Ghazipur Zila Sahkari Sangh,Ltd., Ghazipur V. ACIT, Varanasi

ITA 42/ALLD/2012

• Counselvise Citation: 4220714 RSA 2012
• Duration Of Justice: 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-11-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 24-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y P SRIVASTA VA
• Assessee Lawyers: SUBHASH CHA ND
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, ALLAHABAD BENCH, ALLAHABAD BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 42/ALLD./2012 ASSTT. YEAR : 2008-09 GHAZIPUR ZILA SAHKARI SANGH LTD., VS. ACIT, CIRCL E 3, STATION ROAD, GHAZIPUR. VARANASI. PAN : AAABG 0220 G) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUBHASH CHAND, ADVOCATE RESPONDENT BY : SHRI Y.P. SRIVASTAVA, D.R. DATE OF HEARING : 08.11.2012 DATE OF PRONOUNCEMENT OF ORDER : 09.11.2012 ORDER PER BHAVNESH SAINI, J.M.: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF LD. CIT(A), VARANASI DATED 26.12.2011 FOR THE ASSESSMENT YEAR 2 008-09. 2. BRIEFLY, THE BACKGROUND OF THE CASE IS THAT THE ASSESSEE FILED RETURN OF INCOME DECLARING NIL INCOME AFTER CLAIMING THE EXEMPTION U /S. 80P OF THE IT ACT. THE ASSESSEE IS A CO-OPERATIVE SOCIETY, ENGAGED IN THE BUSINESS OF FERTILIZERS, CONSUMER CLOTH AND GENERAL MERCHANDISE TO ITS MEMBERS AND OT HERS. THE ASSESSEE MADE A CLAIM OF DEDUCTION U/S. 80P(2)(IV) OF THE IT ACT BE FORE THE ASSESSING OFFICER IN A SUM OF RS.6,40,644/-, WHICH WAS DENIED BY THE ASSES SING OFFICER BECAUSE THESE ITA NO. 42/ALLD./2012 2 PROVISIONS ARE NOT APPLICABLE IN THE CASE OF THE AS SESSEE AND FURTHER DISALLOWANCE WAS MADE OF RS.1,08,401/- BECAUSE THE ASSESSEE HAS NOT SHOWN ANY BUSINESS INCOME FROM COLD STORAGE. THE LD. CIT(A) WITHOUT CO NSIDERING THE FACTS OF THE CASE ON BOTH THESE ISSUES, REPRODUCED THE WRITTEN SUBMIS SIONS OF THE ASSESSEE AND ORDER OF ASSESSING OFFICER IN THE APPELLATE ORDER AND THE REAFTER PASSED THE FOLLOWING ORDER : CONSIDERING FACTS AND CIRCUMSTANCES OF THE CASE, I FIND FORCE IN ASSESSING OFFICERS CONTENTION, ACCORDINGLY THE ADDITION MADE ON THE ABOVE MENTIONED HEAD IS HEREBY CONFIRMED. SIMILARLY, ON DISALLOWANCE OF EXPENSES, THE LD. CIT (A) AGAIN REPRODUCED THE ORDER OF THE ASSESSING OFFICER AND PASSED THE FOLLOWING O RDER : CONSIDERING FACTS AND CIRCUMSTANCES OF THE CASE, I FIND FORCE IN ASSESSING OFFICERS CONTENTION, ACCORDINGLY THE ADDITION MADE ON THE ABOVE MENTIONED HEAD IS HEREBY CONFIRMED. 3. THE LD. COUNSEL FOR THE ASSESSEE FILED THREE PAP ER BOOKS AND CHALLENGED THE ADDITION OF RS.6,40,644/- AND CLAIMED THAT THE AFO RESAID AMOUNT IS EXEMPT U/S. 80P(2)(IV) OF THE IT ACT AND FURTHER DISALLOWANCE I S UNJUSTIFIED. HE HAS ALSO RELIED UPON THE DECISION OF A.P. HIGH COURT IN THE CASE OF CIT VS. GUNTUR DISTRICT CO- OPERATIVE SOCIETY, 154 ITR 799. ON THE OTHER HAND, THE LD. DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. ITA NO. 42/ALLD./2012 3 4. ON CONSIDERATION OF THE FACTS OF THE CASE IN THE LIGHT OF FINDINGS OF LD. CIT(A) ABOVE, WE ARE OF THE VIEW THAT THE MATTER RE QUIRES RE-CONSIDERATION AT THE LEVEL OF THE LD. CIT(A). ACCORDING TO SECTION 250(6 ), THE LD. CIT(A) IS REQUIRED TO STATE THE POINTS FOR DETERMINATION, DECISION THEREO N AND THE REASONS FOR DECISION IN THE APPELLATE ORDER WHILE DISPOSING OF THE APPEAL O F THE ASSESSEE. THE LD. CIT(A) IS A QUASI JUDICIAL AUTHORITY AND SHALL HAVE TO FOLLOW THE PRINCIPLE OF LAW AND PASS THE ORDER IN CONSONANCE WITH LAW. HOWEVER, ENTIRE IMPUG NED ORDER WOULD SHOW THAT THE LD. CIT(A) REPRODUCED THE WRITTEN SUBMISSIONS O F THE ASSESSEE, ASSESSMENT ORDER OF THE ASSESSING OFFICER AND WITHOUT GIVING A NY REASONS FOR DECISION, DISMISSED THE APPEAL OF THE ASSESSEE BY CONFIRMING THE ADDITION. SUCH A APPROACH OF THE LD. CIT(A) CANNOT BE SUSTAINED IN LAW. IT AP PEARS THAT THE IMPUGNED ORDER IS PASSED IN MOST MECHANICAL MANNER WITHOUT APPLYING J UDICIAL MIND. THE ASSESSEE IS CO-OPERATIVE SOCIETY, THEREFORE, THE CASE OF THE AS SESSEE SHOULD HAVE BEEN CONSIDERED IN THE LIGHT OF PROVISIONS OF SECTION 80 P OF THE IT ACT AND CONSIDERING THE NATURE OF INCOME EARNED BY THE ASSESSEE AND THE EXPENSES MADE THEREON. THE LD. CIT(A) DID NOT CONSIDER ANYTHING IN THE ORDER A ND WITHOUT GIVING ANY REASON, DISMISSED THE APPEAL OF THE ASSESSEE BY CONFIRMING THE ADDITIONS ON MERIT. WE ARE, THEREFORE, OF THE VIEW THAT THE ORDER OF THE LD. CI T(A) CANNOT BE SUSTAINED IN LAW. WE, ACCORDINGLY SET ASIDE THE ORDER OF THE LD. CIT( A) AND RESTORE THE APPEAL OF THE ITA NO. 42/ALLD./2012 4 ASSESSEE TO HIS FILE WITH DIRECTION TO RE-DECIDE TH E APPEAL OF THE ASSESSEE IN ACCORDANCE WITH LAW BY GIVING REASONS FOR DECISION IN THE APPELLATE ORDER. THE LD. CIT(A) SHALL GIVE REASONABLE AND SUFFICIENT OPPORTU NITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, ALLAHABAD 6. GUARD FILE ASSTT. REGISTRAR TRUE COPY