Pritex Marketing Pvt. Ltd., Kolkata v. ITO, Ward - 5(2), Kolkata, Kolkata

ITA 808/KOL/2011 | 2004-2005
Pronouncement Date: 04-07-2011 | Result: Allowed

Appeal Details

RSA Number 80823514 RSA 2011
Assessee PAN AACCP9856A
Bench Kolkata
Appeal Number ITA 808/KOL/2011
Duration Of Justice 1 month(s) 10 day(s)
Appellant Pritex Marketing Pvt. Ltd., Kolkata
Respondent ITO, Ward - 5(2), Kolkata, Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 04-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 04-07-2011
Assessment Year 2004-2005
Appeal Filed On 25-05-2011
Judgment Text
.. IN THE INCOME TAX APPELLATE TRIBUNAL BENCH SM C KOLKATA /BEFORE . .. . . .. . . .. . /SHRI C.D.RAO ACCOUNTANT MEMBER / ITA NO . 808/KOL/2011 !'# $%/ ASSESSMENT YEAR : 2004-05 (() / APPELLANT ) - ' - ( -()/ RESPONDENT ) PRITEX MARKETING PVT. LTD -VE RSUS- I.T.O. WARD-5(2) KOLKATA KOLKATA (PAN : AACCP 9856 A) () . / / FOR THE APPELLANT: NONE -() . / / FOR THE RESPONDENT: SHRI N.DUTTA GUPTA 0 / ORDER THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER DATED 09.02.2011 OF THE CIT(A)-VI KOLKATA PERTAINING TO A.YR. 2004-05. 2. THERE IS A DELAY OF 5 DAYS IN FILING OF TH E APPEAL BY THE ASSESSEE FOR WHICH THE ASSESSEE HAS FILED A CONDONATION PETITION EXPLAININ G THE REASONS FOR SUCH DELAY. AFTER CONSIDERING THE SUBMISSIONS BY THE ASSESSEE THE DEL AY IS CONDONED. 3. AT THE TIME OF HEARING BEFORE US NO ONE APP EARED ON BEHALF OF THE ASSESSEE. AFTER HEARING THE LD.DR AND ON PERUSAL OF MATERIALS AVAIL ABLE ON RECORD THE APPEAL IS DISPOSED ON MERITS. 4. THE LD.DR APPEARING ON BEHALF OF THE REVENUE S UBMITTED THAT THE AO HAS DISALLOWED THE FOLLOWING EXPENDITURE :- ON SCRUTINY IT IS FOUND THAT THE ENTERTAINMENT EXP ENSES OF RS.19 745 IS ADDED BACK TO THE TOTAL INCOME DUE TO NON SUBMISSION OF B ILLS AND VOUCHERS. PROMOTIONAL EXPENSES OF RS.22 400/- IS PAID IN CASH 20% OF 22 400/- IS ADDED BACK U/S 40A(3) OF THE IT ACT 20% OF RAILWAY TICKE TS OF RS.49 036/- IS ADDED BACK DUE TO PROPER BILLS AND VOUCHERS. 20% OF CONVE YANCE EXPENSES OF RS.58 645/- IS ADDED BACK DUE TO PROPER BILLS AND V OUCHERS 20% OF BOARDING 2 AND LODGING OF RS.40 005/- IS ADDED BACK DUE TO PRO PER BILLS AND VOUCHERS. A/R WAS ASKED TO RECONCILE THE DIFFERENCE IN PURCHA SE FROM MS. INDUS CLOTHING LTD. AMOUNTING TO RS.2 36 110/-. IN RESPONSE THE A/ R SUBMITTED RECONCILIATION STATEMENT WITHOUT ANY SUPPORTING EVIDENCE. THE EXPL ANATION OF THE A/R IS NOT ACCEPTABLE AND ADDED TO HIS TOTAL INCOME DUE TO INC REASE OF CLOSING STOCK. SINCE THE ASSESSEE HAS NOT PRODUCED ANY EVIDENCES E VEN BEFORE THE LD. CIT(A) THE LD. CIT(A) HAS CONFIRMED THE SAME. THEREFORE HE REQUES TED TO UPHOLD THE ORDERS OF THE REVENUE AUTHORITIES. 5. AFTER HEARING THE LD. DR IT IS OBSERVED THAT TH OUGH THE AO HAS MADE THE ADHOC DISALLOWANCES FOR WANT OF PROPER BILLS AND VOUCHERS AND THE LD. CIT(A) HAS CONFIRMED THE SAME ON THE BASIS OF MATERIALS AVAILABLE ON REC ORD BY OBSERVING THAT THE ASSESSEE HAS NOT COOPERATED IN THE APPELLATE PROCEEDINGS. IN THIS CASE THE LD. CIT(A) HAS DISPOSE OF THIS APPEAL EX-PARTE BASED ON THE MATERI ALS AVAILABLE ON RECORD. THEREFORE I AM OF THE VIEW THAT THIS REQUIRES FRESH ADJUDICATIO N. IN THIS REGARD IT IS PERTINENT TO MENTION THAT BEFORE MAKING ANY ADHOC DISALLOWANCES THE REVENUE IN THE ABSENCE OF PROPER BILL/VOUCHERS HAS TO RECORD THE FINDINGS THA T THE EXPENDITURE IS EITHER NOT GENUINE OR EXCESSIVE AND THE REVENUE IS DUTY BOUND TO COMPARE THE RATIO OF THE INDIVIDUAL EXPENDITURE WITH THE TURN OVER IN THE CA SE OF THE ASSESSEE FOR THE PAST YEARS OR SOME OTHER COMPARATIVE CASES BEFORE MAKING SUCH ADHOC DISALLOWANCES. IN VIEW OF THIS I CONSIDER IT TO SET ASIDE THE ISSUE TO THE F ILE OF THE LD. CIT(A) TO DISPOSE OF THE APPEAL KEEPING IN VIEW OF THE ABOVE OBSERVATIONS AN D AFTER GIVING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 04.07.2011. SD/- . .. . . .. . C.D.RAO ACCOUNTANT MEMBER ( (( ( ) )) ) DATE: 04.07.2011. R.G.(.P.S.) 3 0 . !!1 21$3- COPY OF THE ORDER FORWARDED TO: 1. M/S. PRITEX MARKETING PVT. LTD. 12 MANGOE LANE 1 ST FLOOR KOLKATA- 700001. 2 THE I.T.O. WARD-5(2) KOLKATA 3. THE CIT 4. THE CIT(A)-VI KOLKATA 5. DR KOLKATA BENCHES KOLKATA -1 !/ TRUE COPY 0'8/ BY ORDER DEPUTY /ASST. REGISTRAR ITAT KOLKATA BENCHES