The DCIT, (OSD)-1, Circle-4, Ahmedabad V. M.H.Mills & Industries Ltd., Ahmedabad

ITA 128/AHD/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 9011 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 09-03-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 13-01-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH AHMEDABAD BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER, AND SHRI S. S. GODARA, JUDICIAL MEMBER. ITA NO.128/AHD/2014 (ASSESSMENT YEAR:2009-10) THE DCIT (OSD)-I, CIRCLE-4, AHMEDABAD. NAVJIVAN TRUST BLDG., OFF. ASHRAM ROAD, AHMEDABAD APPELLANT VS. M. H. MILLS & INDUSTRIES LTD. SARASPUR ROAD, SARASPUR, AHMEDABD RESPONDENT PAN: AAACM9900G /BY REVENUE : SHRI JAMES KURIAN, SR. D.R. /BY ASSESSEE : SHRI SUNIL TALATI, A.R. /DATE OF HEARING : 09.03.2017 /DATE OF PRONOUNCEMENT : 15.03.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2009-10 A RISES AGAINST THE CIT(A)-VIII, AHMEDABADS ORDER DATED 29.10.2013, IN APPEAL NO. CIT(A)- VIII/ACIT/R.4/308/11-12, DELETING ELECTRICITY EXPE NSES DISALLOWANCES OF RS.8,98,16,451/- OUT OF GROSS EXPENSES DISALLOWANCE OF RS.1,24,09,291/- ITA NO. 128/AHD/2014 (DCIT (OSD) VS. M. H. MILLS & INDUSTRIES LTD.) A.Y. 2009-10 - 2 - MADE BY THE ASSESSING OFFICER @10% OF THE TOTAL EXP ENSES CLAIM OF RS.12,40,92,917/- IN ASSESSMENT ORDER DATED 12.12.2 011, IN PROCEEDINGS U/S.143(3) OF THE INCOME TAX ACT, 1961; IN SHORT T HE ACT. 2. FACTS OF THE CASE ARE IN A VERY NARROW COMPASS. THIS ASSESSEE COMPANY IS STATED TO BE MANUFACTURING AND TRADING I N CLOTHS. THE ASSESSING OFFICER NOTICED IT TO HAVE CLAIMED VARIOUS EXPENSES OF RS.12,40,92,917/- UNDER DIFFERENT HEADS OF INSURANCE, RATE AND TAXES, GENERAL EXPENSES, INTEREST EXPENSES ALONGWITH POWER AND FUEL EXPENSES. HE FRA MED A REGULAR ASSESSMENT ON 12.12.2011 DISALLOWING 10% THEREOF CO MING TO RS.1,24,09,291/- FOR WANT OF ASSESSEES SUPPORTIVE EVIDENCE IN ORDER TO VERIFY THE SAME. 3. WE NOW COME TO THE LOWER APPELLATE FINDINGS. TH E CIT(A) REVERSES ASSESSING OFFICERS ACTION ONLY TO THE TUNE OF DISA LLOWANCE OF ELECTRICITY EXPENSES PAID TO AHMEDABAD ELECTRICITY CO. OR TORRE NT POWER LTD. TOTALING TO RS.8,98,60,451/-. HE TAKES DUE NOTE OF ASSESSEES LEDGER ACCOUNT IN ORDER TO PROVING GENUINENESS OF THE CLAIM. THIS LEAVES THE REVENUE AGGRIEVED. 4. WE HAVE HEARD BOTH THE PARTIES. RELEVANT FINDIN GS PERUSED. THE REVENUES SOLE SUBSTANTIVE ARGUMENT SEEKS TO RESTOR E ASSESSING OFFICERS ACTION DISALLOWING ELECTRICITY EXPENSES OF THE RELE VANT PREVIOUS YEAR AMOUNTING TO RS.8,98,16,451/-. THE ASSESSEE HAS DU LY FILED ITS PAPER BOOK ALL THE RELEVANT LEDGER ACCOUNT OF THE IMPUGNED ELECTRI CITY EXPENDITURE BEFORE US. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUT E CORRECTNESS THEREOF IN THE COURSE OF HEARING. THERE IS NO QUARREL BETWEEN THE PARTIES SO FAR AS GENUINENESS OF THIS HEAD OF EXPENDITURE IS CONCERNE D. WE OBSERVE IN THESE FACTS THAT THE CIT(A) HAS RIGHTLY REVERSE ASSESSING OFFICERS ACTION PERTAINING TO THE ABOVE ELECTRICITY BILL PAYMENTS IN QUESTION AS DISALLOWED IN THE COURSE ITA NO. 128/AHD/2014 (DCIT (OSD) VS. M. H. MILLS & INDUSTRIES LTD.) A.Y. 2009-10 - 3 - OF ASSESSMENT AT AN ADHOC RATE OF 10%. THE REVENU ES SOLE SUBSTANTIVE GROUND IS ACCORDINGLY DECLINED. 5. THIS REVENUES APPEAL IS DISMISSED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 15 TH DAY OF MARCH, 2017.] SD/- SD/- ( PRAMOD KUMAR ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL ME MBER AHMEDABAD: DATED 15/03/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 / GUARD FILE. BY ORDER / . // . /0