ACIT, Meerut V. M/s. Gabs Lab Pvt. Ltd., Meerut

ITA 3569/DEL/2010

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1275 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 13-02-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 26-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Keywords: Tax effect

Judgement Text

I.T.A. NO. 3569/DEL/2010 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C NEW DELHI BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 3569/DEL/2010 A.Y. : 2006-07 ACIT, CIRCLE - I, MEERUT VS. M/S GABS LAB PVT. LTD., DEEP COMPLEX, BEGUM BRIDGE ROAD, MEERUT (PAN/GIR NO. : AAACG5216B) (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSESSEE BY : SH. SANJAY MALIK, ADV. DEPARTMENT BY : SH. T. VASANTHAN, SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA : AM PER SHAMIM YAHYA : AM PER SHAMIM YAHYA : AM PER SHAMIM YAHYA : AM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS), MEERUT DA TED 14.5.2010 AND PERTAIN TO ASSESSMENT YEAR 2006-07. 2. THE GROUNDS RAISED IN THE REVENUES APPEAL RE AD AS UNDER:- (I) WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (A) HAS ERRED IN NOT CONSIDERING THE MERITS OF THE CASE AND IN DELETING T HE ADDITION OF ` 3,29,228/- ON ACCOUNT OF DISALLOWANC E MADE BY ASSESSING OFFICER U/S. 40(A)(IA) OF THE ACT, WI THOUT APPRECIATING THE FACT THAT THE PAYMENTS WERE MADE TO A SINGLE PARTY MESSERS SKYRIDER FREIGHT PVT. LTD. WHI CH WAS I.T.A. NO. 3569/DEL/2010 2 NEITHER ANY NON-RESIDENT SHIPPING COMPANY NOR THE AG ENT OF ANY SHIPPING COMPANY. II) WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (A) HAS ERRED IN DELETI NG THE ADDITION OF ` 1,66,415/- CLAIMED BY THE ASSESSEE AS 415 KGS. OF DMO AND VALUE OF PROCESSED LOSS WITHOUT APPRECIA TING THE FINDING OF THE ASSESSING OFFICER THAT THE ASSE SSEE FAILED TO PRODUCE THE STOCK REGISTER OR ANY EVIDENCE TO SU PPORT THE SAME. ASSESSING OFFICER HAS MADE A CATEGORICAL FI NDING IN HIS ASSESSMENT ORDER THAT THERE WAS NO SUCH LOSS IN THE IMMEDIATELY PRECEDING ASSESSMENT YEAR AS WELL AND T HERE WAS ABSOLUTELY NOTHING ON RECORD TO SUPPORT THE ALL OWABILITY OF SUCH LOSS. III) WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (A) HAS ERRED IN DELETIN G THE ADDITION OF ` 1,38,555/- MADE BY THE ASSESSING OFFIC ER ON ACCOUNT OF FUEL AND OIL ACCOUNT USED IN THE BOILER WITHOUT APPRECIATING THE FINDING OF THE ASSESSING OFFICER AS THE ASSESSEE HAS FAILED TO PRODUCE THE OIL AND FUEL CO NSUMPTION OR ANY OTHER EVIDENCE IN SUPPORT OF SUCH CLAIM. IV) WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE C ASE, THE LD. COMMISSIONER OF INCOME TAX (A) HAS ERRED IN DELETIN G THE ADDITION OF ` 67,546/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF EXPENSES UNDER THE HEAD WAGES WITHOUT I.T.A. NO. 3569/DEL/2010 3 APPRECIATING THE FINDING OF THE ASSESSING OFFICER AS THE ASSESSEE HAS FAILED TO PRODUCE THE WAGES REGISTER AND VOUCHERS WERE NOT FULLY MAINTAINED IN SUPPORT OF TH E SAME. V) IN THE FACTS AND CIRCUMSTANCES OF THE CASE, TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (A) MAY BE SET ASIDE AN D THAT OF THE ASSESSING OFFICER RESTORED. 3 . AT THE THRESHOLD, WE NOTE THAT TAX EFFECT IN THIS C ASE IS LESS THAN ` 3 LACS FIXED BY THE CBDT FOR FILING APPEAL BEFORE THE TRIBUNAL. AS PER INSTRUCTION NO. 3/2011 (F.NO. 279/MISC./142/2007-ITJ) DATED 09.02.2011 ISSUED BY THE CBDT, THE TAX EFFECT FOR FILING APPEA L BEFORE THE APPELLATE TRIBUNAL SHOULD BE MORE THAN ` 3 LAKHS. THE AFORES AID INSTRUCTIONS HAVE BEEN HELD TO BE APPLICABLE TO ALL PENDING APPE ALS BY THE HONBLE DELHI HIGH COURT IN THE DECISIONS IN THE CASES:- (I) C.I.T. VS. M/S P.S. JAIN & CO. IN ITA NO. 179/1 991, ORDER DATED 2 ND AUGUST, 2010. (II) C.I.T. VS. DELHI RACE CLUB IN ITA NO. 128/2008 , ORDER DATED 3 RD MARCH, 2011. 3.1 IN THE PRESENT CASE, ADMITTEDLY THE TAX IS BELO W ` 3 LAKHS. HENCE, THE APPEAL IS IN CONTRAVENTION OF THE AFORESAID CBDT CIRCULAR/INSTRUCTION. HENCE, THE SAME IS LIABLE TO BE DISMISSED. I.T.A. NO. 3569/DEL/2010 4 ACCORDINGLY, THIS APPEAL BY THE REVENUE STANDS DISMI SSED FOR TAX EFFECT. 6. IN THE RESULT, THE REVENUES APPEAL STANDS DISMI SSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13/2/2013. SD/ SD/ SD/ SD/- -- - SD/ SD/ SD/ SD/- -- - [RAJPAL YADAV] [RAJPAL YADAV] [RAJPAL YADAV] [RAJPAL YADAV] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 13/2/2013 SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4.CIT (A) 5.DR, I TAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES