SHRI SAGARMAL BETALA (DECEASED) THROUGH L/H SMT. SUSHILA DEVI BETALA, Indore V. THE ITO WARD 5(3), Indore

ITA 616/IND/2013

• Counselvise Citation: 61622714 RSA 2013
• Duration Of Justice: 1 year(s) 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 10-09-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 21-10-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S S SOLANKI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, J.M. AND SHRI B.C.MEENA, A.M. I.T.A.NO. 616/IND/2013 A.Y. : 2009-10 SHRI SAGARMAL BETALA (DECEASED), ITO, WARD 5(3), INDORE THROUGH L/H VS SMT. SUSHILA DEVI BETALA, INDORE APPELLANT RESPONDENT P.A.N. NO ABFPB5473L APPELLANT BY SHRI S.S.SOLANKI, CA RESPONDENT BY SHRI R. A. VERMA, SR. DR DATE OF HEARING : 10 .0 9 .2015 DATE OF PRONOUNCEMENT : 24 .09.2015 -: 2: - 2 O R D E R PER GARASIA, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A)-II, INDORE, DATED 30.08.2013 FOR THE ASSE SSMENT YEAR 2009-10. 2. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE H AS FILED THE RETURN OF INCOME AT RS. 4,51,290/-. THE A SSESSEE IS AN INDIVIDUAL AND DERIVES INCOME FROM MANUFACTURING AND TRADING OF PULSES AND ITS BY PRODUCTS FROM PROPRIET ORSHIP CONCERN. THE ASSESSEE HAS PAID RS. 5,63,218/- TO MA NDI TAX AUTHORITIES FOR THE PERIOD 20.01.1986 TO 07.02.1999 DURING THE YEAR AND THE SAME WAS DEBITED IN PROFIT AND LOS S ACCOUNT IN THE CASE OF M/S. UGAM PULSES. SIMILARLY, IN THE CASE OF M/S. KAILASH TRADING CO. , A PAYMENT OF RS. 4,42,761/- O N ACCOUNT OF PENAL SULK AND INTEREST TO MANDI TAX AUTHORITIES HAS BEEN SHOWN. THE AO TRIED TO VERIFY THE ABOVE EXPENSES. T HE ASSESSEE HAS SUBMITTED THAT THE MANDI SAMITI HAS RA ISED DEMAND OF RS. 9,52,118/- AND MISC. FEE OF RS. 1,01, 871/- TOTALING TO RS. 10,18,714/- WAS DUE FROM M/S. KAILA SH TRADING -: 3: - 3 COMPANY AND RS. 12,46,361/- AND RS. 1,36,629/- TOTA LING TO RS. 13,66,286/- WAS DUE FROM M/S. UGAM PULSES. THE INTEREST IS PENAL IN NATURE. THEREFORE, THE AO DISALLOWED TH E SAME AT RS. 11,92,500/-. 3. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) HAS PARTLY ALLOWED THE APPEAL I.E. 50% CONSIDERED A S PENAL SHULK AND INTEREST 50% WAS CONSIDERED AS INTEREST. 4. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THE AO HAS MADE THE ADDITION OF RS. 11 ,92,500/- ON ACCOUNT OF PAYMENT OF PENAL SHULK AND INTEREST P AID BY M/S. UGAM PULSES AND M/S. KAILASH TRADING COMPANY T O MANDI SAMITI . THE MANDI SAMITI HAS RAISED A DEMAND OF RS. 1,03,95,335/- FOR NOT FILING DECLARATION FORM WITH RECEIPT OF TAX PAID BY THE SUPPLIER DURING THE PERIOD 1986 TO 1990 . THE STATE GOVERNMENT HAS REDUCED THE DEMAND AND BALANCE DEMAN D WAS PAID IN THE FORM OF BALANCE MANDI SHULK AND NIR ASHIT SHULK. IN THE PRESENT CASE, THE PENAL SHULK AND INT EREST TAKEN TOGETHER CONSISTS OF 50% OF MANDI SHULK. THEREFORE, THE AMOUNT PAID IS NOT A PENALTY AS PER THE PROVISION O F SECTION -: 4: - 4 19(7) OF KRISHI UPAJ MANDI ADHINIYAM 1972, WHEREIN THE MANDI HAS GIVEN CERTIFICATE THAT THE ASSESSEE HAS P AID RS. 12,46,361/- AS MANDI FEE AND RS. 1,36,629/-AS NIRA SHRIT RASHI I.E. THE PENAL SULK. THEREFORE, WE MODIFY THE ORDER OF LD. CIT(A) AND WE DIRECT THE AO TO ALLOW THE ASSESSEE M ANDI SHULK OF RS. 12,46,361/- AND PENAL INTEREST OF RS. 1,36,6 29/- IS DISALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 24 TH SEPTEMBER, 2015. SD/- (B. C. MEENA) ACCOUNTANT MEMBER SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 24 TH SEPTEMBER, 2015. CPU* 15219