The ACIT-1(1), Bhopal V. M/s. Bhasker Ventatesh Products Pvt. Ltd., Bhopal

ITA 388/IND/2013

• Counselvise Citation: 38822714 RSA 2013
• Duration Of Justice: 1 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2014
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 03-06-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ARPIT MUNDRA
• Assessee Lawyers: R A VERMA
• Keywords: Depreciation; Unabsorbed depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE P.K. BANSAL, ACCOUNTANT MEMBER AND SHRI MUKU L KR. SHRAWAT, JUDICIAL MEMBER PAN NO. AACCB8813H ITA NO. 388/IND/2013 A.Y. : 2007-08 ACIT, 1(1), BHOPAL VS. M/S.BHASKAR VENKATESH PRODUCTS PVT.LTD., BHOPAL (APPELLANT) (RESPONDENT) DEPARTMENT BY : SHRI R. A. VERMA, SR. DR REVENUE BY : SHRI ARPIT MUNDRA, C. A. / // / DATE OF HEARING : 10.09.2014 /DATE OF PRONOUNCEMENT: 19.09.2014 / O R D E R PER P.K.BANSAL, A.M. THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF CIT(A) DATED 18.3.2013 BY TAKING THE FOLLOWING E FFECTIVE GROUNDS :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE CIT(A) HAS ERRED IN (1) DIRECTING THE ASSESSING OFFICER WHO CONSIDER THE LOSS AT RS. 1920716/- FOR COMPUTATION OF TOTAL INCOME OF THE YEAR. BHASKAR VENKATESH PRODUCTS P.LTD., BHOPAL. I.T.A.NO. 388/IND/2013 A. Y. 2007-08 2 (2) DELETING THE DISALLOWANCE OF RS. 162146/-MADE BY THE ASSESSING OFFICER UNDER VARIOUS HEADS OF EXPENSES. 2. GROUND NO. 1 RELATES TO THE DIRECTION GIVEN TO THE ASSESSING OFFICER BY CIT(A) ABOUT THE CARRY FORWARD OF THE LOSS. 3. AFTER HEARING THE RIVAL SUBMISSIONS, WE NOTED THAT THE LD. CIT(A) HAS GIVEN THE DIRECTION TO THE ASSESSING OFF ICER ON THE BASIS OF COMPUTATION OF INCOME FOR THE ASSESSMENT Y EAR 2007-08 SUBMITTED BY THE ASSESSEE. THAT UNABSORBED DEPRECIA TION OF RS. 1920716/- TO BE CARRIED FORWARD IN THE SUBSEQUENT Y EAR. WE NOTED THAT THE ASSESSEE HIMSELF MOVED AN APPLICATIO N DATED 15.6.2013 BEFORE THE ASSESSING OFFICER TO RECTIFY T HE CARRY FORWARD OF THE LOSS OF THE DEPRECIATION AND THE CORRECT FIG URE OF THE CARRY FORWARD OF THE LOSS TO BE CARRIED FORWARD IS RS. 2, 54,089/- AND NOT RS. 19,20,716/-. WE, ACCORDINGLY, AMEND THE DIR ECTION OF THE LD. CIT(A) AND DIRECT THE ASSESSING OFFICER TO CONS IDER THE LOSS AT RS. 2,54,089/- AS UNABSORBED DEPRECIATION TO BE CA RRIED FORWARD IN THE SUBSEQUENT YEAR AS PER THE LETTER OF THE ASS ESSEE DATED 15.6.2013 ADDRESSED TO THE DCIT(A), 1(1). THUS, THI S GROUND IS ALLOWED. BHASKAR VENKATESH PRODUCTS P.LTD., BHOPAL. I.T.A.NO. 388/IND/2013 A. Y. 2007-08 3 4. GROUND NO.2 RELATES TO THE DELETION OF THE DISALLOW ANCE OF RS. 1,62,146/-. 5. AFTER HEARING THE RIVAL SUBMISSIONS, WE NOTED THAT THE ASSESSING OFFICER HAS MADE THE FOLLOWING DISALLOWAN CE IN RESPECT OF VARIOUS EXPENDITURE CLAIMED BY THE ASSESSEE UNDE R THE VARIOUS HEADS :- EXPENDITURE DISALLOWANCES (RS.) ADVERTISEMENT EXPENDITURE 79,500 SALES EXPENSES 50,000 TELEPHONE EXPENSES 5,034 SALARY & WAGES 25,500 OTHER TRADE EXPENSES 2,112 TOTAL 1,62,146 6. THE ASSESSEE HAS PRODUCED BOOKS OF ACCOUNTS BEFORE THE ASSESSING OFFICER AND HAS ALSO SUBMITTED THE DETAIL S OF THIS EXPENDITURE. COPIES OF THOSE ARE ALSO AVAILABLE IN THE PAPER BOOK. THE ASSESSING OFFICER, WE NOTED, HAD MADE THE AD HO C DISALLOWANCE WITHOUT SPECIFICALLY POINTING OUT ANY SPECIFIC EXPENDITURE, WHICH IS NOT GENUINE AND HAS NOT BEEN INCURRED FOR THE PURPOSE OF THE BUSINESS. THE LD. CIT(A) AFTER V ERIFYING THE DETAILS AND VOUCHERS HAD GIVEN A CATEGORICAL FINDIN G IN THIS REGARD AND HAS DELETED THE AD HOC DISALLOWANCE IN R ESPECT OF EACH EXPENDITURE MADE BY THE ASSESSING OFFICER ON ASSUMP TION AND PRESUMPTION. WE DO NOT FIND ANY INFIRMITY IN THE OR DER OF THE BHASKAR VENKATESH PRODUCTS P.LTD., BHOPAL. I.T.A.NO. 388/IND/2013 A. Y. 2007-08 4 CIT(A) OR ANY COGENT MATERIAL WAS BROUGHT TO OUR KN OWLEDGE TO REVERSE THE FINDING OF CIT(A) BY THE LD. SENIOR DR. EVEN THOUGH HE RELIED ON THE ORDER OF THE ASSESSING OFFICER. WE, T HEREFORE, CONFIRM THE ORDER OF THE LD. CIT(A). THUS, THIS GRO UND STANDS DISMISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS P ARTLY ALLOWED. SD/- SD/- (MUKUL KR. SHRAWAT) (P. K. BANSAL) JUDICIAL MEMBER ACCOUNTANT M EMBER INDORE; DATED 19/09/2014 CPU*SPS / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. '# ! / THE RESPONDENT. 3. $%$&' # # ( / CONCERNED CIT 4. # # ( ( ) / THE CIT(A), INDORE 5. +,# &' , # # &' , -.% / DR, ITAT, INDORE 6. ,/0 1 / GUARD FILE. / BY ORDER, -# -# -# -# $2 $2 $2 $2 (ASSTT.REGISTRAR) ITAT, INDORE 1. DATE OF DICTATION- 11.09.2014 BHASKAR VENKATESH PRODUCTS P.LTD., BHOPAL. I.T.A.NO. 388/IND/2013 A. Y. 2007-08 5 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 12.09.2014 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 THE FILE GOES TO THE BENCH CLERK 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 8. DATE OF DESPATCH OF THE ORDER