Gujarat Co.Op.Milk Marketing Federation Ltd., Anand V. The Jt.CIT.,Anand Circle, Anand

ITA 674/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8273 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 03-07-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 06-03-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Section: 143(3); 14A; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH AHMEDABAD BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER, AND SHRI S. S. GODARA, JUDICIAL MEMBER. ITA NO. 674/AHD/2014 (ASSESSMENT YEAR: 2010-11) GUJARAT CO-OP. MILK MARKETING FEDERATION LTD., AMUL DAIRY ROAD, ANAND APPE LLANT VS. JOINT COMMISSIONER OF INCOME TAX, ANAND CIRCLE, ANAND RESPONDENT & ITA NO. 1080/AHD/2014 (ASSESSMENT YEAR: 2010-11) ASSTT. COMMISSIONER OF INCOME TAX, ANAND CIRCLE, ANAND APPELLA NT VS. GUJARAT CO-OP. MILK MARKETING FEDERATION LTD., AMUL DAIRY ROAD, ANAND 388001 RESPONDENT PAN: AAAAG5588Q /BY ASSESSEE : SHRI SUNIL TALATI, A.R. /BY REVENUE : SHRI V. K. SINGH, SR. D.R. /DATE OF HEARING : 10.10.2017 /DATE OF PRONOUNCEMENT : 12.10.2017 ITA NOS. 674 & 1080/AHD/14 [GUJARAT CO.OP. MILK MAR KETING FEDERATION LTD.] A.Y. 2010-11 - 2 - ORDER PER S. S. GODARA, JUDICIAL MEMBER THE ASSESSEE AND REVENUE HAVE FILED INSTANT CROSS A PPEALS FOR ASSESSMENT YEAR 2010-11 ARISES AGAINST THE CIT(A)- IV, BARODA S ORDER DATED 24.01.2014, IN CASE NO. CAB/IV-A-234/2012-13, IN PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH SIDES. CASE FILE PERUSED. 2. WE COME TO ASSESSEES APPEAL ITA NO.674/AHD/2014 FIRST. ITS FIRST SUBSTANTIVE GROUND PLEADS THAT BOTH THE LOWER AUTHO RITIES HAVE ERRED IN DISALLOWING AN AMOUNT OF RS.5,97,16,371/- HAS TRANSFERRED TO RE SERVED FUND U/S.67 OF THE GUJARAT CO-OPERATIVE SOCIETIES ACT. WE FIND THAT THE CIT(A ) HAS FOLLOWED HIS LOWER APPELLATE ORDER IN ASSESSMENT YEAR 2002-03 & 2006-0 7 IN AFFIRMING ASSESSING OFFICERS ACTION DISALLOWING THE IMPUGNED SUM. MR. TALATI FILES BEFORE US CO- ORDINATE BENCH DECISION IN ASSESSEES OWN CASES FO R ASSESSMENT YEARS 2005-06, 2007-08 TO 2009-10 DECIDED ON 30.09.2016 UPHOLDING IDENTICAL DISALLOWANCE IN SAID EARLIER ASSESSMENT YEARS. WE THEREFORE FIND N O REASON TO ADOPT A DIFFERENT APPROACH IN THE IMPUGNED ASSESSMENT YEAR. 3. THE ASSESSEES NEXT SUBSTANTIVE GROUND SEEKS TO DELETE SECTION 14A R.W. RULE 8D DISALLOWANCE OF RS.31,302/- AS MADE BY BOTH THE LOWER AUTHORITIES. LEARNED COUNSEL IS VERY FAIR IN POINTING OUT THAT T HE ABOVE CO-ORDINATE BENCH HAS UPHELD SIMILAR DISALLOWANCE(S) IN PRECEDING ASSESSM ENT YEARS. HE DOES NOT DRAW ANY DISTINCTION IN THE IMPUGNED ASSESSMENT YEAR. W E THEREFORE DECLINE ASSESSEES LATTER SUBSTANTIVE GROUND AS WELL AS MAIN APPEAL IT A NO.674/AHD/2014. 4. THIS LEAVES US WITH REVENUES CROSS APPEAL ITA N O.1080/AHD/2014 RAISING SOLITARY SUBSTANTIVE GROUND THAT THE CIT(A) HAS ERR ED IN REVERSING ASSESSING OFFICERS ACTION DISALLOWING AN AMOUNT OF RS.716.99 LACS ON ACCOUNT OF CO- ITA NOS. 674 & 1080/AHD/14 [GUJARAT CO.OP. MILK MAR KETING FEDERATION LTD.] A.Y. 2010-11 - 3 - OPERATIVE DEVELOPMENT EXPENSES INCLUDING BREED IMPR OVEMENT EXPENDITURE. ITS CASE IS THAT THE ABOVE EXPENSES ARE NOT INCURRED IN ORDI NARY COURSE AS WELL AS WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF ASSESSEES BUSINESS. THE REVENUE FURTHER SEEKS TO TREAT THE IMPUGNED EXPENDITURE TO BE OF ENDURING NA TURE. LEARNED REPRESENTATIVES INFORM US THAT THE ABOVE CO-ORDINATE BENCH DECISION HAS ALREADY ADJUDICATED THE INSTANT ISSUE IN ASSESSEES FAVOUR IN AFFIRMING CIT (A)S IDENTICAL FINDINGS IN SAID EARLIER ASSESSMENT YEARS. WE THEREFORE ADOPT CONSIS TENCY HEREIN AS WELL TO REJECT REVENUES INSTANT SUBSTANTIVE GROUND AS WELL AS MAI N APPEAL ITA NO. 1080/AHD/2014. 5. THESE TWO CROSS APPEALS ARE ACCORDINGLY DISMISSE D. [PRONOUNCED IN THE OPEN COURT ON THIS THE 12 TH DAY OF OCTOBER, 2017.] SD/- SD/- (PRAMOD KUMAR) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 12/10/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 / GUARD FILE. BY ORDER / . // . /0