M/s. Siddharth Coporation, Daman V. The Income tax Officer,Vapi Ward-4, Vapi

ITA 1458/AHD/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 9809 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 05-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K MADHUSUDAN SRDR
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD AHMEDABAD B BENCH BEFORE SHRI G.D. AGARWAL, VICE-PRESIDENT (AZ) AND SHRI MAHAVIR SINGH, JUDICIAL MEMBER ITA NO.1458/AHD/2010 [ASSTT.YEAR: 2006-07] M/S. SIDDHARTH CORPORATION -VS INCOME TAX OFFICER , PLOT NO.27, HINGRAJ INDUSTRIAL ESTATE VAPI, WARD-4 , DAMAN DABHEL, DAMAN, PAN NO.AAOPS1257R (APPELLANT) (RESPONDENT) REVENUE BY :SHRI BANDISH SOPARKAR, AR ASSESSEE BY: SHRI K. MADHUSUDAN, SR-DR O R D E R PER MAHAVIR SINGH, JUDICIAL MEMBER:- THIS APPEAL BY ASSESSEE IS ARISING OUT OF THE ORDE R OF COMMISSIONER OF INCOME-TAX (APPEALS)-VALSAD IN APPEAL NO. CIT(A)/VL S/155/08-09 DATED 03- 11-2009. THE ASSESSMENT WAS FRAMED BY ITO, VAPI WAR D-4, DAMAN U/S.143(3) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) VIDE HIS ORDER DATED 14-11-2008 FOR ASSESSMENT YEAR 2006-07. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGA INST THE ORDER OF CIT(A) IN CONFIRMING THE DISALLOWANCE OF EXPENDITURE CLAIM ED ON ACCOUNT OF REPAIRS AS CAPITAL IN NATURE. FOR THIS, ASSESSEE HAS RAISED THE FOLLOWING GROUND NO.1 :- ITA NO.1458/AHD/2010 A.Y. 2006-07 M/S. SIDDHARTH CORPORATION V. ITO, WD-4, VAPI PAGE 2 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LEARNED CIT(A) HAS ERRED IN CONFIRMING THE DISALLOW ANCE ASSESSING OFFICER OF RUPEES S3,29,600 THREATING IT CAPITAL EX PENDITURE. 3. THE BRIEF FACTS ARE THAT THE ASSESSEE IS ENGAGED IN BUSINESS OF MANUFACTURING OF GRAY FABRICS AND ITS MANUFACTURING UNIT IS LOCATED IN THE UNION TERRITORY OF DAMAN, WHICH IS A BACKWARD AREA. THE ASSESSEE FILED ITS RETURN OF INCOME DECLARING TOTAL INCOME AT RS.1,52, 830/- ON 30-10-2006 ALONG WITH AUDITED ACCOUNTS IN FORM NO.3CD AND 10CCB. THE ASSESSEE CLAIMED REPAIR AND MAINTENANCE EXPENDITURE AT RS.3,29,600/- ON ACCOUNT OF PAYMENT TO GAUTAM ENTERPRISE. THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS REQUIRED THE ASSESSEE TO EXPLAIN AS TO WHY THE SAID EXPENDITURE SHOULD NOT BE TREATED AS CAPITAL IN NATURE. BEFORE THE AO, THE ASSESSEE HAS NOT FILED ANY DETAILS AND ACCORDINGLY HE MADE DISAL LOWANCE. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A). THE ASSESS EE COULD NOT SUBMIT ANY DETAILS ACCORDINGLY HE DISMISSED THIS ISSUE OF ASSE SSEES APPEAL. AGGRIEVED, NOW ASSESSEE CAME IN SECOND APPEAL BEFORE TRIBUNAL. 4. BEFORE US LD. COUNSEL FOR THE ASSESSEE, SHRI BAN DISH SOPARKAR FILED A COPY OF LETTER DATED 20-08-2008 ADDRESSED TO INCOME -TAX OFFICER, VAPI WARD- 4, WHEREIN HE HAS SUBMITTED THAT ASSESSEE HAS PURCH ASED SPARE PARTS FOR TEXTILE MACHINE IMPORTED FROM M/S.FIBER COMPOSITI S RL, ITALY, COPY OF BILL OF ENTRY SPECIFYING THE MATERIAL IMPORTED WAS ALSO ENC LOSED, WHICH SHOWS THE PAYMENT OF CUSTOM DUTY OF RS.94,970/- AND ALSO ENCL OSED A COPY OF PURCHASE BILL FROM FIBER COMPOSISIT SRL OF ITALY FOR $5927/- . THIS BILL HAS BEEN ACCOUNTED AS REPAIR AND MAINTENANCE EXPENSES. LD. C OUNSEL HAS DRAWN OUR ATTENTION TO THE BILL AND STATED THAT ASSESSEE HAS MADE PAYMENT OF RS.3,29,600/- FOR PURCHASE OF SPARE PARTS. ON QUERY FROM THE BENCH, LD. SR- DR , SHRI K. MADHUSUDAN FAIRLY CONCEDED THAT THIS I SSUE CAN BE REMITTED BACK TO THE FILE OF ASSESSING OFFICER FOR VERIFICATION O F THIS INFORMATION. ITA NO.1458/AHD/2010 A.Y. 2006-07 M/S. SIDDHARTH CORPORATION V. ITO, WD-4, VAPI PAGE 3 5. AFTER HEARING BOTH SIDES, WE FIND, THAT, NO DOUB T THESE PAPERS WERE SUBMITTED BEFORE THE ASSESSING OFFICER, VIDE LETTER DATED 20-08-2008, BUT NEITHER THE AO NOR CIT(A) HAS COMMENTED ON THE SAME . ACCORDINGLY, WE HAVE NO ALTERNATIVE EXCEPT TO SET ASIDE THIS ISSUE TO TH E FILE OF AO TO EXAMINE THESE BILLS AND DOCUMENTS AND DECIDE THE SAME AS PER PROV ISION OF LAW. ACCORDINGLY, THIS APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STA TISTICAL PURPOSES. ORDER PRONOUNCED ON THIS DAY OF 24 TH SEPT ,2010 SD/- SD/- ( G.D.AGARWAL ) ( MAHAVIR SINGH ) (VICE PRESIDENT) (JUDICIAL MEMBER) AHMEDABAD, DATED : 24/09/2010 *DKP COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)-VALSAD 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD