The Dy. Commissioner of Income Tax, Panchmahal Circle, Godhra V. M/s. Panchmahal Dist. Co. Op. Milk Products Union Ltd., Godhra

ITA 168/AHD/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2430 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 19-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APOORVA BHARADWAJ

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR ./ I.T.A. NO. 168/AHD/2017 ( ASSESSMENT YEAR : 2012-13) DEPUTY COMMISSIONER OF INCOME-TAX, PANCHMAHAL CIRCLE, GODHRA / VS. M/S. PANCHMAHAL DISTRICT CO-OPERATIVE MILK PRODUCTS UNION LTD., LUNAWADA ROAD, P. B. NO. 37, GODHRA ./ ./ PAN/GIR NO. : AAATP1372N ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI APOORVA BHARADWAJ, SR.D.R. / RESPONDENT BY : SHRI SUNIL TALATI, A.R. DATE OF HEARING 13/08/2018 !'# / DATE OF PRONOUNCEMENT 06/09/2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE CIT(A)-4, VADODARA (CIT(A) IN SHORT), DATED 30.09.2016 ARISING IN THE ASSESSMENT ORDER DATED 18.03.2015 PASSED BY THE ASSESSING OFFICER (AO) UND ER S. 143(3)(II) OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING AS SESSMENT YEAR 2012-13. ITA NO. 168/AHD/17 [DCIT VS. M/S. PANCHMAHAL DISTRI CT CO-OP. MILK PRODUCTS UNION LTD.] AY 2012-13 - 2 - 2. THE SOLITARY GROUND OF REVENUES APPEAL READS AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LEARNED CIT(A) ERRED IN DELETING THE DISALLOWANCE OF RS.3,9 5,49,392/- MADE BY THE AO ON ACCOUNT OF EXPENSES CLAIMED AGAIN ST ANIMAL BREEDING AND COOPERATIVE DEVELOPMENT EXPENSES BY TR EATING THESE EXPENSES TO BE REVENUE IN NATURE WITHOUT APPR ECIATING THE FACT THAT INCURRING OF SUCH EXPENSES RESULTED I N BENEFIT OF ENDURING NATURE THEREFORE THE SAME BE TREATED AS CA PITAL EXPENDITURE. 3. WHEN THE MATTER WAS CALLED FOR HEARING, THE LE ARNED AR FOR THE ASSESSEE SUBMITTED IN THE REVENUES APPEAL THAT THE IDENTICAL CONTROVERSY IS BEING RAISED IN THE CASE OF THE ASSE SSEE FROM EARLIER YEARS. THE IDENTICAL ISSUE IN ASSESSEES OWN CASE HAS BEEN ADJUDICATED IN FAVOUR OF THE ASSESSEE IN ITA NO.3036/AHD/2013 O RDER DATED 13.04.2018 CONCERNING AY 2010-11. THE LEARNED AR A CCORDINGLY SUBMITTED THAT IN VIEW OF THE ISSUE ALREADY ADJUDIC ATED IN FAVOUR OF THE ASSESSEE BOTH BY THE CIT(A) AS WELL AS THE ITAT IN EARLIER YEARS, THERE IS NOTHING LEFT FOR DISCUSSION AFRESH. 4. THE LEARNED DR SIMPLY RELIED UPON THE ORDER OF T HE AO IN THIS REGARD. 5. A PERUSAL OF THE ORDER OF THE CO-ORDINATE BENCH IN ASSESSEES OWN CASE FOR AY 2010-11 SHOWS THAT THE ISSUE WAS AD JUDICATED IN FAVOUR OF THE ASSESSEE FROM AY 2008-09 ONWARDS IN T HE DECISIONS CONCERNING THE EARLIER ASSESSMENT YEARS, THE ACTION OF THE AO IN MAKING DISALLOWANCE OF THE EXPENSES INCURRED TOWARD S AN ANIMAL BREEDING AND COOPERATIVE DEVELOPMENT EXPENSES ON TH E GROUND THAT EXPENSES RESULTED IN BENEFIT OF ENDURING NATURE AND THEREFORE CAPITAL IN NATURE, WAS SET ASIDE AND IT WAS CONCURRENTLY HELD BY THE FIRST APPELLATE AUTHORITY AS WELL AS THE SECOND APPELLATE AUTHORITY THAT SUCH EXPENDITURE ARE REVENUE IN NATURE. THUS, THE ISSUE IS NO LONGER RES ITA NO. 168/AHD/17 [DCIT VS. M/S. PANCHMAHAL DISTRI CT CO-OP. MILK PRODUCTS UNION LTD.] AY 2012-13 - 3 - INTEGRA. CONSISTENT WITH THE VIEW TAKEN BY THE CO-ORDINATE B ENCH IN EARLIER YEARS, THE APPEAL OF THE REVENUE IS FOUND T O BE DEVOID OF ANY MERIT. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 06/09/2018 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 06/09/201 8