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Income Tax Appellate Tribunal, BENCH ‘C’ KOLKATA
Before: Hon’ble Shri J.Sudhakar Reddy, AM & Shri S.S.Viswanethra Ravi, JM ]
ORDER
PER J.SUDHAKAR REDDY, AM:
This is an appeal by the Revenue directed against the order of the Commissioner of Income Tax-(A)-XXIV, Kolkata relating to A.Y. 2005-06 on the following grounds : : 1) "That under the facts and circumstances of the case, the Ld. CIT(Appeals)- XXIV, Kolkata, has erred in law as well as in facts in deleting the loan amount of Rs 35,00,000."
2) "That under the facts and circumstances of the case, the Ld. CIT(Appeals)- XXIV, Kolkata, has erred in law as well as in facts in deleting the interest expenses of Rs.4,23,182 on the loan amount of Rs 35,00,000."
3) "That under the facts and circumstances of the case, the Ld. CIT(Appeals)- XXIV, Kolkata, has erred in law as well as in facts in allowing Miscellaneous expenses of Rs 14,20,176."
& C.O.No.44/Kol/2017 M/s. Bengal Waterproof Ltd. A.Y.2005-06 2 The Assessee has filed the Cross Objection. 2. None appeared on behalf of the assessee despite issue of notice by RPAD. There was no application moved by the assessee for adjournment either. Under the circumstances we dispose of the case ex-parte on merits qua after hearing the ld. Departmental Representative.
Heard the learned Departmental Representative. The ld. CIT(A) in this case granted relief to the assessee of a sum of Rs.35,00,000/- out of an addition of Rs.60,00,000/- made u/s 68 of the Income Tax Act, 1961 (Act). The ld. CIT(A) notes that the AO has not submitted the remand report despite several reminders. He deleted the addition based on original confirmation letters filed by the assessee from Ms. Star Credit Pvt. Ltd., M/s. Raimcom Sales Ltd and M./s. Udit Finance & Leasing Co.Ltd. The balance of the addition was confirmed.
In our view the AO should have been given adequate opportunity to verify this evidence filed by the assessee. Hence we set aside this issue to the file of AO for fresh adjudication in accordance with law. Accordingly ground no.1 raised by the revenue is allowed for statistical purposes.
Ground No.2 raised by the revenue is consequential in nature.
Ground No.3 is on the issue of miscellaneous expenses. The First Appellate Authority in his order restricted the disallowance on the ground that the AO failed to furnish the remand report. We are of the opinion that this issue should also be sent back to the AO for fresh adjudication in accordance with law. In our view, the ld. CIT(A) has not given adequate opportunity to the AO.
In the result ground no.2 raised by the revenue is allowed for statistical purposes.
In the result the appeal of the revenue is allowed for statistical purposes. & C.O.No.44/Kol/2017 M/s. Bengal Waterproof Ltd. A.Y.2005-06 3
The Cross Objection of the assessee is delayed by 1380 days. The assessee filed an application for condonation of delay. After perusing the same we are of the considered view that this is not a fit case for condonation of delay. Hence the delay is not condoned and the Cross Objection filed by the assessee is not admitted.
In the result the Cross Objection filed by the assessee is dismissed.
Order pronounced in the Court on 23.08.2017.
Sd/- Sd/- [S.S.Viswanethra Ravi] [ J.Sudhakar Reddy ] Judicial Member Accountant Member Dated : 23.08.2017. [RG PS] Copy of the order forwarded to: 1.M/s. Bengal Waterproof Ltd., 4th Floor, Duckback House, 41, Shakespeare Sarani, Kolkata-700017. 2. D.C.I.T., Circle-7, Kolkata 3. C.I.T. (A)-XXIV, Kolkata 4. C.I.T.-III, Kolkata. 5. CIT(DR), Kolkata Benches, Kolkata. True Copy By order,
Senior Private Secretary Head of Office/D.D.O, ITAT Kolkata Benches