Kisan Sahkari Chini Mills Ltd, Pilibhit V. Dy. Commissioner of Income Tax, Bareilly

ITA 365/LKW/2014

• Counselvise Citation: 36523714 RSA 2014
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 21-08-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 09-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K RAM
• Assessee Lawyers: SHYAM LAL
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 365/LKW/2014 ASSESSMENT YEAR: 2007 - 08 KISAN SAHKARI CHINI MILLS LTD. PURANPUR V. DY. C IT CIRCLE II BAREILLY PAN: AACCK3995M (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. SHYAM LAL, C.A. RESPONDENT BY: SHRI. R. K. RAM, D.R. DATE OF HEARING: 21 0 8 2014 DATE OF PRONOUNCEMENT: 28 0 8 2014 O R D E R PER SUNIL KUMAR YADAV: THIS APPEA L IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) MAINLY ON TWO GROUNDS, WHICH ARE AS UNDER: - 1 . THE LD. CIT(A), BAREILLY HAS ERRED ON FACTS AND IN LAW IN CONFIRMING DISALLOWANCE OF BONUS AMOUNTING TO RS.2,01,455/ - UNDER SECTION 43B OF I.T. A CT, 1961 IN THE PRESENT CASE. 2 . THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW IN CONFIRMING DISALLOWANCE OF RS.8,76,103/ - REPRESENTING PURCHASE TAX UNDER SECTION 43B ON THE GROUND OF NON - PAYMENT BEFORE DUE DATE PRESCRIBED UNDER SECTION 139(1) OF THE ACT WHICH IS CARRIED FORWARD FROM ASSESSMENT YEAR 2006 - 07 IN THE PRESENT CASE. 3 . APROPOS GROUND NO.1, IT IS NOTICED THAT THE ASSESSING OFFICER HAS DISALLOWED AN AMOUNT OF RS.2,01,455/ - REPRESENTING BALANCE UNPAID AMOUNT PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 2 - : OF BONUS RELATING TO ASSESSMENT YEAR 2006 - 07 ON THE GROUND THAT IT HAS NOT BEEN PAID DURING THE PREVIOUS YEAR AND ALSO TILL THE DATE OF RETURN FILED UNDER SECTION 139(1) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER CALLED IN SHORT THE ACT'), HAVING INVOKED THE PROVISIONS OF SECTION 43B OF THE ACT. THE AS SESSING OFFICER HAS ALSO MADE A DISALLOWANCE OF PURCHASE TAX OF RS.8,76,103/ - DEBITED TO THE PROFIT AND LOSS ACCOUNT FOR THE SIMILAR REASON. 4 . AGAINST THE DISALLOWANCES, APPEAL WAS FILED BY THE ASSESSEE BEFORE THE LD. CIT(A), BUT ASSESSEE DID NOT FIND FAVOUR WITH HIM AND THE LD. CIT(A) HAS CONFIRMED THE DISALLOWANCE S . 5 . NOW THE ASSESSEE HAS FILED AN APPEAL BEFORE THE TRIBUNAL AND REITERATED ITS CONTENTIONS AS RAISED BEFORE THE LD. CIT(A). THE LD. COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT THE LOWER AUTHORITIES HAVE NOT EXAMINED THE EXPLANATIONS FURNISHED BY THE ASSESSEE AND THEY HAVE MADE DISALLOWANCE S ONLY FOR THE SIMPLE REASON THAT THE AFORESAID AMOUNT S W ERE NOT PAID DURING THE PREVIOUS YEAR OR TILL THE DATE OF RETURN FILED UNDER SECTION 139(1) OF THE ACT, WH EREAS THE UNPAID AMOUNT IS C ARRIED FORWARD FROM PREVIOUS YEARS, AS THE SAME IS RELATING TO EARLIER YEARS, FOR WHICH NO DISALLOWANCE WAS WARRANTED . H ENCE THE SAME DESERVES TO BE QUASHED. BUT THIS ASPECT WAS NOT EXAMINED BY THE LOWER AUTHORITIES DESPITE A SPECIFIC CERTIFICATE WAS GIVEN BY THE AUDITOR. THEREFORE, DISALLOWANCE S MADE B Y THE LOWER AUTHORITIES DESERVE TO BE DELETED. 6 . THE LD. D.R., ON THE OTHER HAND, HAS PLACED RELIANCE UPON THE ORDER OF THE LD. CIT(A). 7 . HAVING CAREFULLY EXAMINED THE ORDERS OF THE LOWER AUTHORITIES, WE FIND THAT THE EXPLANATIONS FURNISHED BY THE ASSESSEE WERE NOT PROPERLY EXAMINED BY THE ASSESSING OFFICER OR THE LD. CIT(A). DISALLOWANCE S WERE MADE ONLY FOR THE SIMPLE REASON THAT NO PROOF OF PAYMENT WAS FILED ALONG WITH THE RETURN OF INCOME. THEREFORE, IN THE INTEREST OF JUSTICE, WE ARE OF PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 3 - : THE VIEW THAT BOTH THE ISSUES REQUIRE A FRESH ADJUDICATION BY THE ASSESSING OFFICER IN THE LIGHT OF THE EXPLANATIONS FURNISHED BY THE ASSESSEE. ACCORDINGLY WE SET ASIDE THE ORDER OF THE LD. CIT( A) AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO RE - ADJUDICATE THE ISSUE S AFRESH IN THE LIGHT OF THE EXPLANATIONS FURNISHED BY THE ASSESSEE AFTER AFFORDING OPPORTUNITY OF BEING HEAD TO THE ASSESSEE IN ACCORDANCE WITH LAW. 8 . IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENT I ONED ON THE CAPTION PAGE. [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 28 TH AUGUST , 2014 JJ: 2108 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ )