The DCIT, Circle-10, Ahmedabad V. Smt. Keyuriben Rakeshbhai Patel, Ahmedabad

ITA 598/AHD/2009

• Counselvise Citation: 59820514 RSA 2009
• Duration Of Justice: 2 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-10-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 18-10-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 23-02-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P R GHOSH
• Assessee Lawyers: H C SHAH

Judgement Text

, , . .. . . .. . , , , , . .. . . .. .!'#$ !'#$ !'#$ !'#$ , % % % % & & & & IN THE INCOME TAX APPELLATE TRIBUNAL : A BENCH : AHMEDABAD (BEFORE HONBLE SHRI T.K. SHARMA, J.M. & HONBLE SHRI A.K.GARODIA, A.M.) . ITA NO. 598/AHD./2009 : ' ()- 2004-05 D.C.I.T., CIRCLE-10, AHMEDABAD (,- /APPELLANT) -VS- (PAN : ACRPP 752 4P) KEYURIBEN RAKESHBHAI PATEL, AHMEDABAD ( ./,- /RESPONDENT ) ,- 0 1 / APPELLANT BY : SHRI P.R.GHOSH, SR. D.R. ./,- 0 1 / RESPONDENT BY : SHRI H.C.SHAH, A.R 2'3 0 4% / DATE OF HEARING : 18/10/2011 5'( 0 4% / DATE OF PRONOUNCEMENT : 20/10/2011 / ORDER PER SHRI T.K. SHARMA, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER DA TED 19-12-2008 OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-XVI, AH MEDABAD DELETING THE ADDITION OF RS.50,720/- MADE ON ACCOUNT OF INTEREST INCOME ON ACCRUAL BASIS BY THE AO FOR THE ASSESSMENT YEAR 2004-2005. 2. WE HAVE HEARD BOTH THE SIDES. THE LD. CIT(A) DEL ETED THE ADDITION, FOLLOWING THE DECISION OF THE ITAT A BENCH, AHMEDABAD DATED 06.05.2011 IN THE GROUP CASES SUCH AS IN THE CASE OF KISAN DISCRETIONARY FAMILY TRUST IN ITA NO.1753/AHD/2009 FOR THE ASSESSMENT YEAR 2004-05 REPORTED IN 113 TTJ 918. THE RELEVANT PORTION OF THE DECISION OF THE LD. CIT(A) IS CONTAINED IN PARA 4 O F THE IMPUGNED ORDER, WHICH READS AS UNDER: 4. THUS THE ASSESSING OFFICER MADE ADDITION OF RS. 50,722/- ON THE BASIS OF ADDITION MADE IN A Y 2003-04 BEING ACCRUED INTEREST ON BONDS OF RURAL ELECTRIFICATION CORPN LTD. SIMILAR ADDITIONS MADE I N THE GROUP CASES SUCH AS IN THE CASE OF KISAN DISCRETIONARY FAMILY TRUST REPORT ED IN 113 TTJ 918 HAS BEEN ITA NO. 598-AHD-09 2 DELETED BY THE ITAT, AHMEDABAD. FURTHER IN THE CASE OF SHRI RAKESH K PATEL IN WHOSE CASE SIMILAR ADDITIONS WERE MADE IN A Y 2004- 05 BY THE ASSESSING OFFICER, THE ADDITIONS HAVE BEEN DELETED BY THE CIT (A). FOLLOWING THE ORDER OF HON'BLE ITAT, THE ADDITION OF RS. 50,722/- MADE IN THE HANDS OF THE APPELLANT IS DELETED MAINLY ON THE GROUND THAT THE METHOD OF AC COUNTING FOLLOWED BY THE APPELLANT IS CASH SYSTEM AND THEREFORE THE SAME CAN NOT BE TAXED UNDER MERCANTILE SYSTEM OF ACCOUNTING. 3.1 FROM THE PERUSAL OF THE ABOVE, IT CAN BE SEEN T HAT IN ASSESSEES OWN CASE IN THE ASSESSMENT YEAR 2003-04, SIMILAR ADDITION OF RS.50, 772/- WAS MADE WHICH HAS BEEN DELETED BY THE TRIBUNAL. SINCE, IN THE IMPUGNED ORD ER, THE LD. CIT(A) HAS FOLLOWED THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2003-04, WE INCLINE TO UPHOLD THE ORDER OF THE LD. CIT(A). RESU LTANTLY, THE APPEAL OF THE REVENUE IS DISMISSED. 4. IN THE RESULT, THE APPEAL FILED BY THE THE REVEN UE IS DISMISSED. 6 0 5'( #' ) 20/10 /2011 ' 7 0 !3 8 THIS ORDER PRONOUNCED IN THE OPEN COURT ON 20/10/2011. SD/- SD/- (A.K.GARODIA) (T.K. SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 20/10/2011 0 00 0 .49 .49 .49 .49 :9(4) :9(4) :9(4) :9(4)- -- - 1. ,- 2. ./,- 3. 4 2> 4. 2>- - 5. 9A! .4' , , 8 6. !$ C6 , D/ F , 8 TALUKDAR/ SR. P.S. ITA NO. 598-AHD-09 3