The ITO, Ward-3, Gandhinagar V. Shri Omkarsingh H.Rayat, Gandhinagar

ITA 1416/AHD/2005

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60221 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 year(s) 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 14-03-2012
• Assessment Year: 2001-2002
• Appeal Filed On: 13-05-2005
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAHUL KUMAR SRDR
• Assessee Lawyers: M J SHAH

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, A BENCH . .. . . .. . , !'# !'# !'# !'#, , , , $ $ $ $ %&'( %&'( %&'( %&'(, , , , )* + ) )* + ) )* + ) )* + ) # # # # BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA NO.1233/AHD/2005 [ASSTT.YEAR : 2001-2002] OMKARSINGH H. RAYAT PROP. OF OMKAR BODY BUILDERS OMKAR COMPLEX CHANDKHEDA DIST: GANDHINAGAR. /VS. ITO, WARD-3 GANDHINAGAR. ITA NO.1416/AHD/2005 [ASSTT.YEAR : 2001-2002] AND ITA NO.1220/AHD/2006 [ASSTT.YEAR : 2002-2003] ACIT, GNR CIRCLE GANDHINAGAR. /VS. OMKARSINGH H. RAYAT PROP. OF OMKAR BODY BUILDERS OMKAR COMPLEX, CHANDKHEDA DIST: GANDHINAGAR. ( (( (-. -. -. -. / APPELLANT) ( (( (/0-. /0-. /0-. /0-. / RESPONDENT) 1& 2 3 )/ ASSESSEE BY : SHRI M.J. SHAH + 2 3 )/ REVENUE BY : SHRI RAHUL KUMAR, SR.DR 5 2 &(*/ DATE OF HEARING : 14 TH MARCH, 2012 678 2 &(*/ DATE OF PRONOUNCEMENT : 04-04-2012 ITA NO.1233/AHD/2005 -2- )9 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THESE ARE CROSS APPEALS BY THE ASSESSEE AND BY THE REVENUE FOR THE ASSESSMENT YEAR 2001-2002 AND REVENUES APPEAL FOR THE ASSESSMENT Y EAR 2002-2003 DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME TAX (APPEALS). SINCE IDENTICAL ISSUES ARE INVOLVED IN THESE APPEALS, THEY ARE BEING DISPOSED OF WITH THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2. THE GROUNDS RAISED IN THE APPEAL OF ASSESSEE FOR A.Y.2001-2002 ARE AS UNDER: 1. THAT THE LD.CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMING PARTIAL DISALLOWANCE OF INTEREST AMOUNTI NG TO RS.10,83,724/- 2. THAT THE LD.CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS.1,45,000/- MADE BY AO U/S.40A(3) OF THE IT ACT. 3. THAT THE LD.CIT(A) ERRED IN LAW AND ON FACTS IN UPHOLDING THE INTEREST CHARGED U/S.234A OF THE IT ACT, 12961 IN ABSENCE OF ANY SPECIFIC DIRECTION IN THE BODY OF THE ORDER. 4. THAT THE LD.CIT(A) ERRED IN LAW AND ON FACTS IN UPHOLDING THE INTEREST CHARGED BY AO U/S.234B AND U/S.234C OF THE IT ACT. THE GROUNDS RAISED IN THE APPEAL OF THE REVENUE FO R A.Y.2001- 2002 ARE AS UNDER: 1. THE LD.CIT(A) ERRED IN LAW AND ON FACTS OF THE C ASE IN DELETING THE ADDITION OF RS.30,50,000/- MADE U/S.68 OF THE IT ACT. ITA NO.1233/AHD/2005 -3- 2. THE LD.CIT(A) HAS FURTHER ERRED IN LAW AND ON TH E FACTS OF THE CASE IN REDUCING THE DISALLOWANCE OF INTEREST F ROM RS.17,23,344/- TO RS.10,83,724/- THE GROUNDS RAISED IN THE APPEAL OF THE REVENUE FO R A.Y.2002- 2003 ARE AS UNDER: 1. THE LD.CIT(A) ERRED IN LAW AND ON FACTS OF THE C ASE IN DELETING THE ADDITION OF RS.1,24,000/- MADE BY THE AO U/S.68 OF THE IT ACT. 2. THE LD.CIT(A) HAS ERRED IN LAW AND ON THE FACTS OF THE CASE IN DELETING THE ADDITION OF RS.6,87,000/- MADE BY THE AO AS VALUE OF SALE OF CLOSING STOCK. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE AO. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THESE ARE OLD APPEALS FOR THE YEAR 2005 AND 2006 BY THE ASSES SEE AND THE REVENUE AND DEPEND UPON THE CRIMINAL LITIGATION IN THE COURTS OF LAW GOING ON AGAINST SOME OFFICIALS OF THE BANKERS TO T HE ASSESSEE. HE SUBMITTED THAT THE ASSESSEE HAS NO OBJECTION IF THE GROUNDS OF APPEAL OF THE ASSESSEE AND THE REVENUE IN ALL THESE APPEAL S ARE RESTORED TO THE FILE OF THE AO TO DECIDE THE SAME AFRESH IN THE LIG HT OF DECISION IN LITIGATION PENDING IN THE COURTS OF LAW. THE LEARN ED DR HAD NOT SERIOUSLY CONTESTED THE SUBMISSION OF THE LEARNED C OUNSEL FOR THE ASSESSEE. HE RELIED ON THE ORDER OF THE AO. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND IN VIEW OF THE PLEADING OF THE PARTIES AND CONSIDERING THAT THE AP PEALS ARE PENDING BEFORE THE TRIBUNAL FOR PAST MANY YEARS AND DEPEND UPON THE DECISION IN THE LITIGATION PENDING BEFORE THE COURTS OF LAW, WE RESTORE THE ISSUES IN ALL THESE APPEALS TO THE FILE OF THE AO WITH DIR ECTION TO PASS A DE ITA NO.1233/AHD/2005 -4- NOVO ASSESSMENT ORDER IN ACCORDANCE WITH THE DECISION I N THE LITIGATION PENDING IN THE COURTS OF LAW, AFTER ALLOWING REASON ABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. WE DIRECT ACCORDINGLY. 5. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE A S WELL AS REVENUE ARE ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %&'( %&'( %&'( %&'( / ANIL CHATURVEDI) )* + )* + )* + )* + /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !'# !'# !'# !'# /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD