Asstt. Commissioner of Income Tax, Khanna V. M/s Kashmir Apiaries Exports, Doraha

ITA 1460/CHANDI/2010

• Counselvise Citation: 146021514 RSA 2010
• Duration Of Justice: 4 year(s) 9 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 01-10-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 30-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: KANAV
• Keywords: Tax effect; Commercial expediency

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.ANNAPURNA MEHROTRA, ACCOUNTANT MEMBER ITA NO. 1460/CHD/2010 ASSESSMENT YEAR: 2007-08 THE ACIT, VS M/S KASHMIR APIARIES EXPORTS, CIRCLE, G.T. ROAD, KHANNA. VILLAGE MALHIPUR, DORAHA. PAN: AADFK9902A (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH RESPONDENT BY : SHRI KANAV DATE OF HEARING : 01.10.2015 DATE OF PRONOUNCEMENT : 09.10.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDE R OF LD. CIT(APPEALS)-II LUDHIANA DATED 18.10.2010 FOR ASSESSMENT YEAR 2007-08. 2. IN THE PRESENT APPEAL, REVENUE CHALLENGED THE DE LETION OF ADDITION OF RS. 3,75,988/- ON ACCOUNT OF DISALLO WANCE UNDER SECTION 36(1)(III) OF THE ACT AND IN DELETING THE ADDITION OF RS. 4,76,011/- ON ACCOUNT OF DISALLOWANCE OF EXP ENSES. THE LD. CIT(APPEALS) NOTED THAT AMOUNT IN QUESTION HAVE BEEN GIVEN FOR PURCHASE OF GUEST HOUSE AT DELHI AND INVE STMENTS HAVE BEEN MADE IN THE REGULAR COURSE OF BUSINESS AN D FOR COMMERCIAL EXIGENCY. THE DISALLOWANCE OF INTEREST WAS, THEREFORE, DELETED. FURTHER DISALLOWANCE OF OTHER E XPENSES 2 WERE DELETED AS THE ASSESSEE ENCLOSED DETAILS OF FB T PAYMENTS. 3. ADMITTEDLY IN THE PRESENT DEPARTMENTAL APPEAL, T HE TAX EFFECT IS BELOW RS. 3 LACS. ACCORDING TO THE C BDT INSPECTION NO. 3/2011, IT IS DIRECTED THAT IN CASE THE TAX EFFECT IN DEPARTMENTAL APPEAL DOES NOT EXCEED RS. 3 LACS, DEPARTMENTAL APPEAL BE NOT FILED BEFORE THE TRIBUNA L. 4. THE LD. CIT(APPEALS) HAS GIVEN A FINDING OF FACT THAT ASSESSEE HAS ADVANCED THE AMOUNT IN QUESTION TO THI RD PARTY FOR PURCHASING THE GUEST HOUSE AT DELHI AND T HE SAID INVESTMENT HAS BEEN MADE IN THE REGULAR COURSE OF BUSINESS AND FOR COMMERCIAL EXPEDIENCY. THE OTHER DISALLOWANCES WERE DELETED BECAUSE THE DETAILS OF F BT PAYMENTS WERE FILED AND AS SUCH, LD. CIT(APPEALS) C ORRECTLY RECORDED THE FINDINGS OF FACT FOR THE PURPOSE OF DE LETING THE ADDITION. THE FINDING OF FACT RECORDED BY LD. CIT( APPEALS) HAVE NOT BEEN REBUTTED IN ANY MANNER. MOREOVER, TH E DEPARTMENTAL APPEAL IS FILED AGAINST THE CBDT INSTR UCTION, THEREFORE, DEPARTMENTAL APPEAL IS LIABLE TO BE DISM ISSED. WE, ACCORDINGLY, DISMISS THE DEPARTMENTAL APPEAL. 5. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA MEHROTRA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 9 TH OCT., 2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR ITAT/CHD