Income Tax Officer, Buldhana V. M/s. Prerna Paper Products, Buldhana

ITA 82/NAG/2010

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9569 (ITAT-NAGPUR)
• Duration Of Justice: 2 year(s) 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 14-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMESH DAWANDE
• Assessee Lawyers: S C THAKAR; C J THAKAR
• Keywords: Rule of consistency

Judgement Text

ITA NO. 82 /NAG/2010 PRERNA PAPER PRODUCTS BULDHANA IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH , NAGPUR BEFORE: SHRI P.K. BANSAL , ACCOUNTANT MEMBER AND SHRI D.T. GARASIA , JUDICIAL MEMBER ITA NO. 82 / NAG / 20 10 ASSESSMENT YEAR : 2006 - 07 ITO KHAMGAON VS. M/S. PRERNA PAPER PRODU CTS BULDHANA (APPELLANT) (RESPONDENT) PAN NO.AABFP 3501A APPELLANT BY: SHRI RAMESH DAWANDE, SR. DR RESPONDENT BY: SHRI C.J. THAKAR, ADVOCATE & SHRI S.C. THAKAR, ADVOCATE DATE OF HEARING: 11.10.2012 DATE OF PRONOUNCEMENT: 15.10.2012 ORDER PER P.K. BANSAL, ACCOUNTANT MEMBER: - THIS APPEAL HAS BEEN FILED AGAINST THE ORDER OF THE CIT(A) DATED 12.2.2010 BY TAKING THE FOLLOWING EFFECTIVE GROUNDS OF APPEAL: 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE THE CIT(A) OUGHT NOT TO HAVE ALLOWED RELIEF ON A CCOUNT OF COMMISSION PAID TO SOPAN TUKARAM PATIL FOR A SUM OF RS.3 LACS IN SO FAR AS THE ASSESSEE FAILED TO ADDUCE ADEQUATE EVIDENCE WITH REGARD TO THE PROOF OF RENDERING OF SERVICES BY THE SAID AGENT. 2. THE CIT(A) ERRED IN ALLOWING RELIEF WITH REGARD TO TH E COMMISSION PAID TO TUKARAM PATIL WITHOUT GIVING ADEQUATE OPPORTUNITY TO THE A.O. 3. THE CIT(A) ERRED IN GRANTING RELIEF FOR A SUM OF RS.6,98,480/ - , ON ACCOUNT OF PAYMENT OF REMUNERATION TO SHRI DEVENDRA RAMESH PATIL, SMT. JAYA TUSHAR PATIL, SMT. VAISHALI DEEPAK PATIL AND SMT. SUSHMA DEVENDRA PATIL IGNORING THE FACT THAT ASSESSEE FAILED TO ADDUCE EVIDENCE OF THE SERVICE RENDERED BY THE SAID PARTIES TO CLAIM SUCH REMUNERATION. 4. THE CIT(A) ERRED IN GRANTING THE RELIEF ON THE IMPUGNED REMUNERATION WITHOUT NOTI CING THAT THE RECORDS FOR THE ASSESSMENT YEARS 2006 - 07 AND 2007 - 08, IF READ TOGETHER ESTANBLISH THAT THE CLAIM OF SERVICES RENDERED BY THE PARTIES AND THE PAYMENT OF REMUNERATION ARE SELF SERVING ENTRIES MADE TO REDUCE LIABILITY TO TAX. ITA NO.82/NAG/2010 PRERNA PAPER PRODUCTS BULDHANA 2 5. THE CIT(A) ERRED IN IGNORING THE FACT THAT THE REMUNERATION CLAIMED AND PAID TO THESE PARTIES MENTIONED ABOVE IS VARYING FROM YEAR TO YEAR AND NO COGENT EVIDENCE IS PRODUCED WITH REGARD TO THE SERVICES RENDERED BY THEM AND THE STATEMENT OF SHRI DEVENDRA PATIL DATED 24.12.200 9 ITSELF ESTABLISHED THAT NO SERVICE WAS RENDERED. 6. THE CIT(A) OUGHT NOT TO HAVE GRANTED RELIEF RELYING ON THE PAST RECORD IN SO FAR AS THE RETURNS FOR THE ASSESSMENT YEAR 2004 - 05 AND 2005 - 06 WERE MERELY ACCEPTED UNDER SEC. 143(1) AND NO SCRUTINY ASSESSMEN TS WERE COMPLETED THEREIN. 2. AT THE OUTSET, LD. A.R. POINTED OUT THAT THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATE TO THE DISALLOWANCE OF THE COMMISSION AMOUNTING TO RS.3 LAKHS PAID BY THE ASSESSEE TO SHRI SOPAN TUKARAM PATIL AND RS.6,98,480/ - PAID AS REMUNERATION TO SHRI DEVENDRA RAMESH PATIL, SMT. JAYA TUSHAR PATIL, SMT. VAISHALI DEEPAK PATIL & SMT. SUSHMA DEVENDRA PATIL. HE CONTENDED THAT SIMILAR PAYMENTS HAVE BEEN ALLOWED IN THE PRECEDING ASSESSMENT YEAR 2004 - 05 & 2005 - 06 IN THE ASSESSMENT FRAMED U /S 143(1). IT WAS ALSO CONTENDED THAT IN THE SUBSEQUENT ASSESSMENT YEAR I.E. ASSESSMENT YEAR 2007 - 08, SIMILAR PAYMENTS WERE DISALLOWED BY THE ASSESSING OFFICER IN AN ASSESSMENT FRAMED U/S 143(3). WHEN THE MATTER WENT BEFORE THE CIT(A), CIT(A) ALLOWED THE APPEAL OF THE ASSESSEE BY DELETING THE DISALLOWANCE SO MADE. THE REVENUE HAS NOT FILED ANY APPEAL AGAINST THE ORDER OF THE CIT(A). THE DELETION OF THE ADDITION IN THE ASSESSMENT YEAR 2007 - 08 HAS BECOME FINAL. SINCE THE FACTS INVOLVED ARE SAME AND IN VI EW OF THE RULE OF CONSISTENCY, THE ADDITION MADE SHOULD BE DELETED. THE LD. A.R. WAS FAIR ENOUGH TO CONCEDE THE POSITION. 3. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIONS ALONG WITH THE ORDER OF THE CIT(A) AS WELL AS THAT OF THE ASSESSING OFFICER. WE HAVE ALSO GONE THROUGH THE CIT(A) S ORDER FOR THE ASSESSMENT YEAR 2007 - 08. WE NOTED THAT SIMILAR PAYMENT ALSO BEEN DISALLOWED BY THE ASSESSING OFFICER IN THE ASSESSMENT YEAR 2007 - 08 BUT WHEN THE MATTER WENT BEFORE THE CIT(A), CIT(A) DELETED THE DISALLO WANCE AND THE REVENUE HAS NOT FILED ANY APPEAL BEFORE THE TRIBUNAL. THE DELETION OF THE DISALLOWANCE IN THE ASSESSMENT YEAR 2007 - 08 HAS BECOME FINAL. SINCE THE FACTS INVOLVED IN THIS ASSESSMENT YEAR ARE ALSO THE SAME AS IN THE ASSESSMENT YEAR 2007 - 08, WE , THEREFORE, IN VIEW ITA NO.82/NAG/2010 PRERNA PAPER PRODUCTS BULDHANA 3 OF THE RULE OF CONSISTENCY, SET ASIDE THE ORDER OF THE CIT(A) AND DELETE THE DISALLOWANCE OF RS.3 LAKHS AS WELL AS THAT OF RS.6,98,480/ - . 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED . PRONOUNCED IN THE OPEN COURT ON 15.10 .20 1 2 SD/ - SD/ - ( D.T. GARASIA ) (P.K. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER VG/SPS NAGPUR DATED OCTOBER , 20 1 2 COPY TO 1 ITO KHA M GAON 2 M/S. PRERNA PAPER PRODUCTS, MIDC, DASARKH ED, MALKAPUR, DIST. BULDHANA 3 THE CIT (A) , NAGPUR 4 THE DR, ITAT, NAGPUR 5 GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL NAGPUR