Krishi Upaj Mandi Samiti, V. The I T O,

ITA 513/IND/2008

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1428 (ITAT-INDORE)
• Duration Of Justice: 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 24-11-2009
• Assessment Year: 2005-2006
• Appeal Filed On: 18-12-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K KARAN
• Assessee Lawyers: PAVITRAN NAMBIAR ITP
• Keywords: Depreciation

Judgement Text

PAGE 1 OF 4 I.T.A.NO. 513/IND/2008 KUMS, KHARGONE IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH : INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI V.K. GUPTA, ACCOUNTANT MEMBER PAN NO. : AAALK0168M I.T.A.NO. 513/IND/2008 A.Y. : 2005-06 KRISHI UPAJ MANDI SAMITI, INCOME-TAX OFFICER, KHARGONE VS KHANDWA APPELLANT RESPONDENT APPELLANT BY : SHRI PAVITRAN NAMBIAR, I.T.P RESPONDENT BY : SHRI V.K.KARAN, SR. DR DATE OF HEARING : 24/11/2009 O R D E R PER V.K. GUPTA, A.M. THIS APPEAL FILED BY THE ASSESSEE ARISES OUT OF ORD ER OF THE LD. CIT(A)-II, INDORE, DATED 18.9.2008, FOR THE ASSESSM ENT YEAR 2005-06. 2. THE ASSESSEE FILED ADJOURNMENT APPLICATION, WHICH W AS REJECTED AND THE REPRESENTATIVE OF THE ASSESSEE WAS REQUIRED TO ARGUE THE MATTER ON MERITS, AS MOST OF THE ISSUES RAISED, IN THIS APPEA L, APPEARED TO BE COVERED. ACCORDINGLY, WE PROCEED TO DECIDE THIS APP EAL ON MERIT. 3. THE GROUNDS RAISED IN THIS APPEAL READ AS UNDER :- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN HOLDING THAT THE BUSINESS BEING DON E ON THE PAGE 2 OF 4 I.T.A.NO. 513/IND/2008 KUMS, KHARGONE BASIS OF THE PRINCIPLE OF QUID PRO QUO BY THE MAND I AND WAS NOT HELD UNDER TRUST AND HENCE THE ASSESSEE SAMITI CANNOT SEEK ANY EXEMPTION BY AVERRING THAT IN ITS CASE BEC AUSE OF PROVISIONS OF SECTION 11, INCOME IS EXEMPT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN HOLDING THAT THE APPELLANT MANDI SA MITI IS CARRYING ON BUSINESS ON THE PRINCIPLE OF QUID PRO Q UO. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN REJECTING THE CLAIM THAT THE FOLLOW ING REMITTANCES WERE NOT THE APPELLANTS INCOME, AS THE Y HAD TO BE PAID TO THE RECIPIENTS AS THEIR INCOME BY OVER- RIDING TITLE :- (I) BOARD FEE RS. 51,69,641/- (II) STHAI NIDHI RS. 5,16,235/- (OUT OF RS. 7,61,087/-) (II) VIKAS NIDHI RS. 2,09,73,838/- 4. WITHOUT PREJUDICE, THE LD. CIT(A) ERRED IN HOLDING THAT THE FOLLOWING EXPENSES WERE NOT DEDUCTIBLE U/S 36(1)(XI I) OF THE ACT : 5. WITHOUT PREJUDICE, THE LD. CIT(A) ERRED IN CONFIRMI NG DISALLOWANCE OF THE FOLLOWING EXPENSES :- PAGE 3 OF 4 I.T.A.NO. 513/IND/2008 KUMS, KHARGONE (I) BOARD FEE RS. 51,69,641/- (II) REMITTANCE TO THE BOARD OFFICE (STHAI NIDHI), OUT OF RS. 7,61,087/- RS. 5,16,235/- (III) VIKAS NIDHI RS. 2,09,73,838/- 6. THE LD. CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF DEPRECIATION AMOUNTING TO RS. 8,41,883/-. 4. THE LD. DEPARTMENTAL REPRESENTATIVE, AT THE VERY OU T-SET, CONTENDED THAT ALL THE ISSUES RAISED IN THIS APPEAL WERE COVERED BY THE DECISION OF THE TRIBUNAL IN THE CASE OF KRISHI UPAJ MANDI SAMITI AS REPORTED IN 12 ITJ 12, 12 ITJ 1 AND 13 ITJ 103. THE LD. DEPARTMENTAL REPRESENTATIVE ALSO AGREED. 5. WE FIND THAT SOME OF THE ISSUES HAVE BEEN RESTORED TO THE FILE OF THE A.O. IN THE DECISIONS OF THE TRIBUNAL CITED SUP RA, HENCE, IN THE INTEREST OF JUSTICE, WE RESTORE ALL THESE ISSUES TO THE FILE OF A.O. TO DECIDE THE SAME IN ACCORDANCE WITH THE DIRECTIONS GIVEN BY THE TRIB UNAL IN THE SAID DECISIONS. IT IS NEEDLESS TO MENTION THAT THE A.O. SHALL GRANT AN ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE, WHO SHALL B E AT LIBERTY TO FILE FURTHER EVIDENCES IN SUPPORT OF ITS CLAIM. THUS, AL L THE GROUNDS RAISED IN THIS APPEAL STAND ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PAGE 4 OF 4 I.T.A.NO. 513/IND/2008 KUMS, KHARGONE THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 27 TH NOVEMBER, 2009. SD/- SD/- (JOGINDER SINGH) (V. K. GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 27 TH NOVEMBER, 2009. CPU* 2425D26