The DCIT, Central Circle-1(2), Ahmedabad V. M.S. Khurana Engg. Pvt.Ltd., Ahmedabad

ITA 1693/AHD/2007

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 6480 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 22-04-2010
• Assessment Year: 2003-2004
• Appeal Filed On: 25-04-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJA RAM SHAH
• Assessee Lawyers: M D KESWANI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND N. S. SAINI, AM) ITA NO.1693/AHD/2007 A. Y.: 2003-04 THE D. C. I. T., CENT. CIRCLE-1(2), ROOM NO. 305, 3RD FLOOR, AAYAKAR BHAVAN, ASHRAM ROAD, AHMEDABAD VS M/S. KHURANA ENGG. PVT. LTD. 2 ND FLOOR, MSK, NEAR KASHIRAM RANA BHAVAN, PASSPORT OFFICE, PANJRAPOLE ROAD, AMBAWADI, AHMEDABAD PA NO. AABCM 4514F (APPELLANT) (RESPONDENT) APPELLANT BY SHRI RAJA RAM SHAH, DR RESPONDENT BY SHRI M. D. KESWANI, AR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-IV, AHMEDABAD DATED 29 TH DECEMBER, 2006 FOR ASSESSMENT YEAR 2003-04. 2. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF BOT H THE PARTIES, PERUSED THE FINDINGS OF THE AUTHORITIES BELOW AND C ONSIDERED THE MATERIAL ON RECORD. 3. ON GROUNDS NO.1 AND 2 OF THE APPEAL THE REVENUE HAS CHALLENGED THE ORDER OF THE LEARNED CIT(A) IN DELETING THE ADD ITION OF RS.6,30,591/- ON ACCOUNT OF DIESEL AND OIL EXPENSES AND IN DELETI NG THE ADDITION OF RS.3,58,008/- ON ACCOUNT OF TRUCK MAINTENANCE EXPEN SES. THE LEARNED CIT(A) FOLLOWING HIS APPELLATE ORDER FOR PRECEDING ASSESSMENT YEAR 2002- 03 DELETED BOTH THE ADDITIONS. THE LEARNED CIT(A) A LSO NOTED THAT THERE IS NO CHANGE IN THE CIRCUMSTANCES AS COMPARED TO THE E ARLIER YEAR. ON GOING THROUGH THE ASSESSMENT ORDER, WE FIND THAT TH E AO MADE THE ADDITIONS ON THE ABOVE ISSUES BY FOLLOWING HIS FIND INGS FOR THE PRECEDING ITA NO.1693/AHD/2007 M/S. KHURANA ENGG. PVT. LTD. 2 ASSESSMENT YEAR. NO INDEPENDENT FINDING IS GIVEN AS TO HOW DISALLOWANCE IS PERMISSIBLE ON THE ABOVE ISSUES. IN THE ABSENCE OF ANY INDEPENDENT FINDING THE LEARNED CIT(A) WAS JUSTIFIED IN DELETIN G THE DISALLOWANCE OF BOTH THE ADDITIONS. THE LEARNED COUNSEL ALSO FILED COPY OF THE ORDER OF THE TRIBUNAL IN CASE OF THE SAME ASSESSEE FOR PRECEDING ASSESSMENT YEAR 2002-03 IN ITA NO.1350/AHD/2006 DATED 19-12-2008 ON WHICH DEPARTMENTAL APPEAL WAS DISMISSED ON ACCOUNT OF DIE SEL AND OIL EXPENSES. IT WOULD, THEREFORE, PROVE THAT THE FINDI NG OF THE LEARNED CIT(A) HAVE BEEN CONFIRMED IN DELETING THE DISALLOWANCE O F THE EXPENDITURE. IN THIS VIEW OF THE MATTER, WE DO NOT FIND ANY JUSTIFI CATION TO INTERFERE WITH THE ORDER OF THE LEARNED CIT(A). WE CONFIRM HIS FIN DINGS AND DISMISS THESE GROUNDS OF APPEAL OF THE REVENUE. AS A RESULT , GROUNDS NO.1 AND 2 OF THE APPEAL OF THE REVENUE ARE DISMISSED. 4. ON GROUND NO.3 OF THE APPEAL, THE REVENUE CHALLE NGED DELETION OF ADDITION OF RS.1,28,040/-ON ACCOUNT OF PRIOR PERIOD EXPENSES. IT WAS SUBMITTED BEFORE THE LEARNED CIT(A) THAT RS.1,28,04 0/- WAS WRONGLY DEBITED TO THE PRIOR PERIOD EXPENSES. THE ASSESSEE ALSO FILED CERTIFICATE ISSUED BY THE AUDITOR THAT THIS AMOUNT WAS WRONGLY DEBITED TO THE PROFIT & LOSS ACCOUNT. THE LEARNED CIT(A) CONSIDERING THE ABOVE FACT, DELETED THE ADDITION TO THAT EXTENT AND CONFIRMED THE ADDIT ION OF THE REST OF THE AMOUNT ON ACCOUNT OF PRIOR PERIOD EXPENSES. THE LEA RNED COUNSEL FOR THE ASSESSEE FILED COPY OF THE SAME CERTIFICATE DURING THE COURSE OF HEARING AND SUBMITTED THAT SINCE THE ASSESSEE DID NOT MAKE ANY CLAIM OF RS.1,28,040/- IN THE PROFIT & LOSS ACCOUNT AND IT WAS A MISTAKE BY THE ASSESSEE IN DEBITING THE SAME TO BE PRIOR PERIOD EX PENSES, THEREFORE, THE LEARNED CIT(A) WAS JUSTIFIED IN DELETING THE ADDITI ON TO THAT EXTENT. THE ABOVE FACTS WOULD SHOW THAT THE LEARNED CIT(A) ON C ONSIDERATION OF THE MATERIAL ON RECORD AND CONSIDERING THE CERTIFICATE OF THE AUDITOR CORRECTLY DELETED THE ADDITION TO THE EXTENT OF RS.1,28,040/- . THE LEARNED CIT(A) HAS REPRODUCED THE SUBMISSIONS OF THE ASSESSEE IN T HE IMPUGNED ORDER ITA NO.1693/AHD/2007 M/S. KHURANA ENGG. PVT. LTD. 3 IN WHICH ALSO IT IS CLEARLY MENTIONED THAT THE AFOR ESAID AMOUNT WAS NOT DEBITED AS EXPENDITURE IN THE PROFIT & LOSS ACCOUNT AND DUE TO INADVERTENCE AND OVERSIGHT AND MISTAKE OF THE AUDIT OR THE SAME WAS SHOWN AS PRIOR PERIOD EXPENSES. THE LEARNED CIT(A) ON VERIFICATION OF THE FACTS FROM THE CERTIFICATE ISSUED BY THE AUDITOR CO RRECTLY DELETED THE ADDITION TO THAT EXTENT. THE LEARNED DR HAS NOT PRO DUCED ANY DOCUMENT CONTRARY TO THE FINDING OF THE LEARNED CIT(A). THER EFORE, THERE IS NO BASIS FOR INTERFERENCE WITH THE ORDER OF THE LEARNED CIT( A). WE CONFIRM HIS FINDINGS AND DISMISS THIS GROUND OF APPEAL OF THE R EVENUE. AS A RESULT, THIS GROUND OF APPEAL OF THE REVENUE IS DISMISSED. 5. AS A RESULT, THE DEPARTMENTAL APPEAL STANDS DISM ISSED. ORDER PRONOUNCED ON 23-04-2010 SD/- SD/- (N. S. SAINI) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 23-04-2010 LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD