Abhishek Cotspin Mills Ltd., Kolhapur V. Asstt. CIT Range 2, Kolhapur,

ITA 575/PUN/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3237 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 5 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 19-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY DAMLE
• Keywords: Depreciation; Revised return

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES, A PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV JM AND SHRI B. RAMAKOTAIAH, AM I.T.A. NO. 575/PN/2009 : A.Y. 2006-07 ABHISHEK COTSPIN MILLS LTD., GAT NO. 148, TAMGAON KOLHAPUR HUPARI ROAD KOLHAPUR PAN AACCA0323 P APPELLANT VS. ASSTT. CIT RANGE 2, KOLHAPUR RESPONDENT APPELLANT BY : SHRI KISHOR PHADKE RESPONDENT BY: SHRI ABHAY DAMLE ORDER PER B. RAMAKOTAIAH, AM THIS IS AN ASSESSEES APPEAL IN WHICH THE ASSESSEE HAS RAISED GROUNDS REGARDING NON-ALLOWANCE OF CERTAIN CLAIMS M ADE BEFORE THE A.O. THE ASSESSEE HAD ALSO RAISED A CONTENTION REGARDING VARIOUS EXPENSES WRONGLY ADJUSTED IN ACCOUNTS TO A DIFFERENT PROJECT W HICH REQUIRE MODIFICATION. 2. AT THE VERY OUTSET, THE LEARNED COUNSEL SUBMITTE D THAT THE ASSESSEE HAS RAISED VARIOUS CONTENTIONS BEFORE THE A.O ON TR EATING SOME OF THE EXPENDITURE SUCH AS MATERIAL PURCHASE, PETROL AND D IESEL, WAGES, POWER EXPENSES, WRONGLY REFLECTED IN OTHER PROJECT AND THI S DOES NOT HAVE ANY EFFECT ON THE PROFIT AND LOSS ACCOUNT. THE ONLY CL AIMS MADE FOR ALLOWANCE ARE WITH REFERENCE TO CLAIM OF VAT SETOFF OF RS. 3, 02,969/- AND SERVICE TAX OF RS. 8,06,329/- WHICH IN FACT WAS ADJUSTED IN THE BOOKS OF ACCOUNT BUT NO CLAIM WAS MADE IN THE PROFIT AND LOSS ACCOUNT. WHEN THE CLAIMS WERE MADE BEFORE THE A.O, THE AO REJECTED THE SAME STATIN G THAT THE ASSESSEE HAS NOT FILED REVISED RETURN AND ON THE BASIS OF HO NBLE SUPREME COURT ITA NO. 575/PN/09 ABHISHEK COTSPIN MILLS A.Y. 2006-07 2 JUDGMENT IN THE CASE OF GOETZE (INDIA) LTD. (284 ITR 323 (SC), THE CLAIM OF DEDUCTION BY WAY OF APPLICATION CANNOT BE ENTERT AINED. THE ASSESSEE CONTESTED THE SAME BEFORE THE CIT(A) WHO ALSO AGREE D WITH THE A.OS OPINION. HE THUS SUBMITTED THAT THESE CLAIMS ARE L EGITIMATE CLAIMS AND THE ITAT HAS POWER TO CONSIDER THE ISSUES. THE COU NSEL HAS NO OBJECTION IF THE MATTER IS RESTORED BACK TO THE FILE OF THE A .O AFTER ADMITTING THE ADDITIONAL GROUND AND THE CLAIM. 3. THE LEARNED DR ON THE OTHER HAND, RELIED ON THE ORDERS OF THE AUTHORITIES BELOW. 4. WE HAVE CONSIDERED THE ISSUE. AS SEEN FROM THE RECORD, THE CLAIM OF VARIOUS EXPENSES AS PER THE FOLLOWING DETAILS (O THER THAN ITEMS E, F ) HAD NO EFFECT ON THE PROFIT AND LOSS ACCOUNT. A) MATERIAL PURCHASE AND PAYMENT TO CONTRACTORS RS. 24,520.073 B) PETROL AND DIESEL RS. 1,759,389 C) WAGES RS. 2,511,219 D) POWER EXPENSES RS. 7,200,000 E) VAT SETOFF RS. 302,969 F) SERVICE TAX RS. 806,329 G) PRELIMINARY EXPENSES, PRIOR PERIOD EXPENSES AND PRO-RATA DEPRECIATION. THE ONLY CLAIMS MADE ARE IN RESPECT OF VAT SETOFF A ND SERVICE TAX WHICH WAS STATED TO HAVE BEEN ADJUSTED IN THE BOOKS OF ACC OUNT BUT NOT CLAIMED IN THE PROFIT AND LOSS ACCOUNT. THE CLAIMS ARE PRIMA-FACIE ALLOWABLE AND IN THIS REGARD, WE ENTERTAIN THE ADDI TIONAL GROUND AND DIRECT THE A.O TO EXAMINE THE ISSUE AND DECIDE THE MATTER AFRESH. FOR THIS PURPOSE, THE MATTER IS SET ASIDE BACK TO THE F ILE OF THE A.O WITH A DIRECTION THAT HE SHOULD EXAMINE THE FACTS AND DECI DE THE SAME ACCORDINGLY AFTER GIVING ADEQUATE OPPORTUNITY TO TH E ASSESSEE. ITA NO. 575/PN/09 ABHISHEK COTSPIN MILLS A.Y. 2006-07 3 4. IN THE RESULT, THE APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 29TH DAY OF OCTOBER 2010. SD/- SD/- (SHAILENDRA KUMAR YADAV) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER PUNE, DATED THE 29TH OCTOBER, 2010 ANKAM COPY FORWARDED TO: (1) ASSESSEE (2) DEPARTMENT (3) CIT (A) I PUNE (4) CIT I PUNE (5) THE D.R. ITAT 'A' PUNE BENCH, PUNE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL, PUNE BENCHES, PUNE