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Income Tax Appellate Tribunal, BENCH ‘B’ KOLKATA
Before: Hon’ble Shri S.S.Godara, JM & Dr.A.L.Saini, AM ]
PER S.S.GODARA, JM:
This assessee’s appeal for A.Y.2010-11 arises against the CIT(A)-7, Kolkata’s order dated 16.05.2016 passed in Appeal No.385/CIT(A)-7/Ward-26(1)/15-16, involving proceedings u/s 143(3) of the Income Tax Act, 1961 (Act). Heard both the parties. Case file perused.
2. It emerges at the outset that both the lower authorities have disputed the assessee’s claim of reconciliation of purchases in respect of seven parties regarding its business in consumer products of various companies as retailer/distributor. The said seven parties are M/s Synergy (I) Marketing Pvt. Ltd., L’Oreal India Pvt. Ltd., Karnataka Soap & Detergent, Shalimar Chemicals Works Ltd., Matrumal Dhannalal Oil Mills, Nirma Ltd., and Deorala Foods International Ltd. The Assessing Officer had not disputed assessee’s purchases from these seven parties in entirety. The sole issue that arose during the course of assessment was about reconciliation of the correct purchases figures resulting in corresponding addition of Rs.21,74,099/-, Rs.1,60,04,362/-, Rs.8,84,703/-, Rs.30,62,074/-, Rs.27,50,429/-, 48,83,536/- and Rs.21,32,868/-. (partywise) respectively.
M/s J.Parui & Brothers A.Y.2010-11 2
3. Both the Learned representatives are ad idem during the course of hearing in taking us to the lower appellate findings making it evident that the CIT(A) had in fact called for a remand report from the Assessing Officer. The assessee’s case therein was that it had made all of its purchases from M/s. Synergy (I)Marketing Pvt. Ltd but it had by mistake incorporated some of the purchase claim against another party M/s. Mahesh Edible Oil India Ltd.. So was its plea regarding the second entity M/s. L Oreal India Pvt. Ltd as well wherein it successfully got confirmed purchases of Rs.1,60,04,362/- to the extent of Rs.1,59,50,271/-. We deal with these two parties on test check basis only since involving major purchase amounts as compared to the above other entities. The Assessing Officer issued section 133(6) process to M/s Mahesh Edible Oils (I)Ltd which remained unresponded. He therefore submitted his remand report dated 22.01.2016 to this effect. It is in this backdrop of facts that the CIT(A) has upheld Assessing Officer’s action inter alia disallowing/adding the differential amount of purchases in all parties’ cases mainly for the reason that the same stood unverified in remand proceedings as well.
We have given our thoughtful consideration to the rival submissions against and in support of the impugned addition. Suffice to say, the fact remains that the asessee has reconciled almost its entire purchases in case of the former two main suppliers M/s. Synergy (I)Marketing Pvt. Ltd and M/s L’Oreal India Pvt. Ltd involving sums of Rs.21,74,099/- and 1,60,04,362/-(latter figure to the extent of Rs.1,59,50,271/-) during the course of remand proceedings. The CIT(A) ‘s order rejecting its corresponding arguments therefore does not deserve to be concurred with on this count alone since the said difference nowhere existed. He appears to have taken note of its purchases claim regarding M/s. Mahesh Edible Oils Ltd which was apparently an incorrect one in view of the above reconciliation. Be that as it may, it is essentially an issue of reconciliation of purchase figures between assessee and its above suppliers. We therefore deem it appropriate that larger interest of justice would be met in case the Assessing Officer re-examines the entire issue afresh by granting one more innings to the assessee in consequential proceedings. We order accordingly.
M/s J.Parui & Brothers A.Y.2010-11 3
This assessee’s appeal is accepted for statistical purposes.
Order pronounced in the Court on 24.08.2018.
Sd/- Sd/- [Dr.A.L.Saini ] [ S.S.Godara ] Accountant Member Judicial Member Dated : 24.08.2018. [RG Sr.PS] Copy of the order forwarded to:
1.M/s J.Parui & Brothers, Amtala, P.O.Kanyanagar, 24, Parganas South, Pin : 743398.
I.T.O., Ward-26(1), Kolkata.
C.I.T.(A)-7, Kolkata 4. C.I.T-9, Kolkata