M/s. World Telnet (India) P.Ltd., Jalandhar V. The Deputy Commissioner of Income tax, Jalandhar

ITA 361/ASR/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5836 (ITAT-AMRITSAR)
• Duration Of Justice: 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 29-07-2013
• Assessment Year: 2004-2005
• Appeal Filed On: 16-08-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: DINESH SARNA
• Keywords: Tax effect; Revenue expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH: AMRITSAR. BEFORE SHRI H.L. KARWA, VICE PRESIDENT AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER. I.T.A. NO.361(ASR)/2010. (ASSESSMENT YEAR: 2004-05) M/S.WORLD TELNET (INDIA) P. LTD., THE DY. C.I.T., 2 ND FLOOR, MOHINDER CHAMBER, RANGE III, SCF-92, RAJINDER NAGAR MARKET, JALANDHAR. JALANDHAR. (APPELLANT) VS. (RESPONDENT) APPELLANT BY: SHRI DINESH SARNA, ADV. RESPONDENT BY: SHRI TARSEM LAL, D.R. ORDER PER H.L. KARWA, VICE PRESIDENT. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE CIT(A), JALANDHAR DATED 26-5-2010, RELATING TO THE ASSESSMENT YEAR 2004-05. 2. IN THIS APPEAL, THE ASSESSEE HAS TAKEN THE FOLLO WING GROUNDS:- 1. THE WORTHY CIT(A) HAS ERRED IN DISMISSING APPEA L OF ASSESSEE AND HOLDING THAT SINCE THE BUSINESS OF ASSESSEE HAS NOT COMMENCED SO EXPENDITURE CLAIMED BY ASSESSEE COULD NOT BE ALLOWED AS REVENUE EXPENDITURE. 2. THAT WORTHY CIT(A) HAS MIS-INTERPRETING THE FACT THAT THE CASE AND HELD THAT THE ASSESSEE WAS NOT HAVING THE NECES SARY TOOLS TO CARRY OUT THE BUSINESS WHICH COULD HAVE FETCHED ANY REVENUE TO IT BUT IN THE CASE OF ASSESSEE, ASSESSEE IS HAVING ALL THE TOOLS TO CARRY OUT ITS BUSINESS HAS ALREADY BEEN FETCHED AND ASSESSEE RECEIVED ADVANCE FROM CUSTOMERS AMOUNTING TO RS.33, 94,300/- 2 WHICH PROVES THE CONDUCT OF BUSINESS BEING CARRIED OUT BY THE ASSESSEE. 3. THAT APPELLANT REQUESTS FOR LEAVE TO ADD OR AMEN D THE GROUND OF APPEAL BEFORE THE APPEAL IS HEARD AND DISPOSE OFF. 3. SHRI DINESH SARNA, ADVOCATE, THE LEARNED COUNSEL FO R THE ASSESSEE, SUBMITTED A LETTER, WHICH READS AS UNDER:- BEFORE HONBLE INCOME TAX APPELLATE TRIBUNAL, AMRI TSAR BENCH, AMRITSAR. APPEAL NO.361(ASR)/2010. RESPECTED SIR, IN VIEW OF THE SMALL TAX EFFECT, I HEREBY WITHDRAW THE APPEAL. YOURS FAITHFULLY, SD/- (DINESH SARNA) 3.1 IN VIEW OF THE ABOVE LETTER, WE GRANT PERMISSIO N TO THE ASSESSEE TO WITHDRAW THE APPEAL. 4. IN THE RESULT, THE APPEAL IS DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 9TH J UNE, 2011. SD/- SD/- (MEHAR SINGH) (H.L. KARWA) ACCOUNTANT MEMBER. VICE PRESIDENT. DATED: 9 TH JUNE, 2011. KC/- COPY OF THE ORDER FORWARDED TO: (1) THE ASSESSEE: M/S.WORLD TELNET (INDIA) (P.) LTD., 2 ND FLOOR, MOHINDER CHAMBER, SCF-92, RAJINDER NAGAR MAKET, JAL ANDHAR. (2) THE DCIT, RANGE-III, JALANDHAR. 3 (3) THE CIT, JALANDHAR. (4) THE CIT(A), JALANDHAR. (5) THE SR.D.R., ITAT, ASR. TRUE COPY BY ORDER ASSTT. REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, AMRITSAR.