ACIT, Jaipur V. MAHESH CHAND GUPTA, Jaipur

ITA 1106/JPR/2010

• Counselvise Citation: 110623114 RSA 2010
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 02-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MADHUKAR GARG
• Section: 2

Judgement Text

1 ITA 1106(2)-10 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 1106/JP/2010 ASSTT. YEAR : 2007-08. THE ACIT, CIRCLE-5, VS. SHRI MAHESH CHAND GUPTA, JAIPUR. PROP. M/S. RAJASTHAN SMALL SCALE COTTAGE INDUSTRIES, 1 JAGAT SIROMANI ROAD, AMER ROAD, JAIPUR. (APPELLANT) (RESPONDENT) C.O.NO. 103/JP/2010 ( ARISING OUT OF ITA NO. 1106//JP/2010 ) ASSTT. YEAR : 2007-08. SHRI MAHESH CHAND GUPTA, VS. THE ACIT, CIRCLE-5, JAIPUR. JAIPUR. (CROSS OBJECTOR) (RESPONDENT) APPELLANT BY : SHRI SANJAY KUMAR RESPONDENT BY : SHRI MADHUKAR GARG ORDER DATE OF ORDER : 10/06/2011. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY DEPARTMENT AND A CROSS OBJECT ION BY ASSESSEE AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 20 07-08. 2. THE DEPARTMENT IN ITS APPEAL IS OBJECTING IN DEL ETING THE TRADING ADDITION OF RS. 38,31,208/- AND RESTRICTING ADDITION OF RS. 50,000/ - AGAINST ADDITION OF RS. 19,40,430/- MADE BY AO BY DISALLOWING OUT OF COMMISSION EXPENSE S. 2 3. THE LD. D/R FAIRLY STATED THAT BOTH THE ISSUES A RE COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER OF TRIBUNAL FOR EARLIER YEARS. HOWEVER , HE PLACED RELIANCE ON THE ORDER OF AO. 4. ON THE OTHER HAND, THE LD. COUNSEL OF THE ASSESS EE HAS FILED ORDER OF TRIBUNAL FROM ASSESSMENT YEARS 2002-03 TO 2006-07. 5. AFTER CONSIDERING THE ORDERS OF THE AO AND LD. C IT (A) AND THE ORDERS OF THE TRIBUNAL, WE FIND THAT BOTH THE ISSUES ARE COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER OF TRIBUNAL FOR EARLIER YEARS. ON IDENTICAL FACTS THE ADDITION WAS MADE FOR ASSESSMENT YEARS 2002-03 TO 2004-05. IN EARLIER YEARS THE G.P. RATE OF 37% IN RSSCI AND 54% IN RSSCI EXPORT WAS APPLIED BY THE AO WHICH WAS SUSTAINED BY THE LD. CIT (A). HOWEVER, THE TRIBUNAL VIDE ITS ORDER IN ITA NOS. 1014 TO1016/JP/ VIDE ORDER DATED 13.8.2008 ALLOWED THE ISSUE IN FAVOUR OF THE ASSESSEE. SIMILARLY DIS ALLOWANCE OF COMMISSION EXPENSES OF RS. 9,77,857/- WAS MADE AND THE TRIBUNAL SUSTAINED THE ADDITION OF RS. 50,000/-. FOR A.Y. 2005-06 ALSO THE TRADING ADDITION WAS DELETED BY THE TRIBUNAL AND COMMISSION INCOME WAS RESTRICTED TO A SUM OF RS.50,000/-. THI S ORDER WAS PASSED BY TRIBUNAL IN ITA NO. 21/JP/2009 VIDE ORDER DATED 23.10.2009. FOLLOW ING THE ORDER FOR EARLIER YEAR, THE TRIBUNAL WHILE DECIDING THE APPEAL FOR ASSESSMENT Y EAR 2006-07 IN ITA NO.139/JP/2010 VIDE ITS ORDER DATED 4.4.2011 CONFIRMED THE DELETIO N OF TRADING ADDITION AND ALSO SUSTENANCE OF COMMISSION, DISALLOWANCE AT RS. 50,00 0/-. FACTS AND CIRCUMSTANCES ARE SIMILAR FOR THE YEAR UNDER CONSIDERATION, THEREFORE , IN VIEW OF THE CONSISTENCY AND IN VIEW OF THE DECISION OF THE TRIBUNAL IN CASE OF ASSESSEE ITSELF, WE CONFIRM THE ORDER OF LD. CIT (A) IN BOTH THE ISSUES AS THE SAME HAS BEEN DECIDED BY LD. CIT (A) FOLLOWING THE ORDER OF THE TRIBUNAL FOR EARLIER YEARS. 3 6. CROSS OBJECTION FILED BY ASSESSEE WAS NOT PRESSE D. THEREFORE, THE SAME IS DISMISSED AS NOT PRESSED. 7. IN THE RESULT, APPEAL OF THE DEPARTMENT AND CROS S OBJECTION OF THE ASSESSEE ARE DISMISSED. 8. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 10. 6.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- COPY FORWARDED TO :- THE ACIT, CIRCLE-5, JAIPUR. SHRI MAHESH CHAND GUPTA, JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 1106(2)/JP/2010) BY ORDER, AR ITAT JAIPUR.