M/s. Rama Dairy, Bulandshahr V. CIT, Meerut

ITA 2651/DEL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3745 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 07-06-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 02-06-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: H L DIHANA
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI K.D. RANJAN, ACCOUNTANT MEMBER I.T.A NO. 2651/DEL/10 ASSTT. YEAR 2005-06 M/S. RAMA DAIRY, SIYANA ROAD, BULLANDSHAHR. VS. DCIT, CIRCLE 14 (1), NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI ANIL SHARMA, ADVOCATE RESPONDENT BY: SHRI H.L. DIHANA, CIT (DR) ORDER PER RAJPAL YADAV, JM: THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE OR DER OF LD. COMMISSIONER, DATED 26.3.2010, PASSED U/S 263 OF T HE INCOME TAX ACT FOR ASSTT. YEAR 2005-06. THE GRIEVANCE OF THE ASSES SEE IS THAT LD. CIT(A) HAS ERRED IN TAKING COGNIGENCE UNDER SECTION 263 OF THE INCOME TAX ACT. IT EMERGES OUT FROM THE RECORD THAT ASSESSEE HAS FI LED ITS RETURN OF INCOME ON 21.10.2005 DECLARING AN INCOME OF ` 18,40,815/-. AN ASSTT. ITA NO. 2651/DEL/10 ASSTT. YEAR 2005-06 2 ORDER WAS PASSED U/S 143(3) ON 27.12.2007, WHEREBY LD. AO HAS MADE AN ADHOC DISALLOWANCE OF ` 50,000/- OUT OF THE EXPENSES CLAIMED BY THE ASSESSEE. LD. COMMISSIONER ON PERUSAL OF THE RECORD ARRIVED AT A CONCLUSION THAT ASSESSES HAD CLAIMED EXPENSES OF ` 89,07,975/- FOR MILK PURCHASE. SIMILARLY, IT HAS INCURRED HUGE EXPENSES ON OTHER ITEMS. LD. AO HAS ACCEPTED THE CLAIM OF ASSESSEE WITHOUT EXAMI NING THESE ASPECTS. SHE TOOK COGNIGENCE U/S 263 AND ISSUED THE SHOW CAUSE NOTICE TO THE ASSESSEE. AFTER HEARING THE ASSESSEE, SHE HA S SET ASIDE THE ASSTT. ORDER AND DIRECTED THE AO TO FRAME DE NOVO ASSTT. O RDER. LD. COUNSEL FOR THE ASSESSEE POINTED OUT THAT IN PURSUANCE OF THE D IRECTION ISSUED BY THE LD. COMMISSIONER U/S 263, THE AO HAS PASSED AN ASST T. ORDER ON 30 TH DECEMBER, 2010 WHEREBY HE FURTHER DISALLOWED A SUM OF ` 50,000/- OUT OF VARIOUS EXPENSES. IN THIS WAY, THE INCOME OF THE ASSESSEE HAS BEEN DETERMINED AT ` 19,40,820/- AS AGAINST ` 18,40,815/- DECLARED BY IT. THE ASSESSEE IS NOT AGGRIEVED WITH THIS ASSTT. ORDER. THEREFORE, IT IS NOT INTERESTED IN PROSECUTING THE APPEAL. ON THE OTHER HAND, LD. DR RELIED UPON THE ORDER OF LD. COMMISSIONER. ON DUE CONSIDER ATION OF THE FACTS AND CIRCUMSTANCES, WE ARE OF THE VIEW THAT THERE IS NO MERIT IN THIS ITA NO. 2651/DEL/10 ASSTT. YEAR 2005-06 3 APPEAL OTHERWISE ALSO. KEEPING THE VIEW THE STATEME NT OF LD. COUNSEL FOR THE ASSESSEE, IT IS DISMISSED, AS NOT PRESSED. ORDER PRONOUNCED IN THE OPEN COURT ON 10.6.2011. SD/- SD/- [K.D. RANJAN] [RAJPAL YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 10.6.2011 VEENA COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT