M/s. Krishi Upaj Mandi Samiti, Itarsi V. The ACIT, Bhopal

ITA 459/IND/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2845 (ITAT-INDORE)
• Duration Of Justice: 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2010
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 18-09-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: APARNA KARAN

Judgement Text

PAGE 1 OF 3 -. I.T.A.NO. 459/IND/2009 KRISHI UPAJ MANDI SAMITI, ITARSI IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH : INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI V.K. GUPTA, ACCOUNTANT MEMBER PAN NO. : AAALK0572B I.T.A.NO. 459/IND/2009 A.Y. : 2006-07 KRISHI UPAJ MANDI SAMITI, ACIT, 1(2) ITARSI VS BHOPAL APPELLANT RESPONDENT ASSESSEE BY : SHRI ASHISH GOYAL, C. A. DEPARTMENT BY : SMT. APARNA KARAN, CIT DR DATE OF HEARING : 28.05.2010 O R D E R PER V.K. GUPTA, A.M. THIS APPEAL IS DIRECTED AGAINST THE ORDER OF LD. CI T(A)-I, BHOPAL, DATED 10.7.2009, FOR THE ASSESSMENT YEAR 2006-07. 2. WE HAVE HEARD BOTH THE PARTIES AND HAVE ALSO PERUSE D THE MATERIAL AVAILABLE ON RECORD. 3. FIRST, WE SHALL TAKE UP THE REVENUES APPEAL IN I.T .A.NO. 445/IND/2009. 4. GROUND NOS.1 TO 3 WERE NOT PRESSED, HENCE, THE SAME ARE DISMISSED, AS NOT PRESSED. PAGE 2 OF 3 -. I.T.A.NO. 459/IND/2009 KRISHI UPAJ MANDI SAMITI, ITARSI 5. GROUND NO.4 READS AS UNDER :- THAT AT ANY EVENT AND WITHOUT PREJUDICE TO THE ABO VE, THE LD. LOWER AUTHORITIES WERE NOT JUSTIFIED IN REJECTING T HE BOOKS OF ACCOUNT WITHOUT INVOKING THE PROVISIONS OF SECTI ON 145(3) OF THE INCOME-TAX ACT, 1961, AND MAKING VARIOUS ADD ITIONS AND DISALLOWANCES. THEREFORE, THE FOLLOWING DISALLO WANCE MADE BY THE LD. AO AND THEREAFTER SUSTAINED BY THE LD. CIT(A) ARE UNLAWFUL AND NOT JUSTIFIED. A. DISALLOWANCE UNDER THE EXPENSE HEAD ARAKSHIT NIDHI RS. 20,97,254/- B. DISALLOWANCE UNDER THE EXPENSE HEAD STHAI NIDHI FIXED FUND. RS. 44,64,298/- 6. THE LEARNED COUNSEL FOR THE ASSESSEE REFERRED TO P ARA 10 TO 11 ON PAGE 5 OF THE ORDER PASSED IN I.T.A.NO. 45 & 46/ IND/2009 OF THIS BENCH AND SUBMITTED THAT THIS ISSUE WAS COVERED IN FAVOUR OF THE ASSESSEE. REGARDING DISALLOWANCE UNDER THE HEAD STHAI NIDHI F UND, THE LEARNED COUNSEL FOR THE ASSESSEE REFERRED TO PARAS 8 TO 9 ON PAGE 4 TO 5 OF THE SAID ORDER (SUPRA) AND SUBMITTED THAT THIS ISSUE IS COVE RED IN FAVOUR OF THE REVENUE. THE LEARNED SENIOR DEPARTMENTAL REPRESENTA TIVE ALSO AGREED. 7. WE HAVE CONSIDERED THE SUBMISSIONS MADE BY BOTH TH E SIDES, MATERIAL ON RECORD AND THE ORDERS OF THE AUTHORITIE S BELOW. 8. AS REGARD TO TRANSFER TO RESERVE FUND, WE FIND THAT THE TRIBUNAL IN THE DECISION CITED BY THE ASSESSEE HELD THAT THE PRINCIPAL AMOUNT TRANSFERRED TO PENSION FUND WAS ALLOWABLE. HENCE, F OLLOWING THE SAME RATIO, WE ACCEPT THIS GROUND OF THE ASSESSEE. PAGE 3 OF 3 -. I.T.A.NO. 459/IND/2009 KRISHI UPAJ MANDI SAMITI, ITARSI 9. AS REGARD TO TRANSFER TO STHAI NIDHI AND INTEREST T HEREON, WE FIND THAT THIS ISSUE WAS RESTORED TO THE FILE OF AO. HOW EVER, IN SUBSEQUENT DECISION A VIEW AGAINST THE ASSESSEE HAS BEEN TAKEN AS POINTED OUT BY THE LEARNED COUNSEL FOR THE ASSESSEE AND, THEREFORE, F OLLOWING THE SUBSEQUENT DECISION OF THE TRIBUNAL, WE DECIDE THIS ISSUE AGAI NST THE ASSESSEE AND CONFIRM THE FINDINGS OF THE LD. CIT(A) THAT THIS AM OUNT HAS NOT GONE IRRETRIEVABLY FROM THE ASSESSEE, HENCE, DOES NOT AM OUNT TO EXPENDITURE, HENCE, NOT ALLOWABLE AS DEDUCTION. THUS, THIS GROUN D OF THE ASSESSEE STANDS DISMISSED. 10. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STA NDS PARTLY ALLOWED. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 28 TH MAY, 2010. SD/- SD/- (JOGINDER SINGH) (V. K. GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 28 TH MAY, 2010. CPU* 315