Armee Infotech, Ahmedabad V. The ACIT, Circle-6, Ahmedabad

ITA 2484/AHD/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73091 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 22-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P JHANGID
• Assessee Lawyers: S N SOPARKAR
• Keywords: Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH BEFORE: SRI D.K TYAGI, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTAN T MEMBER ARMEE INFOTECH, 301, SWAGAT TOWER, BEHIND MANAV MANDIR, MEMNAGAR, AHMEDABAD-3800052 PAN: AAIFA4964D (APPELLANT) VS ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-6, AHMEDABAD (RESPONDENT) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-6, AHMEDABAD (APPELLANT) VS ARMEE INFOTECH, 301, SWAGAT TOWER, BEHIND MANAV MANDIR, MEMNAGAR, AHMEDABAD-3800052 PAN: AAIFA4964D (RESPONDENT) REVENUE BY: SRI J.P. JHANGID, SR.D.R. ASSESSEE BY: SRI S.N. SOPARKAR, A.R. DATE OF HEARING : 26-02-2014 DATE OF PRONOUNCEMENT : 28-02-20 14 / ORDER ITA NO.2484/AHD/2013 ASSESSMENT YEAR 2010-11 ITA NO.2714/AHD/2013 ASSESSMENT YEAR 2010-11 I.T.A NOS .2484 &2714 /AHD/2013 A.Y. 2010-1 1 PAGE NO ARMEE INFOTECH VS. ACIT 2 PER : D.K. TYAGI, JUDICIAL MEMBER:- THESE ARE CROSS APPEALS AGAINST THE ORDER OF LD. C IT(A)-XI, AHMEDABAD DATED 30-09-2013. 2. AT THE TIME OF HEARING ONLY FOLLOWING TWO GROUND S WERE PRESSED BY THE ASSESSEE 1. THE LD. CIT(A) ERRED IN CONFIRMING THE DISALLOW ANCE OF RS. 1,03,61,067/- BEING PROVISION FOR BATTERY REPLACEME NT OUT OF TOTAL PROVISION MADE RS. 1,43,99,000/-. THE LD. CIT(A) C ONSIDERED PROVISION FOR BATTERY REPLACEMENT MADE BY THE APPEL LANT IS NOT BASED ON SCIENTIFIC OR ACTUARIAL OR ECONOMIC BASIS AND RE STRICTED THE CLAIM OF PROVISION FOR BATTERY REPLACEMENT TO THE EXTENT OF PERFORMANCE GUARANTEE GIVEN BY THE APPELLANT. 2. THE LD. CIT(A) ERRED IN CONFIRMING THE DISALLOWA NCE OF RS. 27,15,058/- IN RESPECT OF COMMISSION EXPENSES ON IN VALID GROUND THAT NO SUPPORTING DOCUMENT AVAILABLE FOR RENDERING OF S ERVICE OF COMMISSION AGENT. AND THE ONLY EFFECTIVE GROUND OF REVENUES APPEAL R EADS AS UNDER:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN PARTLY DELETING THE ADDITION OF RS. 40,37,933/- ON ACCOUNT OF BATTE RY EXPENSES OUT OF THE TOTAL EXPENSES OF RS. 1,43,99,000/- MADE ON THI S ACCOUNT BY THE AO. 3. THE GROUND NO. 1 OF ASSESSEES APPEAL AND REVENU ES APPEAL RELATE TO DISALLOWANCE OF RS. 1,43,99,000/- MADE BY AO ON ACC OUNT OF BATTERY REPLACEMENT EXPENSES. LD. CIT(A) HAS CONFIRMED THE DISALLOWANCE OF RS. 1,03,61,067/- THEREBY GIVING A RELIEF OF RS. 40,37, 933/- TO THE ASSESSEE. I.T.A NOS .2484 &2714 /AHD/2013 A.Y. 2010-1 1 PAGE NO ARMEE INFOTECH VS. ACIT 3 4. ASSESSEE WANTS TO PLACE THE FOLLOWING ADDITIONA L EVIDENCE ON RECORD IN RESPECT OF BOTH THE GROUNDS TAKEN BY THE ASSESSE E. 1. LITERATURE OF AMARON BATTERIS OF VARIOUS SPECIF ICATIONS INDICATING REPLACEMENT TIME OF 2.5 TO 3 YEARS ON AV ERAGE (PAGE 7) 2. SPECIFICATION OF THE BATTERY USED IN 600VA LINE INTERACTIVE UPS REITERATING THAT LIFE OF BATTERY WOULD BE MAXIMUM O F 3 YEARS DEPENDING UPON USAGE (PAGE 9) 3. PURCHASE ORDER FORM IT & FS EDUCATION FOR SUBSEQ UENT YEAR SPECIFYING COMPULSORY REPLACEMENT OF THE BATTERY WI THIN 5 YEARS (PAGE 17) 4. DETAILED MONTHLY CHART INDICATING BATTERIES REPL ACED DURING THE OCTOBER 2013 TO FEBRUARY 2014 FOR UPS SOLD DURING A .Y. 2010/11 (PAGE 20) 5. COPIES OF COMMUNICATION SUBSTANTIATING SERVICES RENDERED FOR PURCHASE OF UPS BY SHRI BABUL DESAI & SHRI YOGESH T HAKKAR (PAGE 21 TO 25) THIS ADDITIONAL EVIDENCE WAS ADMITTED AFTER HEARING BOTH THE PARTIES. SINCE THE NATURE OF THIS ADDITIONAL EVIDENCE IS SUCH THAT IT REQUIRES VERIFICATION AT THE END OF AO, THE MATTER IS RESTORED BACK TO HIS F ILE FOR FRESH ADJUDICATION AFTER MAKING NECESSARY INQUIRIES/INVESTIGATIONS ABO UT THE VERACITY OF THIS ADDITIONAL EVIDENCE. 5. IN THE RESULT, CROSS APPEALS FILED BY ASSESSES A ND REVENUE ARE ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (ANIL CHATURVEDI) ( D.K. TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 28/02/2014 AK I.T.A NOS .2484 &2714 /AHD/2013 A.Y. 2010-1 1 PAGE NO ARMEE INFOTECH VS. ACIT 4 / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,