Venktesh Tradelinks Pvt.Ltd., Ahmedabad V. The Income tax Officer,Ward-8(4), Ahmedabad

ITA 3753/AHD/2007

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 9999 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 30-08-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 28-09-2007
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R K DHANESTA
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A BEFORE SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI D.C. AGRAWAL, ACCOUNTANT MEMBER DATE OF HEARING : 30/08/2010 DRAFTED ON: 30/08/ 2010 ITA NO.3753/AHD/2007 ASSESSMENT YEAR : 2005-06 VENKTESH TRADELINKS P.LTD. 2, TEXTILE TECHNICIAN SOC. NR.GANDHI BRIDGE CORNER AHMEDABAD-380 009 VS. THE ITO WARD-8(4) AHMEDABAD PAN/GIR NO. : AABCV 4415 C ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : WRITTEN SUBMISSION RESPONDENT BY: SHRI R.K.DHANESTA, D.R. O R D E R PER SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER : THIS IS AN APPEAL AT THE BEHEST OF THE ASSESSEE W HICH HAS EMANATED FROM THE ORDER OF THE LEARNED CIT(APPEALS) -XIV, AHMEDABAD DATED 08/08/2007AND THE ONLY SUBSTANTIVE GROUND IS GROUND NO.2; REPRODUCED BELOW:- 2. THE LEARNED COMMISSIONER OF INCOME-TAX HAS AGAI N ERRED IN CONFIRMING THE DISALLOWANCE OF RS.5,00,000/- ALLEGE DLY BEING THE FREIGHT PAYMENT MADE INC ASH. SUCH DISALLOWANCES F OR THE ALLEGED FREIGHT PAYMENT MADE IN CASH CANNOT BE SUSTAINED WH EN THE ENTIRE FREIGHT PAYMENTS WERE MADE FOR THE PURPOSES OF BUSI NESS AND WAS CLEARLY ALLOWABLE UNDER INCOME-TAX ACT. ITA NO.3753/AHD /07 VENKTESH TRADELINKS P.LTD. VS. ITO ASST.YEAR - 2005-06 - 2 - 2. THE ASSESSEE-COMPANY IS IN THE BUSINESS OF PLYIN G OF TRUCKS. THE OBSERVATION OF THE ASSESSING OFFICER WAS THAT AS AG AINST THE FREIGHT CHARGES RECEIVED OF RS.10,86,93,357/-, THE FREIGHT PAYMENT WAS MADE TO THE TUNE OF RS.10,40,04,940/-. FURTHER, IT WAS NOT ICED THAT THE ASSESSEE HAS OWNED ITS OWN TRUCKS, HOWEVER, THOSE WERE NOT F OUND SUFFICIENT FOR CARTING OF THE GOODS, THEREFORE, THE ASSESSEE-COMPA NY HAD CONTACTED OTHER PARTIES TO WHOM THE PAYMENTS HAVE BEEN MADE TOWARDS FREIGHT CHARGES STATED TO BE BY CHEQUES. THE ASSESSING OFFICER HA S REPRODUCED THE DETAILS OF THE PAYMENT AND THE NAMES OF THE PARTIES . HOWEVER, HE HAS CONCLUDED THAT IN THE PAST, I.E. ASSESSMENT YEAR 20 04-05 A DISALLOWANCE OF RS.5 LACS WAS MADE OUT OF THE FREIGHT PAYMENTS M ADE TO TRUCK DRIVERS. FOLLOWING FOR THE PAST HISTORY A SIMILAR DISALLOWA NCE WAS MADE FOR THE YEAR UNDER CONSIDERATION AS WELL. 3. WHEN THE MATTER WAS CARRIED BEFORE THE FIRST APP ELLATE AUTHORITY, THE SAME RECOURSE OF FOLLOWING THE PAST HISTORY OF ASSESSMENT YEAR 2004-05 WAS ADOPTED AND THE ACTION OF THE ASSESSING OFFICER WAS AFFIRMED. 4. NOW BEFORE US, AN ORDER OF THE RESPECTED CO-ORDI NATE BENCH D AHMEDABAD IN ASSESSEES OWN CASE BEARING ITA NO.353 5/AHD/2007 FOR ASSESSMENT YEAR 2004-05, DATED 04/04/2008 PLACED ON RECORD, WHEREIN VIDE PARAGRAPH NO.5, THE MATTER WAS RESTORED WITH C ERTAIN DIRECTIONS TO THE STAGE OF ASSESSMENT AS FOLLOWS:- ITA NO.3753/AHD /07 VENKTESH TRADELINKS P.LTD. VS. ITO ASST.YEAR - 2005-06 - 3 - 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE RECORD. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE , WE FIND THAT THE ASSESSING OFFICER DISALLOWED AND THE CIT(A) HAS CONFIRMED THE DISALLOWANCE OF RS.4,50,000 OUT OF TOTAL PAYMENTS M ADE TO TRUCK DRIVERS ON THE BASIS THAT THERE ARE NO SUPPORTING V OUCHERS. BUT THE ASSESSEES CLAIM IS THAT IT HAS HAVING ALL SUPPORTI NG VOUCHERS IN SUPPORT OF THE ABOVE PAYMENTS AND THE ASSESSEE WAS READY TO PRODUCE ALL SUCH VOUCHERS BEFORE US. THEREFORE, FO R THE ENDS OF JUSTICE AND FAIR PLAY, WE SET ASIDE THE ORDER OF TH E CIT(A) AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFF ICER TO DECIDE THE ISSUE AFTER VERIFYING ALL THE DETAILS TO BE PRODUCE D BY THE ASSESSEE AND AFTER GIVING OPPORTUNITY TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO PRODUCE ALL THE DETAILS/EVIDENCE IN SUP PORT OF ITS CLAIM OF PAYMENT IN CASH TO THE TRUCK DRIVERS AS AFORESAI D. 5. SINCE THE REVENUE AUTHORITIES HAVE FOLLOWED THE PAST PRECEDENT IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2004-05 AND FOR THAT YEAR THE RESPECTED CO-ORDINATE BENCH HAS RESTORED THE MATTER BACK TO ASSESSING OFFICER, THEREFORE, FOR THE YEAR UNDER CONSIDERATIO N, WE ARE LEFT WITH NO OPTION BUT TO FOLLOW THE PAST PRECEDENT, AS ALSO RE QUESTED BY THE APPELLANT THROUGH A WRITTEN SUBMISSION, WITH THE RESULT, THE GROUND RAISED MAY BE TREATED AS ALLOWED ONLY FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED BUT FOR STATISTICAL PURPOSES. ORDER SIGNED, DATED AND PRONOUNCED IN THE COURT ON 31/ 08 /2010. SD/- SD/- ( D.C. AGRAWAL) ( MUKUL KR. SH RAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBE R AHMEDABAD; DATED 31 / 08 /2010 T.C. NAIR, SR. PS ITA NO.3753/AHD /07 VENKTESH TRADELINKS P.LTD. VS. ITO ASST.YEAR - 2005-06 - 4 - COPY OF THE ORDER FORWARDED TO : 1. THE ASSESSEE. 2. THE DEPARTMENT. 3. THE CIT CONCERNED 4. THE LD. CIT(APPEALS)-XIV, AHMEDABAD 5. THE DR, AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT.REGISTRAR), ITAT, AHMEDABAD