The ITO, Vapi Ward-4, Nani Daman V. M/s Flora Industries, Nani Daman

ITA 2655/AHD/2010

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 67590 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 23-08-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 09-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P JANGID
• Assessee Lawyers: M B SANGHAVI
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI MUKUL KUMAR SHRAWAT, JUDICIAL MEMBER AN D SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO. 2655/AHD/2010 A.Y: 2006 07 ITO, VAPI WARD 4, DAMAN VS FLORA INDUSTRIES, C 11, O.I.D.C., UDHYOG NAGAR, RINGANWADA, NANI DAMAN. PAN : AAAFF4660P (REVENUE) (ASSESSEE) REVENUE BY : SHRI J. P. JANGID, SR. DR ASSESSEE(S) BY : SHRI M. B. SANGHAVI, AR / // / DATE OF HEARING : 23/08/2013 / DATE OF PRONOUNCEMENT: 03/09/2013 / O R D E R PER A. K. GARODIA: THIS APPEAL IS FILED BY THE REVENUE AND IS DIRECTE D AGAINST THE ORDER OF LEARNED CIT (A), VALSAD DATED 18.06.2010 FOR A.Y. 2 006 07. 2. THE ONLY GRIEVANCE OF THE REVENUE IS FOR THE DEL ETION OF THE PENALTY U/S 271 (1) (C) BY THE LEARNED CIT (A) WHICH WAS IMPOSE D BY THE A.O. ON ACCOUNT OF PART DISALLOWANCE OF DEPRECIATION AND FOR DISALL OWANCE U/S 40 (A) (IA). 3. LEARNED DR OF THE REVENUE SUPPORTED THE PENALTY ORDER. LEARNED AR OF THE ASSESSEE SUPPORTED THE ORDER OF THE LEARNED CIT (A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT IN THE PRESENT CA SE, THE PENALTY IS DELETED BY THE LEARNED CIT (A) ON THIS BASIS THAT THE ASSESSEE HAD CLAIMED DEPRECIATION BY TAKING THE VIEW FAVOURABLE TO IT AND HENCE, THERE I S NO CONCEALMENT. REGARDING ITA NO.2753/AHD/2012 - 2 - THE SECOND DISALLOWANCE U/S 40 (A) (IA) ALSO, IT IS HELD BY HIM THAT THIS IS A DEBATABLE ISSUE AS TO WHETHER TDS IS REQUIRED TO BE DEDUCTED FROM REIMBURSEMENT OF EXPENSES TO CLEARING & FORWARDING AGENT PARTICULARLY WHEN SEPARATE BILLS ARE RAISED. ON BOTH THESE ASPECTS, W E DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LEARNED CIT (A) BECAUSE IN OUR OPI NION, IN THE FACTS OF THE PRESENT CASE, DISALLOWANCE MAY BE JUSTIFIED BUT IT CANNOT BE SAID TO BE CONCEALMENT AND HENCE, PENALTY IS NOT JUSTIFIED. WE THEREFORE, DECLINE TO INTERFERE. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTION ED ON THE CAPTION PAGE. SD/- SD/- (MUKUL KUMAR SHRAWAT) (A.K. G ARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. !' / THE RESPONDENT. 3. #$#% ' '& / CONCERNED CIT 4. ' '&() / THE CIT(A)-III, AHMEDABAD 5. )*' %, ' ' % , ,-$ / DR, ITAT, AHMEDABAD 6. *./ 0 / GUARD FILE. / BY ORDER, 1 11 1/ // /,' #2 ,' #2 ,' #2 ,' #2 ( DY./ASSTT.REGISTRAR) ' ' % ' ' % ' ' % ' ' % , , , , ,-$ ,-$ ,-$ ,-$ / ITAT, AHMEDABAD