M/S ITT SHIPPPING PVT LTD,KOLKATA vs. D.C.I.T CIR - 9,KOLKATA, KOLKATA

ORDER Per Shri Mahavir Singh, JM:

This appeal by assessee is arising out of order of CIT(A)-VIII, Kolkata in Appeal No.95/CIT(A)-VIII/Kol/11-12 dated 22.01.2013. Assessment was framed by DCIT, Circle-9, Kolkata u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for Assessment Year 2009-10 vide his order dated 21.09.2011.

3. We have heard Ld. DR and gone through facts and circumstances of the case. We find that an inspection was made in the premises of M/s. Raju Enterprises, a party of the assessee from where it was found that the assessee’s accounts was debited by a sum of Rs.2,39,948/- i.e. sundry debtor was declared by assessee for this amount. On the contrary, the AO during the course of scrutiny proceeding noted that in the assessee’s accounts the party is shown as creditor to the extent of Rs.10,17,407/-. According to AO, no reply was filed by the assessee. Hence, he made addition of the differential amount. The CIT(A) confirmed the addition because according to him, assessee admitted that the addition can be made on the profit. Aggrieved, now assessee is in appeal before us.

2 ITT Shipping Pvt. Ltd. AY 2009-10 4. We find from the above facts that primarily there is difference in the balance of both the parties. The assessee claimed before the lower authorities that it has taken bill issued by Raju Enterprises in its account and accounted for the same. But that party M/s. Raju Enterprises has not included the same in its accounts. The assessee filed reconciliation before the CIT(A) but was not considered. In view of the above facts, we feel that the issue needs re-examination. Hence, we set aside this issue to the file of AO and allow one more opportunity to the assessee to explain his case. Accordingly, this issue of assessee’s appeal is allowed for statistical purposes.

Sl. No. Name of the Party Account Head Amount for which TDS not deducted 1. RE Engg Works Ship Maintenance Rs. 93,462/- 2. T. Hossain Project (P) Ltd. Ship Repairing Rs. 18,00,000/- 3. Kolkata Port Trust Dry Dock Expenses Rs.18,76,299/- 4. ITTPL CPT Charges Rs. 4,69,965/- Total Rs.25,39,726/- The CIT(A) also confirmed the action of AO despite the fact that the assessee pleaded that in view of the decision of Hon’ble Delhi High Court in the case of CIT Vs. Ansal Land Mark Township (P) Ltd., & 161/2015 dated 26.08.2015, wherein it has been held as under: “No s. 40(a)(ia) disallowance for failure to deduct TDS on payment if payee has offered amount to tax. Second Proviso to s. 40(a)(ia) inserted by Finance Act 2013 w.e.f. 1.4.2013 should be treated as curative and to have retrospective effect from 1.4.2005. ITAT praised for "thorough analysis" of the provision”