M/s. Sahara Agro Tech, Sabarkantha V. The Income Tax Officer, S.K. Ward-2, Himatnagar

ITA 2442/AHD/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9726 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 27-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: A C SHAH
• Section: 143(3)

Judgement Text

S.A. NO.122/AHD/2016 & ITA NO.2442/AHD/2016 A SSESSMENT Y EAR: 20 13 - 14 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH, SMC , AHMEDABAD [CORAM: PRAMOD KUMAR AM] S.A. NO.122/AHD/2016 (ARISING OUT OF I.T.A. NO. 2442 /AHD/ 20 1 6 ) ASSESSMENT Y EAR : 20 13 - 14 AND I.T.A. NO. 2442 /AHD/201 6 ASSESSMENT YEAR: 2013 - 14 SAHA R A AGRO TEC H , .... . ...... . ... . APPELLANT OPP. RAILWAY STATION, NEAR MARKET YARD, AMBAJI HIGHWAY, POST: IDAR 383 430. SABARKANTHA . [ PAN: A BZFS 5939 G ] VS. INCOME TAX OFFICER , S.K. WARD - 2, HIMATNAGAR. ... ........... . . RESPONDENT APPEARANCES BY: A.C. SHAH , FOR THE APPELLANT MADHUSUDAN , FOR THE RESPONDENT D ATE OF CONCLUDING THE HEARING : 1 6 . 1 2 .2016 DATE OF PRONOUNCING THE ORDER : 19 .12 .2016 O R D E R 1. THE ABOVE STAY PETITION WAS LISTED FOR HEARING TODAY. HOWEVER , WITH THE CONSENT OF BOTH THE PARTIES, T HE RELATED APPEAL ITSELF HAS BEEN HEARD T ODAY, AND, AS SUCH, THE STAY PETITION IS DISMISSED AS INFRUCTUOUS. S.A. NO.122/AHD/2016 & ITA NO.2442/AHD/2016 A SSESSMENT Y EAR: 20 13 - 14 PAGE 2 OF 3 2. THE APPEAL IS DIRECTED AGAINST LEARNED CIT (A) S ORDER DATED 8 TH AUGUST, 2016 IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TA X ACT, 1961, FOR THE ASSESSMENT YEAR 2013 - 14. 3. GRIEVANCE OF THE ASSESSEE IS AS FOLLOWS : - 1. THE LEARNED CIT(A) HAS ERRED IN PASSING EX - PARTY ORDER AND THEREBY HAS ERRED IN CONFIRMING THE ADD ITION OF SALES PROMOTION EXPENSES OF RS.23,57,500/ - IN AS MUCH AS AR COULD NOT ATTEND ON ACCOUNT OF EITHER OUT OF COUNTRY OR HIS SICKNESS AND THEREFORE EVEN HE COULD NOT MAKE TH E APPLICATION FOR ADJUSTMENT. 2.. THE APPELLANT SAYS AND SUBMITS THAT THE SALES PROMOTION EXPENSES IS NOTHING BUT C A SH DISCOUNT GIVEN TO THE BUYERS ON PROMPT PAYMENT. 4. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF SELLING ROTOVATOR A PRODUCT USED IN AGRICULTURAL OPERATIONS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESS ING O FFICER NOTICED THAT THE ASSESSEE HAS CLAIMED DEDUCTION FOR SALE PROMOTION EXPENSES TO THE TUNE OF RS.23,57, 500/ - . THE ASSESSEE DID SUPPLY A LIST OF PERSONS TO WHOM SUCH PAYMENTS WERE MADE BUT THE ASSESSING O FFICER DECLINED DEDUCTION ON THE GROUND THA T THERE ARE NO BILLS AND THE SAME ARE NOT VERIFIABLE. ON APPEAL, THE ASSESSEE SUBMITTED THAT THESE PAYMENTS ARE VERIFIABLE AS THESE ARE LINKED TO SALE INVOICES. HOWEVER , THE APPEAL WAS DISMISSED SUMMARILY. THE ASSESSEE IS AGGRIEVED AND IS IN APPEAL BEFO RE ME. 5. I HAVE HEARD THE RIVAL CONTENTIONS , PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF THE APPLICABLE LEGAL POSITION . 6. I HAVE NOTED THAT ACCORDING TO THE LEARNED COUNSEL , THE PAYMENT OF SALE PROMOTION EXPENSE S BY WAY OF DISCOUNT CAN BE VERIFIED AS EACH SUCH PAYMENT IS RELATABLE TO AN INVOICE WHICH HAS COMPLETE DETAILS. HOWEVER, THIS VERIFICATION CAN BEST BE DONE AT THE STAGE OF THE ASSESSING OFFICER . W ITH THE CONSENT OF THE PARTIES, THEREFORE, THE MATTER IS S.A. NO.122/AHD/2016 & ITA NO.2442/AHD/2016 A SSESSMENT Y EAR: 20 13 - 14 PAGE 3 OF 3 REMITTED TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSEE WILL FILE COMPLETE DETAILS AND FULLY CO - OPERATE IN NECESSARY VERIFICATION. IN CA S E THE PAYMENTS CAN INDEED BE VERIFIED, THE ASSESSING OFFICER WILL DELETE THE DISALLOWANCE TO THAT EXTENT. WITH T HE S E DIRECTIONS , AND WITH THE C ONSENT OF PARTIES, THE MATTER I S RESTORED TO THE FILE OF THE ASSESSING O FFICER. 7. IN THE RESULT, THE STAY PETITION IS DISMISSED AS INFRUCTUOUS AND THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES IN THE TERMS INDICATED ABOVE. PRONOUNCED IN THE OPEN COURT ON THIS 19 TH DAY OF DECEMBER , 201 6 . SD/ - PRAMOD KUMAR (ACCOUNTANT MEMBER) DATED: THE 19 TH DAY OF DECEMBER , 2016. PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD