M/S. MAMA ICE & COLD STORAGE PVT. LTD., Shajapur V. THE ITO 3(1), Indore

ITA 551/IND/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1950 (ITAT-INDORE)
• Duration Of Justice: 2 year(s) 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 08-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S S DESHPANDE
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE (SINGLE MEMBER CASE) BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER I.T.A.NO. 551/IND/2013 A.Y. : 2007-08 M/S.MAMA ICE & COLD STORAGE PRIVATE LIMITED, ITO, 3(1), SHAJAPUR VS. INDORE. APPELLANT RESPONDENT PAN NO. AADCM7016Q A PPELLANT S BY : SHRI S.S.DESHPANDE, RESPONDENT BY : SHRI R. A. VERMA, DR O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A)-7, MUMBAI (CONCURRENT JURISDICTION OVER T HE CHARGE OF CIT(A)-I, INDORE) DATED 11.03.2013 FOR THE ASSES SMENT YEAR 2007-08. DATE OF HEARING : 12. 10 .2015 . DATE OF PRONOUNCEMENT : 30 . 1 1 .2015 M/S.MAMA ICE & COLD STORAGE, INDORE VS. ITO,3(1), I NDORE, I.T.A.NO. 551/IND/2013 A.Y. 2007-08 2 2 2. THE ONLY GROUND RAISED IN THIS APPEAL IS THAT THE L D. CIT(A) HAS ERRED IN UPHOLDING THE ADDITION OF RS. 6 ,70,020/- U/S 68 OF THE INCOME-TAX ACT, 1961. 3. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE I S RUNNING A COLD STORAGE. THE AO NOTICED THAT THE ASS ESSEE HAS SHOWN OPENING BALANCE OF RS. 12,72,020/- AS PER SCH EDULE IV OF THE ASSESSEES BALANCE SHEET. THE ASSESSEE HAS A DJUSTED OUT OF THIS SUM OF RS. 6,02,000/- AS INCOME OF THE YEAR BUT CARRIED FORWARD A SUM OF RS. 6,70,200/- AS OUTSTANDING IN T HE BALANCE SHEET AS ON 31 ST MARCH, 2007. THE ASSESSEE DID NOT FILE ANY CONFIRMATION LETTER IN SUPPORT OF THE BALANCE. THER EFORE, THE AO HAS MADE THE ADDITION. 4. DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE ASSESS EE IS RUNNING A COLD STORAGE. THE ASSESSEE IS A PRIVATE L IMITED COMPANY. THE ASSESSEE HAS SHOWN RS. 6,70,200/- AS D EPOSIT ON ACCOUNT OF ADVANCE BOOKING OF COLD STORAGE FOR K EEPING THE POTATOES. THIS AMOUNT WAS SHOWN UNDER THE HEAD CURR ENT LIABILITY OF THE BALANCE SHEET. THE ASSESSEE HAS SH OWN OPENING M/S.MAMA ICE & COLD STORAGE, INDORE VS. ITO,3(1), I NDORE, I.T.A.NO. 551/IND/2013 A.Y. 2007-08 3 3 BALANCE OF RS. 12,72,020/- AND THE AMOUNT OF RS. 6, 02,000/- WAS ADJUSTED OUT OF THE BOOKS DURING THE YEAR. THE ASSESSEE HAS SHOWN CLOSING BALANCE OF RS. 6,70,200/- AND SUB MITTED THE DETAILS OF LIST WITH THESE DEPOSITS AT THE TIME OF ASSESSMENT PROCEEDINGS BEFORE THE AO. THIS DEPOSIT WAS NOT TAK EN DURING THE FINANCIAL YEAR 2006-07. THIS DEPOSIT RELATES TO FINANCIAL YEAR 2006-07. THESE DEPOSITS ARE NOT THE INCOME OF THE ASSESSEE BUT THEY ARE IN THE NATURE OF DEPOSITS AND REFUNDABLE. THE ASSESSEE HAS BROUGHT FORWARD LOSSES IN THE NATURE OF ACCUMULATED DEPRECIATION AMOUNTING TO RS. 7,02,886/- IN ASSESSMENT YEAR 2007-08. THESE LOSSES HAVE BEEN BROUGHT FORWARD FOR ASSESSMENT YEAR 2006-07 AN D EARLIER YEARS AND THESE LOSSES HAVE BEEN SHOWN IN THE RETUR N OF INCOME FOR ASSESSMENT YEAR 2007-08. THEREFORE, THE BENEFIT OF BROUGHT FORWARD LOSSES BY SETTING OFF OF THE PROFIT OF THE CURRENT YEAR MAY BE ALLOWED. 5. THE LD. DR RELIED UPON THE ORDER OF THE AO. 6. I HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PART IES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, I FIND THAT M/S.MAMA ICE & COLD STORAGE, INDORE VS. ITO,3(1), I NDORE, I.T.A.NO. 551/IND/2013 A.Y. 2007-08 4 4 THE ASSESSEE COMPANY HAS SHOWN AN AMOUNT OF RS 6,70,020/- AS DEPOSIT ON ACCOUNT OF ADVANCE BOOKING OF COLD STORAGE. THE ASSESSEE HAS NOT PROVIDED COMPLETE ADD RESS FORM WHOM THE DEPOSIT WAS ACCEPTED. THEREFORE, I AM OF T HE VIEW THAT THE ASSESSEE IS DIRECTED TO GIVE COMPLETE ADDR ESS OF THE DEPOSITS RECEIVED DURING THE YEAR AND THE AO IS DIR ECTED TO VERIFY THE SAME AND IF IT IS A DEPOSIT, THEN IT IS TO BE REFUNDED. THEREFORE, AFTER VERIFYING THE SAME, THE AO IS DIRE CTED TO DECIDE THE MATTER ACCORDINGLY AS PER LAW. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. THIS ORDER HAS BEEN PRONOUNCED IN THE OP EN COURT ON 30 TH NOVEMBER, 2015. SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 30 TH NOVEMBER, 2015. CPU* 1711