Manchanda Enterprises, Kanpur V. Income Tax Officer-2(2), Kanpur

ITA 555/LKW/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4604 (ITAT-LUCKNOW)
• Duration Of Justice: 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 10-02-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 12-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.555/LKW/2015 ASSESSMENT YEAR:2008-09 I.T.O. 2 (2), KANPUR VS MANCANDA ENTERPRISES, C 9, PANKI INDUSTRIAL ESTATE, KANPUR. PAN:AACFM3912H (RESPONDENT) (APPELLANT) SHRI VIKASH GARG, C. A. APPELLANT BY SHRI AMIT NIGAM, D. R. RESPONDENT BY 1 0 /02/2016 DATE OF HEARING 15/03/2016 DATE OF PRONOUNCEMENT O R D E R PER A. K. GARODIA, A.M. THIS IS ASSESSEES APPEAL DIRECTED AGAINST THE OR DER PASSED BY LEARNED CIT(A)-I, KANPUR DATED 27/05/2015 FOR THE ASSESSMEN T YEAR 2008 09. 2. THE ASSESSEE HAS RAISED AS MANY AS 7 GROUNDS BUT THE GRIEVANCE OF THE ASSESSEE IS ONE ONLY I.E. REGARDING CONFIRMING THE ADDITION OF RS.346,222/- MADE BY THE ASSESSING OFFICER U/S 41 ( 1) OF THE I T ACT. 3. LEARNED A. R. OF THE ASSESSEE REITERATED THE SAM E CONTENTIONS WHICH WERE RAISED BEFORE THE AUTHORITIES BELOW. LEARNED D . R. OF THE REVENUE SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FI ND THAT IN PARA 3.1.1 OF HIS ORDER, LEARNED CIT (A) HAS REPRODUCED THE SU BMISSIONS OF THE ASSESSEE AS PER WHICH, THIS LIABILITY IS IN RESPECT OF THE AMOUNT PAYABLE TO RETIRED PARTNERS WHO RETIRED ON 22.10.1991. THIS WA S ALSO SUBMITTED THAT THIS LIABILITY IS NOT A TRADING LIABILITY AND THERE FORE, SECTION 41 (1) IS NOT 2 APPLICABLE. AS PER ANNEXURE B OF THE BALANCE SHEE T OF THE CURRENT YEAR AVAILABLE ON PAGE 9 OF THE PAPER BOOK, THIS LIABILI TY IS SHOWN AS CURRENT ACCOUNT WITH RELATIVES & FRIENDS. UNDER THESE FACTS , WE FIND FORCE IN THE CONTENTION OF THE LEARNED AR OF THE ASSESSEE THAT S ECTION 41 (1) CANNOT BE MADE APPLICABLE TO THIS LIABILITY BECAUSE IT COULD NOT BE SHOWN BY THE REVENUE THAT THIS LIABILITY IS IN RESPECT OF ANY DE DUCTION ALLOWED TO THE ASSESSEE IN AN EARLIER YEAR. WE THEREFORE, DELETE T HIS ADDITION. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GAROD IA ) JUDICIAL MEMBER ACCOUNTANT MEM BER DATED:15 TH MARCH, 2016 *SINGH COPY OF THE ORDER FORWARDED TO : 1.THE APPELLANT 2.THE RESPONDENT. 3.CONCERNED CIT 4.THE CIT(A) 5.D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR