The ITO, Ward-6(3), Surat V. M/s. Shyam Embroidery, Surat

ITA 3393/AHD/2010

• Counselvise Citation: 339320514 RSA 2010
• Duration Of Justice: 2 year(s) 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 01-08-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 23-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P L KUREEL
• Assessee Lawyers: SAPNESH SHETH
• Keywords: Business expenditure

Judgement Text

, , , , , , , , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT (AZ) AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ./ I.T.A. NO.3393/AHD/2010 ( / / / / ASSESSMENT YEAR : 2006-07) THE INCOME TAX OFFICER WARD-6(4), SURAT / VS. M/S.SHYAM EMBROIDERY 378, BHAGYODAY INDL.ESTATE OPP.INTERCITY SAHARA DARWAJA, SURAT ! ./'# ./ PAN/GIR NO. : ABFFS 1654 N ( $ / // / APPELLANT ) .. ( %&$ / RESPONDENT ) $ ' / APPELLANT BY : SHRI P.L. KUREEL, SR.D.R. %&$ ( ' / RESPONDENT BY : SHRI SAPNESH SHETH )* ( +,! / / / / DATE OF HEARING : 01/08/2013 -. ( +,! / DATE OF PRONOUNCEMENT : 03.09.2013 / / O R D E R PER SHRI G.C.GUPTA, VICE PRESIDENT (AZ) : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAI NST THE ORDER OF LD.CIT(A)-IV, SURAT DATED 23.09.2010 FOR THE ASST .YEAR 2006-07. GROUND NO.1 RAISED BY THE REVENUE READS AS UNDER:- [1] ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW, THE LD.CIT(A), SURAT HAS ERRED IN DELETING THE ADDI TION OF RS.10,15,870/- MADE ON ACCOUNT OF UNEXPLAINED INCOM E INTRODUCED BY THE PARTNER U/S.68 OF THE I.E.T.ACT. 2. LD.DR HAS RELIED ON THE ORDER OF THE ASSESSING O FFICER. LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSU E IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF HONBLE JURISDI CTIONAL HIGH COURT RENDERED IN THE CASE OF CIT VS. PANKAJ DYESTUFF I NDUSTRIES IN INCOME ITA NO.3393/AHD /2010 ITO VS. M/S.SHYAM EMBROIDERY ASST.YEAR 2006-07 - 2 - TAX REFERENCE NO.241 OF 1993, DATED 06/07/2005, WHE REIN IT HAS BEEN HELD THAT THE CREDIT IN THE ACCOUNT OF THE PARTNER HAS TO BE CONSIDERED AS PER THE BOOKS OF THE FIRM IN THE HANDS OF THE PARTN ER-CONCERNED. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. THE I SSUE BEING COVERED IN FAVOUR OF ASSESSEE WITH THE DECISION OF HONBLE GUJARAT HIGH COURT RENDERED IN THE CASE OF PANKAJ DYESTUFF (SUPR A), THE ORDER OF THE CIT(A) IS, THEREFORE, CONFIRMED AND GROUND NO.1 OF REVENUES APPEAL IS DISMISSED. 4. GROUND NO.2 OF REVENUES APPEAL READS AS UNDER: [2] ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW, THE LD.CIT(A), SURAT HAS ERRED IN RESTRICTING THE A DDITION OF RS.2,20,000/- MADE ON ACCOUNT OF DISALLOWANCE OF TH E BUSINESS EXPENSES OF RS.3,58,685/-. 4.1. LD.DR HAS SUPPORTED THE ORDER OF THE ASSESSING OFFICER. LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE CIT( A) HAS CONSIDERED COMPARABLE CASES WHILE RESTRICTING THE DISALLOWANCE TO RS.2,20,000/- AS AGAINST THE DISALLOWANCE OF RS.3,58,685/- MADE BY T HE AO. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FI ND THAT THE AO HAS MADE DISALLOWANCE OF 25% OF TOTAL BUSINESS EXPE NDITURE CLAIMED BY THE ASSESSEE. THE CIT(A) HAS CONSIDERED THE ENTIRE FACTUAL MATRIX OF THE CASE. HE CONSIDERED THAT THE DISALLOWANCE WILL TAK E THE NET PROFIT RATIO OF 25.12% TO THE ASSESSEE WHICH IS IMPOSABLE IN THE CA SE OF EMBROIDERY UNIT. HE HAS CONSIDERED THE OTHER COMPARATIVE CASE S AND HAS RESTRICTED ITA NO.3393/AHD /2010 ITO VS. M/S.SHYAM EMBROIDERY ASST.YEAR 2006-07 - 3 - THE DISALLOWANCE TO RS.2,20,000/-. THEREFORE, WE F IND NO INFIRMITY IN THE ORDER OF THE CIT(A), THE SAME IS HEREBY UPHELD AND GROUND NO.2 OF REVENUES APPEAL IS DISMISSED. 6. IN THE RESULT, REVENUES APPEAL STANDS DISMISSED. SD/- SD/- ( A.K.GARODIA ) ( G.C. GUPTA) ACCOUNTANT MEMBER VICE PRESID ENT (AZ) AHMEDABAD; DATED 03/ 09 /2013 0,.., .../ T.C. NAIR, SR. PS / ( %+1 2 1+ / ( %+1 2 1+ / ( %+1 2 1+ / ( %+1 2 1+/ COPY OF THE ORDER FORWARDED TO : 1. $ / THE APPELLANT 2. %&$ / THE RESPONDENT. 3. + )3 / CONCERNED CIT 4. )3() / THE CIT(A)-IV, SURAT 5. 167 %+ , , / DR, ITAT, AHMEDABAD 6. 78 9* / GUARD FILE. /) /) /) /) / BY ORDER, &1+ %+ //TRUE COPY// : :: :/ // / ' ' ' ' ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 1.8.13 (DICTATION-PAD 5 PA GES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 1.8.13 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 5. DATE ON WHICH FAIR ORDER PLACED BEFORE OTHER MEMBER 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.03.09.13 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 03.09.13 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER