ACIT, Chandigarh V. M/s Punjab Agro Foodgrains Corpn. Ltd., Chandigarh

ITA 754/CHANDI/2011

• Counselvise Citation: 75421514 RSA 2011
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 28-11-2011
• Assessment Year: 2008-2009
• Appeal Filed On: 20-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income; Revenue expenditure
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL:A BENCH: CHA NDIGARH BEFORE SHRI D K SRIVASTAVA, AM AND MS. SUSHMA CHOWL A, JM ITA NO. 754/CHD/2011 ASSESSMENT YEAR: 2008-09 ACIT, C-4(1), V M/S PUNJAB AGRO FOODGRAINS CHANDIGARH. CORPORATION LTD., CHANDIGARH. PAN: AADCP-1290P APPELLANT BY: SHRI AKHILESH GUPTA RESPONDENT BY: SHRI NEERAJ JAIN DATE OF HEARING : 28.11.2011 DATE OF PRONOUNCEMENT : 30.11.2011 ORDER D K SRIVASTAVA: THE APPEAL FILED BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) ON 30.05.201 1 ON THE FOLLOWING GROUNDS: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) HAS ERRED IN ALLOWING APPEAL OF THE ASSESSEE WITHOUT APPRECIATING THE FACTS OF THE CASE . 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDIT ION OF RS.52,50,000/- ON ACCOUNT OF TREATING REVENUE EXPEN SES TO BE CAPITAL NATURE EXPENSES. 2. THE ASSESSEE COMPANY HAS BEEN SET UP BY THE PUNJ AB GOVERNMENT TO CARRY ON THE BUSINESS, INTER-ALIA, OF LAND DEVEL OPMENT, SEED MULTIPLICATION, PROCESSING AND ITS DISTRIBUTION AND SALES, ETC. THE ASSESSEE FILED ITS RETURN OF INCOME ON 01.10.2008 R ETURNING BUSINESS INCOME AT RS.1,50,00,000/- WHICH WAS SUBSEQUENTLY R EVISED ON 01.02.2010 REDUCING THE RETURNED INCOME TO RS.83,11 ,440/-. AFTER PROCESSING, THE RETURN WAS SELECTED FOR SCRUTINY. ASSESSMENT WAS COMPLETED U/S 143(3) OF THE INCOME-TAX ACT ON 15.11 .2010 ASSESSING THE TOTAL INCOME AT RS.1,35,61,440/- AFTER TREATING THE EXPENSES AMOUNTING TO RS.52,00,000/- CLAIMED BY THE ASSESSEE AS CAPITA L EXPENDITURE. 3. ON APPEAL, LD. CIT(A) HAS HELD THAT THE IMPUGNED EXPENSES WERE IN THE NATURE OF REVENUE EXPENDITURE. HE, THEREFORE, ALLOWED THE APPEAL FILED BY THE ASSESSEE. 4. AGGRIEVED BY THE ORDER PASSED BY THE CIT(A), THE DEPARTMENT IS NOW IN APPEAL BEFORE THIS TRIBUNAL. AT THE TIME OF HEARING, BOTH THE PARTIES SUBMITTED THAT THE IMPUGNED EXPENSES WERE S IMILAR IN NATURE TO THOSE INCURRED BY THE ITA 754/CHD/2011 PUNJAB AGRO FOODGRAINS CORP.CHANDIGARH 2 ASSESSEE IN ASSESSMENT YEAR 2005-06 AND 2006-07. I T WAS FURTHER SUBMITTED THAT SIMILAR EXPENSES INCURRED IN ASSESSM ENT YEAR 2005-06 AND 2006-07 HAVE BEEN HELD BY THIS TRIBUNAL AS REVENUE EXPENDITURE VIDE ITS ORDER DATED 09.07.2010 IN THE DEPARTMENTS APPEAL I N ASSESSEE'S CASE FOR ASSESSMENT YEAR 2006-07 (ITA NO. 202/CHD/2010) AND BY ITS ORDER DATED 30.09.2008 IN THE ASSESSEE'S APPEAL FOR ASSESSMENT YEAR 2005-06 (ITA NO. 614/CHD/2008). BOTH THE PARTIES SUBMITTED THAT THE ISSUE UNDER APPEAL WAS COVERED IN FAVOUR OF THE ASSESSEE BY THE AFORESAID TWO ORDERS OF THIS TRIBUNAL. PERUSAL OF THE ORDER PASSED BY T HE CIT(A) ALSO SHOWS THAT HE HAS FOLLOWED THE AFORESAID ORDERS OF THIS T RIBUNAL IN TREATING THE IMPUGNED EXPENSES AS REVENUE EXPENDITURE. IN THIS V IEW OF THE MATTER, THE APPEAL FILED BY THE DEPARTMENT IS DISMISSED. 5. APPEAL FILED BY THE DEPARTMENT IS DISMISSED. ORDER PRONOUNCED ON 30 TH NOV.,2011. SD/- SD/- (SUSHMA CHOWLA) (D K SRI VASTAVA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 30 TH NOV.,2011 POONAM COPY TO: 1. THE APPELLANT, 2. THE RESPONDENT, 3. THE CIT(A), 4. THE CIT 5. THE D.R, INCOME-TAX DEPARTMENT, CHANDIGARH ASSISTANT REGISTRAR, ITAT, CHANDIGARH