M/s Gopal Ware House, V. Income Tax Officer Ward-2,

ITA 250/JAB/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5713 (ITAT-JABALPUR)
• Duration Of Justice: 2 year(s) 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 04-04-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 29-11-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D R LATHORIYA
• Assessee Lawyers: SANJAY MISHRA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH, JABALPUR BEFORE SHRI N.S. SAINI , HONBLE ACCOUNTANT MEMBER AND SHRI N.K. CHOUDHRY , HONBLE JUDICIAL MEMBER ITA NO. 2 50 / J AB /201 3 (ASST. YEAR : 200 8 - 0 9 ) M/S. GOPALA WARE HOUSE, BLOCK NO.1, MAIN ROAD, KHIRKIYA DIST. HARDA (MP) . VS. ITO, WARD - 2, ITARSI. PAN NO. AAHFG 1374 Q (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SANJAY MISHRA ADV. DEPARTMENT BY : S HRI D.R. LATHORIYA - DR DATE OF HEARING : 04 / 0 4 /201 6 . DATE OF PRONOUNCEMENT : 04 / 04 /201 6 . O R D E R PER N.S. SAINI , ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) - 1 , BHOPAL , DATED 05 /0 9 /201 3 . 2. THE SOLE GROUND OF APPEAL TAKEN BY THE ASSESSEE IS THAT THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN CONFIRMING THE DISALLOW ANCE OF CLAIM OF DEDUCTION UNDER SEC. 80IB(11A) OF THE ACT FOR RS. 7, 35,410/ - . 3 . BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PARTNERSHIP FIRM DOING THE BUSINESS OF STORAGE OF FOOD GRAINS . THE ASSESSEE FILED RETURN OF INCOME S HO W I NG NIL INCOME AFTER CL A IMING DEDUCTION FOR RS. 7,40,430/ - UNDER SEC. 80IB(11A) OF THE ACT. DURING THE COURSE OF ASSESSMENT PROCEEDINGS , THE ASSESSING OFFICER NOTED THAT IN ORDER TO 2 ITA NO. 2 50 / JAB /201 3 CLAIM DEDUCTION UNDER SEC. 80IB(11A), THE ASSESSEE SHOULD UNDERTAKE THREE INTEGRATED ACTIVITIES VIZ. HANDLING, STORAGE AND TRANSPORTATION. THE ASSESSIN G OFFICER ASKED THE ASSESSEE TO FURNISH DETAILS OF THESE THREE ACTIVITIES DONE BY THE ASSESSEE FIRM . FROM THE DETAILS FURNISHED BY THE ASSESSEE, THE ASSESSING OFFICER NOTED THAT THE ASSESSEE HAD FULFILLED THREE CONDITIONS IN RESPECT OF TWO BILLS ONLY , WHI CH ARE AS UNDER: - S.NO. RECEIPT NO. NAME OF CUSTOMER DATE RENT RECEIVED (RS.) 1 217 SHRI ASHOK KUMAR JAIN 21/03/2008 2,625/ - 2 219 MAHESHWARI MARKETING, SILARI 23/03/2008 12,000/ - THE ASSESSING OFFICER, THEREAFTER OBSERVED THAT THE ASSESSEE HAD CARRIED OUT STORAGE ACTIVITIES ONLY, BUT NO TRANSPORTATION HAD BEEN CARRIED OUT FOR ITS CUSTOMERS EXCEPT IN THE CASE S OF ABOVE TWO BILLS, OUT OF TOTAL 219 BILLS . HE OBSERVED THAT THE TWO RECEIPTS NOS. 217 & 219 WERE DATED 21/03/2008 & 23/03/2008 RESPECTI VELY , WHICH MEANS THAT THE ASSESSEE HAD CARRIED OUT TRANSPORTATION ACTIVITIES O NLY AT THE E ND OF FINANCIAL YEAR FOR THESE TWO CUSTOMERS ONLY. HE FU R THER NOTED THAT THE ASSESSEE DID NOT OWN VEHICLE FOR TRANSPORTATION OF GOODS AND TRANSPORTATION SHOWN IN ABOVE TWO BILLS WAS ALSO DONE BY HIRING THE TRANSPORT VEHICLE S FROM OTHERS. THEREFORE, THE ASSESSING OFFICER CONCLUDED THAT THE ASSESSEE FIRM DID NOT FULFILL THE SAID CONDITION OF UNDERTAKING INTEGRATED THREE ACTIVATES OF HANDLING, STORAGE AND TRANSPORTAT ION AS LAID DOWN UNDER SEC. 80IB(11A) OF THE ACT AND HENCE, NOT ELIGIBLE FOR DEDUCTION UNDER SEC. 80IB(11A). HE NOTED THAT THE PROFIT & LOSS ACCOUNT SHOWS 34.33% OF NET PROFIT OF GROSS RECEIPTS AND ACCORDINGLY THE NET PROFIT ON TWO BILLS OF RS. 14,625/ - WHICH SATISFIED THE CONDITIONS OF SEC. 80IB(11A), WORKED OUT AT RS. 5,020/ - . THEREFORE, THE ASSESSING OFFICER ALL O WED DEDUCTION UNDER SEC. 80IB(11A) FOR RS. 5,020/ - AND DISALLOWED THE BALANCE CLAIM OF RS. 7,35 ,41 0/ - . 3 ITA NO. 2 50 / JAB /201 3 4 . ON APPEAL, COMMISSIONER OF INCOME TAX (APPEALS) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. BEFORE US, THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT THOUG H THE ASSESSEE WAS NOT HAVING ITS OWN TRUCK B U T WAS DOING TRANSPORTATION WORK WITH THE HELP OF TRUCKS HIR ED FROM OTHER PERSONS , THE ASSESSING OFFICER WAS NOT JUSTIFIED IN HOLDING THAT THE ASSESSEE WAS NOT DOING TRANSPORTATION FOR HIS CUSTOMERS AND NOT ELIGIBLE FOR DEDUCTION UNDER SEC. 80IB(11A) OF THE ACT. ON A QUERY BY THE BENCH THAT WHERE IS THE EVIDENCE TO SHOW THAT THE ASSESSEE HA D CARRIED OUT TRANSPORTATION ACTIVITIES FOR ITS CUSTOMERS BY HIRING TRUCKS, THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE COULD NOT GIVE ANY EVIDENCE FOR THE SAME AND EXPRESSED HIS INABILITY TO DO SO . 6 . ON THE OTHER HAND, DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 7. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERUSING THE MATERIALS AVAILABLE ON RECORD, WE FIND THAT THE ASSESSING OFFICER DISALLOWED THE CLAIM FOR DEDUCTION UNDER SEC. 80IB(11 A) FOR RS. 7,35,410/ - ON THE GROUND THAT THE ASSESSEE HAS CARRIED OUT ONLY STORAGE ACTIVITIES AND HAS NOT CARRIED OUT TRANSPORTATION ACTIVITIES FOR FOOD GRAINS , AND HENCE , WAS NOT ELIGIBLE FOR DEDUCTION UNDER SEC. 80IB(11A) O F THE ACT. THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE NEITHER BEFORE THE LOWER AUTHORITIES NOR BEFORE US COULD PRODUCE ANY EVIDENCE TO SHOW THAT IT HAD CARRIED OUT TRANSPORTATION ACTIVITIES FOR ITS CUSTOMERS FOR FOOD GRAINS EITHER BY ITS OWN TRUCKS OR BY HIRING TRUCKS FROM OTHER PERSONS. IN ABSENCE OF THE SAME, WE FIND NO GOOD REASON TO INTERFERE WITH THE ORDERS OF THE LOWER AUTHORITIES, WHICH ARE HEREBY CONFIRMED AND THE GROUND OF APPEAL OF THE ASSESSEE IS DISMISSED. 4 ITA NO. 2 50 / JAB /201 3 8. IN THE RESULT, APPEAL OF T HE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE HEARING ON MONDAY , THE 04 TH DAY OF APRIL , 201 6 AT JABALPUR . SD/ - SD/ - ( N.K. CHOUDHRY ) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER D ATED : 04 TH APRIL , 201 6 . VR/ - COPY TO: 1. THE ASSESS E E. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R . 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY, ITAT, JABALPUR.