The ITO,Vapi Ward-4, Nani Daman V. M/s. Gala Poly Plast, Nani Daman

ITA 1638/AHD/2009

• Counselvise Citation: 163820514 RSA 2009
• Duration Of Justice: 3 year(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 06-06-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 20-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD B BENCH BEFORE: SHRI D.K. TYAGI, JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTANT MEMBER I.T.A. NO.1638/AHD/2009 A. Y. 2006-07 INCOME TAX OFFICER WARD-4 DAMAN APPELLANT VS. M/S GALA POLY PLAST 3/B GOLDEN INDL. ESTATE, SOMNATH ROAD, DABHEL, NANI DAMN PAN-AADFG8206H RESPONDENT DEPARTMENT BY : MS. SURABHI SHARMA SR. D.R. ASSESSEE BY : SHRI TUSHAR P. HEMANI, A.R. DATE OF HEARING : 06.06.2012 DATE OF PRONOUNCEMENT 06.06.2012 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER THIS IS REVENUES APPEAL AGAINST THE ORDER OF LD. C IT(A)-1, SURAT DATED 16.03.2009 DELETING THE ADDITION OF RS.22,38,177/- MADE U/S 145A OF THE ACT BY THE A.O. 2. BRIEF FACTS OF THE CASE ARE THAT THE A.O. IN HI S ASSESSMENT ORDER HAS STATED THAT THE ASSESSEE HAS CLAIMED DEDUCTION OF R S.22,38,177/- AS ADJUSTMENTS U/S 145A. THE A.O. ASKED THE ASSESSEE AS TO WHY TH E DEDUCTION BE NOT DISALLOWED. THE ASSESSEES CONTENTION WAS THAT IT HAS BEEN FOLL OWING THE EXCLUSIVE METHOD OF I.T.A. NO.1638/AHD/2009 A. Y. 2006-07 2 ACCOUNTING AND THEREFORE, AS PER THE PROVISIONS OF SECTION 145A, THE NET DIFFERENCE OF RS.22,38,177/- HAS BEEN CLAIMED. THE ASSESSEE F URTHER STATED THAT IT HAS BEEN FOLLOWING THIS METHOD FOR THE LAST SO MANY YEARS AN D THIS FIGURE CAN BE POSITIVE OR NEGATIVE FROM YEAR TO YEAR. IF THE FIGURE IS POSIT IVE, THEN THE AMOUNT IS ADDED TO THE TOTAL INCOME AND IF THE FIGURE IS NEGATIVE, THE DEDUCTION CAN BE CLAIMED. THE A.O., HOWEVER, DID NOT ACCEPT THIS EXPLANATION SAYI NG THAT AS PER THE GUIDANCE NOTE OF ICAI, THERE WILL BE NO EFFECT IN RESPECT OF ADJUSTMENT U/S 145A. THE A.O., THEREFORE, DISALLOWED THE DEDUCTION OF RS.22,38,177 /-. 4. BEFORE LD. CIT(A) THE ASSESSEE FILED COPIES OF TAX AUDITED REPORT OF THE CURRENT YEAR AS WELL AS THE LAST YEAR TO SHOW THAT THE ASSESSEE HAS BEEN FOLLOWING THE EXCLUSIVE METHOD OF ACCOUNTING AND THEREAFTER P REPARED ADJUSTMENTS U/S 145A REGULARLY. AFTER PERUSING THESE TWO TAX AUDITED RE PORTS, LD. CIT(A) FOUND THAT ASSESSEES CLAIM WAS CORRECT. SINCE THIS ADJUSTMEN T IS AS PER THE PROVISION OF INCOME TAX ACT AND IF THE SAME IS POSITIVE, THE ADD ITION IS MADE TO THE TOTAL INCOME AND IF THE ADJUSTMENT IS NEGATIVE THEN IT IS DEDUCTED FROM THE TOTAL INCOME, WE FIND NO INFIRMITY IN THE ORDER OF LD. CIT(A) IN HOLDING THAT THE CLAIM OF THE ASSESSEE WAS CORRECT AND THEREFORE THE ORDER PASSED BY HIM IS HEREBY UPHELD. 5. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 06.06.2012 SD/- SD/- (T.R. MEENA) (D.K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER I.T.A. NO.1638/AHD/2009 A. Y. 2006-07 3 TRUE COPY N.K. CHAUDHARY, SR. P.S. / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. / CONCERNED CIT 4. - / CIT (A) 5. , ! , '# / DR, ITAT, AHMEDABAD 6. $% &' / GUARD FILE. BY ORDER/ , ( / ' ) ! , '# *