The ACIT, Circle-4(1), Visakhapatnam., Visakhapatnam V. Satya Sea Foods (P) Ltd., Visakhapatnam

ITA 276/VIZ/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 0844 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 11 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-05-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 28-04-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 22-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G S S GOPINATH
• Assessee Lawyers: TVBS KISHORE BABU

Judgement Text

ITA NO276. /VIZAG/2009 SATYA SEA FOODS PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO. 276/VIZAG/2009 ASSESSMENT YEAR: 2005-06 ACIT, CIRCLE-4(1), VISAKHAPATNAM VS. SATYA SEA FOODS (P) LTD., VISAKHAPATNAM (APPELLANT) (RESPONDENT) PAN NO: AAECS 8740 C APPELLANT BY: SHRI G.S.S. GOPINATH, DR RESPONDENT BY: SHRI TVBS KISHORE BABU, ADVOCATE ORDER PER SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST TH E ORDER OF THE CIT(A) ON A SOLITARY GROUND THAT THE CIT (A) HAS ER RED IN DELETING THE ADDITION OF RS.29,66,567/- MADE ON ACCOUNT OF SPECU LATIVE LOSS (FORWARD CONTRACT CANCELLATION CHARGES). 2. DURING THE COURSE OF HEARING OF THE APPEAL OUR A TTENTION WAS INVITED TO THE FACT THAT THE IMPUGNED ISSUE IS SQUARELY COV ERED BY THE ORDER OF THE TRIBUNAL IN THE CASE OF COASTAL CORPORATION LTD., I N ITA NO.149/VIZAG/2002 AND M/S LAVANYA ENTERPRISES IN ITA NO.505/VIZAG/200 4 IN WHICH IT HAS BEEN HELD THAT THE TRANSACTIONS CAN BE TERMED AS SPECULA TIVE TRANSACTIONS IF THERE IS SETTLEMENT ON CONTRACT BETWEEN TWO PARTIES OTHER WISE THAN DELIVERY. THERE WAS NO SUCH SETTLEMENT IN THIS CASE AND THE S ETTLEMENT IS WITH THE INTERMEDIARY I.E. BANK AND WHAT IS ACTUALLY PAID BY THE BANK TO THE ASSESSEE IS THE CANCELLATION CHARGES FOR CANCELLATION AND FO RWARD CONTRACT HENCE IT CAN ONLY BE HELD AS BUSINESS LOSS. THESE ORDERS OF THE TRIBUNAL WERE FOLLOWED BY THE TRIBUNAL IN ANOTHER CASE IN SANDHYA MARINES LTD., IN ITA ITA NO276. /VIZAG/2009 SATYA SEA FOODS PAGE 2 OF 2 NO.380/VIZAG/2008 AND ITA NO.349/VIZAG/2009. SINCE THE FACTS OF THE CASE IN HAND ARE QUITE SIMILAR TO THE FACTS OF THE AFORE SAID CASES OF THE TRIBUNAL THE SAME VIEW IS REQUIRED TO BE TAKEN. THE LD DR DI D NOT DISPUTE THESE FACTUAL ASPECTS. 3. HAVING CAREFULLY GOING THROUGH THE ORDER OF THE TRIBUNAL IN THE CASE OF LAVANYA ENTERPRISES, COASTAL CORPORATION LTD AND SANDHYA MARINES LTD.,(SUPRA), WE ARE OF THE VIEW THAT THE IMPUGNED ISSUE IS SQUARELY COVERED BY THE AFORESAID ORDER OF THE TRIBUNAL. WE THEREFORE OF THE VIEW THAT THE CIT (A) HAS RIGHTLY ADJUDICATED THE ISSUE IN CONSONANCE WITH THE DECISION LAID DOWN BY THE TRIBUNAL IN THE AFORESAID ORDERS. WE, THEREFORE, CONFIRM THE ORDER OF THE CIT (A). 4. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMIS SED. PRONOUNCED IN THE OPEN COURT ON 3 RD MAY, 2010. SD/- SD/- (B R BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PVV/SPS VISAKHAPATNAM, DATE: 03-05-2010. COPY TO 1 ACIT CIRCLE-4(1), VISAKHAPATNAM 2 M/S SATYA SEA FOODS (P) LTD., D.NO.7-8-20/1 KASTU RBA MARG, VISAKHAPATNAM 3 4 THE CIT (A)I, VISAKHAPATNAM THE CIT-2 VISAKHAPATNAM 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM