The ACIT, Bhopal V. The M.P.State Agro Industries Development Corporation Ltd, Bhopal

ITA 552/IND/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2780 (ITAT-INDORE)
• Duration Of Justice: 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 07-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APARNA KARAN

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI V.K. GUPTA, ACCOUNTANT MEMBER ITA NO.552/IND/2009 A.YS. 2005-06 ASSTT. COMMISSIONER OF INCOME TAX 2(1), BHOPAL APPELLANT VS M.P. STATE AGRO INDUSTRIES DEVELOPMENT CORPN. LIMITED BHOPAL PAN AACCM-0330-Q RESPONDENT APPELLANT BY : SMT. APARNA KARAN, SR. DR RESPONDENT BY : NONE O R D E R PER JOGINDER SINGH, JM THIS APPEAL IS BY THE REVENUE AGAINST THE ORDER OF THE LEARNED CIT(A) DATED 11 TH SEPTEMBER, 2009 ON THE GROUND THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) WAS NOT JUSTIF IED IN DELETING THE ADDITION OF RS.34,02,340/- MADE BY THE AO ON ACCOUN T OF PURCHASE OF TRACTORS ON 15.4.2005 (A.Y. 2006-07) WHICH WAS DEBI TED IN THE P&L ACCOUNT OF THE ASSESSMENT YEAR 2005-06. 2 2. DURING HEARING OF THIS APPEAL WE HAVE SMT. APARN A KARAN, SR. DR AND NONE WAS PRESENT FOR THE ASSESSEE. SINCE REGISTERED NOTICE WAS SENT TO THE ASSESSEE AND NOBODY TURNED UP, THER EFORE, WE HAVE NO OPTION BUT TO PROCEED EX-PARTE QUA THE ASSESSEE ON THE BASIS OF MATERIAL AVAILABLE ON THE FILE. THE LEARNED SENIOR DEPARTMEN TAL REPRESENTATIVE DEFENDED THE ASSESSMENT ORDER BY CONTENDING THAT NE CESSARY DETAILS FOR PURCHASE OF TRACTORS WERE NOT FURNISHED BY THE ASSE SSEE. 3. WE HAVE CONSIDERED THE ADVANCED BY THE LEARNED S ENIOR DEPARTMENTAL REPRESENTATIVE AND PERUSED THE MATERIA L AVAILABLE ON RECORD. BRIEF FACTS ARE THAT THE ASSESSEE IS A GOVE RNMENT UNDERTAKING, ENGAGED IN COMMERCIAL ACTIVITIES OF PURCHASE AND SA LE OF TRACTORS, PESTICIDES, ORGANIC MANUALS AND SEEDS, ETC. THE AS SESSEE IS ALSO WORKING AS NODEL AGENCY FOR CONSTRUCTION OF BIO-GAS PLANTS WITHIN THE STATE OF MADHYA PRADESH. THE ASSESSEE DECLARED LOSS OF RS.1,76,63,620/- IN ITS RETURN FILED ON 31.10.2005 WHICH WAS COMPLETED AT A LOSS OF RS.1,42,61,280/- IN ORDER FRAMED U/S 1 43(3) OF THE ACT WHEREIN ADDITION OF RS.34,02,340/- WAS MADE ON ACCO UNT OF PURCHASE OF TRACTORS. THE IMPUGNED ADDITION WAS MADE BY THE LE ARNED AO ON THE BASIS THAT THE ASSESSEE DEBITED BILL NO.80 TO 89, F ROM MANGLAM TRACTORS, DHAR, FOR PURCHASE OF TEN TRACTORS ON 31.3.2005 FOR RS.34,02,340/- WHEREAS THE ACTUAL PURCHASE WAS MATERIALSED ON 15.4 .2005 I.E. IN THE NEXT FINANCIAL YEAR. THE AO DISALLOWED PURCHASE OF THESE TRACTORS FOR 3 RS.34,02,340/- BY TREATING THE SAME TO BE PERTAININ G TO THE NEXT FINANCIAL YEAR. THE ASSESSEE DISPUTED THE ADDITION BEFORE THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ON THE GROUND THAT THE SALE OF THE SAME WAS INCLUDED IN THE TOTAL TURNOVER OF THE ASSESSEE AND SINCE THE DELIVERY WAS THROUGH CHALLAN DATED 20.3.2005 AN D THE COPY OF THE PURCHASE BILL WERE RECEIVED SUBSEQUENTLY ON 29.4.20 05. IT WAS FURTHER CLAIMED THAT THESE TRACTORS WERE SOLD IN MARCH, 200 5 ITSELF AND THE SALE PROCEEDS TOTALING RS.35,03,353/- WERE DULY ENTERED IN THE BOOKS OF ACCOUNTS WHICH FORM PART OF THE TOTAL TURNOVER OF T HE ASSESSEE. ADMITTEDLY, THE ASSESSEE FURNISHED THE COPY OF STOC K REGISTER EVIDENCING THAT THESE TRACTORS WERE DULY ENTERED IN THE STOCK REGISTER MENTIONING CHALLAN NO., DATE, NAME OF THE SUPPLIER AS WELL AS TO WHOM THESE WERE SOLD. THE LEDGER ACCOUNT OF PURCHASE AND SALE OF T HESE TRACTORS WAS ALSO FURNISHED. THERE IS A SPECIFIC FINDING IN THE IMPUGNED ORDER THAT THE RELEVANT RECORD WAS EXAMINED BY THE LEARNED COMMISS IONER OF INCOME TAX (APPEALS) WHEREIN THE PHYSICAL POSSESSION OF TH E TRACTORS WAS TAKEN BY THE ASSESSEE ON 20.3.2005 AND WERE ALSO SOLD IN THE MONTH OF MARCH, 2005 ITSELF. EVEN OTHERWISE, AS PER SALE OF GOODS A CT, THE SALE IS COMPLETE WHEN THE DELIVERY IS ACTUALLY HANDED OVER. IN THE PRESENT APPEAL, THE DELIVERY OF THE TRACTORS WAS HANDED OVE R TO THE ASSESSEE ON 20.3.2005 BY M/S MANGLAM TRACTORS, THEREFORE, THE S ALE ALSO COMPLETED ON THE SAME DATE. ADMITTEDLY, WITHOUT PURCHASE, THE RE CANNOT BE SALE. IN 4 THE IMPUGNED ORDER THE LEARNED COMMISSIONER OF INCO ME TAX (APPEALS) HAS DULY MENTIONED THE CHALLAN NUMBER ALONG WITH DA TE, MAKE OF ENGINE/CHASIS NUMBER, PURCHASE BILL NUMBER ALONG WI TH DATE, PURCHASE AMOUNT, SALE INVOICE NUMBER ALONG WITH DATE, NAME O F THE PERSON TO WHOM IT WAS SOLD ALONG WITH THE SALE AMOUNT (PAGES 2 AND 3 OF THE IMPUGNED ORDER). IF THE CHART MENTIONED IN THE IMPU GNED ORDER IS ANALYSED, IT IS CLEAR THAT THE NECESSARY DETAILS AR E MENTIONED AS THE DELIVERY WAS TAKEN THROUGH CHALLAN NO. 48/04 DATED 20.3.2005 AND ALL THE TRACTORS WERE SOLD IN THE MONTH OF MARCH, 2005 TO V ARIOUS FARMERS ALONG WITH THE PURCHASE PRICE AND THE AMOUNTS WERE DULY D EBITED IN THE BOOKS OF ACCOUNTS. THE ASSESSEE HAS DULY REFLECTED THE NE T PROFIT OF RS.1,01,013/- (RS.35,03,353/- (-) RS.34,02,340/-) I N ITS BOOKS. IN VIEW OF THESE FACTS, THERE IS NO QUESTION OF ANY ADDITION, CONSEQUENTLY, THERE IS NO INFIRMITY IN THE STAND OF THE LEARNED COMMISSION ER OF INCOME TAX (APPEALS). WE CONFIRM THE SAME. FINALLY, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 4 TH JUNE, 2010. (V.K. GUPTA) (JOGINDER SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER JUNE 4 , 2010 5 COPY TO: APPELLANT, RESPONDENT, CIT, CIT(A), DR, G UARD FILE *DBN/