M/s Sri Chaitanya Rice Mill, V. The DCIT, Circle-1, Kakinada, Kakinada

ITA 215/VIZ/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2042 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 year(s) 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 01-06-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: G GURUSWAMYDR
• Keywords: Depreciation
• Section: 143(3); 263

Judgement Text

ITA NO.215/VIZAG/2012 SRI CHAITANYA RICE MILL, CHELLURU 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NO.215/VIZAG/2012 ( / ASSESSMENT YEAR: 2007-08 ) SRI CHAITANYA RICE MILL CHELLURU VS. DCIT, CIRCLE - 1 KAKINADA [PAN: AAVFS7708J ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI G.V.N. HARI, AR / RESPONDENT BY : SHRI G. GURUSWAMY,DR / DATE OF HEARING : 07.01.2016 / DATE OF PRONOUNCEMENT : 19.02.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF CIT, RAJAHMUNDRY DATED 16.3.2012 FOR THE ASSESSMENT YEAR 2007-08. 2. THE ASSESSEE IS A PARTNERSHIP FIRM, OPERATING A RICE MILL, FILED ITS RETURN OF INCOME BY DECLARING TOTAL LOSS OF ` .16,60,000/-. THE ASSESSING ITA NO.215/VIZAG/2012 SRI CHAITANYA RICE MILL, CHELLURU 2 OFFICER, HAS COMPLETED THE ASSESSMENT U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS 'THE ACT') BY DETE RMINING TOTAL LOSS AT ` .8,22,020/- BY MAKING ADDITIONS OF ` .8,37,980/- TOWARDS EXCESS CLAIM OF EXPENDITURE AND DEPRECIATION. 3. THE CIT WHILE EXERCISING THE POWER U/S 263 OF TH E ACT, HE HAS NOTICED THAT THE ASSESSING OFFICER HAS FAILED TO VE RIFY THE BILLS FOR ACQUISITION OF FIXED ASSETS I.E. NEW SORTEX MACHINE , AIR CONDITIONER, COMPUTER, GRAIN DISCHARGER AND A COMPRESSOR PURCHAS ED DURING THE YEAR UNDER CONSIDERATION. HE FURTHER OBSERVED THAT THE A.O. HAS FAILED TO EXAMINE THE NON-DEDUCTION OF TDS, SECURED AND UN SECURED LOANS, INTEREST PAID TO LOAN CREDITORS. THE COMMISSIONER HAS CALLED THE EXPLANATION FROM THE ASSESSEE. HOWEVER, THE ASSESS EE HAS NOT SUBSTANTIATED THIS CASE BEFORE THE COMMISSIONER. T HEREAFTER, THE COMMISSIONER CAME TO A CONCLUSION THAT THE ORDER PA SSED BY THE A.O. IS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE RE VENUE AND SET ASIDE THE ORDER PASSED BY THE A.O. AND DIRECTED THE A.O. TO REDO THE ASSESSMENT AS PER THE DISCUSSIONS MADE BY THE COMMI SSIONER AFTER GIVING REASONABLE OPPORTUNITY TO THE ASSESSEE. 4. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHOR ITIES BELOW. WE FIND ITA NO.215/VIZAG/2012 SRI CHAITANYA RICE MILL, CHELLURU 3 THAT THE ASSESSING OFFICER WITHOUT MAKING ANY ENQUI RY AND WITHOUT EXAMINING BOOKS OF ACCOUNTS AND OTHER DETAILS, SIMP LY ACCEPTED THE RETURN FILED BY THE ASSESSEE. WE FIND THAT THE ORDE R PASSED BY THE A.O. IS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE REVENUE. THUS, THERE IS NO REASON TO INTERFERE WITH THE ORDER PASSED BY THE COMMISSIONER. THEREFORE, THIS APPEAL FILED BY THE ASSESSEE IS DIS MISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 19 TH FEB16. SD/- SD/- ( . ) ( . ) (G. MANJUNATHA) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 19.02.2016 VG/SPS '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT M/S. SRI CHAITANYA RICE MILL, CH ELLURU, EAST GODAVARI DISTRICT. 2. / THE RESPONDENT DCIT, CIRCLE-1, KAKINADA 3. ) / THE CIT, RAJAHMUNDRY 4. THE PRINCIPAL CIT-2, VISAKHAPATNAM 5. ) ( ) / THE CIT(A), RAJAHMUNDRY 6. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 7 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM