Income Tax Appellate Tribunal - Kolkata
Manna Bricks Manufacturing & Trading ... vs Jcit, Range-2, Midnapore, Midnapore on 17 November, 2017
1
SA No.120/Kol/2017
Manna Bricks Mfg. & Trading Pvt. Ltd., AY 2010-11
आयकर अपील
य अधीकरण, यायपीठ - "B" कोलकाता,
IN THE INCOME TAX APPELLATE TRIBUNAL "B" BENCH: KOLKATA
(सम ) ी ऐ. ट
. वक , यायीक सद य एवं डॉ. अजन
ु$ लाल सैनी, लेखा सद य)
[Before Shri A. T. Varkey, JM & Dr. A. L. Saini, AM]
S.A. No.120/Kol/2017
In I.T.A. No. 389/Kol/2017
Assessment Year: 2010-11
Manna Bricks Manufacturing & Vs. Joint Commissioner of Income-tax,
Trading Pvt. Ltd. Range-2, Midnapore.
(PAN:AAECM9769R)
Applicant Respondent
Date of Hearing 17.11.2017
Date of Pronouncement 17.11.2017
For the Applicant Shri Anikesh Banerjee, Advocate &
Mrs. Saswati Mitra, Advocate
For the Respondent Shri Arindam Bhattacharjee, Addl.
CIT, DR
ORDER
Per Shri A.T.Varkey, JM
This is a stay application preferred by the assessee/applicant for stay of operation of the order of Ld. CIT(A)-11, Kolkata dated 27.12.2016 for AY 2010-11.
2. We have heard rival submissions and gone through the facts and circumstances of the case. It was brought to our notice that the total demand of tax is Rs.35,19,873/- excluding surcharge, interest, cess etc., if all these are included then the total demand comes to Rs.53,26,780/-, out of which the assessee has already remitted an amount of Rs.25,61,855/- and the amount outstanding is only Rs.27,64,925/-. According to the assessee, the major additions have been made on three counts i.e. difference in closing stock i.e. difference in closing stock found in Balance sheet vis-à-vis closing stock furnished by the assessee to the bank which comes to the tune of Rs.37 lacs. Another major addition is basically Rs. 65 lacs, which additional expenses have been incurred in this year because the assessee previously was only into brick business but in this year, the assessee has started 2 SA No.120/Kol/2017 Manna Bricks Mfg. & Trading Pvt. Ltd., AY 2010-11 manufacturing unit of bricks thereby incurring an extra expenses in respect to additional work force of labour to the tune of Rs.65 lacs. This fact has not been appreciated by the AO, therefore, this expense was disallowed and thereby addition was made. Other than that the share capital of Rs. 6 lacs has not been accepted and the same has been added u/s. 68 of the Income-tax Act, 1961. It was brought to our notice that the shares were issued to closely related persons like father, mother, brother etc. So, major additions are only on these three counts and since the assessee has already remitted Rs.25,61,855/- which is more than 80% of the total tax demand of Rs.35,19,873/- and even if the total demand of Rs.53,26,780/- is taken, then also the assessee has remitted approximately 50%. We note that the assessee has made a prima facie case and balance of convenience is in favour of the assessee. We also direct the AO to release the bank account maintained by the assessee with ICICI Bank forthwith. In the light of the aforesaid discussion, we are inclined to grant stay of the balance outstanding amount for six months or till the disposal of the appeal, whichever is earlier with the condition that the assessee would not seek adjournment without just cause. Let the appeal of assessee be listed out of turn on 21.12.2017.
5. In the result, the stay application of assessee is allowed in the aforesaid terms.
Order is pronounced in the open court.
Sd/- Sd/-
(Dr. A. L. Sani) (Aby. T. Varkey)
Accountant Member Judicial Member
Dated :17th November, 2017
Jd.(Sr.P.S.)
Copy of the order forwarded to:
1. Appellant - Manna Bricks Manufacturing & Trading Pvt. Ltd., Vill.
Sheulipur, P.O. Mohar, Dist. Midnapore(W), West Bengal, Pin-721161 2 Respondent - JCIT, Range-2, Midnapore
3. The CIT(A), Kolkata
4. CIT , Kolkata
5. DR, Kolkata Benches, Kolkata /True Copy, By order, Sr. Pvt. Secretary