The ITO, Ward-1(2), RAJKOT-GUJARAT V. Shree Gondal Taluka Sahakari Kharid Vechan Sangh Ltd., GONDAL

ITA 435/RJT/2012

• Counselvise Citation: [2012] 120 COUNSELVISE.COM (IT) 0199 (ITAT-RAJKOT)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 03-10-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 13-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANKUR GARG
• Assessee Lawyers: RM MANEK
• Section: 143(3); 154

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT. . .. . . .. . , , , , . .. . . .. . , , , , $ $ $ $ BEFORE SHRI T. K. SHARMA, JM AND SHRI D. K. SRIVASTAV A, AM ITA NO. 435/RJT/2012 / ASSESSMENT YEAR 2005-06 INCOME TAX OFFICER WARD 1(2), AAYAKAR BHAVAN RACE COURSE, RING ROAD RAJKOT ( * / APPELLANT) VS. SHREE GONDAL TALUKA SAHKARI KHARID VECHAN SANGH LTD., SAHKAR BHAVAN, OLD SARDAR MARKET YARD, OPP.S.T.BUS-STAND, GONDAL, DIST, RAJKOT (GUJARAT) PAN:AAAAGO380L +,* / RESPONDENT - / REVENUE BY SHRI. ANKUR GARG /- / ASSESSEE BY SHRI R M MANEK - / DATE OF HEARING 3.10.2012 - / DATE OF PRONOUNCEMENT 5.10.2012 / / / / ORDER . .. . . . . . , , , , / T. K. SHARMA, J. M. THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER DATED 10.4.2012 OF CI T(A)-RAJKOT FOR THE ASSESSMENT YEAR 2005-06. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE ASSESSEE I S A CO- OPERATIVE SOCIETY HAVING ITS BRANCHES AT DIFFERENT VI LLAGES AND THE ACTIVITIES ARE DONE FOR AGRICULTURAL PURPOSES LIKE SALE OF SEEDS, F ERTILIZERS, PESTICIDES, AGRICULTURAL EQUIPMENTS AND TO BUILD AND MAINTAIN GOD OWN FOR STORAGE OF AGRICULTURAL PRODUCTS OF SMALL AGRICULTURIST. IN THIS CASE , ORIGINAL ASSESSMENT WAS COMPLETED U/S 143(3) OF THE INCOME TAX ACT, 1961 (THE ITA NO. 435/RJT/2012 2 ACT) AT AN INCOME OF RS.1,02,36,991/-. THEREAFTER T HE LD. CIT(A) PASSED ORDER DATED 17.6.2009. THE APPEAL EFFECT ORDER WAS PASSED ON 24.8.2009 DETERMINING THE TOTAL INCOME AT RS.1,12,49,520/-. IN THIS ORDER THERE WAS A MISTAKE. WHILE GIVING APPEAL EFFECT ORDER THE AO HAS TA KEN THE INCOME AT RS.1,02,38,990/- BY MISTAKE AND INCLUDED AN AMOUNT OF RS. 22,86,354/- WHICH WAS SET ASIDE TO THE FILE OF THE AO AND FURTHER A DDITION WAS ALSO MADE OF RS.10,07,069/-. THE ASSESSEE FILED AN APPLICAT ION FOR RECTIFICATION ON 15.9.2009 AND THEREAFTER TO ASSESSING O FFICER , WARD 1(2) ON 26.10.2009 HAVING LATEST JURISDICTION. THE AO REJ ECTED THE APPLICATION AND ON APPEAL, THE LD. CIT(A) FOR THE DETAILED REASO NS GIVEN IN PARAGRAPH 4.5 HELD THAT IN THE ORIGINAL ASSESSMENT ORDER DATED 20.12.2007, THE AO MADE THE ADDITION OF SHORT TERM CAPITAL GAIN OF RS. 22,86,354/-. 3. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE RE VENUE IS IN APPEAL BEFORE THIS TRIBUNAL ON THE FOLLOWING GROUNDS : 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF DOUBLE ADDITION OF RS.32,93,423/- MADE ON ACCOUNT OF STCG (RS.1007069 + 22,86,354). 2. THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER O F THE AO 4. AT THE TIME OF HEARING, SHRI ANKUR GARGE, THE L D. DR POINTED OUT THAT THE APPLICATION U/S 154 HAS RIGHTLY REJECTED BY T HE AO AND THE LD. CIT(A) IS NOT JUSTIFIED IN DELETING THE ADDITION TO THE EXTENT OF RS.32,93,423/-. AS AGAINST THIS SHRI R M MANEK, THE LD. COUNSEL FOR THE ASSESSEE POINTED OUT THAT SINCE THERE WAS DOUBLE ADDITION S, THE LD. CIT(A) AFTER CALLING REMAND REPORT AND COMMENTS OF THE ASSESSE E THEREON, AFTER APPRECIATING THE FACTUAL MATRIX OF THE CASE DELETED TH E DOUBLE ADDITION, THEREFORE, THE VIEW TAKEN BY THE LD. CIT(A) BE UPHEL D. ITA NO. 435/RJT/2012 3 5. HAVING HEARD BOTH THE SIDES, WE HAVE CAREFULLY GO NE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. PRIMA FACIE IT APPEAR S THAT THERE WAS DOUBLE ADDITION OF RS.(1007069 + 22,86,354) = 32934 23/- WHICH IS A MISTAKE APPARENT FROM THE FACE OF RECORD WITHIN MEANIN G OF SECTION 154 OF THE ACT AND THE LD. CIT(A) IS LEGALLY AND FACTUALLY CORRECT IN ALLOWING THE APPROPRIATE RELIEF TO THE ASSESSEE. WE, THEREFORE, DE CLINE TO INTERFERE IN THE ORDER PASSED BY THE LD. CIT(A). 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMI SSED. THIS ORDER IS PRONOUNCED IN THE OPEN COURT ON THE DAT E MENTIONED HEREINABOVE. SD SD ( .. / D. K. SRIVASTAVA) ( .. / T. K. SHARMA) / ACCOUNTANT MEMBER /JUDICIAL MEMBER 3/ ORDER DATE 5 -10-2012. /RAJKOT SRL - -- - +4 +4 +4 [phone] / COPY OF ORDER FORWARDED TO:- 1. * / APPELLANT-, 2. +,* / RESPONDENT- 3. : / CONCERNED CIT. 4. :- / CIT (A). 5. 4 +, , / DR, ITAT, RAJKOT 6. / GUARD FILE. / BY ORDER , TRUE COPY SENIOR PRIVATE SECRETARY , INCOME TAX APPELLATE TRIBUNAL, RAJKOT.