The DCIT, Circle-1, Ahmedabad V. Akar Laminators Ltd., Ahmedabad

ITA 1313/AHD/2011

• Counselvise Citation: 131320514 RSA 2011
• Duration Of Justice: 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 30-12-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 02-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B L YADAV

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, D BENCH, AHMEDABAD BEFORE SHRI G. C. GUPTA, HONBLE VICE PRESIDENT AND SHRI B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO. 1313/ AHD/2011 (ASSESSMENT YEAR 2007-08) DCIT, CIRCLE 1, AHMEDABAD VS. M/S. AKAR LAMINATORS LTD., 1 ST FLOOR, TRADE CENTRE, OPP. STADIUM BATH, NAVRANGPURA, AHMEDABAD PAN/GIR NO. : AABCA2778H (APPELLANT) .. (RESPONDENT) APPELLANT BY: SHRI B.L. YADAV, SR. DR RESPONDENT BY: NONE DATE OF HEARING: 30.12.2011 DATE OF PRONOUNCEMENT: 19.01.2012 O R D E R PER SHRI G. C. GUPTA, V.P.:- THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) VI, AHMEDABAD DATED 18.03.2011 FOR THE ASSES SMENT YEAR 2007- 08. NONE APPEARED ON BEHALF OF THE ASSESSEE ON THE APPOINTED DATE OF HEARING IN SPITE OF THE NOTICE OF HEARING OF THE CA SE WAS SERVED ON THE ASSESSEE BY THE DEPARTMENT. THE APPEAL OF THE REVE NUE IS BEING DECIDED EX-PARTE QUA THE ASSESSEE RESPONDENT ON MERITS AFTE R HEARING THE LD. D.R. THE GROUNDS OF APPEAL ARE AS UNDER: I.T.A.NO.1313 /AHD/2011 2 THE CIT(A) ERRED IN LAW AND ON FACTS IN RESTRICTIN G THE DISALLOWANCE OUT OF MATERIAL COST TO 10% OF RS.14,7 5,25,978/- INSTEAD OF 20% MADE BY THE A.O., THEREBY ALLOWING T HE ASSESSEE A RELIEF OF RS.1,47,52,597/-. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE A. O. SINCE THE ASSESSEE HAS FAILED TO DISCLOSE HIS TRUE INCOME. 2. THE LD. D.R. OF THE REVENUE SUBMITTED THAT THE L D. CIT(A) HAS ERRED IN RESTRICTING THE DISALLOWANCE OUT OF MATERI AL COST TO 10% INSTEAD OF 20% DISALLOWANCE MADE BY THE A.O. HE SUBMITTED THA T THE ASSESSEE COULD NOT PROVE THE GENUINENESS OF THE EXPENSES CLA IMED BY IT AND, THEREFORE THE DISALLOWANCE MADE @ 20% WAS JUSTIFIED . HE RELIED ON THE ORDER OF THE A.O. 3. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LD. D. R. AND HAVE PERUSED THE ORDER OF THE A.O. AND THE LD. CIT(A). WE FIND THAT THE ASSESSEE IS A LOSS MAKING CONCERN AND THE RETURN OF INCOME WAS FILED DECLARING TOTAL LOSS OF RS.76,48,480/-. THE DISALL OWANCE @ 20% OUT OF THE MATERIAL COST WAS MADE BY THE A.O. AS THE ASSES SEE COULD NOT FILE THE REQUIRED DETAILS RELATING TO PURCHASE OF THE MATERI AL. THE LD. CIT(A) CONSIDERING THE FACT THAT THE ACCOUNTS OF THE ASSES SEE ARE AUDITED AND IN VIEW OF THE FACT THAT NO DISCREPANCY WAS POINTED OU T BY THE AUDITOR, RESTRICTED THE DISALLOWANCE TO 10% OF THESE EXPENSE S AGAINST 20% DISALLOWANCE MADE BY THE A.O. THERE BEING NO MATER IAL BEFORE US TO JUSTIFY TAKING ANY CONTRARY VIEW AND CONSIDERING TH E FACT THAT THE ACCOUNTS OF THE ASSESSEE ARE AUDITED AND NO MAJOR ADVERSE CO MMENT HAS BEEN MADE BY THE AUDITORS AND THE ASSESSEE HAS ALSO MADE PART COMPLIANCE DURING ASSESSMENT PROCEEDINGS BY FILLING DETAILS OF THE EX PENSES PARTLY, WE HOLD I.T.A.NO.1313 /AHD/2011 3 THAT NO INTERFERENCE IN THE ORDER OF LD. CIT(A) IS CALLED FOR WHICH IS ACCORDINGLY CONFIRMED AND THE GROUND OF THE APPEAL OF THE REVENUE IS DISMISSED. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. 5. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE M ENTIONED HEREINABOVE. SD./- SD./- (B.P.JAIN) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT SP COPY OF THE ORDER FORWARDED TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT (APPEALS) BY ORDER 5. THE DR, AHMEDABAD 6. THE GUARD FILE AR,ITAT,AHMEDABAD 1. DATE OF DICTATION 30/12/2011 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER - 02/01/2012. OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S.03/01/12 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 19/01 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S.24/01 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 24/01/2012 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 9. DATE OF DESPATCH OF THE ORDER. ..