F INCOME TAX (APPEALS) HAD NOT CONSIDERED THE RELEVANT GROUN DS OF APPEAL WITH REFERENCE TO THE ADHOC ADDITION MADE BY THE ASSESSING OFFICER AND WAS NOT CORRECT IN CONFIRMING THE ORDER OF THE ASSESSING OFFICER WITHOUT ANY DISCUSSION ON THA T PAINT. 5. YOUR APPELLANT SUBMITS THAT THE LEARNED ASSESS ING OFFICER HAD MADE AN AD HOC ADDITION TO THE INCOME WITHOUT A NY PROPER DISCUSSION ON THE REASONING ABOUT HIS ADDITION - TH ERE IS NO RECORDING OF FACTS NO DISCUSSION ABOUT ANY COMPARA BLE CASES OR THE PAST HISTORY OR FOR WORKING FOR THE ADDITION S. 6. YOUR APPELLANT SUBMITS THAT THE HONOURABLE COM MISSIONER OF INCOME TAX (APPEALS) HAD NOT CONSIDERED THE DECI SION OF THE RAJASTHAN HIGH COURT IN CIT VS. RAM SINGH IN TA NO 117/2004 DT. 21 01.2014 WHICH APPLIES WITH ALL FORCE TO THE FACTS OF YOUR APPELLANT. 7. IN VIEW OF THE ABOVE GROUNDS OF APPEAL YOUR A PPELLANT PRAYS TO THE HONOURABLE TRIBUNAL TO QUASH THE ORDER S OF THE CIT(A) AND THE ASSESSING OFFICER AND THUS RENDER JU STICE. 3. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE COMPAN Y IS ENGAGED IN THE BUSINESS OF PURCHASE AND SALE OF BUL K DRUGS FILED ITS RETURN OF INCOME FOR ASSESSMENT YEAR 201 4-15 ON 30.09.2014 DECLARING TOTAL INCOME OF ` 9 78 230/-. THE ASSESSMENT HAS BEEN COMPLETED U/S. 143(3) OF THE AC T ON 20.12.2016 DETERMINING TOTAL INCOME AT ` 54 69 332/- BY 3 ITA NO.282/CHNY/2019 MAKING ADDITIONS TOWARDS 0.25% DISALLOWANCE OF PUR CHASES ON THE GROUND THAT ASSESSEE HAS FAILED TO FILE NECESSA RY BILLS AND VOUCHERS IN SUPPORT OF PURCHASES. THE ASSESSING OF FICER HAS ALSO MADE ADDITION TOWARDS AD-HOC DISALLOWANCE OF E XPENSES FOR WANT OF BILLS AND VOUCHERS. 4. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE FIRST APPELLATE AUTHORITY BUT COULD NOT SUCCEED. THE LE ARNED CIT(A) FOR THE REASONS RECORDED IN HIS APPELLATE ORDER DAT ED 20.12.2018 DISMISSED APPEAL FILED BY ASSESSEE AND CONFIRMED ADDITIONS MADE TOWARDS DISALLOWANCE OF PURCHASES AND EXPENSES ON THE GROUND THAT ASSESSEE HAS FAILED TO PRODUCE PURCHASE INVOICES AND VOUCHERS IN SUPPORT OF LORRY FREIGHT SALES PROMOTION AND TRAVEL EXPENSES SO AS TO REMI T BACK THE ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR FURT HER VERIFICATION. AGGRIEVED BY THE LEARNED CIT(A) ORDER THE ASSESSEE IS IN APPEAL BEFORE US. 5. THE LEARNED AR FOR THE ASSESSE AT THE TIME OF H EARING SUBMITTED THAT ASSESSEE COULD NOT FILE NECESSARY EV IDENCES BEFORE THE ASSESSING OFFICER DUE TO PAUCITY OF TIME . HOWEVER 4 ITA NO.282/CHNY/2019 ALL PURCHASES AND EXPENSES DEBITED INTO PROFIT AND LOSS ACCOUNT ARE SUPPORTED BY NECESSARY BILLS AND VOUCH ERS AND ASSESSEE IS READY TO SUBMIT ALL EVIDENCES BEFORE TH E ASSESSING OFFICER. THEREFORE ONE MORE OPPORTUNITY MAY BE GIV EN TO ASSESSEE TO FILE NECESSARY EVIDENCES BEFORE THE AS SESSING OFFICER TO JUSTIFY PURCHASES AND EXPENSES DEBITED I NTO PROFIT & LOSS ACCOUNT. 6. THE LEARNED DR ON THE OTHER HAND FAIRLY AGREED THAT ISSUE MAY BE SET ASIDE TO THE FILE OF ASSESSING OFF ICER FOR FRESH CONSIDERATION. 7. WE HAVE HEARD BOTH PARTIES PERUSED MATERIALS AV AILABLE ON RECORD AND GONE THROUGH ORDERS OF THE AUTHORITIE S BELOW. IT IS A CASE OF ASSESSEE BEFORE US THAT PURCHASES AND EXPENSES DEBITED INTO PROFIT & LOSS ACCOUNT ARE FULLY SUPPOR TED BY BILLS AND VOUCHERS BUT DUE TO PAUCITY OF TIME IT COULD NOT FILE NECESSARY EVIDENCES BEFORE ASSESSING OFFICER AS WELL AS LEARN ED CIT(A) . IF ONE MORE OPPORTUNITY IS GIVEN ASSESSEE IS WILLI NG TO PRODUCE NECESSARY EVIDENCES TO SUPPORT PURCHASES AND OTHER EXPENSES CLAIMED IN PROFIT & LOSS ACCOUNT . THEREFORE CONSI DERING PLEA OF THE ASSESSEE THAT DUE TO PAUCITY OF TIME IT COULD N OT FILE 5 ITA NO.282/CHNY/2019 NECESSARY SUPPORTING EVIDENCES BEFORE THE ASSESSING OFFICER AND LEARNED CIT(A) WE DEEM IT APPROPRIATE TO GIVE ONE MORE OPPORTUNITY TO ASSESSEE. HENCE WE SET ASIDE APPEA L TO THE FILE OF THE ASSESSING OFFICER AND DIRECT HIM TO CONSIDE R ISSUE AFRESH IN LIGHT OF VARIOUS EVIDENCES FILED BY ASSESSEE TO JUSTIFY PURCHASES AND EXPENSES DEBITED INTO PROFIT AND LOSS ACCOUNT. NEEDLESS TO SAY THE ASSESSEE SHALL FILE NECESSARY EVIDENCES TO SUPPORT ITS CASE WITHOUT SEEKING ANY ADJOURNMENT. 8. IN THE RESULT APPEAL FILED BY ASSESSEE IS TREAT ED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 9 TH MARCH 2021 SD/- SD/- ( . ) ( . ) (DUVVURU RL REDDY) (G.MANJUNATHA ) ! $ / JUDICIAL MEMBER $ / ACCOUNTANT MEMBER ! /CHENNAI ' /DATED 9 TH MARCH 2021 DS )* +* /COPY TO: 1. APPELLANT 2. RESPONDENT 3. () /CIT(A) 4. /CIT 5. * 1 /DR 6. /GF .