I.T.O Wd - 35(1),KOLKATA., Kolkata v. M/s Pharma Surgical Co., Kolkata

ITA 30/KOL/2013 | 2008-2009
Pronouncement Date: 31-07-2014

Appeal Details

RSA Number 3023514 RSA 2013
Assessee PAN AADFP9462A
Bench Kolkata
Appeal Number ITA 30/KOL/2013
Duration Of Justice 1 year(s) 6 month(s) 27 day(s)
Appellant I.T.O Wd - 35(1),KOLKATA., Kolkata
Respondent M/s Pharma Surgical Co., Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 31-07-2014
Appeal Filed By Department
Bench Allotted A
Tribunal Order Date 31-07-2014
Assessment Year 2008-2009
Appeal Filed On 04-01-2013
Judgment Text
A IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOL KATA () BEFORE . . . . ! ! ! ! /AND ' #!' ' #!' ' #!' ' #!' ) [BEFORE SHRI P. K. BANSAL AM & SHRI MAHAVIR SINGH JM] !$ / I.T.A NO.30/KOL/2013 #% &'/ ASSESSMENT YEAR: 2008-09 INCOME-TAX OFFICER WD-35(1) KOLKATA VS. M/S. PH ARMA SURGICAL CO. (PAN: AADFP9462A) ()* /APPELLANT ) (+ )*/ RESPONDENT ) DATE OF HEARING: 31.07.2014 DATE OF PRONOUNCEMENT: 31.07.2014 FOR THE APPELLANT: SHRI SANJAY MUKHERJEE JDIT SR. DR FOR THE RESPONDENT: SHRI GAUTAM M. BAVISHI FCA / ORDER PER SHRI MAHAVIR SINGH JM : THIS APPEAL BY REVENUE IS ARISING OUT OF ORDER OF CIT(A)-XX KOLKATA IN APPEAL NO. 171/CIT(A)-XX/WD-35(1)/10-11/KOL DATED 05.09.2012. ASSESSMENT WAS FRAMED BY ITO WARD-35(1) KOLKATA U/S. 143(3) OF THE INCOME-TAX A CT 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEARS 2008-09 VIDE HIS ORDER D ATED 16.12.2010. 2. THE FIRST ISSUE IN THIS APPEAL OF REVENUE IS AGA INST THE ORDER OF CIT(A) DELETING THE ADDITION DESPITE THERE IS DIFFERENCE IN THE COPY OF ACCOUNT OF HINDUSTHAN SYRINGES & MEDICAL DEVICES LTD. (IN SHORT HSMDL) WITH THAT OF THE ASS ESSEE. FOR THIS REVENUE HAS RAISED FOLLOWING GROUND NOS. 1 AND 2: 1.THE LD. CIT(A) HAS ERRED IN ACCEPTING FRESH DOCU MENTS AT THE APPEAL PROCEEDINGS IN CONNECTION WITH THE TRANSACTIONS WITH M/S. HINDUSTH AN SYRINGES WHEN THE SAME WAS NOT PRODUCED BEFORE THE AO ON REPEATED OPPORTUNITIES. 2. THE LD. CIT(A) HAS FAILED TO APPRECIATE THAT THE COMPUTER GENERATED LEDGER OF A BOOKS OF ACCOUNTS CANNOT BE CHANGED AT THE SWEET WI LL OF THE ASSESSEE AND THE ASSESSEE HAS FAILED TO SUBMIT ANY REASONABLE CAUSE FOR SUCH CHANGE IN LEDGER ACCOUNTS AFTER ABOUT TWO YEARS FROM THE FINALISATION OF ACCOUNTS. . 3. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. THE FACTS ARE THAT THE ASSESSEE FIRM IS C&F AGENT O F HSMDL FOR DISPOSABLE SYRINGES AND ACCESSORIES. DURING THE COURSE OF ASSESSMENT PROCE EDINGS THE AO NOTICED THERE IS DIFFERENCE IN THE BALANCES WITH THE SUPPLIERS. THE ASSESSEE CLAI MED THAT THE DIFFERENCE WAS RECONCILED ALONG WITH A CONFIRMATION FROM THE PARTY VIDE WRITTEN SUB MISSION DATED 18.11.2010. ACCORDING TO 2 ITA NO.30/K/2013 PHARMA SURGICAL CO. AY 2008-09 ASSESSEE HSMDL HAS NOT ENTERED A SALE ENTRY FOR AN AMOUNT OF RS.11 12 794/- IN THIS ACCOUNTS AS ON 31.03.008. THE AO NOTED VIDE HIS LETTER DATE D 26.11.2000 THAT THE ASSESSEE HAS SHOWN PURCHASES OF RS.9 44 080/- ON 01.04.2008 AS AGAINST THE SALE OF RS.11 12 794/- AS SHOWN BY THE CREDITOR IN FY 2007-08 RELEVANT TO THIS AY 2008-09. FOR THE SAID REASON THE ASSESSEE WAS ISSUED SHOW CAUSE NOTICE AS TO WHY DIFFERENCE AMOUN T SHOULD NOT BE TREATED AS BOGUS PURCHASES. THE ASSESSEE IMMEDIATELY FURNISHED EXPLA NATION FOR THE SAID ENTRY OF RS.11 12 718/- THAT THIS IS A PURCHASE MADE FROM HSMDL ON 31.03.20 08 AND THAT PARTY ALSO SENT A LEDGER COPY FOR THE MONTH OF APRIL 2008 WHEREIN THE ABOVE STA TED ENTRY OF RS.11 12 794/- WAS REVERSED BUT AO WAS NOT CONVINCED AND HE MADE ADDITION. 4. AGGRIEVED ASSESSEE PREFERRED APPEAL BEFORE CIT( A) WHO DELETED THE ADDITION BY OBSERVING IN PARA 4.2 AS UNDER: 4.2. I HAVE PERUSED THE ASSESSMENT ORDER AND CONSI DERED THE SUBMISSION OF THE APPELLANT. I AGREE WITH THE CONTENTION OF THE APPE LLANT THAT IT WAS THE MATTER OF RECONCILIATION AND THE SAME WAS RECONCILED BY PASS ING REVERSE ENTRY ON 01.04.2008 BY M/S. HINDUSTHAN SYRINGES & MEDICAL DEVICES LTD. TH IS IS NOT A CASE OF BOGUS PURCHASES AS ALLEGED BY THE AO. IN VIEW OF THESE FACTS THE ADDITION MADE BY THE AO AT RS.11 12 794/- IS DIRECTED TO BE DELETED. THEREFOR E THE APPEAL ON THIS GROUND IS ALLOWED. AGGRIEVED REVENUE CAME IN APPEAL BEFORE US. 5. WE FIND THAT COMPLETE RECONCILIATION I.E. ENTRY OF PURCHASE AS ON 31.03.2008 FOR AN AMOUNT OF RS.11 12 794/- WAS FILED. ONCE RECONCILI ATION IS FILED AND THE PURCHASE ENTRY IS EXPLAINED WE FIND NO INFIRMITY IN THE ORDER OF CIT (A) AND THE SAME IS HEREBY UPHELD. THIS ISSUE OF REVENUES APPEAL IS DISMISSED. 6. THE NEXT ISSUE IN THIS APPEAL OF REVENUE IS AS R EGARDS TO THE ADDITION MADE ON ACCOUNT OF DIFFERENCE IN ASSESSEES ACCOUNTS AND ROYAL SURGICA L PVT. LTD.S ACCOUNTS AMOUNTING TO RS.3 17 107/-. FOR THIS REVENUE HAS RAISED FOLLOW ING GROUND NO.3: 3. THE LD. CIT(A) HAS ERRED IN COMING TO THE CONCL USION THAT IF THE NAME OF M/S. ROYAL SURGICAL PVT. LTD. IS NOT THERE IN THE NEXT PROCEED INGS OF CALLING EXPLANATION IN RELATION TO SOME OTHER PARTIES IT TANTAMOUNT TO A CERTIFICATE IN RELATION TO M/S. ROYAL SURGICAL PVT. LTD. WHEN THE ASSESSEE HAS FAILED TO PROVE THE GENU INENESS OF TRANSACTION/IDENTITY OF M/S. ROYAL SURGICAL PVT. LTD. BY NOT SUBMITTING THE PAYM ENT DOCUMENTS THEREAFTER OR PRESENT ADDRESS OF IT. 7. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. THE ASSESSEE CLAIMED TO HAVE MADE PURCHASE OF RS.3 17 107/- FROM ROYAL SURGICAL PVT. LTD. BUT WHEN THE AO ISSUED NOTICE U/S. 133(6) OF THE ACT TO ENQUIRE ABOUT THE PURCHASE THE SAME WAS 3 ITA NO.30/K/2013 PHARMA SURGICAL CO. AY 2008-09 NOT CONFIRMED. EVEN THE ASSESSEE COULD NOT SUBMIT ANY EVIDENCE BEFORE THE AO AND IN THE ABSENCE OF THE SAME HE MADE THE ADDITION OF THIS A MOUNT AS BOGUS PURCHASE. AGGRIEVED ASSESSEE PREFERRED APPEAL BEFORE CIT(A) WHO DELETE D THE ADDITION BY OBSERVING IN PARA 5.2 AS UNDER: 5.2.I HAVE PERUSED THE ASSESSMENT ORDER AND CONSID ERED THE SUBMISSION OF THE APPELLANT. IT IS TRUE THAT IN THE LETTER DATED 18. 11.2010 THE APPELLANT FILED COPY OF LEDGER ACCOUNT OF M/S. ROYAL SURGICAL PVT. LTD. AND FURTHE R VIDE LETTER DATED 26.11.2010 THE A.O. GAVE A SHOW CAUSE LETTER TO THE APPELLANT IN W HICH THERE IS NO MENTION WITH REGARD TO M/S. ROYAL SURGICAL PVT. LTD. THAT SHOWS THAT T HE DETAILED ASKED BY THE AO HAD BEEN COMPLIED WITH BY THE APPELLANT. THE DETAILS/DOCUME NTS SHOWS THAT THERE IS NO EVIDENCE FOR TREATING THE TRANSACTION AS BOGUS. THEREFORE THE SAME IS DIRECTED TO BE DELETED. AGGRIEVED REVENUE CAME IN APPEAL BEFORE US. 8. WE FIND THAT THE ASSESSEE GOT A COPY OF ACCOUNT IN BOOKS OF ROYAL SURGICAL PVT. LTD. WHICH WAS SUBMITTED BEFORE THE AO VIDE WRITTEN SUBM ISSION DATED 18.11.2010. THIS COPY OF ACCOUNT AS APPEARING IN THE BOOKS OF CREDITORS I.E . ROYAL SURGICAL PVT. LTD. WAS FILED BEFORE AO AND PLACED ON RECORDS CLEARLY INDICATES THAT RE QUEST MADE BY THE AO VIDE LETTER DATED 28.10.2010 HAS BEEN COMPLIED WITH AND THERE IS NO D ISCREPANCY IN THE ACCOUNTS. WE FIND THAT THE CIT(A) HAS VERIFIED THE ASSESSMENT RECORDS AND CONSIDERED THE LEDGER COPY OF THAT PARTY WHICH TALLIES WITH THE ASSESSEE FIRM AND HENCE THE BOGUS PURCHASES ADDED BY THE AO HAS RIGHTLY BEEN DELETED. WE CONFIRM THE SAME. THIS IS SUE OF REVENUES APPEAL IS DISMISSED. 9. THE NEXT ISSUE IN THIS APPEAL OF REVENUE IS AGAI NST THE ORDER OF CIT(A) DELETING THE DISALLOWANCE OF INTEREST PAID AT RS.21 889/- AND RS .83 582/- WITHOUT DEDUCTION OF TDS. FOR THIS REVENUE HAS RAISED FOLLOWING GROUND NO.4: 4. THE LD. CIT(A) HAS ERRED IN ALLOWING THE INTERE ST EXPENDITURE OF RS.21 889/- AND RS.83 582/- ON THE BASIS OF SOME POINT WHICH IS NOT RELATED IN THIS CASE AS HERE THE FORMS NO 15G PRODUCED WAS PARTLY BLANK AND CAN BE USED BY ANYBODY. 10. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUG H FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE ASSESSEE FIRM RECEIVED FORM NO. 15 G FOR NON-DEDUCTION OF TDS IN RESPECT TO INTEREST PAYMENT TO SURESH M. SHAH. HUF OF AN AMOUN T OF RS.21 889/- AND SHRI PARESH S. SHAH HUF OF AN AMOUNT OF RS.83 582/-. THE ASSESSEE RECE IVED FORM NO. 15G FROM THESE TWO PARTIES AND DULY FILED WITH THE CIT KOLKATA-XII ON 08.04.2 008 AS REQUIRED BY THE PROVISIONS OF THE ACT. SINCE FORM NO. 15G WERE OBTAINED FROM BOTH TH E PARTIES ON TIME THERE WAS NO NEED TO DEDUCT TDS FROM THE AMOUNT OF INTEREST CREDITED/PAI D TO THESE TWO PARTIES. THE CIT(A) ALSO DELETED THE ADDITION ON THE SAME REASONING BY OBSER VING IN PARA 6.2 AS UNDER: 6.2. I HAVE PERUSED THE ASSESSMENT ORDER AND CONS IDERED THE SUBMISSION OF THE APPELLANT. THE AO HAS DISALLOWED THE SAID INTEREST U/S. 40(A)(IA) ON THE GROUND THAT 4 ITA NO.30/K/2013 PHARMA SURGICAL CO. AY 2008-09 THOUGH THE APPELLANT RECEIVED FORM NO. 15G FROM THE PARTIES BUT THE SAID FORMS WERE NOT SUBMITTED TO THE APPROPRIATE AUTHORITY OF THE I. T. DEPARTMENT. ACCORDINGLY AO DISALLOWED THE SAID EXPENSES. I HAVE HOWEVER FOU ND THAT THIS ISSUE IS COVERED BY THE DECISIONS CITED BY THE A.R. THAT IF THE ASSESSEE HA S RECEIVED FORM NO. 15G THEN EVEN IF THE SAID FORMS WERE NOT SUBMITTED TO THE APPROPRIATE AU THORITIES NO DISALLOWANCE CAN BE MADE U/S. 40(A)(IA). IN VIEW OF THE ABOVE THE DIS ALLOWANCE IS DIRECTED TO BE DELETED. IN VIEW OF THE ABOVE REASONS AND SINCE THE LD. SR. DR IS UNABLE TO PRODUCE ANY CONTRADICTORY MATERIAL IN THE AFORESAID ORDER OF CIT(A) WE FIND NO REASON TO INTERFERE IN THE ORDER OF CIT(A) AND THE SAME IS HEREBY UPHELD. THIS ISSUE OF REVEN UES APPEAL IS DISMISSED. 11. IN THE RESULT THE APPEAL OF THE REVENUE IS DIS MISSED. 12. ORDER PRONOUNCED IN OPEN COURT. SD/- SD/- . . . . ' #!' ' #!' ' #!' ' #!' (P. K. BANSAL) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 31 ST JULY 2014 -. #/0 #1 JD.(SR.P.S.) 2 +##3 43&5- COPY OF THE ORDER FORWARDED TO: 1 . )* / APPELLANT ITO WARD-35(1) KOLKATA. 2 + )* / RESPONDENT M/S. PHARMA SURGICAL CO. 55 BIPLABI RASHBEHARI BASU ROAD BLOCK-H ROOM NO.113 KOLKATA-700 001. 3 . # ( )/ THE CIT(A) KOLKATA 4. 5. # / CIT KOLKATA 3:#; +# / DR KOLKATA BENCHES KOLKATA 3 +#/ TRUE COPY