The DCIT, Circle-4, Surat V. M/s. Shantilon Pvt.Ltd., Surat

ITA 590/AHD/2012

• Counselvise Citation: 59020514 RSA 2012
• Duration Of Justice: 3 year(s) 8 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 27-11-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 09-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Keywords: Depreciation

Judgement Text

ITA NO . 590 /AHD/ 20 1 2 ASSESSMENT YEAR: 2 0 0 8 - 09 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH, AHMEDABAD BEFORE SHRI PRAMOD KUMAR , ACCOUNTANT MEMBER AND SHRI S.S. GODARA , JUDICIAL MEMBER ITA NO. 590 / AHD /201 2 ASSESSMENT YEAR: 200 8 - 09 D.C.I.T. VS. M/S. SHANTILON PVT. LTD., CIRCLE - 4, SURAT. 221, AJANTA SHOPPING CENTRE, RING R OAD, SURAT. [PAN A AACR 2714 D ] (APPELLANT) (RESPONDENT) APPELLANT BY : DINESH SINGH, SR. D.R. RESPONDENT BY : NONE DATE OF HEARING : 27 .1 1 .2015 DATE OF PRONOUNCEMENT : 30 .1 1 .2015 O R D E R PER S.S. GODARA , JUDICIAL MEMBER THIS REVENUE S APPEAL FOR A . Y . 200 8 - 09 , ARISES FROM ORDER OF THE CIT ( A ) - I V , SURAT DATED 2 9 . 11 .201 1 IN A PPEAL NO. CAS - I V / 161/1011 , IN PROCEEDIN G S UN D ER SECTION 14 3(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE REVENUE S SOLE SUBSTANTIVE GROUND CHALLENG ES THE LOWER APPELLATE ORDER DELETING DISALLOWANCE OF RS.30,00,000/ - MADE BY THE ASSESSING OFFICER IN ASSESSMENT ORDER DATED 29.11.2010 ON ACCOUNT OF NOT ALLOWING SET OFF OF CURRENT YEA R S BUSINESS LOSS AGAINST ADDITIONAL INCOME DECLARED IN SURVEY. CASE CALLED TWICE. NONE APPEARS AT ASSESSEE S BEHEST DESPI T E SERVICE OF NOTICE. IT IS ACCORDINGLY PROCEED ED EX - PARTE. ITA NO . 590 /AHD/ 20 1 2 ASSESSMENT YEAR: 2 0 0 8 - 09 PAGE 2 OF 3 3. THE ASSESSEE COMPANY TRADES IN TEXTILE BEAMS, MACHINERY AND SPARES E TC. T HE DEPARTMENT CARRIED OUT A SURVEY UNDER SECTI O N 138A AT IT S BUSINESS PREMISES . THE ASSESSEE DISCLOSED A SUM OF RS.30 ,00,000/ - ON ACCOUNT OF UNACCOUNTED RECEIVABLES. IT F ILED ITS RET URN ON 30.09.2008 STATING INCOME OF RS.14,92 , 530 / - AFTER ADJUSTIN G CURRENT YEA R S BUSINESS LOSSES INCURRED IN REGULAR BUSINESS ACTIVITY. THE A SSESSING OFFICER RELIED UPON CASE LAW OF FAK IR MOHMED HAJI HASAN VS. CIT, 247 I TR 290 (GUJ) FOR HOLDING THAT THE ABOVE STATED ADDITIONAL INCOME HAD BEEN DERIVED FROM UNDISCLOSED SOURCES WHICH WAS NOT AVAILABLE FOR INTER - HEAD OR INTRA - HEAD ADJUSTMENT OR FOR SET OFF AGAINST BROUGHT FORWARD TO BUSINESS LOSS OR DEPRECIATION. THIS RESULTED IN THE IMPUGNED ADDITION OF RS.30 ,00,000/ - . 4. THE ASSESSEE PREFERRED APPEAL. THE C I T ( A ) FOL LOWS CASE LAWS OF R ADHEY D EVELOPERS INDIA LIMITED VS . CI T , 329 I TR 1 ( GUJ) HOLDING THAT PROVISIONS OF THE ACT DO NOT ENVISAGE TAXING ANY INCOME NOT FALLING UNDER ANY OF THE HEADS SPECIFIED I N SECTION 14 OF THE ACT. THIS LEAVES THE REVENUE AGGRIEVED. 5. WE HAVE HEARD THE R EVENUE. CASE FILE PERUSED. RELEVANT FACTS ALREADY STAND NAR RATED HEREINABOVE. THIS ASSESSEE HAS ADJUSTED HIS CURRENT YEAR S BUSINESS LOSS AGAINST IT S ADDITIONA L INCOME DISCLOSED IN SURVEY. THE R EVENUE S ARGUMENTS RELY UPON THE CAS E LAW OF FAKIR MOHMED HAJI HASAN VS. CIT (SUPRA) HOLDING THAT THE ABOVE STA T ED ADDITIONAL INCOME HAS ARISEN FROM UNDISCLOSED SOURCES NOT ENTITLED FOR SET OFF. HON BLE HIGH COURT IN SUBSEQUENT DECISION OF R ADHEY D EVELOPERS ( SUPRA ) HOLDS THAT THERE IS NO IN COME LIABLE TO BE TAXED BEYOND SPECIFIC HEADS PRES CRIBED UNDER SECTION 14 OF THE ACT. ITS NET EFFECT IS THAT THE ITA NO . 590 /AHD/ 20 1 2 ASSESSMENT YEAR: 2 0 0 8 - 09 PAGE 3 OF 3 ASSESSEE S ADDITIONAL INCOME IS COVERED UNDER THE PROVISIONS OF SECTION 14 LIABLE TO BE SET OFF. WE ACCORDINGLY UPHOLD C IT ( A ) S FINDING UNDER CHALLENGE . 6. IN THE RESULT, T HIS R EVENUE S APPEAL IS DISMISSED. P RONOUNCED IN THE OPEN COURT ON THIS 30 TH D AY OF NOVEMBER , 2015. SD/ - SD/ - PRAMOD KUMAR S.S. GODARA ( ACCOUNTANT MEMBER) ( JUDICIAL MEMBER) AHMEDABAD , THE 30 TH DAY OF NOVEMBER , 201 5 PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD