The ITO, Ward-4(2), Ahmedabad V. J.H. Kharawala Pvt. Ltd., Ahmedabad

ITA 2154/AHD/2006

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60275 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 17-04-2012
• Assessment Year: 2002-2003
• Appeal Filed On: 09-10-2006
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: NIMISH VAYAWALA

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD , !', #$ # % BEFORE SHRI MUKUL KR.SHRAWAT, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ./ I.T.A. NO.2154/AHD/2006 ( ( ( ( ( / / / / ASSESSMENT YEAR : 2002-03) THE INCOME TAX OFFICER WARD-4(2), AHMEDABAD / VS. J.H. KHARAWALA PVT.LTD. JAY HOUSE PANCHVATI CIRCLE AHMEDABAD ) #$ ./*+ ./ PAN/GIR NO. : AAACJ 5528 P ( ), / // / APPELLANT ) .. ( -.), / RESPONDENT ) ), / # / APPELLANT BY : SHRI SAMIR TEKRIWAL, SR.D.R. -.), 0 / # / RESPONDENT BY : SHRI NIMISH VAYAWALA 1 0 '$ / / / / DATE OF HEARING : 17/4/12 23( 0 '$ / DATE OF PRONOUNCEMENT : 20/4/12 #4 / O R D E R PER SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER : THIS REVENUES APPEAL HAS BEEN POSTED FOR HEARING BEFORE US DUE TO THE REASON THAT THE RESPECTED CO-ORDINATE BENCH B AHMEDABAD VIDE AN ORDER DATED 03/02/2012 (IN MA NO.11/AHD/201 1 FOR A.Y. 2002- 03 ARISING FROM ITA NO.2154/AHD/2006) HAS FOUND TH AT GROUND NO.3 COULD NOT BE DECIDED, THEREFORE HELD AS FOLLOWS:- 3. ON PERUSING THE ORDER OF THE TRIBUNAL DATED 23 .10.2009, IT APPEARS THAT THE CONTENTION OF THE REVENUE IS CORRE CT. THEREFORE, IN ORDER TO ADJUDICATE THE GROUND NO.3 RAISED BY TH E REVENUE, THE ITA NO.2154/AHD /2006 ITO VS. JH KHARAWALA P.LTD. ASST.YEAR 2002-03 - 2 - ORDER OF THE TRIBUNAL IS RECALLED TO THAT EXTENT. THE REGISTRY IS DIRECTED TO POST THE CASE FOR HEARING IN THE NORMAL COURSE AND INTIMATE BOTH THE PARTIES. 2. SINCE THE GROUND NO.3 HAS BEEN RECALLED FOR THE ADJUDICATION, HENCE, REPRODUCED BELOW:- 3. THE LD. CIT(A) ERRED IN LAW AND ON THE FACTS O F THE CASE IN DELETING THE ADHOC DISALLOWANCE MADE BY THE ASSESSING OFFICE R OUT OF HOUSE KEEPING CHARGES. 3. AT THE OUTSET, LD.AR HAS INFORMED THAT ITAT B BENCH IN ASSESSEES OWN CASE, IN THE PAST, VIDE ORDER DATED 17/09/2010 BEARING ITA NOS.1607 & 4046/AHD/2007 RESPECTIVELY FOR A.YS . 2003-04 & 2004-05, HAS HELD AS UNDER:- 8.2. BECAUSE OF THESE CITATIONS; PERTAINING TO THE SERVICE PROVIDER AS WELL AS THE SERVICE RECEIVER, BOTH, OF THE RESPE CTED CO-ORDINATE BENCH NOW DULY PLACED BEFORE US, AND THEREUPON WE HAVE MADE CERTAIN OBSERVATIONS ABOUT THE MAINTENANCE OF THE C ONSISTENCY IN THE FOREGOING PARAGRAPHS, AT THIS POINT PRONTO WE C AN SAFELY ARRIVE AT A CONCLUSION THAT AT THE MOMENT THERE IS NOTHING LEFT FOR OUR AFRESH ADJUDICATION OF THE ISSUE. FURTHERMORE, ONC E FOR THE SAME ASSESSMENT YEAR, I.E. ASSESSMENT YEAR 2003-04 IN ON E OF THE SISTER- CONCERNS CASE, WHICH IS ALSO A SERVICE RECEIVER AS THE ASSESSEE IS , IT HAD ALREADY BEEN HELD BY THE AHMEDABAD TRIBUNAL THAT THE PAYMENT WAS NOT EXCESSIVE AND THE TRANSACTION WAS G ENUINE, THEREFORE, THE VIEW TAKEN ON THE SAME LINES BY THE FIRST APPELLATE AUTHORITY FOR THE YEAR UNDER CONSIDERATION IN ASSE SSEES CASE AS WELL OUGHT TO BE AFFIRMED. WE HOLD ACCORDINGLY. THUS, THE FIRST GROUND IN BOTH THE ASSESSMENT YEARS OF THE REVENUE IS HEREBY DISMISSED. 3.1. WHILE PASSING THE SAID ORDER, THE RESPECTED CO -ORDINATE BENCH HAS MENTIONED FEW ORDERS OF THIS TRIBUNAL AND PLACING R ELIANCE ON THOSE ITA NO.2154/AHD /2006 ITO VS. JH KHARAWALA P.LTD. ASST.YEAR 2002-03 - 3 - ORDERS, THE ABOVE VIEW WAS TAKEN IN FAVOUR OF THE A SSESSEE. RELEVANT PARAGRAPH NO.8.1. IS AS UNDER:- 8.1. NOT ONLY THE ABOVE ORDER, THERE IS ONE MORE O RDER WHICH HAS ALSO BEEN PLACED FOR OUR PERUSAL PASSED BY ITAT AH MEDABAD BENCH C , DECIDED IN THE CASE OF A SISTER-CONCERN , NAMELY, JAY CHEMICAL INDUSTRIES LTD. VS. DCIT BEARING ITA NO.875/AHD/2007(ASSESSEES APPEAL ) AND ITA NO.1177 /AHD/2007 (REVENUES APPEAL) FOR ASSESSMENT YEAR 2003-04 ORDE R DATED 06/11/2009,( ALSO AUTHORED BY MY ESTEEMED COLLEAGUE BROTHER ) WHEREIN VIDE PARAGRAPH NOS.17, 18 & 19 IT WAS HELD AS UNDER:- 3.2. SINCE IN THE PAST ON THIS ISSUE, A CONSISTENT VIEW HAS REGULARLY BEEN TAKEN BY THE TRIBUNAL, THEREFORE, RESPECTFULLY FOLL OWING THE SAME FOR THIS YEAR AS WELL, WE HEREBY REJECT THIS GROUND OF THE R EVENUE. 4. AS FAR AS THE FINAL RESULT OF THE APPEAL IS CONC ERNED, THAT SHALL NOT ALTER AS PRONOUNCED EARLIER, QUOTE 24. THUS, THE APPEAL OF THE REVENUE IS PARTLY ALLOWED, BUT FOR STATISTICAL PURPOSES. UNQUOTE. SD/- SD/- ( !' ) ( ) #$ ( ANIL CHATURVEDI ) ( MUKU L KR. SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 20 / 04 /2012 5'.., .../ T.C. NAIR, SR. PS ITA NO.2154/AHD /2006 ITO VS. JH KHARAWALA P.LTD. ASST.YEAR 2002-03 - 4 - #4 0 -6 7#6( #4 0 -6 7#6( #4 0 -6 7#6( #4 0 -6 7#6(/ COPY OF THE ORDER FORWARDED TO : 1. ), / THE APPELLANT 2. -.), / THE RESPONDENT. 3. 8 / CONCERNED CIT 4. 8() / THE CIT(A)-VIII, AHMEDABAD 5. 6;< - , , / DR, ITAT, AHMEDABAD 6. <= >1 / GUARD FILE. #4 #4 #4 #4 / BY ORDER, .6 - //TRUE COPY// ? ?? ?/ // / * * * * ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD 1. DATE OF DICTATION..18.4.12 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 18.4.12 OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S 20.4.12 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 20.4.12 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 9. DATE OF DESPATCH OF THE ORDER