ITO, HANUMANGARH V. M/s. Rawatsar Kraya Vikraya Sahakari Samiti, RAWATSAR

ITA 541/JODH/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 82884 (ITAT-JODHPUR)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 30-07-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 02-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N A JOSHI
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELALTE TRIBUNAL : JODHPUR BENCH : JODHPUR BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI N.K. SAINI, ACCOUNTANT MEMBER. ITA NO. 541 /JODH/2013 (A.Y. 200 9 - 1 0 ) ITO, WARD - 2, VS. M/S. RAWATSAR KRAY VIKRAY HANUMANGARH. SAHKARI SAMITI LTD., RAWATSAR. PAN NO. AADFR 1040 G (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE . DEPARTMENT BY : SHRI N.A. JOSHI - D.R. DATE OF HEARING : 30 / 0 7 /201 4 . DATE OF PRONOUNCEMENT : 05 /0 8 /201 4 . O R D E R PER N.K. SAINI, A.M TH IS IS AN APPEAL BY THE DEPARTMENT AGAINST THE ORDER DATED 04 /0 9 /2013 OF L D . CIT(A), BIKANER . THE FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS ERRED IN: - 1. DELETING ADDITION OF ( - ) RS. 4,84,783/ - MADE ON ACCOUNT OF LOSS FROM CONTROLLED /UNCONTROLLED ITEM. 2. DELETING ADDITION OF ( - ) RS. 1,8 1 ,943 / - MADE ON ACCOUNT OF INCOME FROM COMMISSION/ADHAT INCOME . 2 3. D ELETING ADDITION OF RS. 15,52,776/ - MADE ON ACCOUNT OF INTEREST INCOME . . 4. DELETING ADDITION OF RS. 27,782/ - MADE ON ACCOUNT OF TRUCK INCOME. 5. DELETING ADDITION OF RS. 3 , 5 0,0 00 / - MADE ON ACCOUNT OF GRATUITY PROVISION. 2 FACTS RELATING TO THIS CASE , IN BRIEF, ARE THAT THE ASSESSEE FILED THE RETURN OF INCOME ON 30/09/2009 DECLARING NIL INCOME AFTER CLAIMING THE DEDUCTION/S 80P OF THE I.T. ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT IN SHORT) AMOUNTING TO RS. 8,15,848/ - . LATER ON CASE WAS SLECTED FOR SECRUTINY. THE ASSESSING OFFICER FRAMED THE ASSESSMENT AT AN INCOME OF RS. 11,56,580/ - AFTER MAKING VARIOUS ADDITIONS AS UNDER: - INCOME AS PER RETURN NIL ADD LOSS FROM CONTROLLED/UNCONTROLLED ITEMS AS PER PARA A ( - ) 4,84,783 ADD INTEREST FRO COMMISSION/ ADHAT AS PER PARA B ( - ) 1,81,943 ADD INTEREST INCOME AS PER PARA D 15,52,776 ADD TRUCK INCOME AS PER PARA E 27,782 ADD GRATUITY PROVISION NOT ALLOWABLE 3,50,000 ADD FBT DEBITED TO P & L A/C NOT ALLOWABLE 4,691 ADD DEPRECIATION FOR RECONSIDERATION 50,716 TOTAL 13,19,239 LESS ALLOWABLE DEPRECIATION 62,663 GROSS TOTAL INCOME 12,56,576 (I) DEDUCTION U/S 80P(2)(C) 1,00,000 INCOME 11,56,576 ROUNDED OFF U/S 288A 11,56,580 3 3. BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) , WHO OBSERVED THAT FOR THE A.Y. 2005 - 06, THE ADDITIONS MADE BY THE ASSESSING OFFICER WERE DELETED BY THE THEN LD. CIT(A) VIDE ORDER DATED 09/02/2009 AND ON THE DEPARTMENTAL APPEAL, THE ITAT JODHPUR BENCH CO NFIRMED THE SUBMISSIONS AND SET ASIDE THE OTHER ISSUES WITH A DIRECTION TO THE ASSESSING OFFICER TO RELOOK THE MATTER AND THE ASSESSING OFFICER PASSED THE ASSESSMENT ORDER FOR BOTH THE ASSESSMENT YEARS I.E. A.YS. 2005 - 06 & 2009 - 10 (THE YEAR UNDER CONSIDERATION) ON THE SAME DATE I.E. ON 23/12/2011. THE ORDERS PASSED ARE ALTOGETHER IN ONE ORDER I.E. FOR THE YEAR UNDER CONSIDERATION. THE ORDER PASSED IS ON THE SAME LINE AS WAS THE EAR L IER ORDER AND THE OTHER ORDERS FOR THE A.Y. 2005 - 06 ON THE DIREC TION OF THE ITAT JODHPUR BENCH. THE LD. CIT(A) POINTED OUT THAT THE DEDUCTION U/S 80P(2)(D) OF THE ACT WAS AVAILABLE TO THE ASSESSEE . ON THE DIVIDEND INCOME OF RS. 3,90,000/ - AND THE DEDUCTION ON THE INTEREST INCOME WAS CONFIRMED BY THE ITAT JODHPUR BEN CH FOR THE A.Y. 2005 - 06 VIDE ORDER D A TED 29/04/2010 FOR THE ASSESSEES OWN CASE. HE ALSO POINTED OUT THAT THE ITAT AFTER VERIFYING THE OBJECT CLAUSE IN THE APPEALS OF THE ASSESSEE SOCIETY HELD THAT THE DEDUCTION U/S 80P(2)(A)(I) OF THE ACT WAS ALLOWABLE ON THE NET INTEREST INCOME OF THE ASSESSEE SOCIETY FROM THE FARMERS. THE LD. CIT(A) ALSO POINTED OUT THAT THE ASSESSING 4 OFFICER HIMSELF HAS ALLOCATED IN DIRECT EXPENSES ON THE BASIS OF SALES IN ASSESSEES OWN CASE FOR THE A.Y. 2005 - 06 AND THAT THE ADDITION ON ACCOUNT OF TRUCK INCOME WAS ALSO DELETED BY HIS PREDECESSOR FOR THE A.Y. 2005 - 06 . ACCORDINGLY, LD. CIT(A) DELETED THE ADDITIONS MADE BY THE ASSESSING OFFICER. NOW THE DEPARTMENT IS IN APPEAL. 4. D URING THE COURSE OF HEARING, NO BODY WAS PRESENT ON BEHALF OF THE ASSESSEE, HOWEVER, A WRITTEN SUBMISSION HAS BEEN MADE, WHICH WAS HAVE CONSIDERED ALONG WITH THE SUBMISSIONS OF THE LEARNED D.R. WHILE DECIDING THIS APPEAL. IN THE WRITTEN SUBMISSIONS, LEARNED CO U NSEL FOR THE ASSESSEE VIDE PARA 3 TO 5 DATED 30/07/2014 HAS STATED AS UNDER: - 3. AS PER YOUR ORDER NO. 246/JU/2009 DT.29/04/2010 FOR THE ASSESSMENT YEAR 2005 - 06, THE ASSESSING OFFICER HAD REASSESSED THE CASE BY ACCEPTING THE FOLLOWING LOSSES: - - LOSS OF R S. 251241/= FROM TRADING OF CONTROL LED ITEMS (LEAVY WHEAT; LEAVY SUGAR ETC.) - LOSS OF RS. 45211/= FROM AADHAT/ COMMISSION & COMMISSION ON SGRY WHEAT [( - ) 20600/= + ( - ) 226667/= + (+) 202056/=] THE ASSESSEE DID NOT FILED APPEAL BEFORE THE CIT (APPEALS), BIKANER ON THESE LOSS FIGURES, MEANS AO'S WORKING WAS ACCEPTED AND NOT CHALLANGED. HENCE THE DEPARTMENT COULD NOT RAISED THESE ISSUES BEFORE YOUR HONOUR, SO YOUR HONOUR IS REQUESTED TO DISMISS THE APPEAL FILED BY THE DEPARTMENT AND OBLIZE. 4) YOUR HONOUR HAD PASSED THE FOLLOWING ORDERS IN THE ASSESSEE SOCIETY'S CASE ON THE SAME ISSUES: - 5 APPEAL NO. ASSESSMENT. YEAR DATE OF ORDER 507/JDPR/2003 1996 - 1997 24/03/2006 508/JDPR/2003 1998 - 1999 24/03/2006 509/JDPR/2003 1999 - 2000 24/03/2006 414/JU/2006 1997 - 1998 20/04/2007 194/JU/2006 2003 - 04 19/08/2009 246/JU/2009 2005 - 06 29/04/2010 HENCE THE ISSUES ARE COVERED BY YOUR HONOUR JUDGMENT IN THE ASSESSEE SOCIETY OWN CASES OF EARLIER YEARS. 5) THE ITO, HANUMANGARH HAD PASSED THE ASSESSMENT ORDER FOR THE A.Y. 2009 - 10 ON THE SAME DATE AS OF THE REASSESSMENT ORDER FOR THE A.Y. 205 - 06 AS PER DIRECTION OF YOUR HONOUR VIDE ORDER NO. 246/JU/2009 DT. 29/04/2010. BUT THE ITO REPEAT THE SAME ORIGINAL ORDER OF A.Y. 2005 - 06 WITH CHANGE OF FIGURES WHILE FRAMING THE ORDER FOR THE A.Y. 2009 - 10 ALTHOUGH THE ORIGINAL ORDER OF A.Y. 2005 - 06 WAS QUASHED BY CIT (APPEALS), BIKANER AND ALSO BY YOUR HONOUR VIDE ORDER NO. 246/JU/2009. SO BY THIS WAY THE DEPARTMENT IS HARASSING THE ASSESSEE. 5. IN HIS RIVAL SUBMISSIONS, LEARNED D.R. ALTHOUGH SUPPORTED THE ORDER OF THE ASSESSING OFFICER, BUT COULD NOT CONTROVERT THE AFORESAID CONTENTION OF THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED IN THE WRITTEN SUBMISSIONS DATED 30/07/2012 . 6 . AFTER CONSIDERING THE SUBMISSIONS OF THE LEARNED D .R. AND THE WRITTEN SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE WE ARE OF THE VIEW THAT THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) DOES NOT REQUIRE 6 ANY INTERFERENCE ON OUR PART BECAUSE HE HAS ALLOW E D THE RELIEF ON THE SAME LINE AS WAS DONE BY THE ASSESSING OFFICER HIMSELF FOR THE A.Y. 2005 - 06 ON THE OTHER ISSUES, THE RELIEF HAS BEEN ALLOWED BY FOLLOWING THE EARLIER DECISION OF THIS B ENC H OF THE TRIBUNAL AS MENTIONED IN PARA 4 OF THE AFORESAID WRITTEN SUBMISSIONS FURNISHED BY THE LEARNED COUNSEL FOR THE ASSESSEE. WE THEREFORE, CONSIDERING THE TOTALITY OF THE CASE OF THE CASE, DO NOT SEE ANY MERIT INTEREST HIS APPEAL OF THE DEPARTMENT. 7 . IN THE RESULT, APPEAL OF THE DEPARTMENT IS DIS M ISSED . ( ORDER PRONOUNCED IN THE COURT ON 5 TH AUGUST , 201 4) . SD/ - SD/ - ( HARI OM MARATHA ) (N.K.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 5 TH AUGUST , 201 4 . VR/ - COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE LD. CIT 4. THE CIT(A) 5. THE D.R SR. PRIVATE SECRETARY , ITAT, JODHPUR .