The Incomet-ax Officer, Srinagar V. Ghulam Mohd. Bhat, Sole Proprietor of, Srinagar (J&K)

CO 29/ASR/2013

• Counselvise Citation: [2013] 122 COUNSELVISE.COM (IT) 9151 (ITAT-AMRITSAR)
• Duration Of Justice: 7 month(s) 14 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 30-12-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 18-03-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 16-05-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMRIK CHAND
• Section: 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P. JAIN, ACCOUNTANT MEMBER C.O. NO. 29(ASR)/2013 [IN I.T.A. NO. 185(ASR)/2013] ASSESSMENT YEAR: 2009-10 PAN: AFAPB6386F GULAM MOHD. BHATT, VS. INCOME TAX OFFICER, PROP. OF M/S ROYAL WARD NO. 3(1), SRINAGAR ENTERPRISES & EVERGREEN TRADERS, BUCHPORA, SRINAGAR, J&K (APPELLANT) (RESPONDENT) APPELLANT BY: NONE RESPONDENT BY: SH. AMRIK CHAND, DR DATE OF HEARING: 30.12.2013 DATE OF PRONOUNCEMENT: 30.12.2013 ORDER PER BENCH 1. THE ASSESSEE HAS FILED THE PRESENT CROSS OBJECTIO N IN I.T.A. NO. 185(ASR)/2013 BY TAKING THE FOLLOWING GROUNDS: I. THAT NO SUBSTANTIAL PROFIT HAS BEEN CLAIMED AS DEDU CTION UNDER SECTION 80IB OF THE INCOME TAX ACT, 1961 IN THE INI TIAL YEARS OF OPERATION. II. THAT ENTIRE BUSINESS CONSISTS OF TWO TYPES OF ACTIV ITIES, I.E. MANUFACTURING AND TRADING, AS THE ASSESSEE WAS NOT ENTITLED TO ANY CLAIM UNDER SECTION 80IB, FOR LAST SO MANY YEARS HE NCE NOT CLAIMED. 2 III. THAT THE PROPER BOOKS OF ACCOUNT HAVE BEEN MAINTAIN ED AND AUDITED UNDER SECTION 44AB OF THE INCOME TAX ACT, 1 961 IV. THAT THE LEARNED A.O. DID NOT MAKE ANY DIFFERENCE B ETWEEN A FRESH TRADING BUSINESS STARTED DURING THE YEAR NAMELY M/S EVER GREEN TRADERS WITH A VERY LOW PROFIT MARGIN AND M/S ROYAL ENTERPRISES, A MORE THAN DECADE OLD MANUFACTURING BUSINESS. V. THAT THE LEARNED CIT APPEALS HAS RIGHTLY ALLOWED TH E APPEAL AND REDUCED THE INCOME TO 1% OF THE TURNOVER. 2. NOTICE OF HEARING WAS ISSUED TO THE ASSESSEE FOR TODAY I.E. 30.12.2013 BUT IN RESPONSE TO THE SAME, THE ASSESSE E REQUESTED FOR ADJOURNMENT. 3. KEEPING IN VIEW THE FACTS AND CIRCUMSTANCES OF T HE PRESENT CASE, WE ARE OF THE VIEW THAT THE MAIN APPEAL I.E. I.T.A. NO. 185(ASR)/2013 FILED BY THE REVENUE AGAINST THE ORDE R DATED 31.01.2013 PASSED BY LEARNED CIT(A), JAMMU, FOR THE ASSESSMENT YEAR 2009-10, HAS ALREADY BEEN DISMISSED ON 02.09.2013 BEING DEFECTIV E WITH THE LIBERTY TO THE REVENUE TO FILE AN APPLICATION FOR RECALLING OF THIS ORDER, IF SO ADVISED, BUT ONLY AFTER RECTIFYING THE DEFECT AS PO INTED OUT BY THE REGISTRY IN THE DEFECT MEMO. MEANING THEREBY, THE MAIN APPEA L I.E. I.T.A. NO. 185(ASR)/2013 FILED BY THE REVENUE AGAINST THE ORDE R DATED 31.01.2013 PASSED BY LEARNED CIT(A), JAMMU, FOR THE ASSESSMENT YEAR IN DISPUTE, IS IN NON-EXISTENCE. THEREFORE, THE PRESENT CROSS OBJE CTION IS NOT MAINTAINABLE. ACCORDINGLY, THE SAME IS DISMISSED WI TH LIBERTY TO THE 3 ASSESSEE THAT IF THE REVENUE FILES AN APPLICATION F OR RECALLING THE ORDER DATED 02.09.2013 PASSED BY THIS BENCH, WHEREBY THE MAIN APPEAL WAS DISMISSED BEING DEFECTIVE, AND IF THIS BENCH RECALL S THE ORDER DATED 02.09.2013, THEN THE ASSESSEE IS ALSO AT LIBERTY TO FILE AN APPLICATION FOR RECALLING OF THIS ORDER AND THE APPEAL FILED BY THE REVENUE AS WELL AS THE CROSS OBJECTION WILL BE HEARD TOGETHER UNDER THE LA W, AFTER AFFORDING ADEQUATE OPPORTUNITY TO BOTH THE PARTIES. 4. WITH THE AFORESAID DISCUSSING, THE PRESENT CROSS OBJECTION IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH DECEMBER, 2013 SD/./- SD/./- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 30 TH DECEMBER, 2013 /RK/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: GULAM MOHD. BHATT, PROP. OF M/S ROYA L ENTERPRISES & EVERGREEN TRADERS, BUCHPORA, SRINAGAR, J&K 2. INCOME TAX OFFICER, WARD NO. 3(1), SRINAGAR 3. THE CIT(A), 4. THE CIT, 5. THE SR DR, I.T.A.T., TRUE COPY BY ORDER 4 (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.