ITO 8(3)(2), MUMBAI V. SUCHIR INVESTMENT & FINANCE P.LTD, MUMBAI

ITA 5865/MUM/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9411 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 20-11-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 19-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROOPAK KUMAR

Judgement Text

, . . , IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI .. , BEFORE SHRI R.K.GUPTA, JM ./ ITA NO.5865/MUM/2011 ( ! ! ! ! '#! '#! '#! '#! / ASSESSMENT YEAR :2005-2006) ITO 8(3)(2), MUMBAI-20 VS. SUCHIR INVESTMENT & FINA NCE P. LTD., SHIV ASHISH, 2 ND FLOOR, ANDHERI KURLA ROAD, MUMBAI- 400 072. $ % ./ &' ./ PAN/GIR NO. : AAACS 5821 N ( $( / APPELLANT ) .. ( )*$( / RESPONDENT ) &' + ++ + , , , , /REVENUE BY : MR. ROOPAK KUMAR !-. + ++ + , , , , /ASSESSEE BY : MR. JAYANT R. BHATT ' + ./% / DATE OF HEARING : 20 TH NOV., 2012 01# + ./% / DATE OF PRONOUNCEMENT : 21 ST NOV.,2012 2 2 2 2 / O R D E R THIS IS AN APPEAL BY THE DEPARTMENT AGAINST THE ORD ER DATED 25-5-2011 OF LEANED CIT(A)-18, MUMBAI RELATING TO T HE ASSESSMENT YEAR 2005-06. 2. THE DEPARTMENT IS OBJECTING IN DELETING THE DISALL OWANCE OF TRADING LOSS OF RS.9,70,978/- SHOWN BY THE ASSESSEE . THE ASSESSING OFFICER DISALLOWED THE LOSS IN TRADING OF FABRICS M ENTIONING VARIOUS REASONS INCLUDING THAT THERE IS NO OPENING AND CLOS ING STOCK OF FABRICS, GOODS PURCHASED WERE SOLD IN TOTO , NO EXPENDITURE CONNECTED WITH TRADING ACTIVITY LIKE TRANSPORTATION, LOADING AND U NLOADING, LABOUR ITA NO.5865/2011 2 CHARGES, GODOWN RENT, WATER AND ELECTRICITY CHARGES , TELEPHONE EXPENSES, STATIONARY EXPENSES ETC. THE ASSESSING OF FICER ALSO OBSERVED THAT PURCHASES ARE FROM ONE PARTY AND ALL THE SALES ARE MADE TO SINGLE PARTY, MEANS NO REAL TRADER WILL CONFINE HIS ACTIVITY ONLY TO SINGLE PURCHASER AND SINGLE CUSTOMER. 3. BEFORE THE CIT(A), THE DETAILED SUBMISSION WAS FIL ED. IT WAS FURTHER SUBMITTED THAT ON IDENTICAL FACTS, THE DISA LLOWANCE WAS MADE FOR ASSESSMENT YEAR 2002-03, WHICH WAS DELETED BY THE L D. CIT(A) VIDE HIS ORDER DATED 12-3-2007 AND THE ORDER OF THE CIT( A) HAS BEEN UPHELD BY THE TRIBUNAL VIDE ORDER DATED 3-12-2009. THE CIT(A) AFTER CONSIDERING THE SUBMISSION AND BY ASCERTAINING THE FACTUAL ASPECT THAT ON SIMILAR FACTS FOR ASSESSMENT YEAR 2002-03, SIMIL AR DISALLOWANCE WAS DELETED BY THE CIT(A) AND THE ORDER OF CIT(A) HAS B EEN AFFIRMED BY THE TRIBUNAL. ACCORDINGLY, THE DISALLOWANCE MADE BY THE ASSESSING OFFICER WAS DELETED BY THE CIT(A) FOR THE YEAR UNDER CONSID ERATION ALSO. NOW, THE DEPARTMENT IS IN APPEAL HERE BEFORE THE TRIBUNA L. 4 . THE LEARNED DR PLACED RELIANCE ON THE ORDER OF TH E ASSESSING OFFICER. 5. ON THE OTHER HAND, LEARNED COUNSEL OF THE ASSESSEE PLACED RELIANCE ON THE ORDER OF THE CIT(A). FURTHER A COPY OF ORDER DATED 3-12- 2009, OF THE TRIBUNAL DECIDED IN ITA NO.4013/M/2007 RELATING TO ASSESSMENT YEAR 2002-03 WAS ALSO FILED. ITA NO.5865/2011 3 6 . AFTER CONSIDERING THE SUBMISSIONS AND PERUSING TH E MATERIAL ON RECORD, I FOUND NO INFIRMITY IN THE ORDER OF THE LD . CIT(A), WHO HAS ALLOWED THE ISSUE IN FAVOUR OF THE ASSESSEE FOLLOWI NG THE ORDER OF TRIBUNAL FOR THE ASSESSMENT YEAR 2002-03, WHERE SIM ILAR FACTS WERE INVOLVED. SINCE THE CIT(A) HAS ALLOWED THE ISSUE IN FAVOUR OF THE ASSESSEE FOLLOWING THE ORDER OF TRIBUNAL FOR THE AS SESSMENT YEAR 2002- 03, THEREFORE, THERE IS NO REASON TO INTERFERE IN T HE ORDER OF CIT(A) FOR THE YEAR UNDER CONSIDERATION. ACCORDINGLY, I CONFIR M THE ORDER OF THE LD. CIT(A). 7. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMISS ED. - .3 &' + %-& + &. 45 ORDER PRONOUNCED IN THE OPEN COURT ON THIS 21 ST DAY OF NOV.2012. 2 + 01# % 6 7 3 21ST NOV.,2012 1 + SD/- ( . . ) (R.K.GUPTA) / JUDICIAL MEMBER MUMBAI ; 7 DATED : 21 ST NOV./ 2012 . ). . /PKM , . / PS 2 2 2 2 + ++ + ).8 ).8 ).8 ).8 98#. 98#. 98#. 98#. / COPY OF THE ORDER FORWARDED TO : 1. $( / THE APPELLANT 2. )*$( / THE RESPONDENT. 3. : ( ) / THE CIT(A)-X, MUMBAI. 4. : / CIT 5. 8'; ). , , / DR, ITAT, MUMBAI 6. >> > / 4 4 4 4 & & & & ( DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI