ACIT, UDAIPUR V. Grace Exports, UDAIPUR

ITA 47/JODH/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99644 (ITAT-JODHPUR)
• Duration Of Justice: 1 year(s) 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 02-09-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 20-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L MAURYA
• Assessee Lawyers: AMIT KOTH ARI
• Keywords: Condonation of delay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR JODHPUR BENCH, JODHPUR JODHPUR BENCH, JODHPUR JODHPUR BENCH, JODHPUR BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.C. GUPTA G.C. GUPTA G.C. GUPTA G.C. GUPTA, , , , HONBLE HONBLE HONBLE HONBLE VICE VICE VICE VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI R.C. SHARMA R.C. SHARMA R.C. SHARMA R.C. SHARMA, , , , HON'BLE ACCOUNTANT HON'BLE ACCOUNTANT HON'BLE ACCOUNTANT HON'BLE ACCOUNTANT MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO. .. .47/JODH 47/JODH 47/JODH 47/JODH/2014 /2014 /2014 /2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2009 2009 2009 2009- -- -10 1010 10 ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -2, 2,2, 2, UDAIPUR. UDAIPUR. UDAIPUR. UDAIPUR. VS. VS. VS. VS. M/S GRACE EXPORTS, M/S GRACE EXPORTS, M/S GRACE EXPORTS, M/S GRACE EXPORTS, N.H. N.H. N.H. N.H.- -- -8, AMBERI, 8, AMBERI, 8, AMBERI, 8, AMBERI, UDAIPUR. UDAIPUR. UDAIPUR. UDAIPUR. PAN : AAAFG8111C. PAN : AAAFG8111C. PAN : AAAFG8111C. PAN : AAAFG8111C. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.L. MAURYA, D.R. RESPONDENT BY : SHRI AMIT KOTHARI, CA. DATE OF HEARING : 02.09.2015 02.09.2015 02.09.2015 02.09.2015 DATE OF PRONOUNCEMENT: 04.09.2015 04.09.2015 04.09.2015 04.09.2015 ORDER ORDER ORDER ORDER PER G.C. GUPTA, VICE PRESIDENT PER G.C. GUPTA, VICE PRESIDENT PER G.C. GUPTA, VICE PRESIDENT PER G.C. GUPTA, VICE PRESIDENT : :: : THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 2009-10 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A), UDAIP UR DATED 6 TH SEPTEMBER, 2013. 2. THERE IS A DELAY OF 37 DAYS IN FILING THE PRESEN T APPEAL BY THE REVENUE. THE REVENUE HAS FILED AN APPLICATION FOR CONDONATION OF DELAY AND, AFTER HEARING THE PARTIES AND CONSIDERIN G THE CONTENTS OF THE CONDONATION OF DELAY APPLICATION, WE ARE OF THE VIE W THAT IT IS A FIT CASE FOR CONDONATION OF DELAY IN FILING THE APPEAL BEFOR E THE TRIBUNAL. ACCORDINGLY, THE DELAY IN FILING THE PRESENT APPEAL BEFORE THE TRIBUNAL IS CONDONED. 3. GROUND NO.1 OF THE REVENUES APPEAL READS AS UND ER:- ITA-47/JODH/2014 2 ON THE FACTS AND IN THE PRESENT CIRCUMSTANCES OF T HE CASE, THE LD.CIT(A) HAS ERRED IN :- 1. DIRECTING THE AO NOT TO APPORTION THE INTERNATIO NAL EXHIBITION EXPENSES AND OTHER ADMINISTRATIVE EXPENS ES IN THE RATIO OF TURNOVER BETWEEN HO UNIT AND EOU UN IT WITHOUT APPRECIATING THE FACTS THAT BOTH THESE UNIT S ARE ENGAGED IN EXPORT OF MARBLE AND GRANITE SLABS AND T ILES AND BOTH ARE RUN BY THE SAME MANAGEMENT AND THEREFORE THE EXPENSES SHOULD BE BORNE BY BOTH THE UNITS AND HENCE THE AO HAS RIGHTLY APPORTIONED THE SAID EXPENSES TO ARRIVE AT TRUE AND FAIR PICTURE OF BOTH THE UNITS. 4. LEARNED COUNSEL FOR THE ASSESSEE, AT THE OUTSET, SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE EARLIER ASS ESSMENT YEAR 2006- 07 AND 2007-08 IN ITA NO.207 & 208/JU/2011 DATED 12 TH OCTOBER, 2012. LEARNED DR COULD NOT CONTROVERT THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAV E PERUSED THE ORDER OF THE ASSESSING OFFICER AND THE LEARNED CIT( A). IN VIEW OF THE FACT THAT THE ISSUE IN THE GROUND OF APPEAL NO.1 OF THE REVENUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE EARLIER ASSESSMENT YEAR 2006-07 & 2007- 08 AND THE ISSUE BEFORE US BEING SIMILAR AND WE BEI NG IN AGREEMENT WITH THE DECISION OF THE COORDINATE BENCH OF THE TR IBUNAL DATED 12 TH OCTOBER, 2012 ((SUPRA)), WE DECIDE THE ISSUE IN FAV OUR OF THE ASSESSEE AND, ACCORDINGLY, GROUND NO.1 OF THE REVENUES APPE AL IS DISMISSED. 6. GROUND NO.2 OF THE REVENUES APPEAL READS AS UND ER:- ON THE FACTS AND IN THE PRESENT CIRCUMSTANCES OF T HE CASE, THE LD.CIT(A) HAS ERRED IN :- ITA-47/JODH/2014 3 2. DELETING THE DISALLOWANCE OF TRANSPORTATION EXPENSES OF RS.6,04,451/- MADE BY THE AO U/S 40(A)( IA) OF THE I.T. ACT HOLDING THAT THE PROVISIONS OF SECT ION 40(A)(IA) OF THE I.T. ACT ARE APPLICABLE ONLY ON TH E PAYMENTS REMAINED PAYABLE AT THE END OF THE FINANCI AL YEAR WITHOUT APPRECIATING THE FACTS THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSEE HAS FAILED TO PROVE THAT ANY TAX HAS BEEN DEDUCTED ON S AID EXPENSES AND FURTHER THE PROVISIONS OF SECTION 40(A )(IA) OF THE I.T. ACT ARE APPLICABLE NOT ONLY TO THE AMOU NT WHICH IS SHOWN AS PAYABLE ON THE DATE OF BALANCE SH EET, BUT IT IS ALSO APPLICABLE TO SUCH EXPENDITURE, WHIC H BECOME PAYABLE AT ANY TIME DURING THE RELEVANT PREVIOUS YEAR AND WAS ACTUALLY PAID WITHIN THE PREV IOUS YEAR. 7. LEARNED DR HAS RELIED ON THE ORDER OF THE ASSESS ING OFFICER. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TDS AMOUNT WAS DEPOSITED IN TIME AND REFERRED TO ASSESSEES REPLY DATED 18 TH NOVEMBER, 2011 ADDRESSED TO THE ASSESSING OFFICER W HERE ALL THE NECESSARY DETAILS WERE FILED BY THE ASSESSEE. THE STATEMENT OF VARIOUS TDS APPLICABLE PAYMENTS AND TDS MADE WAS ENCLOSED W ITH THIS REPLY OF THE ASSESSEE ALONG WITH THE COPY OF THE TDS DEPO SIT CHALLAN RECEIPTS. IN THESE FACTS, WE ARE OF THE VIEW THAT THERE IS NO MISTAKE IN THE ORDER OF THE LEARNED CIT(A) IN DELETING THE DIS ALLOWANCE MADE BY THE ASSESSING OFFICER U/S 40(A)(IA) OF THE ACT AND, ACCORDINGLY, GROUND NO.2 OF THE REVENUES APPEAL IS DISMISSED. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 04.09.2015 . SD/- SD/- ( (( (R.C. SHARMA R.C. SHARMA R.C. SHARMA R.C. SHARMA) )) ) (G. (G. (G. (G.C. GUPTA C. GUPTA C. GUPTA C. GUPTA) )) ) ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. ITA-47/JODH/2014 4 COPY FORWARDED TO: - 1. APPELLANT : ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -2, UDAIPUR. 2, UDAIPUR. 2, UDAIPUR. 2, UDAIPUR. 2. RESPONDENT : M/S GRACE EXPORTS, M/S GRACE EXPORTS, M/S GRACE EXPORTS, M/S GRACE EXPORTS, N.H. N.H. N.H. N.H.- -- -8, AMBERI, UDAIPUR. 8, AMBERI, UDAIPUR. 8, AMBERI, UDAIPUR. 8, AMBERI, UDAIPUR. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR