ITO 9(1)(4), MUMBAI V. GANESH SILK MILLS P. LTD, MUMBAI

ITA 7019/MUM/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3454 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 10-06-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 17-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K SINHA
• Assessee Lawyers: INDRA G ANAND
• Section: 69C; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL G , BENCH, MUMBAI , BEFORE SHRI R.K.GUPTA, JM & SHRI N.K.BILLAIYA , AM ITA NO. 7019 / MUM/ 20 1 1 ( ASSESSMENT YEAR : 200 8 - 0 9 ) ITO 9(1)(4), MUMBAI VS. M/S GANESH SILK MILLS PVT. LTD., 224, VEENA BEENA SHOPPING CENTRE, TURNER ROAD, BANDRA (WEST), MUMBA - 400 050 PAN/GIR NO. : AAACG 4773 D ( APPELLANT ) .. ( RESPONDENT ) /REVENUE BY : MR. D.K.SINHA /ASSESSEE BY : MS. INDRA G. ANAND DATE OF HEARING : 10 TH JUNE, 201 3 DATE OF PRONOUNCEMENT : 19 TH JUNE, 2013 O R D E R PER SHRI R.K.GUPTA, JM : TH IS APPEAL HA S BEEN PREFERRED BY THE DEPARTMENT AGAINST THE ORDER DATED 8 - 8 - 2011 OF LEANED CIT (A) - 19 , MUMBAI RELA TING TO THE ASSESSMENT YEAR 200 8 - 0 9 . 2 . THE DEPARTMENT IS OBJECTING IN DELETING THE ADDITION OF R S. 38,35,648/ - MADE BY THE AO UNDER SECTION 69C OF THE ACT. 3 . THE FACTS GIVING RISE TO THE APPEAL OF THE DEPARTMENT ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TEXTILE PROCESSING FOR THIRD PARTIES , FILED ITS RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 95,620/ - . THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) AT ITA NO . 7019 / 201 1 2 RS. 39,31,270/ - BY MAKING AN ADDITION OF RS. 38,35,648/ - ON ACCOUNT OF ALLEGED EXPENDITURE INCURRED UNDER SECTION 69C. 4 . B EFORE THE CIT(A ), DETAILED SUBMISSION WERE FILED AND AFTER CONS IDERING THE SUBMISSION AND PERUSING THE MATERIAL ON RECORD, LEARNED CIT (A) FOUND THAT SIMILAR ADDITION S WERE MADE FOR ASSESSMENT YEAR 2007 - 08, WHICH WERE DELETED BY HIS PREDECESSOR VIDE ORDER DATED 3 - 2 - 2011. ACCORDINGLY, HE DELETED THE ADDITION FOR THE YEA R UNDER CONSIDERATION ALSO. 5. LEARNED DR PLACED RELIANCE ON THE ORDER OF AO. ON THE OTHER HAND, LEARNED COUNSEL OF THE ASSESSEE, STATED THAT ON IDENTICAL FACTS, THE ADDITIONS WERE MADE FOR ASSESSMENT YEAR 2007 - 08 ALSO, WHICH WERE DELETED BY THE LEARNED C IT(A) AND THE ORDER OF THE LEARNED CIT(A) HAS BEEN CONFIRMED BY THE TRIBUNAL. COPY OF THE ORDER OF THE TRIBUNAL DECIDED IN ITA NO. 3215/M/2011, FOR ASSESSMENT YEAR 2007 - 08, DATED 16 - 4 - 2012, WAS ALSO FILED. 6 . AFTER CONSIDERING THE SUBMISSION AND PERUSING THE MATERIAL ON RECORD, WE FOUND THAT SIMILAR ADDITIONS MADE FOR IMMEDIATELY PRECEDING YEAR, WERE DELETED BY THE LEARNED CIT(A) AND THE ORDER OF THE LEARNED CIT(A) HAS BEEN AFFIRMED BY THE TRIBUNAL. THE FINDINGS OF THE TRIBUNAL HAVE BEEN RECORDED IN PARA 7 , WHICH ARE AS UNDER : - 7. WE HAVE CONSIDERED THE RIVAL SUBMISSION AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES. THE A.O. HAS MADE ADDITIONS U/S. 69C ONLY ON THE GROUND THAT DURING THE YEAR UNDER CONSIDERATION HE FOUND THAT EXPENSES UNDER THE HEAD 'LAB OUR AND PROCESSING' WERE ON THE LOWER SIDE AS COMPARED TO THE FIGURES OF THE IMMEDIATE PRECEDING ORDER. OTHER THAN THIS, THERE IS NOTHING ON RECORD BROUGHT BY THE A. O . TO SUBSTANTIATE HIS CLAIM THAT THE ITA NO . 7019 / 201 1 3 ASSESSEE HAS INCURRED CERTAIN EXPENDITURE OUTSIDE THE BOOKS, TO INVOKE THE PROVISIONS OF SECTION 69C OF THE ACT. ON THE OTHER HAND, WE FIND THAT THE LD. CIT(A) AFTER CONSIDERING THE FACTS IN DETAIL AND ALSO THE PAST HISTORY OF THE ASSESSEE , HAS GIVEN A REASONED ORDER. THE LEARNED DR COULD NOT POINT OUT ANY D EFECT OR ERROR IN THE ORDER OF THE LD. CIT(A). WE DO NOT FIND ANY INFIRMITY IN THE FINDINGS OF THE LD. CIT(A). WE, THEREFORE, UPHOLD THE ORDER OF THE LD. CIT(A) AND DISMISS THE APPEAL FILED BY THE REVENUE. 7. SINCE THE FACTS ARE SIMILAR, THEREFORE, FOLLO WING THE DECISION OF THE TRIBUNAL FOR IMMEDIATELY PRECEDING YEAR, WHERE IDENTICAL ADDITIONS WERE DELETED, WE CONFIRM THE ORDER OF THE LEARNED CIT(A) FOR THE YEAR UNDER CONSIDERATION ALSO. 8 . IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 19 TH DAY OF JUN . 2013 . SD/ - ( ) ( N.K.BILLAIYA ) SD/ - ( ) ( R.K.GUPTA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 19/06 /2013 . /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) , MUMBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( ASSTT. REGISTRAR) / ITAT, MUMBAI