Sri Sai Rameswara Solvents Pvt. Ltd, Koraput V. ACIT, Berhampur

ITA 463/CTK/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4461 (ITAT-CUTTACK)
• Duration Of Justice: 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2011
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 29-12-2010
• Court: TRIBUNAL
• Department Lawyers: S K DASH
• Assessee Lawyers: N ANAND RAO

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK ( ) BEFORE . . , , HONBLE SHRI K.K.GUPTA, ACCOUNTANT MEMBER. /AND . . . , S HRI K.S.S.PRASAD RAO , JUDICIAL MEMBER / I.T.A.NO. 463/CTK/2010 / ASSESSMENT YEAR 2007 - 08 SRI SAI RAMESWARA SOLVENTS PVT.LTD.,BHADRAYA STREET, JEYPORE, DIST.KORAPUT PAN: AAJCS 3201 K - - - VERSUS - ASST.COMMISSINOEROF INCOM E - TAX, BERHAMPUR CIRCLE, BERHAMPUR. ( /APPELLANT ) ( / RESPONDENT ) / FOR THE APPELLANT : / SHRI N.ANAND RAO, AR / FOR THE RESPONDENT: / SHRI S.K.DASH, DR / ORDER . . , , SHRI K.K.GUPTA, ACCOUNTANT MEMBER. IN THIS APPEAL, THE ASSESSEE IS AGITATING THE CONFIRMATION OF THE ADDITION ON ACCOUNT OF VALUATION OF THE BUILDING AND PLANT & MACHINERY AMOUNTING TO 14,83,000 WHICH ISSUE WAS NOT CONSIDERED BY THE LEARNED COMMISS IONER OF INCOME - TAX (APPEALS) ON THE PREMISE THAT THE ASSESSEE APPELLANT BEFORE HIM DID NOT PRESS FOR ADJUDICATION. ANOTHER ISSUE IN RESPECT OF DISALLOWANCE OF EXPENSES ON ACCOUNT OF LABOUR AND STITCHING CHARGES AMOUNTING TO 20,000 AND 26,000 RESPECTIVEL Y IS NOT BEING PRESSED FOR. 2. THE LEARNED COUNSEL SUBMITTED THAT THIS ISSUE WAS TO BE AGITATED AND CONSIDERED BY THE LEARNED CIT(A) WITHOUT SPECIFICALLY MENTIONING THAT THE ASSESSEE HAS AGITATED THE GROUND IN GROUND NO.2 BEFORE IT AS PER THE COPY OF THE G ROUNDS OF APPEAL ATTACHED TO FORM NO.35 AVAILABLE IN THE APPEAL MEMO. HE PRAYED THAT THIS ISSUE MAY BE RESTORED TO THE FILE OF THE LEARNED CIT(A) FOR CONSIDERATION. 3. THE LEARNED DR OPPOSED THE CONTENTION OF THE LEA RNED COUNSEL FOR THE ASSESSEE I N VIEW OF THE FACT THAT THE LEARNED CIT(A)SPECIFICALLY NOTED THE FACT THAT THE ASSESSEE WAS NOT PRESSING FOR THIS GROUND A ND IT ONLY PRESSED FOR GROUND NO .3 I.T.A.NO. 463/CTK/2010 2 WHICH WAS WITH RESPECT TO DISALLOWANCE UNDER THE PROVISIONS OF SECTION 40(A)(IA) WHICH THE LEARNED CIT(A) AG REED WAS CAPITALIZED THEREFORE ALLOWED. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON OUR CAREFUL CONSIDERATION OF THE FACTS, WE ARE INCLINED TO HOLD THAT THE CONTENTION OF THE LEARNED DR THAT THE LEARNED CIT(A) WA S SPECIFICALLY REQUIRED NOT TO ADJUDICATE ON THE GROUND HAS NO LEGS TO STAND ON INSOFAR AS THE DISALLOWANCE U/S.40(A)(IA) INCLUDED THE MAJOR PORTION OF THE COST OF BUILDING AND PLANT & MACHINERY WHICH VALUE HAS BEEN ENHANCED BY THE ASSESSING OFFICER. THE I NTERWOVEN AMOUNTS HAVE TO BE DEALT WITH IN ACCORDANCE WITH THE PROVISIONS OF LAW THEREFORE COULD NOT HAVE IDENTIFIED AS A SEPARATE GROUND TO THE EXTENT THAT THE LEARNED CIT(A) ON THE BASIS OF ASSESSEE APPELLANTS LEARNED COUNSEL BEFORE HIM HELD IT AS NOT P RESSED FOR DISMISSAL. IN AN Y CASE, WE ARE OF THE CONSIDERED VIEW THAT THE GROUND REQUIRES ADJUDICATION TO THE SATISFACTION OF THE ASSESSEE APPELLANT BEFORE THE LEARNED CIT(A) WHO HAS DELIBERATED IN FAVOUR OF THE ASSESSEE ON THE GROUND RELATING TO DISALLOWANCE U/S.40(A)(IA) BEING THE MAJOR PORTION OF COST OF BUILDING AND PLANT & MACHINERY IN FAVOUR OF THE ASSESSEE. THE ISSUE IS ACCORDINGLY DIRECTED TO BE CONSIDERED BY THE LEARNED CIT(A). THE OTHER ISSUE REGARDING DISALLOWANCE OF EXPENDITURE ON ACCOUNT OF LABOUR AND STITCHING CHARGES IS NOT PRESSED FOR BEFORE US AS HAS BEEN NOTED BY THE LEARNED COUNSEL IN THE APPEAL MEMO IS DISMISSED AS NOT PRESSED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. THIS OR DER IS PRONOUNCED IN OPEN COURT ON DT. 8 TH APRIL, 2011 SD/ - SD/ - ( . . . ) , ( K.S.S.PRASAD RAO), JUDICIAL MEMBER ( . . ) , , (K.K.GUPTA), ACCOUNTANT MEMBER. ( ) DATE: 8 TH APRIL, 2011 ( ), ( H.K.PADHEE ), SENIOR.PRIVATE SECRETARY. I.T.A.NO. 463/CTK/2010 3 - COPY OF THE ORDER FORWARDED TO: 1 . / THE APPELLANT : SRI SAI RAMESWARA SOLVENTS PVT.LTD.,BHADRAYA STREET, JE YPORE, DIST.KORAPUT 2 / THE RESPONDENT: ASST.COMMISSINOEROF INCOME - TAX, BERHAMPUR CIRCLE, BERHAMPUR. 3 . / THE CIT, 4 . ( )/ THE CIT(A), 5 . / DR, CUTTACK BENCH 6 . GUARD FILE . / TRUE COPY, / BY ORDER, [ ] SENIOR PRIVATE SECRETARY