What did the Tribunal hold?

The Tribunal noted that the revenue's appeal was allowed for statistical purposes. In light of this, the Tribunal decided to remand the assessee's appeal back to the AO for fresh adjudication.

The assessee challenged additions made by the AO on account of unsecured loans and miscellaneous expenditure. The CIT(A) restricted these additions, leading to cross-appeals by both the revenue and the assessee.

Bengal Waterproof Limited vs DCIT | ITAT Kolkata 2018

Q: What were the issues?

The primary issues involved additions made by the AO on account of unsecured loans and miscellaneous expenditure, and the extent to which the CIT(A) confirmed or restricted these additions.

Income Tax Appellate Tribunal, KOLKATA BENCH “C”, KOLKATA

Hearing: 03.10.2018Pronounced: 24.10.2018

vs DCIT, Bengal Waterproof Limited, Duckback House, 4th Floor, Circle-7, Aayakar 41, Shakespeare Sarani, Bhawan, P-7, Kolkata-700017. Chowringhee Square, PAN-AABCB2876R Kolkata-700069. (Appellant) (Respondent) Appellant by Sh. Ramesh Kumar Patodia, AR Respondent by Sh. Saurabh Kumar, Addl. CIT, Sr. DR Date of Hearing 03.10.2018 Date of Pronouncement 24.10.2018 ORDER

PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER

This appeal by the assessee against the order dated 28.03.2013 passed by CIT(A)-XXIV, Kolkata for AY 2005-06.

Ld.AR submits that this is a cross-appeal against the order passed by Ld.CIT(A) wherein the Revenue also filed an appeal in before this Tribunal which was allowed for statistical purposes vide order dated 23.08.2017. The Ld.DR did not controvert the same. On perusal of the record, it is noted that the assessee also filed cross-objection in C.O. No.44/Kol/2017 arising out of the aforesaid Revenue’s appeal which was dismissed ex-parte for non- explanation of delay of 1380 days. It is noted that the assessee challenged the additions made by the AO on account of unsecured loan of Rs.60,00,000/- and on account of miscellaneous expenditure. Ld.CIT(A) restricted addition made on account of unsecured loans to Rs.25,00,000/- and confirmed disallowance to the extent of Rs.35,00,000/-. Likewise, Ld.CIT(A) restricted the disallowance on account of miscellaneous expenditure to Rs.35,00,000/-. We find that the Revenue filed appeal against the Ld.CIT(A) in respect of deletion made on account of (ASSESSMENT YEAR-2005-06) unsecured loans and miscellaneous expenditure and the assessee filed appeal against the confirmation of disallowance by Ld.CIT(A). Therefore, in view of the facts and circumstances of the case as discussed above and in view of the order dated 23.08.2017 in Revenue’s appeal, we deem it proper to remand the present appeal to the file of AO for his consideration. The AO shall adjudicate the matter after giving an opportunity to the assessee and the assessee is liberty to file evidences, if any, in support of its claim. Thus, Ground No.1, 2 and 3 are allowed for statistical purposes.

Ground No.4 is general in nature, needs no adjudication and it is dismissed.

In the result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 24.10.2018.

BENGAL WATERPROOF LIMITED,KOLKATA vs. D.C.I.T CIR - 7,KOLKATA, KOLKATA

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