Rasana Bottle Suppliers, Coimbatore V. DCIT, Coimbatore

ITA 1547/CHNY/2015

• Counselvise Citation: 154721714 RSA 2015
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 14-10-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 06-07-2015
• Court: TRIBUNAL
• Department Lawyers: A B KOLI
• Assessee Lawyers: A ARJUNARAJ
• Keywords: Depreciation

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI , ! ' . #$ , % &' BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ ITA NOS. 1546 & 1547/MDS/2015 / ASSESSMENT YEARS : 2005-06 & 2007-08 RASANA BOTTLE SUPPLIERS, C/O RATHISH BOTTLE SUPPLIERS, 5/38, VSK NAGAR, PALANIGOUNDENPUDUR, K.VADAMADURAI POST, COIMBATORE-641017. PAN AAEFR3230K APPELLANT) V. THE DEPUTY COMMISSIONER OF INCOME-TAX, SALARY CIRCLE-I, COIMBATORE. RESPONDENT) / APPELLANT BY : SHRI A. ARJUNARAJ, CA / RESPONDENT BY : SHRI A.B.KOLI, JCIT ! / DATE OF HEARING : 14.10.2015 '# ! / DATE OF PRONOUNCEMENT: 06.11.2015 ( / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THESE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINS T DIFFERENT ORDERS OF THE COMMISSIONER OF INCOME-TAX( APPEALS) - - ITA 1546 & 1547/15 2 DATED 31.3.2015 FOR THE A.YS 2005-06 AND 2007-08. 2. THE FIRST ISSUE RAISED BY THE ASSESSEE IN ITA NO.1546/MDS/2015 IS THAT THE NOTICE ISSUED U/S.148 IS AGAINST THE PROVISIONS OF THE ACT AND THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER IS OPPOSED TO LAW, FACTS AND CIRCUMSTANCES OF THE CASE AND THE CIT(A) IS ERRED IN UPHOLDING TH E SAME. 3. THE LD. AR SUBMITTED THAT THE ASSESSEE IS NOT IN TERESTED TO PRESS THE ABOVE GROUND. ACCORDINGLY, THE SAME I S DISMISSED AS NOT PRESSED. 4. THE NEXT GROUND IN ITA NO. 1546/MDS/2015 IS AGAI NST THE NOTICE ISSUED 143(2) IS AGAINST THE PROVISIONS OF T HE ACT AND ALSO BARRED BY LIMITATION AND THE CONSEQUENT ORDER IS IN VALID AND THE CIT(A) IS ERRED IN UPHOLDING THE SAME AND IN ITA NO.1547/MDS/2015, THE FIRST ISSUE RAISED BY THE ASS ESSEE IS AGAINST THE NOTICES ISSUED U/S.142 & 143(2) ARE AGA INST THE PROVISIONS OF THE ACT AND THE ASSESSMENT ORDER PASS ED BY THE ASSESSING OFFICER IS OPPOSED TO LAW, FACTS AND CIRC UMSTANCES OF THE CASE AND THE CIT(A) IS ERRED IN UPHOLDING THE S AME, WHICH ARE NOT PRESSED BEFORE US AND DULY ENDORSED BY THE LD. AR. THEREFORE, THESE ARE DISMISSED AS NOT PRESSED. - - ITA 1546 & 1547/15 3 5. THE NEXT GROUND IN ITA NO.1546/MDS/2015 IS WITH REGARD TO DISALLOWANCE OF ADDITION OF ` 25,000/- ON ACCOUNT OF NON- DEDUCTION OF TDS BY INVOKING THE PROVISIONS OF SEC. 40(A)(IA) OF THE ACT. 6. ADMITTEDLY, IN THIS CASE, THE ASSESSEE PAID AUDI T FEE OF ` 25,000/- WITHOUT DEDUCTING TDS, THOUGH THE ASSESSEE IS LIABLE TO DEDUCT TDS ON THIS PAYMENT. BEING SO, INVOKING THE PROVISIONS OF SEC.40(A)(IA) OF THE ACT, BY THE LOWE R AUTHORITIES ARE JUSTIFIED AND THIS GROUND IS DISMISSED. 7. THE NEXT COMMON GROUND IN BOTH THE APPEALS IS WI TH REGARD TO ALLOWABILITY OF DEPRECIATION AT 15% AS AG AINST 50% CLAIMED BY THE ASSESSEE ON CRATES. 8. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. THE PLEA OF THE LD. AR IS TOTALLY MISPL ACED. AS PER INDEX 1 TO ITEM (4), CONTAINERS MADE OF GLASS, PLAS TIC AS REFILLS ENTITLED FOR DEPRECIATION AT 50%. THE CRATES CANN OT BE INCLUDED AS BOTTLES MADE OF PLASTIC OR GLASS. AS SUCH, THE LOWER AUTHORITIES ARE JUSTIFIED IN RESTRICTING DEPRECIATI ON AT 15%. ACCORDINGLY, THIS GROUND IS DISMISSED. - - ITA 1546 & 1547/15 4 9. THE NEXT COMMON GROUND IN BOTH THE APPEALS IS WI TH REGARD TO CONFIRMING THE ADDITION TO THE EXTENT OF 20% OF THE CASH PURCHASES OF OLD USED BOTTLES WITHOUT CONSIDERING T HE OTHER EVIDENCE PRODUCED AND THE ORDER OF HIS PREDECESSOR. 10. THE ASSESSEE HAS MADE CASH PURCHASES TO THE EX TENT OF ` 3,40,58,749/- AND ` 2,56,02,672/- FOR THE ASSESSMENT YEARS 2005-06 AND 2007-08 RESPECTIVELY. THE ASSESSING OF FICER DISALLOWED 25% OF CASH PURCHASES FOR BOTH THE ASSES SMENT YEARS AS SUPPORTED BY THE VOUCHERS, WHICH ARE HAVIN G ONLY NAME OF THE PARTIES AND NO DETAILS ARE AVAILABLE FOR VER IFICATION. HOWEVER, ON APPEAL, THE CIT(APPEALS) RESTRICTED AT 20% OF CASH PURCHASES AS NOT VERIFIABLE. 11. THE CONTENTION OF THE LD. AR IS THAT GROSS PROF IT RATE AND NET PROFIT RATE IN THESE ASSESSMENT YEARS ARE HIGHE R THAN EARLIER YEARS AND EARLIER ASSESSMENT YEAR DISALLOWANCE WAS ONLY 5% BY THE ASSESSING OFFICER. BEING SO, DISALLOWANCE AT 2 0% BY THE COMMISSIONER OF INCOME-TAX(APPEALS) IS VERY UNREASO NABLE. 12. ON THE OTHER HAND, THE LD. DR RELIED ON THE ORD ERS OF THE LOWER AUTHORITIES. - - ITA 1546 & 1547/15 5 13. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MA TERIAL ON RECORD. THESE ARE ADMITTED DISALLOWANCES AS C ASH VOUCHERS ARE NOT BEARING FULL ADDRESS AND THESE ARE NOT VERI FIABLE. THE LD. AR SUBMITTED THAT EARLIER, GROSS PROFIT RATE AND NE T PROFIT RATE WAS LOWER THAN THIS ASSESSMENT YEAR. CONSIDERING THIS, WE DIRECT THE AO TO COMPARE THE GP AND NP OF EARLIER YEARS AND IF IT IS SO AS ARGUED BY THE LD. AR, THE ADDITION TO BE SUSTAINED ONLY TO THE EXTENT OF 5% OF CASH PURCHASES TOWARDS THIS DISCREP ANCIES. IN OTHER WORDS, THE DISALLOWANCE SHOULD BE SUSTAINED T O THE EXTENT OF 5% OF CASH PURCHASES. WITH THIS OBSERVATION, WE REMIT THIS ISSUE TO THE FILE OF THE AO FOR CONSIDERATION. 14. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PA RTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON FRIDAY, THE 06 TH OF NOV., 2015 AT CHENNAI. SD/- SD/- ( $ % . & '( ) ( ) * + , ) DUVVURU RL REDDY - ./012304556037- 8 9: /JUDICIAL MEMBER ! 9:;<<5=1>01>?@AB@3 )8 /CHENNAI, C9 /DATED, THE 06 TH NOV., 2015. MPO* - - ITA 1546 & 1547/15 6 9D EFGF /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. H- /CIT(A) 4. H /CIT 5. FIJ K /DR 6. J(L /GF.