M/S. K.B. PHARMA ,KOLKATA vs. ITO, WARD - 22(2), KOLKATA , KOLKATA

This assessee’s appeal for assessment year 2013-14, arises against the Commissioner of Income-tax (Appeals)-6, Kolkata’s order dated 25.10.2017 passed in case No. CIT(A),Kolakt-6/10078/16-17 involving proceedings u/s. 143(3) of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.

ITA No. 1460/Kol/2018 A.Y.2013-14 M/s K.B.Pharma Vs. ITO Wd-22(2), Kol. Page 2 to have given credit in the impugned assessment year since the assessee followes mercantile system of accounting and that once the assessee had issued cheque in favour of pharmaceutical products suppliers, it ought to have immediately entered into books as expenditure followed by credit thereof. All these sufficiently indicates that there is no dispute on genuineness aspect per se between assessee and the Revenue. It transpires during the course of hearing that assessee’s purchased accounts had not been settled in the impugned assessment year which could make it to claim the impugned sum as corresponding purchasing expenditure in the relevant previous year. I am further of the view that assessee has been assessed at the same rate in both the impugned as well as succeeding assessment year makes it a revenue neutral case. I therefore delete the impugned addition of ₹17,36,984/- keeping in mind all these peculiar facts and circumstances with a rider that the same shall not be treated as a precedent in any other assessment year or is any other case.