M/s. Krishi Upaj Mandi Samiti, Indore V. The Dy. CIT, Indore

ITA 538/IND/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2792 (ITAT-INDORE)
• Duration Of Justice: 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2004-2005
• Appeal Filed On: 01-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APARNA KARAN
• Assessee Lawyers: S S DESH
• Section: 11

Judgement Text

PAGE 1 OF 4 -. I.T.A.NOS. 565 TO 567/IND/2009 AND 537 TO 539/IND/2009 KUMS LAXMIBAI NAGAR,INDORE. IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH : INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI V.K. GUPTA, ACCOUNTANT MEMBER PAN NO. : AAALK0190 I.T.A.NO. 565 TO 567/IND/2009 A.YS. : 2003-04 TO 2005-06 DY. CIT, KRISHI UPAJ MANDI SAMITI, 1(1), VS LAXMIBAI NAGAR, INDORE. INDORE APPELLANT RESPONDENT PAN NO. : AAALK0190 I.T.A.NO. 537 TO 539/IND/2009 A.YS. : 2003-04 TO 2005-06 KRISHI UPAJ MANDI SAMITI, DY. CIT, LAXMIBAI NAGAR, VS 1(1), INDORE INDORE. APPELLANT RESPONDENT DEPARTMENT BY : SMT.APARNA KARAN, SR. DR ASSESSEE BY : SHRI S. S. DESHPANDE, C. A. DATE OF HEARING : 03.06.2010 O R D E R PER BENCH THESE CROSS APPEALS ARISE OUT OF ORDER OF LD. CIT(A ) DATED 16.9.2009 FOR THE ASSESSMENT YEAR 2003-04 TO 2005-0 6. PAGE 2 OF 4 -. I.T.A.NOS. 565 TO 567/IND/2009 AND 537 TO 539/IND/2009 KUMS LAXMIBAI NAGAR,INDORE. 2. WE HAVE HEARD BOTH THE PARTIES AND HAVE ALSO PERUSE D THE MATERIAL AVAILABLE ON RECORD. 3. IN REVENUES APPEALS, THE COMMON GROUND IS RAISED, WHICH READS AS UNDER :- THE LD. CIT(A) ERRED IN FACT AND CIRCUMSTANCES OF THE CASE IN DIRECTING TO DELETE THE ADDITION UNDER THE HEAD PROVISION FOR KISAN SADAK NIDHI EXPENSES AND KRISHI ANUSANDHA N NIDHI EXPENSES DEBITED TO PROFIT AND LOSS ACCOUNT W ITHOUT APPRECIATING THE FACT THAT THE ASSESSEE HAD FOLLOWE D CASH SYSTEM OF ACCOUNTING. IN ASSESSEES APPEAL, THE ISSUE INVOLVED IS REGARDI NG APPLICABILITY OF PROVISIONS OF SECTION 11 TO 13 OF THE INCOME-TAX AC T, 1961. 4. THE LEARNED COUNSEL, AT THE VERY OUT-SET, SUBMITTED THAT THE ISSUE RAISED IN ASSESSEES APPEALS HAD TO BE SENT T O THE FILE OF AO IN VIEW OF THE DECISION OF THE TRIBUNAL IN THE CASE OF KRIS HI UPAJ MANDI SAMITI, BURHANPUR, AS REPORTED IN 12 ITJ 12 AND DREW OUR AT TENTION TO PARA 5 AT PAGES 54 & 55 OF THE PAPER BOOK. ACCORDINGLY, WE RE STORE THIS ISSUE TO THE FILE OF AO TO BE DECIDED IN ACCORDANCE WITH THE GUI DELINES GIVEN BY THE TRIBUNAL IN THE AFORESAID DECISION. THUS, ALL THESE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. PAGE 3 OF 4 -. I.T.A.NOS. 565 TO 567/IND/2009 AND 537 TO 539/IND/2009 KUMS LAXMIBAI NAGAR,INDORE. 5. IN REVENUES APPEALS, THE ISSUE INVOLVED IS REGARDI NG ALLOWABILITY OF EXPENSES PROVIDED BY THE ASSESSEE I N THE PROFIT AND LOSS ACCOUNT. THE LEARNED COUNSEL, AT THE VERY OUTSET, SUBMITTED THAT EXPENSES PROVIDED IN ONE PARTICULAR YEAR HAD BEEN ALLOWED BY THE ASSESSING OFFICER IN SUBSEQUENT ASSESSMENT YEAR IN WHICH THE PAYMENT OF THE SAME EXPENSES HAD BEEN MADE. HOWEVER, IN ASSESSMENT YEAR 2003-04, THE EXPENSES PAID IN RESPECT OF ASSESSMENT YEAR 2002-03 HAD NOT BEEN ALLOWED, AS BEFORE THE ASSESSMENT YEAR 2003-04, THE ASSESSEE HAD NOT FILED ANY RETURN OF INCOME. HENCE, THE OBSERVATION OF THE AO THAT THE EXPENSES HAD ALREADY BEEN ALLOWED IN ASSESSMENT YEAR 2002-03 ON CASH BASIS, WERE NOT CORRECT. THE LEARNED COUNSEL FURTHER SUBMITTED THAT OTHER ISSUES WERE ALSO INVOLVED. THE LEARNED COUNSEL FURTHER SUBMITT ED IN THE CASE OF KUMS KHIRKIYA IN I.T.A.NO. 224/IND/2008 AND I.T.A.N O. 25/IND/2007 DATED 7 TH JANUARY, 2009, THE TRIBUNAL DECIDED THE IDENTICAL ISSUE IN FAVOUR OF ASSESSEE. AT THIS STAGE, THE LEARNED SENIOR DEPA RTMENTAL REPRESENTATIVE SUBMITTED THAT SINCE THE ISSUE RAISE D IN ASSESSEES APPEALS WERE BEING SENT BACK TO THE FILE OF AO, THE ISSUE R AISED IN REVENUES APPEAL COULD ALSO BE SENT BACK TO THE FILE OF AO, A S OBSERVATIONS OF THE LD. CIT(A) WERE ALSO NOT CLEAR AS REGARD TO THE REAL NA TURE OF THE ISSUE. ACCORDINGLY, WE SEND ALL THE ISSUES RAISED IN THE REVENUES APPEALS ALSO TO THE FILE OF AO, WHO SHALL DECIDE THESE ISSUES AF RESH AFTER TAKING INTO PAGE 4 OF 4 -. I.T.A.NOS. 565 TO 567/IND/2009 AND 537 TO 539/IND/2009 KUMS LAXMIBAI NAGAR,INDORE. CONSIDERATION THE AFORESAID DECISIONS OF TRIBUNAL A ND GIVING AN ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE. THUS, REVEN UES APPEALS ALSO STAND ALLOWED FOR STATISTICAL PURPOSES. 6. TO SUM UP, ALL THESE APPEALS STAND ALLOWED FOR STAT ISTICAL PURPOSES. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 4 TH JUNE, 2010. SD/- SD/- (JOGINDER SINGH) (V. K. GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 4 TH JUNE, 2010. CPU* 36