M/s Uttarnchal State Co-Operative Marketing Federation Ltd, Meerut V. Addl. CIT, Dehradun

ITA 1723/DEL/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53125 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-11-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 25-07-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 16-04-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH H DELHI BEFORE SHRI I.P. BANSAL AND SHRI K.G. BANSAL ITA NO. 1723(DEL)/2010 ASSESSMENT YEAR: 2006-07 M/S UTTRANCHAL STATE COOPERATIVE ADDITIONAL COMMISSIONER OF MARKETING FEDERATION LTD., VS. INCOME-TAX, RANGE-2, C/O MALIK &CO. , ADV. DEHRADUN. 305/7, THAPAR NAGAR, MEERUT CITY. PAN: AAALU0022E (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT B Y : DR. B.R.R. KUMAR, SR. DR DATE OF HEA RING : 01.11.2011 DATE OF PRO NOUNCEMENT : 01.11.2011 ORDER PER K.G. BANSAL : AM THE ASSESSEE HAS TAKEN UP FOLLOWING GROUNDS IN THE APPEAL:- 1.(A) THAT ON FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND ON THE MERCANTILE SYSTEM OF ACCOUNTING ADOPTED BY THE ASSESSEE AND ACCEPTED BY THE DEPARTMENT, THE ASC ERTAINED LIABILITY FOR PAYMENT OF WORK CHARGES RELATING T O THE ACCOUNT YEAR UNDER CONSIDERATION AS PROVIDED AND ACCOUNT ED FOR IN THE ACCOUNT BOOKS CONSTITUTED ADMISSIBLE DEDUCT ION WHILE COMPUTING TOTAL INCOME CHARGEABLE TO TAX. (B) THE LD. CIT(A) WENT WRONG ON FACTS AND IN LAW TO SUSTAIN THE DISALLOWANCE MADE BY THE AO BY INVOKI NG THE PROVISIONS OF SECTION 40(A)(IA) OF I.T. ACT. TH E IMPUGNED DISALLOWANCE OF RS. 1,34,75,036/- DESERVES TO BE DELETED BEING ITA NO. 1723(DEL)/2010 2 ILLEGAL, VOID AND WITHOUT JURISDICTION AND DEDU CTION CLAIMED DESERVES TO BE ALLOWED. 2.(A) THAT ON FACTS AND IN THE CIRCUMSTANCES OF TH E CASE AND ON THE MERCANTILE SYSTEM OF ACCOUNTING ADOPTED BY THE ASSESSEE AND ACCEPTED BY THE DEPARTMENT, THE ASC ERTAINED LIABILITY FOR PAYMENT OF WORK CHARGES AND EXPENS ES UNDER THE HEAD CARRIAGE OUTWARD RELATING TO THE ACCOUNT YEA R UNDER CONSIDERATION AS PROVIDED AND ACCOUNTED FOR IN THE ACCOUNT BOOKS CONSTITUTED ADMISSIBLE DEDUCTION WHILE C OMPUTING TOTAL INCOME CHARGEABLE TO TAX. (B) THE LD. CIT(A) WENT WRONG ON FACTS AND IN LAW TO SUSTAIN THE DISALLOWANCE MADE BY THE AO BY INVOKI NG THE PROVISIONS OF SECTION 40(A)(IA) OF I.T. ACT. TH E IMPUGNED DISALLOWANCE OF RS. 2,58,935/- DESERVES TO BE DE LETED BEING ILLEGAL, VOID AND WITHOUT JURISDICTION AND DEDU CTION CLAIMED DESERVES TO BE ALLOWED. 3.(A) THAT ON FACTS AND IN THE CIRCUMSTANCES OF TH E CASE AND ON THE MERCANTILE SYSTEM OF ACCOUNTING ADOPTED BY THE ASSESSEE AND ACCEPTED BY THE DEPARTMENT, VARIOUS PAYMENTS OF SUMS AGGREGATING RS. 5,70,405/- UNDER DIFFEREN T HEADS AS ENUMERATED IN PARA 7 OF THE ASSESSMENT ORDER RELA TING TO THE ACCOUNT YEAR UNDER CONSIDERATION AS PROVIDED A ND ACCOUNTED FOR IN THE ACCOUNT BOOKS CONSTITUTED A DMISSIBLE DEDUCTION WHILE COMPUTING TOTAL INCOME CHARGEABL E TO TAX. (B) THE LD. CIT(A) WENT WRONG ON FACTS AND IN LAW TO SUSTAIN THE DISALLOWANCE MADE BY THE AO BY INVOKI NG THE PROVISIONS OF SECTION 40(A)(IA) OF I.T. ACT. TH E IMPUGNED DISALLOWANCE OF RS. 5,70,405/- DESERVES TO BE DE LETED BEING ILLEGAL, VOID AND WITHOUT JURISDICTION AND DEDU CTION CLAIMED DESERVES TO BE ALLOWED. ITA NO. 1723(DEL)/2010 3 4. THAT ON FACTS AND IN LAW, INTEREST UNDER SECTI ON 234B WAS NOT CHARGEABLE. LEVY OF INTEREST UNDER SECTI ON 234B OF I.T. ACT DESERVE TO BE QUASHED AND DELETED BEING ILLEGAL, VOID AND WITHOUT JURISDICTION. 2. THE POSITION OF COMPLIANCE ON BEHALF OF THE AS SESSEE IS DEPICTED IN THE TABULAR FORM BELOW: S. NO. DATE REMARKS (I) 09.09.2010 HEARING ADJOURNED TO 25.10.2010 AT T HE REQUEST OF THE LD. COUNSEL. (II) 25.10.2010 HEARING ADJOURNED TO 28.10.2010 AT THE REQUEST OF THE LD. COUNSEL. (III) 28.10.2010 HEARING ADJOURNED TO 20.12.2010 AT THE REQUEST OF THE LD. COUNSEL. (IV) 20.12.2010 HEARING ADJOURNED TO 11.03.2011 AT THE REQUEST OF THE LD. COUNSEL. (V) 03.10.2011 HEARING ADJOURNED TO 01.11.2011 ON THE ORAL REQUEST OF THE A.R. (VI) 01.11.2011 APPLICATION RECEIVED FOR ADJOURNME NT, WHICH IS REJECTED. 2.1 FROM THE AFORESAID TABLE, IT WILL BE CLEAR THAT SIX OPPORTUNITIES WERE GIVEN TO THE ASSESSEE FOR REPRESENTING ITS CASE. HOWEVER, ADJOURNMENT WAS SOUGHT ON ALL THESE OCCASIONS. T HEREFORE, IT IS ALSO CLEAR THAT THE ASSESSEE DOES NOT WANT TO PROSECUTE THE APPEAL. IN SUCH A CIRCUMSTANCE, THE APPEAL IS LIABLE TO BE DISMISSED IN LIMINE, IN VIEW OF THE DECISION IN THE CASE OF CIT VS. MULTIPLAN INDIA (P) LTD., 38 ITD 320(DEL) ITA NO. 1723(DEL)/2010 4 AND ESTATE OF LATE TUKAJIRAO HOLKAR VS. CWT, 223 ITR 480 (M.P). IT IS ORDERED ACCORDINGLY. 3. IN THE RESULT, THE APPEAL IS DISMISSED. SD/- SD/- (I.P. BANSAL) (K.G.BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER SP SATIA COPY OF THE ORDER FORWARDED TO:- 1. UTTRANCHAL STATE COOPERATIVE MARKETING FED ERATION LTD., 2. ADDITIONAL CIT, RANGE-2, DEHRADUN. 3. CIT 4. CIT(A) 5. THE DR, ITAT, NEW DELHI. ASSISTANT REGISTRAR.