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Income Tax Appellate Tribunal, “D” BENCH : KOLKATA
Before: Hon’ble Shri M.Balaganesh, AM & Hon’ble Shri S.S.Viswanethra Ravi, JM]
ORDER Per M.Balaganesh, AM
This appeal by the assessee arises out of the order of the Learned Commissioner of Income Tax(Appeals)-2, Kolkata [in short the ld CIT(A)] in Appeal No.712/CIT(A)- 2/14-15 dated 20.07.2016 against the order passed by the ITO, Ward-5(4), Kolkata [ in short the ld AO] under section 143(3) of the Income Tax Act, 1961 (in short “the Act”) dated 11.03.2013 for the Assessment Year 2010-11.
The only issue to be decided in this appeal is as to whether the ld CITA was justified in upholding the addition of Rs 24,02,144/- on account of amounts received from BDO Gournagar in the facts and circumstances of the case.
Vasudha Holdings Pvt. Ltd. A.Yr. 2010-11 3. The brief facts of this issue are that the assessee is a private limited company engaged in the business of manufacturing of spun pipes and allied products. The return of income for the Asst Year 2010-11 was filed by the assessee company on 9.10.2010 declaring loss of Rs 1,27,080/-, which was processed u/s 143(1) of the Act. The ld AO observed that the assessee had produced the books of accounts, bills and vouchers which were test checked. He observed that during the year, the assessee had transactions with B.D.O.Gournagar for supply of materials . From the copy of TDS certificates, it was seen that assessee had received Rs 66,47,321/- from the deductor (B.D.O. Gournagar) . But from the details of TDS reconciliation furnished by the assessee,it was observed that the assessee had shown Rs 42,45,177/- as income from B.D.O. Gournagar for the year under consideration and had reflected the remaining sum of Rs 24,02,144/- as advance received from the said party. The ld AO found that since TDS was claimed for the entire amount of Rs 66,47,321/- , the corresponding income portion should be brought to tax and accordingly proceeded to add the difference of Rs 24,02,144/- in the assessment. The assessee pleaded that the said sum has been treated as advance in its balance sheet and the supply of materials were made to that effect in the next financial year by the assessee, during which time, the amounts lying in advance has been adjusted and sales thereon has been properly reflected in Asst Year 2011-12. With this argument, it prayed for deletion of the said addition before the ld CITA. The ld CITA however dismissed the contention of the assessee and upheld the action of the ld AO in this regard. Aggrieved, the assessee is in appeal before us.
We have heard the rival submissions. We find that the ld AR drew our attention to pages 5 to 47 of the paper book containing the sales summary of Asst Year 2011-12 (i.e the next assessment year) together with the related sales invoices thereon . From the sales invoices, we find that the materials supplied by the assessee were duly subjected to excise duty and sales tax which are payable only at the time when the goods move out of the premises of the assessee. However, these details were not furnished before the 2
Vasudha Holdings Pvt. Ltd. A.Yr. 2010-11 lower authorities. Hence in the interest of justice and fair play, we deem it fit and appropriate , to remand this issue to the file of the ld AO for de novo adjudication in the light of evidences furnished and to be furnished by the assessee and decide the same in accordance with law. Accordingly, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the Court on 19. 09.2018