Income Tax Appellate Tribunal - Kolkata
Steel World(P)Ltd, Kolkata vs Department Of Income Tax on 25 August, 2014
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IN THE INCOME TAX APP ELLATE TRIBUNAL,
KOLKATA 'B' BENCH, KOLKATA
Before Shri Shamim Yahya (Accountant Member),
and Shri George Mathan (Judicial Member)
I.T.A. No. 1056/KOL/ 201 2
Assessment year : 200 8-2009
Income Tax Office r,.......................................................... ......Appellant
Wa rd-3(2), Kolkata ,
8/2, Esplanade East,
Dwarli House , Ground Floor,
Kolkata-700 069
-Vs.-
M/s. Steel World (P) Ltd.,......................... ................... ...... ....Respondent
5/1, Clive Row, 1 s t Fl oor, Room No. 25,
Kolkata-700 001
[PAN : A AGCS 0697 A]
Appearances by:
Shri P.B. Pramanick, JCIT, Sr. D.R., fo r the Department
Shri Jai Narayan Gupta , FCA, for the assessee
Date of co ncluding the hearing : August 25, 2014
Date of pronouncing the orde r : August 25, 2014
O R D E R
Per George Mathan:
This is an appeal filed by the Revenue against the order of ld. Commissioner of Income Tax (Appeals)-I, Kol kata in A ppeal No. 838/CIT(A)-I/3(2)/11-12 dated 11.04.2012 for the assessment year 2008-09.
2. Shri P.B. Pramanick, JCIT, S r. D.R., represented on behalf of the Revenue and Shri Jai Narayan Gupta, FCA, represented on behalf of the assessee.
3. In the Revenue's appeal , Revenue has raised the following grounds:-
(1) On the facts and in the circumstances of the case the ld.
CIT(A) was erred in deleting Rs.1,73,0 74/- on account of disallowance of 'Mathadi expenses'.
I .T.A . N o . 1 0 5 6/ KO L . / 2 0 1 2 A s s es s m en t ye ar : 2 0 0 8 - 2 0 0 9 Page 2 of 4 (2) On the facts and in the circumstances of the case, the ld. CIT(A) was erred in deleting Rs.35,70 ,442/- o n account of unpaid VAT in violation of Rule 4 6A.
4. In regard to Ground No. 1, It was submitted by the ld. D.R. that the issue was against the action of the ld. CIT(Appeals) in deleting the disallowance made by the Assessing Officer representing the expenses being Mathadi expenses. Ld. D.R. submitted that the assessee had not explained the nature of the Mathadi expenses. He vehementl y supported the order of the Assessing Officer.
5. In reply, l d. A.R. drew our attention to page 2, para 9 of the order of ld. CIT(Appeals). It was the submission that the Mathadi expenses were of the payments made by Account Payee Cheques to the Mathadi Labour Board, Maharashtra, which is a statutory body looking after labour charges payable to labourers. It was the submission that the ld. CIT(A ppeals) after verifying all the details had allowed the claim of the assessee.
6. We have considered the rival submissions. A perusal of the para 9 of the order of ld. CIT(Appeals) shows that the assessee has produced all the details in connection with the Mathadi expenses. It is noticed that the ld. CIT(Appeals) has taken into consideration the certificate issued by the ITO (TDS ), Mumbai as also the details of the payments made to the Mathadi Labour Board before deleting the addition. As the Revenue has not been able to dislodge the finding as arrived at by the ld. CIT(A ppeals) on the evidences as has been specifically recorded by the l d. CIT(A ppeals), we are of the view that the finding of the ld. CIT(Appeals) on this issue is on the right footing and does not call for any interference. Consequently Ground No. 1 of the Revenue's appeal stands dismissed.
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7. In respect of Ground No. 2, it was submitted by the ld. Sr. D.R. that the issue was against the action of the ld. CIT(A ppeals) in deleting the addition made on account of the unpaid VAT in violation of the provisions of Rule 46A. It was the submission that the challans in respect of the payments of the unpaid VAT were fresh evidences produced before the ld. CIT(A ppeals). It was the submission that the issue may be restored to the file of the Assessing Officer for verification of the challans.
8. To this submission, Ld. A.R. did not raise any objection.
9. We have considered the submissions. As it is noticed that the challans in respect of the VAT payments had not been produced before the Assessing Officer, this issue is restored to the file of the Assessing Officer for re-adjudication. The Assessing Officer shall verify the challans that were produced by the assessee and if it is found that the payments had been made before the due date of filing of the return in view of the proviso to section 43B of the Act, payment of the VAT before the due date of filing of the return is to be allowed. Consequently this issue is restored to the file of the Assessing Officer for re-adjudication after granting the assessee adequate opportunity to substantiate its claim. In these circumstances, Ground No. 2 of the Revenue's appeal is allowed for statistical purposes.
10. In the result, the appeal of the Revenue is partly al lowed for statistical purposes.
Order pronounced in the open Court on 25 t h August, 2014.
Sd/- Sd/-
Shamim Yahya George M athan
(Accountant Member) (Judicial Member)
Kolkata, the 25 t h day of Augus t, 2014
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Copies to : (1) Income Tax Office r,
Wa rd-3(2), Kolkata ,
8/2, Esplanade East,
Dwarli House , Ground Floor,
Kolkata-700 069
(2) M/s. Steel World (P) Ltd.,
5/1, Clive Row, 1 s t Fl oor, Room No. 25,
Kolkata-700 001
(3) Commissioner of Inco me-tax (Appeals) (4) Commis sioner of Income Tax (5) The Departmental Representative (6) Guard File By order Assistant Registrar Income Tax Appellate Tribunal Kolkata benches, Ko lkata
--Laha/Sr. P.S.