Shree Raj Corporation, Ahmedabad V. The Income tax Officer,Ward-9(1), Ahmedabad

ITA 44/AHD/2010

• Counselvise Citation: 4420514 RSA 2010
• Duration Of Justice: 2 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-07-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 13-06-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 05-01-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VINOD TANWANI
• Assessee Lawyers: S N SOPARKAR

Judgement Text

, , , , C , IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, C BENCH . .. . . .. . , !' !' !' !', , , , #$ #$ #$ #$ # ## #. .. .% $% % $% % $% % $%, , , , &' ( &' ( &' ( &' ( & ' & ' & ' & ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER) ITA NO.44/AHD/2010 [ASSTT. YEAR : 2006-2007] SHRI RAJ CORPORATION RADHE DUPLEX ROW HOUSE BARODA EXPRESS HIGHWAY CTM, AHMEDABAD. PAN : ABFFS 4219 R /VS. ITO, WARD-9(1) AHMEDABAD. ( (( (*+ *+ *+ *+ / APPELLANT) ( (( (,-*+ ,-*+ ,-*+ ,-*+ / RESPONDENT) ./ 0 1 &/ ASSESSEE BY : SHRI S.N. SOPARKAR ( 0 1 &/ REVENUE BY : SHRI VINOD TANWANI 3 0 /4'/ DATE OF HEARING : 13 TH JUNE, 2012 5%6 0 /4'/ DATE OF PRONOUNCEMENT : 6-7-2012 &7 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-XV, AHMEDA BAD DATED 10.11.2009 FOR A.Y.2007-2008. 2. THE ONLY GROUND RAISED IN THE ASSESSEES APPEAL READS AS UNDER: 1. THE LD.CIT(A) HAS ERRED IN UPHOLDING THE DISALL OWANCE OF RS.11,38,830/- PAID FOR LABOUR AND CARTING EXPENSES U/S.40(A)(IA) THOUGH THE TDS HAS BEEN DEPOSITED ON 312STR MAY, 20 06. ITA NO.44/AHD/2010 -2- 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF HON BLE CALCUTTA HIGH COURT IN THE CASE OF CIT VS. VIRGIN CREATORS IN GA NO.3200/2 011 DATED 23-11-2011 AND ALSO WITH THE DECISION OF THE ITAT, AHMEDABAD B ENCHES IN M/S.ALPHA PROJECTS VS. DCIT, IN ITA NO.2869/AHD/2011 DATED 23 -3-2012. THE LEARNED DR HAS OPPOSED THE SUBMISSIONS OF THE LEARNED COUNS EL FOR THE ASSESSEE. HE SUBMITTED THAT ISSUE IS COVERED IN FAVOUR OF THE RE VENUE WITH THE DECISION OF ITAT, MUMBAI SPECIAL BENCH IN THE CASE OF BHARATI S HIPYARD LTD. VS. DCIT IN ITA NO.2404/MUM/2009 ORDER DATED 12.09.2011. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS CAREFULLY. WE FIND THAT THE ISSUE OF DISALLOWANCE OF LABOUR AND CARTING EXPENSE S UNDER SECTION 40(A)(IA) OF THE ACT IS COVERED IN FAVOUR OF THE AS SESSEE WITH THE DECISION OF HONBLE CALCUTTA HIGH COURT IN THE CASE OF VIRGI N CREATORS DATED 23.11.2011 (SUPRA) AND ALSO WITH THE DECISION OF TH E ITAT, AHMEDABAD BENCHES IN M/S.ALPHA PROJECTS PVT. LTD. DATED 23-3- 2012 (SUPRA). WE FIND THAT THE ISSUE BEFORE THE HONBLE CALCUTTA HIG H COURT IN M/S.VIRGIN CREATORS WAS WHETHER THE PROVISION OF SECTION 40(A) (IA) HAS RETROSPECTIVE OPERATION OR NOT AND THE ISSUE WAS DECIDED IN FAVOU R OF THE ASSESSEE. THE ITAT, AHMEDABAD BENCHES IN THE CASE OF M/S.ALPHA PR OJECTS PVT. LTD. (SUPRA) HAS CONSIDERED THE DECISION CITED BY THE LE ARNED DR OF THE SPECIAL BENCH IN THE CASE OF BHARATI SHIPYARD LTD. (SUPRA) AND HAS FOLLOWED THE DECISION OF THE HONBLE CALCUTTA HIGH COURT IN THE CASE OF VIRGIN CREATORS (SUPRA) AND HAS DELETED THE DISALLOWANCE U NDER SECTION 40(A)(IA) OF THE ACT. WE BEING IN AGREEMENT WITH THE DECISIO N OF THE CO-ORDINATE BENCH OF AHMEDABAD TRIBUNAL IN THE CASE OF M/S.ALPH A PROJECTS PVT. LTD. (SUPRA) AND THERE BEING NO CONTRARY DECISION BROUGH T TO OUR NOTICE OF ANY OTHER HONBLE HIGH COURTS, RESPECTFULLY FOLLOWING T HE DECISION OF THE HONBLE CALCUTTA HIGH COURT IN CIT VS. VIRGIN CREAT ORS (SUPRA) WE DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE AND DELE TE THE DISALLOWANCE OF ITA NO.44/AHD/2010 -3- LABOUR AND CARTING EXPENSES UNDER SECTION 40(A)(IA) OF THE ACT AND ACCORDINGLY ALLOW THIS GROUND OF THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( #.% $% /A.MOHAN ALANKAMONY) &' ( /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD