The ACIT,Navsari Circle, Navsari V. Valsad Dist. Co.Op.Milk Producers Union Ltd, Navsari

ITA 3300/AHD/2011

• Counselvise Citation: 330020514 RSA 2011
• Duration Of Justice: 3 year(s) 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 12-06-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 30-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI S. S. GODARA, JUDICIAL MEMBER ./ ././ ./ ITA NO. 3300/AHD/2011 / ASSESSMENT YEAR: 2007-08 ACIT, NAVSARI CIRCLE, NAVSARI V/S. VALSAD DISTRICT CO. OP. MILK PRODUCERS UNION LTD., VASHUDHARA DAIRY, N.H. NO.8, ALIPORE, TAL. CHIKHLI PAN : AAAAV 0542 R / // / (APPELLANT) !' !' !' !' / // / (RESPONDENT) REVENUE BY : SHRI DINESH SINGH, SR. DR. ASSESSEE(S) BY : WRITTEN SUBMISSION #$ % &'(/ // / DATE OF HEARING : 12/06/2015 )* % &'( / // / DATE OF PRONOUNCEMENT: 19/06/2015 +, +, +, +,/ // / O R D E R PER G.D. AGRAWAL, VICE PRESIDENT: THIS IS AN APPEAL FILED BY THE REVENUE AND IS DIREC TED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX(APPEALS ), VALSAD DATED 30.09.2011, PERTAINING TO ASSESSMENT YEAR 2007-08. 2. THE ONLY GROUND RAISED IN THIS APPEAL BY THE REV ENUE READS AS UNDER:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE HONBLE CIT(A) ERRED IN DELETING THE ADDITION OF RS.11,42,6 66/- MADE ON ACCOUNT OF DISALLOWANCE OF EXPENSES REIMBURSED TO THE VASUDHAR A TRUST FOR RESEARCH AND DEVELOPMENT CARRIED OUT BY THE BAIF TRUST INSPITE O F THE FACT THAT BOTH ARE INDEPENDENT IDENTITY AND HAVE NO BUSINESS DEALING F OR THE ASSESSEE AND THE SAID EXPENDITURE AND WAS NOT INCURRED FOR THE BUSIN ESS PURPOSE OF THE ASSESSEE. ITA NO. 3300/AHD/2011 ACIT VS VALSAD DIST. CO OP MILK PRODUCERS UNION LTD FOR AY 2007-08 2 3. AT THE TIME OF HEARING BEFORE US, NONE APPEARED ON BEHALF OF THE ASSESSEE; BUT A WRITTEN SUBMISSION IS FILED WHICH I S CONSIDERED. 4. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIV E, PERUSED THE WRITTEN SUBMISSION FURNISHED BY THE ASSESSEE AND TH E ORDERS OF THE LOWER AUTHORITIES. WE FIND THAT THE ISSUE UNDER CONSIDE RATION IS SQUARELY COVERED BY THE DECISION OF ITAT IN THE EARLIER YEARS. IN AS SESSMENT YEAR 2003-04, VIDE ITA NO.3109/AHD/2007, THE ITAT UPHELD THE ORDE R OF THE CIT(A) WITH THE FOLLOWING FINDINGS:- 5.1. THE FIRST ISSUE RELATES TO DISALLOWANCE OF AM OUNT PAID TO VASUNDHARA TRUST TO CARRY OUT RESEARCH AND DEVELOPMENT ACTIVIT IES. THE LD CIT(A) NOTICED THAT THE ASSESSEE IS EMPOWERED TO CARRY OUT RESEARCH AND DEVELOPMENT ACTIVITIES IN COLLABORATION WITH OTHER ORGANIZATIONS. HE ALSO NOTICED THAT THE IMPUGNED PAYMENT HAS BEEN MADE TO VASUNDHARA TRUST FOR CARRYING OUT THE RESEARCH ACTIVITIES. ACCORDINGLY, HE DELETED THE IMPUGNED ADDITION. IT WAS BROUGHT TO OUR NOTICE THAT THE TRI BUNAL HAS CONSIDERED AN IDENTICAL ISSUE IN THE ASSESSEES OWN CASE IN ITA N O.1349/AHD/2006 RELATING TO THE ASSESSMENT YEAR 2002-03, WHEREIN TH E TRIBUNAL HAS UPHELD THE DECISION OF LD. CIT (A) IN DELETING THE ADDITIO N. FOR THE SAKE OF CONVENIENCE WE EXTRACT BELOW THE OPERATIVE PORTION OF THE ORDER OF THE TRIBUNAL. 26. AFTER HEARING BOTH THE PARTIES AND ON PERUSAL OF THE RECORD, WE FIND THAT CLAUSE 18 OF SECTION 3 OF THE BYE-LAWS OF THE ASSESSEE SOCIETY DOES NOT EMPOWER THE ASSESSEE SOCIETY TO CARRY OUT ITS OBJECTIVE IN COLLABORATION WITH ANY OTHER ENTITY, INSTITUTION OR PERSONS. THE ASSESSEE HAS PLACED ON RECORD A COPY OF THE RELEVAN T RESOLUTIONS PASSED AT THE MEETINGS OF THE MANAGING COMMITTEE OF THE AS SESSEE SOCIETY RESOLVING COLLABORATION WITH VASUNDHARA RESEARCH AN D DEVELOPMENT MANDAL AND DR. MANIBHAI DESAI TECHNOLOGY TRANSFER C ENTRE. FROM THE ABOVE SAID RESOLUTION AND COPIES OF MEMORANDUM IT CAN BE SEEN THAT THESE ARE MERELY EXTENSION OF THE ACTIVITY OF THE ASSESSEE SOCIETY AND THE COLLABORATION MADE BY THE ASSESSEE IS NOT U LTRA VIRES. CAN CO-ORDINATE AND UNDERTAKE ANY OF THE ACTIVITIES WHI CH ARE CONNECTED WITH CARRYING OUT THE OBJECTS OF THE ASSESSEE SOCIE TY. THE ASSESSEE HAS SUPPLIED A COPY OF RESOLUTION PASSED IN THE MEETING OF MANAGING ITA NO. 3300/AHD/2011 ACIT VS VALSAD DIST. CO OP MILK PRODUCERS UNION LTD FOR AY 2007-08 3 COMMITTEE OF THE SOCIETY. THEREFORE, THE CIT (A) HA S ALLOWED THE CLAIM OF THE ASSESSEE. SINCE THE CIT (A) HAS PASSED DETAI LED AND ELABORATE ORDER, THEREFORE, WE ARE NOT INCLINED TO INTERFERE WITH THE SAME. ACCORDINGLY, WE DISMISS THE GROUND NO.1 TAKEN BY TH E REVENUE. SINCE THE DECISION RENDERED BY LD CIT(A) ON THIS IS SUE IS CONSISTENT WITH THE VIEW TAKEN BY THE TRIBUNAL CITED SUPRA, WE DO NOT F IND ANY REASON TO INTERFERE WITH THE SAME. 5. ADMITTEDLY, THE FACTS OF THE YEAR UNDER CONSIDER ATION ARE IDENTICAL. THE CIT(A) HAS ALSO ALLOWED RELIEF TO THE ASSESSEE FOLLOWING THE DECISION OF THE ITAT. IN VIEW OF ABOVE, WE DO NOT FIND ANY JUST IFICATION TO INTERFERE WITH THE ORDER OF THE CIT(A) WHICH IS SUSTAINED. 6. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED . ORDER PRONOUNCED IN THE COURT ON 19 TH JUNE, 2015 AT AHMEDABAD. SD/- SD/- (S. S. GODARA) JUDICIAL MEMBER (G.D. AGRAWAL) VICE-PRESIDENT AHMEDABAD; DATED 19/06/2015 BIJU T., PS +, % !&- .+-& +, % !&- .+-& +, % !&- .+-& +, % !&- .+-&/ COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. !' / THE RESPONDENT. 3. & #/ / CONCERNED CIT 4. #/ ( ) / THE CIT(A) 5. -23 !& , , / DR, ITAT, AHMEDABAD 6. 34 5$ / GUARD FILE . +,# +,# +,# +,# / BY ORDER, TRUE COPY 6 66 6/ // / 7 7 7 7 ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD