Income Tax Officer -VI(2), Lucknow V. M/s. U.P.State Sugar Corporation Ltd., Lucknow

ITA 187/LKW/2012

• Counselvise Citation: 18723714 RSA 2012
• Duration Of Justice: 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 13-04-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: JAGDISH
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI B. R. JAIN , ACCOUNTANT MEMBER ITA NO. 187/LKW/2012 ASSESSMENT YEAR: 2007 - 08 INCOME TAX OFFICER VI(2) LUCKNOW V. M/S U.P. STATE SUGAR CORPORATION LTD. VIPIN KHAND, GOMTI NAGAR LUCKNOW PAN: AAACVC3394C (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI. JAGDISH, CIT (DR) RESPONDENT BY: SHRI. SHUBHAM RASTOGI, C.A. DATE OF HEARING: 12.06.2012 DATE OF PRONOUNCEMENT: 12.06.2012 O R D E R PER B. R JAIN : THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER DATED 4.1.2012 OF THE LD. CIT(A) - I, LUCKNOW BY RAISING THE FOLLOWING GROUNDS: - 1 . THE C1T(A) HAS ERRED IN LAW AND ON FACTS OF THE CASE IN DELETING THE DISALLOWANCE OF CANE DEVELOPME NT EXPENSES AND OTHER EXPENSES AND THE ORDER IN THIS RESPECT NEEDS TO BE QUASHED AND THE ADDITIONS BE RESTORED. 2 . THE CIT(A) HAS ERRED IN LAW AND ON FACTS OF THE CASE IN RESTRICTING THE DISALLOWANCE OF CANE DEVELOPMENT EXPENSES TO 50% WITHOUT GIVING ANY BASI S AND HAS BEEN DONE IN AN ARBITRARY MANNER, FAILING TO APPRECIATE THE FACT THAT THE BUSINESS OF THE ASSESSEE : - 2 - : CORPORATION WAS MANUFACTURING OF SUGAR AND NOT THE DEVELOPMENT OF CANE, WHICH COMES UNDER THE AMBIT OF AGRICULTURAL EXPENSES AND THUS WAS RIGHTLY D ISALLOWED BY THE ASSESSING OFFICER. 3 . UNDER THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS ARBITRARILY RESTRICTED THE DISALLOWANCE OF 50% WITHOUT GIVING ANY REASON OR BASIS FOR DOING SO, ESPECIALLY WHEN NO DETAILS FOR VERIFICATION OF SUCH EXPENSES COULD BE FILED BEFORE HIM. 2 . HEARD PARTIES WITH REFERENCE TO THE MATERIAL ON RECORD. SIMILAR ISSUE OF DISALLOWANCE OF EXPENSES CAME FOR CONSIDERATION BEFORE THE EARLIER TRIBUNAL IN ASSESSMENT YEAR 2005 - 06 AND THE APPELLATE TRIBUNAL BY ITS ORDER DAT ED 28.2.2011 IN ITA NO. 203/LUC/2009 REMITTED THE MATTER BACK TO THE ASSESSING AUTHORITY FOR DECIDING THE ISSUE AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING A DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THERE BEING NO CHANGE IN THE FAC TS AND LAW AND AS ALSO THE DISALLOWANCE IS RESTED ON THE PAST ASSESSMENT S, THE ISSUE IN THE IMPUGNED YEAR IS ALSO REMITTED BACK TO THE ASSESSING OFFICER FOR DECISION AFRESH IN ACCORDANCE WITH LAW. NEEDLESS TO ADD REASONABLE AND EFFECTIVE OPPORTUNITY OF BE ING HEARD SHALL BE ALLOWED TO THE ASSESSEE BEFORE TAKING DECISION IN ACCORDANCE WITH LAW. 3 . IN THE RESULT, APPEAL STANDS ALLOWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT IMMEDIATELY AFTER CONCLUSION OF HEARING ON 12.6.2012. SD/ - SD/ - [SUNIL KUMAR YADAV] [B. R. JAIN] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 12.6.2012 JJ: 1206 : - 3 - : COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR