M/s. Vee Aar Associates, Surat V. The ACIT.,Circle-3, Surat

ITA 2920/AHD/2010

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80453 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 02-09-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 22-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROOP CHAND SR DR
• Assessee Lawyers: M K PATEL
• Section: 133A

Judgement Text

, , , , D, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, D BENCH . .. . . .. . , !' !' !' !', , , , #$ %&'( #$ %&'( #$ %&'( #$ %&'(, , , , )* + ) ' )* + ) ' )* + ) ' )* + ) ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA NO.2920/AHD/2010 [ASSTT.YEAR 2007-2008] M/S.VEE AAR ASSOCIATES SANGINI RESIDENCY, CANAL ROAD NR. PANAS GAM, CITY LIGHT, SURAT. PAN : AAFFV 5117 J /VS. THE ACIT, CIR.3 SURAT. ( (( ( -. -. -. -. / APPELLANT) ( (( ( / // / 0-. 0-. 0-. 0-. / RESPONDENT) 1& 2 3 ) / ASSESSEE BY : SHRI M.K. PATEL + 2 3 ) / REVENUE BY : SHRI ROOPCHAND, SR.DR 5 2 &(* / DATE OF HEARING : 2 ND SEPTEMBER, 2014 678 2 &(* / DATE OF PRONOUNCEMENT : 17/10/2014 )9 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSTT.YEAR 2007-2008 IS DIRECTED AGAINST THE OR DER OF THE CIT(A)-II, SURAT, DATED 6.9.2010. 2. THE ONLY GROUND OF THE APPEAL OF THE ASSESSEE IS AS UNDER: ITA NO.2920/AHD/2010 -2- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, AS WELL AS LAW ON THE SUBJECT, THE LD.ACIT ERRED IN MAKING ADD ITION OF RS.2,77,273/- FOR ARRIVING AT THE TOTAL DISCLOSED I NCOME OF RS.1,51,00,000/- BY STATING THAT NO EXPENSE AGAINST THIS INCOME CAN BE ALLOWED TO BE SET OFF. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE HAS ADMITTED INCOME OF RS.1.51 CRORES DURING THE COURSE OF SURVEY ACTION UNDER SECTION 133A OF THE ACT, AND HAS FILED THE RE TURN OF INCOME DECLARING TOTAL INCOME OF RS.1.48 CRORES. HE SUBMITTED THAT DIFFERENCE BETWEEN THESE TWO FIGURES IS DUE TO THE CLAIM OF INTEREST P AID TO THE PARTNERS, AND IF THE SAME IS CONSIDERED THE TOTAL INCOME COMES TO RS .1,78,81,201/-, WHICH IS CLEARLY MORE THAN THE INCOME OF RS.1.51 CRORES O FFERED DURING THE COURSE OF SURVEY. HE SUBMITTED THAT THE ADDITION MADE BY THE AO IS RS.2,77,273/- ONLY, AND THE SAME IS NOT AS PER THE LAW. THE LEARNED DR HAS RELIED ON THE ORDERS OF THE AO AND THE CIT(A). 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT THE ONLY DISPUTE I N THIS APPEAL IS REGARDING ADDITION OF RS.2,77,273/-. THE BASIC FAC TS OF THE CASE ARE NOT IN DISPUTE. THE ASSESSEE HAS OFFERED INCOME OF RS.1.5 1 CRORES DURING THE SURVEY ON 23.3.2007 UNDER SECTION 133A OF THE ACT. THE ASSESSEE HAS FILED RETURN OF INCOME DECLARING INCOME OF RS.1,48,22,730 /-. THE ASSESSEE HAS EXPLAINED THAT IF THE ALLOWABLE DEDUCTION OF INTERE ST PAID TO THE PARTNERS IS CONSIDERED, THE TOTAL DECLARED INCOME COMES TO RS.1 ,78,81,201/-, WHICH IS CLEARLY IN EXCESS OF THE ADMITTED INCOME OF RS.1.51 CRORES ON THE PART OF THE ASSESSEE. WE FIND THAT THERE IS NO OTHER MATER IAL TO SUSTAIN THE ADDITION OF RS.2,77,273/- MADE BY THE AO. ACCORDINGLY, WE A RE OF THE VIEW THAT ITA NO.2920/AHD/2010 -3- THE ADDITION MADE WAS UNCALLED FOR, AND THE SAME IS DELETED AND THE GROUND NO.1 OF THE APPEAL OF THE ASSESSEE IS ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %&'( %&'( %&'( %&'( / ANIL CHATURVEDI) )* + )* + )* + )* + /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD