The DCIT, Circle-3, Ahmedabad V. M/s. New Nandi Seeds Corporation, Ahmedabad

ITA 2337/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1085 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 24-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

ITA NO . 2337 / AHD/20 1 3 A.Y. 200 9 - 10 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH, AHMEDABAD BEFORE SHRI ANIL CHATURVEDI , ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER ITA NO. 2337 / AHD /201 3 ASSESSMENT YEAR : 200 9 - 10 DY. COMMISSIONER OF INCOME TAX VS. M/S. NEW NANDI SEEDS CORPN., CIRCLE - 3, AHMEDABAD. 1, PATEL SOCIETY, NEAR SEARS TOWERS, GULBAI TEKRA, ELLISBRIDGE, AHMEDABAD. [PAN A A AFN 7860 P ] (APPELLANT ) (RESPONDENT) A PPELLANT BY : SHRI P RASOON KABRA, SR. D.R. RE SPONDEN T BY : S MT. URVASHI SODHAN, A.R. DATE OF HEARING : 0 8 .0 7 . 20 16 DATE OF PRONOUNCEMENT : 25 . 0 7 .2016 O R D E R PER S.S. GODARA , J.M. TH IS REVENUE S APPEAL FOR A SSESSMENT Y EAR 2009 - 10 , ARISE S FROM ORDER OF THE CIT(A) - 6 , AHMEDABAD D ATED 22.07.2013, PASSED IN CASE NO.CIT(A) - VI/ACIT.CIR.3/169/11 - 12 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE R EV ENUE S SOLE SUB STANTIVE GROUND SEEKS TO REVIVE DISALLOWANCE OF SEED PROCESSING EXPENSES RELATI NG TO CERTIFIED SE EDS AMOUNTING TO RS.20,20,507 @ 31.72% OF THE GROSS SUM OF RS.63,69,823/ - , AS MADE BY THE A SSESSING O FFICER IN THE ASSESSMENT ORDER DATED 0 9.12.2011 AND DELETED IN T HE LOW E R APPELLATE PROCEEDINGS. 3 . FACTS OF THE CASE ARE IN A NARROW CO MPASS. THIS ASS ESSEE COMPANY IS ENGAGED IN AGRICULTURAL SEEDS BUS I NESS. ITS SEEDS ARE OF TWO CATEGORIES I.E. CERTIFIED AND LABELLED ONE. ITA NO . 2337 / AHD/20 1 3 A.Y. 200 9 - 10 PAGE 2 OF 3 FORMER S SHARE IS 31.72% AND LATTER CATEGORY CONSTITUTE S 68.28% OF THE SEED SALES. THE ASS ESSEE CLAIMED GROSS PROCE SSING CHARGES OF RS.63,69,823/ - . THE A SSESSING O FFICER OBSERVED IN THE ASSESSMENT ORDER THAT T HE FORMER CATEGORY INVOLVE D DEPUTATION OF THE SUPERVISOR BY THE STATE CERTI FI CATION AGENCY AND THE LA TTER INCUR RED EXPENSES TO BE BORNE BY THE CONCERNED SEEDS PR OCESSING COMPANY. HE ACCORDINGLY REFERRED TO STATEMENT OF A FARMER RECORD E D WAY BACK IN ASSESSMENT YEAR 19 97 - 98 DEPOSING THAT THE ASS ESSEE COMPANY HAD DEDUCTED CERTIFIED SEEDS EXPENSES FROM THE GROWERS. H E ACCORDINGLY DISALLOWED THE IMPUGNED SUM PROPORTI ONATELY OUT OF THE GROSS EXPENSES AND ARRIVED AT TH E FIGURE IN QUESTION AMOUNTING TO RS.20,20,507/ - . 4. THE ASS ESSEE PREFERRED APPEAL. THE C IT(A) ACCEPTS ITS ARGUMENTS BY RELYING ON THIS TRIBUNAL S ORDER IN I TA N O 2299/AHD/2010 FOR ASSESSMENT YEAR 2006 - 07 CONFIRMING THE LOWER APP ELLATE ORDER O N THE VERY ISSUE. THIS LEA VES T H E R EVENUE AGGRIEVED. 5. WE HAVE HEARD BOTH TH E PARTIES. CASE FILE PERUSED. THE R EVENUE STRONGLY ARGUES IN FAVOUR OF THE A SSESSING O FFICER S ACTION INVOKING THE IMPUGNED DISALLOWA NCE OF CERTIFIED SEEDS PROC ESSING EXPENSES. T HE ASS ESSEE FILES BE F ORE US T H E COPY OF TRIBUNAL S ORDER DATED 03. 0 7.2015 IN ITA NO. 923/AHD/2012 FOR ASSESSMENT YEAR 2008 - 09 ON THE VERY ISSUE. T HE R EVENUE FAILS TO POINT OUT ANY DISTINCTION ON F ACTS OR LAW TH EREIN. WE FIND NO REASON TO INTERFERE IN THE C IT(A) S ORDER UNDER CHALLENGE . 6. THIS R EVENUE S A P PEAL IS DISMISSED. P RONOUNCED IN THE OPEN COURT TODAY ON THE 25 TH DAY OF JULY 2016. SD/ - SD/ - ANIL CHATURVEDI S.S. GODARA (ACCOUNTANT MEMB ER) (JUDICIAL MEMBER) AHMEDABAD, THE 25 TH DAY OF JULY , 2016 PBN/* ITA NO . 2337 / AHD/20 1 3 A.Y. 200 9 - 10 PAGE 3 OF 3 COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER A SSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD