ACIT, Faridabad V. The Palwal Co-op Sugar Mills Ltd, Palwal

ITA 2069/DEL/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3594 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-07-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 07-07-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 05-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: H K LAL
• Keywords: Business expenditure

Judgement Text

I.T.A. NO.2069 /DEL/10 1/3 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH F NEW DELHI) BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER I.T.A. NO.2069 /DEL/20010 ASSESSMENT YEAR : 2006-07 ACIT, M/S PALWAL CO- SUGAR MILLS LTD., FARIDABAD. V. PALWAL. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI HK LAL, SR. DR. RESPONDENT BY : SHRI NONE. ORDER PER A.K. GARODIA, AM: THIS IS REVENUE'S APPEAL DIRECTED AGAINST THE ORDER OF LD CIT(A), FARIDABAD DATED 9.3.2010 FOR ASSESSMENT YEAR 2006-0 7. 2. THE GROUND RAISED BY THE REVENUE READS AS UNDER: - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD CIT(A) HAS ERRED ON FACTS AND IN LAW IN DELETING THE ADDITION OF RS.11,48,046/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF ANNUAL SUBSC RIPTION TO HARYANA STATE FEDERATION OF COOPERATIVE MILLS LTD. EVEN THO UGH THE SAME IS NON BUSINESS EXPENDITURE OF THE SUGAR MILLS. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE AND HENC E WE DECIDE THIS APPEAL EX PARTE QUA THE ASSESSEE. . I.T.A. NO.2069/DEL/10 2/3 4. LD DR OF THE REVENUE SUPPORTED THE ASSESSMENT OR DER. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF LD DR OF T HE REVENUE AND HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. W E FIND THAT IT IS OBSERVED BY THE ASSESSING OFFICER ON PAGE NO.1 OF THE ASSESSMEN T ORDER THAT THE ASSESSEE HAS PAID RS.11,48,046/- AS ANNUAL SUBSCRIPTION TO H ARYANA STATE FEDERATION OF COOPERATIVE MILLS LTD. PANCHKULLA. IT IS ALSO OBSER VED BY THE ASSESSING OFFICER THAT DISALLOWANCE OF THIS EXPENDITURE WAS MADE IN A SSESSMENT YEARS 1992-93 TO 1996-97 AND SUCH DISALLOWANCE HAS BEEN CONFIRMED BY LD CIT(A) IN ALL THESE YEARS. IT IS FURTHER OBSERVED BY THE ASSESSING OFFI CER THAT SIMILAR DISALLOWANCE HAS BEEN MADE IN ASSESSMENT YEARS 2001-02, 2002-03 AND 2003-04 AND THE TRIBUNAL HAS ALLOWED THE APPEAL OF THE ASSESSEE. IT IS FURTHER OBSERVED BY THE ASSESSING OFFICER THAT THE DEPARTMENTAL APPEAL IS P ENDING BEFORE HON'BLE PUNJAB & HARYANA HIGH COURT FOR ASSESSMENT YEARS 1995-96, 1996-97 AND 1997-98. THE ASSESSING OFFICER HAS MADE ADDITION IN THE PRESENT YEAR ALSO FOR THIS REASON ONLY THAT THE DEPARTMENTAL APPEAL IS PENDING BEFORE HON' BLE PUNJAB & HARYANA HIGH COURT. THIS GOES TO SHOW THAT THE FACTS IN THE PRES ENT YEAR ARE IDENTICAL WITH THE FACTS OF EARLIER YEARS AND THERE IS NO DIFFERENCE I N FACTS. HENCE, IT IS ADMITTED POSITION THAT THE ISSUE INVOLVED IN THE PRESENT YEA R IS COVERED IN FAVOUR OF THE ASSESSEE BY VARIOUS TRIBUNAL DECISIONS IN EARLIER Y EARS IN ASSESSEES OWN CASE AND HENCE, WE FIND NO REASON TO TAKE A CONTRARY VIE W IN THE PRESENT YEAR. BY RESPECTFULLY FOLLOWING THE EARLIER TRIBUNAL DECISIO NS, WE DECLINE TO INTERFERE IN THE ORDER OF LD CIT(A) FOR THIS YEAR ALSO. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. 7. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE O F HEARING IE. 7 TH JULY, 2010. SD/- SD/- (C.L. SETHI) (A.K. G ARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DT. 07.7.2010. HMS . I.T.A. NO.2069/DEL/10 3/3 COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. TRUE COPY. BY ORDER (ITAT, NEW DELHI).