The Jagroan Cooperative Sugar Mills Ltd., Ludhiana V. DCIT, Moga

ITA 1068/CHANDI/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73554 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 18-03-2014
• Assessment Year: 2002-2003
• Appeal Filed On: 23-10-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE SHRI T.R. SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.1068/CHD/2012 ASSESSMENT YEAR: 2002-03 THE JAGRAON COOPERATIVE SUGAR MILLS VS. THE DCIT, LTD, FEROZEPUR ROAD, CIRCLE MOGA, MORGA DISTRICT LUDHIANA PAN NO. AAAAT0626J (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.R. SHARMA RESPONDENT BY : SHRI MANJIT SINGH DATE OF HEARING : 18/03/2014 DATE OF PRONOUNCEMENT : 24.03.2014 ORDER PER T.R.SOOD, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 13.08.2012 OF CIT (APPEALS)-II, LUDHIANA. 2. IN THIS APPEAL THE ASSESSEE HAS RAISED THE FOLL OWING GROUNDS:- 1. THAT THE ORDER OF THE ASSESSING OFFICER AS UPHEL D BY THE CIT(A) LUDHIANA IS BAD IN LAW AND IS BEYOND ALL THE CANNONS OF LAW AND JUSTICE. 2. THAT THE ORDER OF THE ASSESSING OFFICER AS UPHEL D BY THE CIT(A) LUDHIANA MAKING AN ADDITION OF RS. 19,32,03, 000/- BEING THE AMOUNT OF RDF LOAN GRANTED TO THE APPELLA NT DURING THE YEARS 1991-92 TO 2001-02 CONVERTED INTO GRANTS IN AID IN THE YEAR UNDER APPEAL IS BAD IN LAW AND IS AGAINST THE JUDICIAL DECISIONS IN THIS BEHALF. 2 3. AFTER HEARING BOTH THE PARTIES WE FIND THAT DURI NG ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER NOTICED THAT ASSESSEE HAS RE CEIVED A SUM OF RS. 19.32 CORES FROM PUNJAB GOVERNMENT AS GRANT IN AID. ACCO RDING TO ASSESSING OFFICER THIS GRANT IN AID WAS GIVEN WITH A VIEW TO CONVERTI NG THE NET WORTH OF THE MILLS FROM NEGATIVE TO POSITIVE AND NOT FOR STARTING ANY NEW OR ADDITIONAL UNIT OR BRING ANY NEW MACHINERY. THEREFORE, THIS GRAIN IN AID WAS OF REVENUE IN NATURE. ACCORDINGLY, THE SAME WAS ADDED TO THE INCOME OF TH E ASSESSEE. 4. ON APPEAL, THE LD. CIT(A) CONFIRMED THE ADDITION BY OBSERVING THAT IN SIMILAR CIRCUMSTANCES SUCH GRANT WAS HELD TO BE IN THE NATURE OF REVENUE RECEIPT IN THE CASE OF GURDADPUR CO-OPERATIVE SUGAR MILLS V S. DCIT (ITAT, AMRITSAR) 3 ITR (TRIB) 101. 5. BEFORE US LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT ISSUE IS COVERED AGAINST THE ASSESSEE BY THE DECISION OF THE TRIBUNA L. HOWEVER, THE ASSESSEE HAS FILED AN APPLICATION IN FORM NO. 8 FOR KEEPING THIS ISSUE PENDING TILL THE OUTCOME OF HON'BLE JURISDICTIONAL HIGH COURT AND N ECESSARY DIRECTIONS MAY BE ISSUED. 6. ON THE OTHER HAND, THE LD. DR SUPPORTED THE IMPU GNED ORDER AND ALSO FILED COPY OF NO OBJECTION LETTER FROM THE OFFICE O F DCIT, CIRCLE MOGA VIDE LETTER DATED 15.10.2013. 7. AFTER CONSIDERING THE RIVAL SUBMISSIONS WE FIND THAT THE ISSUE RAISED BEFORE US IS SQUARELY COVERED AGAINST THE ASSESSEE BY THE DECISION OF THE AMRITSAR BENCH OF THE TRIBUNAL IN THE CASE OF GURDA SPUR CO-OPERATIVE SUGAR MILLS V DCIT (SUPRA) AND THEREFORE, WE DECIDE THIS ISSUE AGAINST THE ASSESSEE. HOWEVER, SINCE THE ASSESSEE HAS FILED APPLICATION I N FORM NO. 8 PURSUANT TO SECTION 158A TO KEEP THE MATTER PENDING, THEREFORE, WE DIRECT THE ASSESSING 3 OFFICER TO KEEP THE LITIGATION IN THIS CASE PENDING TILL THE OUTCOME OF DECISION OF HON'BLE JURISDICTIONAL HIGH COURT. 8. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 24.03.2 014. SD/- SD/- (SUSHMA CHOWLA) (T.R.SOOD) JUDICIAL MEMBER ACCOUNTANT MEMER DATED : 24 TH MARCH, 2014 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR