Calcutta High Court
Jkm Investment Pvt. Ltd vs Deputy Commissioner Of Income Tax on 9 April, 2019
Author: I. P. Mukerji
Bench: I. P. Mukerji, Md. Nizamuddin
OD - 7
ORDER SHEET
ITA 43 of 2019
GA 834 of 2019
IN THE HIGH COURT AT CALCUTTA
Special Jurisdiction (Income Tax)
ORIGINAL SIDE
JKM INVESTMENT PVT. LTD.
Versus
DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 12, KOLKATA
BEFORE:
The Hon'ble JUSTICE I. P. MUKERJI
The Hon'ble JUSTICE MD. NIZAMUDDIN
Date : 9th April, 2019.
Appearance:
Mr. Anil Dugar, Adv.
Mr. R. Chatterjee, Adv.
For the petitioner
Mr. S. N. Dutta, Adv.
Mr. A. Bhowmick, Adv.
For the respondent
The Court : This is an order, more out of mercy towards the assessee. The amount of expenditure involved is Rs.55,27,558/-. This was claimed as allowable by the assessee apparently on the basis of the ledger recording, alleged payment by cheques etc. The Commissioner (Appeals) by his order dated 30th November, 2012 had allowed the expenses, reversing the finding in the assessment made by the Assessing Officer. The tribunal in its judgment and order dated 19th January, 2018 set aside this order of the Commissioner (Appeals) holding that without supporting documents, this head of expense ought not to have been allowed.
Learned Counsel appearing on behalf of the appellant submits that his client's accounts are audited, payments were made by cheque and duly debited out of the assessee's accounts and credited to the account of various persons. The expenditure was being claimed in respect of payments to those persons. The assessee would be able to show from invoices, bills, receipts, audited accounts, 2 bank statements etc. and other documents that this expenditure was made and allowable.
On hearing learned Counsel for the parties, it appears that this sum of Rs.55,27,558/- was paid by the assessee from its account. But for whatever reasons, they had produced only the ledger before the tribunal in proof of such payment, which was not accepted by it.
We give a chance to the appellant to prove its case. But we make it clear that they have to establish this case before the tribunal in a summary manner from the disclosed documents. There is no scope of any long drawn procedure of producing further documents adducing oral and documentary documents etc. If on the basis of the available evidence, the tribunal is able to convince itself that the above expense was actually incurred by the assessee and allowable, it will pass an appropriate order. Otherwise, it will simply re-affirm its order dated 19th January, 2018.
We set aside the order of the tribunal dated 19th January, 2018 with respect to this issue only. The tribunal will determine the issue upon hearing the parties within six months of communication of this order.
This appeal (ITA No. 43 of 2019) under Section 260A of the Income Tax Act, 1961 and the application (GA No. 834 of 2019) are disposed of.
(I. P. MUKERJI, J.) (MD. NIZAMUDDIN, J.) A Dey