M/s. GNA Duraparts, Jalandhar V. The Addl. Commissioner of Incomet-ax, Jalandhar

ITA 461/ASR/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2250 (ITAT-AMRITSAR)
• Duration Of Justice: 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 26-06-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 18-12-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R L CHHANALIA
• Assessee Lawyers: GUNJEET SIN GH SYAL ITP; PREM SINGH
• Keywords: Gift

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P. JAIN, ACCOUNTANT MEMBER I.T.A. NO. 461 (ASR)/2012 ASSESSMENT YEAR: 2007-08 PAN: AAAFG6265F M/S GNA DURAPARTS VS. ADDL. CIT, RANGE-III, I-C, CHHOTI BARADARI, JALANDHAR. GARHA ROAD, JALANDHAR (APPELLANT) (RESPONDENT) APPELLANT BY: SH. PREM SINGH, ADVOCATE & SH. GUNJEET SINGH SYAL, I.T.P. RESPONDENT BY: SH. R.L. CHHANALIA, D.R. DATE OF HEARING: 26.06.2013 DATE OF PRONOUNCEMENT: 26.06.2013 ORDER PER BENCH 1) THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST THE IMPUGNED ORDER DATED 22.10.2012 PASSED BY LEARNED CIT(A), JA LANDHAR, FOR THE ASSESSMENT YEAR 2007-08 ON THE FOLLOWING GROUNDS: I. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) H AVE ERRED IN SUSTAINING THE ADDITION OF RS. 1,00,000/- OUT OF TH E BUSINESS PROMOTION EXPENSES ACCOUNT. II. THAT THE AUTHORITY BELOW HAS WRONGLY BEEN DISALLOWE D CLUB FEE EXPENSES TO THE TUNE OF RS. 23,288/- III. THAT THE AUTHORITY BELOW HAS ERRED IN SUSTAINING TH E ADDITION OF RS. 20,000/- OUT OF LABOUR AND STAFF WELFARE EXPENSES. IV. THAT THE WRITTEN SUBMISSIONS OF THE APPELLANT HAVE NOT BEEN CONSIDERED IN PROPER CONTEXT. 2 I.T.A. NO. 461 (ASR)/2012 ASSESSMENT YEAR: 2007-08 V. THAT THE ORDER IS AGAINST LAW AND FACTS OF THE CASE AND IS CHALLENGED. VI. THAT PROPER OPPORTUNITY SHOULD HAVE BEEN ALLOWED. VII. ANY OTHER GROUNDS PRESSED AT THE TIME OF HEARING. 2) AT THE TIME OF HEARING, LEARNED COUNSEL FOR THE ASSESSEE STATED THAT HE DID NOT WANT TO PRESS THE ISSUE INVOLVED IN GROUNDS NO. 2 AND 3 AND REQUESTED THAT THE SAME MAY BE DISMISSED AS NOT PRESSED. 3) LEARNED D.R. HAS NOT RAISED ANY OBJECTION ON THE REQUEST OF THE ASSESSEE THEREFORE, THE ISSUE INVOLVED IN GROUNDS N O. 2 AND 3 ARE REJECTED. 4) AS REGARD TO THE ISSUE INVOLVED IN GROUND NO. 1, BOTH THE PARTIES HAVE AGREED THAT THIS BENCH IN I.T.A. NO. 57(ASR)/2 012 FOR A.Y. 2006-07, DECIDED ON 06.03.2013, HAS ADJUDICATED AND DECIDED THIS ISSUE PARTLY IN FAVOUR OF THE ASSESSEE BY ESTIMATING THE INCOME OF THE ASSESSEE TO THE TUNE OF RS. 60,000/- AGAINST RS. 1 LAKH DISALLOWED BY THE LEARNED CIT(A) IN THE IMPUGNED ORDER OUT OF THE EXPENDITURE CLAIME D BY THE ASSESSEE ON ACCOUNT OF GIFT AND SHAGUNS AS NOT BEING INCOME FOR THE PURPOSE OF BUSINESS. 5) AFTER HEARING BOTH THE PARTIES, WE ARE OF THE VI EW THAT THE ISSUE INVOLVED IN THE GROUND NO. 1 HAS ALREADY BEEN DECID ED BY THIS BENCH IN THE ASSESSEES OWN CASE IN I.T.A. NO. 57(ASR)/2012 FOR A.Y. 2006-07 ON 06.03.2013, AND THIS BENCH HAS REDUCED THE DISALLOW ANCE FROM RS. 1 LAKH TO RS. 60,000/-. THEREFORE, IN THE PRESENT CASE ALS O WE ARE FOLLOWING OUR 3 I.T.A. NO. 461 (ASR)/2012 ASSESSMENT YEAR: 2007-08 OWN ORDER PASSED IN I.T.A. NO. 57(ASR)/2012(SUPRA). WE ARE OF THE VIEW THAT THE ESTIMATION MADE BY LEARNED FIRST APPELLATE AUTHORITY I.E. RS. 1 LAKH IS ON HIGHER SIDE AND IN THE INTEREST OF JUSTI CE, IT SHOULD BE REDUCED TO THE TUNE OF RS. 60,000/- AGAINST RS. 1 LAKH DISALLO WED BY LEARNED CIT(A) OUT OF THE EXPENDITURE CLAIMED BY ASSESSEE ON ACCOU NT OF GIFT AND SHAGUNS AS NOT BEING INCURRED FOR THE PURPOSE OF BUSINESS. ACCORDINGLY, THE PRESENT APPEAL IS PARTLY ALLOWED. 6) IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH JUNE, 2013 SD/./- SD/./- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 26 TH JUNE, 2013 /RK/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEES: M/S GNA DURAPARTS, I-C, CHHOTI BARAD ARI, GARHA ROAD, JALANDHAR 2. THE ACIT, RANGE-III, JALANDHAR. 3. THE CIT(A), JALANDHAR 4. THE CIT, JALANDAHR 5. THE SR DR, I.T.A.T., AMRITSAR. TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.