DCIT, Coimbatore V. The Coimbatore District Co-operative Milk Producers Union Ltd., Coimbatore

ITA 3324/CHNY/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5932 (ITAT-CHENNAI)
• Duration Of Justice: 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 26-07-2017
• Assessment Year: 2013-2014
• Appeal Filed On: 08-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , !, # $% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI SANJAY ARORA, ACCOUNTANT MEMBER ./ ITA NO.3324/MDS/2016 ( )( / ASSESSMENT YEAR : 2013-14 THE DEPUTY COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE 4, COIMBATORE. V. M/S THE COIMBATORE DISTRICT CO- OPERATIVE MILK PRODUCERS UNION LTD., PACHAPALAYAM, KALAMPALAYAM POST, PERUR VIA, COIMBATORE 641 010. PAN : AAAAT 7787 L (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : SHRI N. MADHAVAN, ADDL.CIT -.+, / 0 / RESPONDENT BY : NONE 1 / 2# / DATE OF HEARING : 12.10.2017 3 ) / 2# / DATE OF PRONOUNCEMENT : 31.10.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -3, COIMBA TORE, DATED 21.09.2016 AND PERTAINS TO ASSESSMENT YEAR 2013-14. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS ADDIT ION OF ` 8,02,35,099/-. 2 I.T.A. NO.3324/MDS/16 3. SHRI N. MADHAVAN, THE LD. DEPARTMENTAL REPRESENT ATIVE, SUBMITTED THAT THE ASSESSEE HAS SHOWN ` 8,02,35,099/- AS SUNDRY CREDITORS AS ON 31.03.2013, WHICH INCLUDED THE AMOU NT PAYABLE TOWARDS ADDITIONAL PRICE TO OTHER SOCIETIES. ACCOR DING TO THE LD. D.R., THE ASSESSEE EXPLAINED BEFORE THE ASSESSING O FFICER THAT THE ADDITIONAL PRICE PAYABLE TO SOCIETIES, WHO PROCURED MILK FROM FARMERS, WAS SHOWN AS SUNDRY CREDITORS. THE ADDITIO NAL PRICE HAS TO BE PAID TO THE SOCIETIES AFTER GETTING APPROVAL FRO M GOVERNMENT. ACCORDING TO THE LD. D.R., THE ASSESSING OFFICER FO UND THAT THE AMOUNT WHICH WAS SET APART TO MEET CONTINGENT LIABI LITY CANNOT BE ALLOWED AS EXPENSES. HOWEVER, THE CIT(APPEALS) FOU ND THAT THE ADDITIONAL PRICE PAYABLE TO THE SOCIETIES FOR PROCU RING MILK WAS DEBITED TO PROFIT & LOSS ACCOUNT AND APPROVED BY GO VERNMENT, THEREFORE, THE LIABILITY WAS CRYSTALLIZED DURING TH E YEAR UNDER CONSIDERATION. ACCORDINGLY, BY PLACING RELIANCE ON THE ORDER OF THIS TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEARS 2010-11 AND 2011-12, THE CIT(APPEALS) DELETED THE ADDITION MADE BY THE ASSESSING OFFICER. ACCORDING TO THE LD. D.R., THE DEPARTMENT HAS ALREADY FILED AN APPEAL BEFORE THE HIGH COURT AGAIN ST THE ORDER OF THIS TRIBUNAL, THEREFORE, THE CIT(APPEALS) IS NOT J USTIFIED IN DELETING THE ADDITION MADE BY THE ASSESSING OFFICER. 3 I.T.A. NO.3324/MDS/16 4. NO ONE APPEARED FOR THE ASSESSEE INSPITE OF ISSU E OF NOTICE BY RPAD. 5. WE HAVE CONSIDERED THE SUBMISSIONS MADE BY THE L D. D.R. AND PROCEEDED TO DISPOSE THE APPEAL ON MERIT. FROM THE MATERIAL AVAILABLE ON RECORD, IT APPEARS THAT THE AMOUNT OF ` 8,02,35,099/- WAS CLAIMED AS ADDITIONAL PRICE PAYABLE TO SOCIETIE S FOR PROCURING MILK. ON IDENTICAL CIRCUMSTANCES, A SIMILAR ADDITI ON MADE BY THE ASSESSING OFFICER IN THE ASSESSEE'S OWN CASE, FOR A SSESSMENT YEARS 2010-11 AND 2011-12 WAS DELETED BY THIS TRIBU NAL. NOW, THE CONTENTION OF THE REVENUE BEFORE THIS TRIBUNAL IS T HAT AN APPEAL HAS ALREADY BEEN FILED BEFORE THE HIGH COURT. THIS TRI BUNAL IS OF THE CONSIDERED OPINION THAT MERELY BECAUSE AN APPEAL WA S FILED BEFORE THE HIGH COURT, THAT CANNOT BE A REASON TO TAKE A D IFFERENT VIEW ON THE ISSUE THEREFORE, FOR THE REASONS STATED BY THE CO-ORDINATE BENCH OF THIS TRIBUNAL FOR ASSESSMENT YEARS 2010-11 AND 2011-12, THE ORDER OF THE CIT(APPEALS) IS CONFIRMED. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. 4 I.T.A. NO.3324/MDS/16 ORDER PRONOUNCED ON 31 ST OCTOBER, 2017 AT CHENNAI. SD/- SD/- ( ! ) ( . . . ) (SANJAY ARORA) (N.R.S. GANESAN) # / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 31 ST OCTOBER, 2017. KRI. / -267 87)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 92 () /CIT(A) 4. 1 92 /CIT, 5. 7: -2 /DR 6. ;( < /GF.