ACIT, New Delhi V. M/s. Agricultural Produce Marketing Committee, New Delhi

ITA 1569/DEL/2014

• Counselvise Citation: 156920114 RSA 2014
• Duration Of Justice: 1 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 2
• Next Hearing Date: 10-11-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 14-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P SAM KANUNJNA
• Assessee Lawyers: PARA CHAUDHARY
• Keywords: Income from undisclosed sources

Judgement Text

1 I.T.A. NO.1569/DEL/2014 IN THE INCOME TAX APELALTE TRIBUNAL (DELHI BENCH SMC-2, NEW DELHI) BEFORE SHRI P. K. BANSAL, ACCOUNTANT MEMBER ITA NO.1569/DEL2014 ASSESSMENT YEAR: 2004-05 ACIT, CIRCLE 26(1), VS. AGRICULTURAL PRODUCE NEW DELHI MARKETING COMMITTEE, C/O CHETRAM WHOLESALE FRUIT VEGITABLE MARKET, KESHOPUR, NEW DELHI GIR/PAN:AAATA7774K (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI P. SAM KANUNJNA, SR. DR RESPONDENT BY: SHRI PARA CHAUDHARY, ADV. DATE OF HEARING : 10.11.2015 DATE OF PRONOUNCEMENT : 10.11.2015 ORDER THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A) BY TAKING THE FOLLOWING EFFECTIVE GROUNDS OF APPEAL:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) HAS ERRED IN 1) DELETING THE DISALLOWANCE OF RS.35,70,025/- MADE BY AO ON ACCOUNT OF PROPERTY TAX PAID BY THE ASSESSEE. 2) ALLOWING THE PAYMENT OF RS.17,48,412/- TO THE DAMB AS STATUTORY PAYMENT WHICH WAS DISALLOWED BY THE A.O. 3) DELETING THE ADDITION OF RS.1,82,384/- MADE BY O O N ACCOUNT OF INCOME FROM UNDISCLOSED SOURCES. 2. GROUND NO.1 RELATES TO THE DELETION OF DISALLOWA NCE MADE BY THE AO IN RESPECT OF RS.3,570,025/-, PAYMENT OF PROPERT Y TAX TO MCD AND THE GROUND RENT TO DDA. 3. AFTER HEARING RIVAL SUBMISSIONS AND GOING THROUG H THE ORDERS OF TAX AUTHORITIES BELOW, I NOTED THAT THE AO HAD DISALLOW ED DEDUCTION IN RESPECT OF RENT AS WELL AS GROUND RENT PAID BY THE ASSESSEE TO MCD AND 2 I.T.A. NO.1569/DEL/2014 DDA AS ACCORDING TO HIM, THE ASSESSEE DID NOT OWN T HE PROPERTY. IT IS UNDISPUTED FACT THAT THE PROPERTY IS IN THE NAME OF DELHI AGRICULTURAL MARKETING BOARD WHICH IS A SUPERVISORY AUTHORITY AN D CONSTITUTES THE COMMITTEE FOR CARRYING OUT THE FUNCTIONS AS PROVIDE D UNDER THE DELHI AGRICULTURAL PRODUCE MARKETING REGULATION ACT 1998. THE ASSESSEE SUBMITTED THE CERTIFICATE BEFORE LD. CIT(A) THAT TH E GROUND RENT AND PROPERTY TAX WAS TO BE PAID BY THE ASSESSEE. THE A SSESSEE HAS PAID THE GROUND RENT AND PROPERTY TAX DIRECTLY TO MCD AND DD A IN THE EARLIER YEAR ALSO AND SIMILAR TYPE OF DISALLOWANCE WAS DELE TED BY LD. CIT(A) AND THE DEPARTMENT HAS ACCEPTED THE DECISION OF LD. CIT(A). IN VIEW OF THIS FACT, IN MY OPINION, NO INTERFERENCE IS CALLED FOR IN THE ORDER OF LD. CIT(A) IN DELETING THE DISALLOWANCE. THEREFORE, GR OUND NO.1 STANDS DISMISSED. 4. GROUND NO.2 RELATES TO THE DELETION OF DISALLOWA NCE FOR A SUM OF RS.17,48,612/- TO DAMB DISALLOWED BY THE A.O. THE ISSUE INVOLVED IN THIS APPEAL IS DULY COVERED IN FAVOUR OF THE ASSESS EE BY THE DECISION OF ITAT, NEW DELHI BENCHES SMC-2BENCH, IN THE CASE O F APMC VS DCIT IN I.T.A. 892/DEL/2007 IN WHICH THE TRIBUNAL H AS TAKEN THE VIEW THAT THE CONTRIBUTION TO BE MADE TO DAMB IS A STATU TORY PAYMENT AND IS DIRECTLY CONNECTED WITH THE BUSINESS OF MARKETING C OMMITTEE. NO CONTRARY DECISION WAS BROUGHT TO MY KNOWLEDGE IN VI EW OF THIS FACT. I DO NOT FIND ANY INFIRMITY OR ILLEGALITY IN THE ORDER O F LD. CIT(A) IN DELETING THE SAID DISALLOWANCE AND THE ORDER OF LD. CIT(A) I S CONFIRMED ON THIS GROUND. 5. GROUND NO.3 RELATES TO THE DELETION OF DISALLOWA NCE OF RS.1,82,384/-. AFTER HEARING THE RIVAL SUBMISSIONS , I NOTED THAT THE A.O. HAS MADE THE ADDITION ON THE BASIS OF TRADE CREDIT OF RS,.1,82,384/- IN THE BOOKS OF ACCOUNTS WITH DELHI STATE COOPERATIVE BANK AND THE SAID CREDIT WAS NOT INCORPORATED BY THE ASSESSEE IN HIS BOOKS O F ACCOUNTS. WHEN THE 3 I.T.A. NO.1569/DEL/2014 MATTER WENT BEFORE LD. CIT(A), LD. CIT(A) VERIFIED THE SAME AND GIVEN THE FINDING ON THE BASIS OF SUBMISSIONS MADE BY THE ASSESSEE AND VERIFIED THAT THE SAID CREDIT WAS DULY INCORPORATED IN THE B OOKS OF ACCOUNTS OF THE ASSESSEE. LD. CIT(A) ON THE BASIS OF DOCUMENTS SUB MITTED BY THE ASSESSEE, DELETED THE ADDITION. 6. LD. D.R. BEFORE ME EVEN THOUGH VEHEMENTLY RELIED UPON THE ORDER OF A.O. BUT COULD NOT ADDUCE ANY EVIDENCE TO THE CO NTRARY. LD. CIT(A) GIVEN THE FINDING OF FACT AFTER VERIFYING THE DOCUM ENTS SUBMITTED BY THE ASSESSEE. I, THEREFORE, DO NOT FIND ANY ILLEGALITY IN THE ORDER OF LD. CIT(A). I CONFIRM THE ORDER OFLD.CIA ON THIS GROUN D. 7. IN THE RESULT, APPEAL FILED BY THE REVENUE STAND S DISMISSED. 8. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH NOV., 2015. SD./- (P.K. BANSAL) ACCOUNTANT MEMBER DATE: 10 TH 2015 SP. COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A), NEW DELHI 5. THE DR, ITAT, NEW DELHI TRUE COPY BY ORDER (ITAT, NEW DELHI)