The ACIT,Ahmedabad Circle-1, Ahmedabad V. Ashima Ispat Pvt.Limited, Ahmedabad

ITA 472/AHD/2011

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 8659 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 11 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2005-2006
• Appeal Filed On: 17-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B L YADAV
• Assessee Lawyers: P M MEHTA
• Section: 40A(3)

Judgement Text

, , , , D, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, D BENCH . .. . . .. . , !' !' !' !', , , , #$ #$ #$ #$ # ## #. .. .# ## #. . . . % % % %, , , , &' ( & ' &' ( & ' &' ( & ' &' ( & ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND N.S. SAINI, ACCOUNTANT MEMBER) ITA NO.471 AND 472/AHD/2011 [ASSTT.YEAR : 2004-2005 AND 2005-2006] ACIT, AHMEDABAD CIR.1 AHMEDABAD. /VS. M/S.ASHIMA ISPAT PVT. LTD. 304, AKASHRATH B/6. PARISEEMA ELLISBRIDGE, AHEMDABAD. PAN : AABCA 3150 D ( (( ( *+ *+ *+ *+ / APPELLANT) ( (( ( ,-*+ ,-*+ ,-*+ ,-*+ / RESPONDENT) ( . / & / REVENUE BY : SHRI B.L.YADAV, SR.DR 12 . / & / ASSESSEE BY : SHRI P.M. MEHTA 3 . 24' / DATE OF HEARING : 18 TH DECEMBER, 2014 567 . 24' / DATE OF PRONOUNCEMENT : 02-02-2015 &8 / O R D E R PER SHRI G.C.GUPTA, VICE-PRESIDENT: THESE TWO APPEALS BY THE REVENUE FOR THE ASSTT.YEARS 2004-05 AND 2005-06 ARE DIRECTED AGAINST THE ORDER OF THE CIT(A), AHMEDABAD. THESE ARE BEIN G DISPOSED WITH THIS CONSOLIDATED ORDER. 2. THE IDENTICAL GROUND OF THE REVENUE IN BOTH THES E APPEALS IS AS UNDER: ITA NO.471-472/AHD/2011 -2- 1. THE LD.CIT(A) ERRED IN LAW AND ON FACTS IN DELE TING THE DISALLOWANCE OF [RS.13,70,288 FOR A.Y.2004-05] AND [RS.12,51,310/- FOR A.Y.2005-06] MADE BY THE AO UNDER SECTION 40A(3) OF THE ACT. 3. THE LEARNED DR RELIED ON THE ORDER OF THE AO. T HE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE OF DISALLOWAN CE UNDER SECTION 40A(3) OF THE ACT IS COVERED IN FAVOUR OF THE ASSESSEE WITH T HE DECISION OF THE AHMEDABAD TRIBUNAL IN ASSESSEES OWN CASE FOR EARLIER ASSTT.Y EARS 2001-02 TO 2003-04 AND ALSO FOR THE SUBSEQUENT ASSTT.YEARS 2006-07 AND 200 7-08 IN ITA NOS.3434 TO 3438/AHD/2010 VIDE CONSOLIDATED ORDER FOR THESE ASS ESSMENTS YEARS DATED 14.3.2014. HE SUBMITTED THAT THE FACTS OF THE CASE FOR THE RELEVANT ASSESSMENT YEARS ARE IDENTICAL WITH THE FACTS OF THE CASE FOR THE PRECEDING AS WELL AS SUBSEQUENT ASSESSMENT YEARS. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT THE FACTS OF THE CASE OF THE ASSESSEE FOR THE RELEVANT ASSTT.YEARS 2004-05 AND 2005-06 ARE SIMILA R TO THE FACTS OF THE CASE OF THE ASSESSEE FOR THE EARLIER ASSTT.YEARS 2001-02 TO 2003-04 AND SUBSEQUENT ASSTT.YEARS 2006-07 AND 2007-08. THE CO-ORDINATE B ENCH OF THE AHMEDABAD TRIBUNAL VIDE THEIR ORDER DATED 14.3.2014 (SUPRA) H AS DECIDED THE ISSUE OF DISALLOWANCE UNDER SECTION 40A(3) OF THE ACT FOR TH E ABOVE MENTIONED PRECEDING AND SUBSEQUENT ASSESSMENT YEARS IN FAVOUR OF THE ASSESSEE, AND THE DISALLOWANCE HAS BEEN DIRECTED TO BE DELETED. THE TRIBUNAL HAS FOLLOWED THE DECISION OF THE HONBLE ALLAHABAD HIGH COURT IN THE CASE OF CIT VS. BANWARI LAL BANSHIDHAR, 229 ITR 229 (ALL) WHEREIN HELD THAT WHEN THE GROSS PROFIT RATE WAS APPLIED, THAT WOULD TAKE CARE OF EVERYTHING AND THERE WAS NO NEED FOR THE AO TO MAKE SCRUTINY OF THE AMOUNT INCURRED ON THE P URCHASES MADE BY THE ASSESSEE. WE BEING IN AGREEMENT WITH THE DECISION OF THE CO-ORDINATE BENCH OF THE AHMEDABAD TRIBUNAL IN ASSESSEES OWN CASE VIDE ORDER DATED 14.3.2014 (SUPRA), AND RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE ALLAHABAD HIGH COURT CITE SUPRA, DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE AND DISALLOWANCE MADE UNDER SECTION 40A(3) OF THE ACT FOR BOTH THE A SSESSMENT YEARS BEFORE US, ITA NO.471-472/AHD/2011 -3- DELETED BY THE CIT(A), ARE CONFIRMED AND THE GROUND OF THE APPEALS OF THE REVENUE FOR BOTH THE ASSESSMENT YEARS ARE DISMISSED . 5. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( # ## # . .. . # ## # . . . . % % % % /N.S.SAINI) &' ( &' ( &' ( &' ( /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