Hakimchand D & Sons, Ahmedabad V. The CIT-VI, Ahmedabad

ITA 839/AHD/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73114 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 26-03-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 17-04-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D S KALYAN
• Assessee Lawyers: S N SOPARKAR
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SRI D.K TYAGI, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTAN T MEMBER HAKMICHAND D & SONS, G/4, NITYANAND APARTMENTS, VAKIL WADI, MANINAGAR, AHMEDABD- 380008 (APPELLANT) VS CIT-VI, 1 ST FLOOR, NARAYAN CHAMBERS, ASHRAM ROAD, AHMEDABAD-380009 (RESPONDENT) REVENUE BY: SRI D.S. KALYAN, SR.D.R. ASSESSEE BY: SRI S.N. SOPARKAR, A.R. DATE OF HEARING : 26-03-2014 DATE OF PRONOUNCEMENT : 28-03-20 14 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER:- THIS IS THE ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT-IV AHMEDABAD DATED 21-03-2012 PASSED U/S. 263 OF THE A CT. ITA NO. 839/AHD/2012 ASSESSMENT YEAR 2008-09 I.T.A NO. 839/AHD/2012 A.Y. 2008-09 PAGE NO HAKMICHAND D & SONS, VS. CIT 2 2. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORD, WE FIND THAT ASSESSMENT WAS COMPLETED BY AO U/S. 143(3) OF THE A CT ON 07-09-2010. SUBSEQUENTLY LD. CIT FOUND THAT PAYMENT OF LICENCE FEES OF RS. 495.44 LACS TO M/S INDIAN CATERING AND TOURISM CORPORATION WAS DEBITED TO THE PROFIT AND LOSS ACCOUNT BUT ASSESSEE DID NOT DEDUCT ANY TD S AND THE APPLICABILITY OF SECTION 40A(IA) WAS NOT EXAMINED BY THE AO WHILI NG PASSING THE ASSESSMENT ORDER. HE FURTHER FOUND THAT THE TURN-O VER OF THE ASSESSEE WAS NOT RE-CONCILED WITH REFERENCE TO THE PAYMENT OF LI CENSE FEES AT 12% OF THE ASSESSED SALES TURN-OVER. THE LD. CIT ISSUED SHOW CAUSE NOTICE U/S. 263 OF THE ACT IN THIS RESPECT AND AFTER TAKING INTO CONSI DERATION THE SUBMISSION OF THE ASSESSEE DIRECTED THE AO TO EXAMINE THE ISSUES IN FULL AND MAKE A FRESH ASSESSMENT ORDER DULY APPLYING THE PROVISIONS OF SE CTION 40A(IA) AND ALSO AFTER PROPER RE-CONCILIATION OF THE SALES TURN-OVER . SINCE ADMITTEDLY AO DID NOT EXAMINE THE APPLICABILITY OF SECTION 40A(IA) ON THE PAYMENT OF LICENSE FEES TO M/S INDIAN RAILWAYS CATERING AND TOURISM CO RPORATION AND DID NOT RE-CONCILE THE TURN OVER WITH REFERENCE TO PAYMENT OF LICENSE FEES AT 12% OF THE ASSESSED SALES TURN OVER, LD. CIT WAS JUSTIFIED IN INVOKING THE PROVISIONS OF SECTION 263 OF THE ACT IN THIS CASE AND THEREFOR E THE ORDER PASSED BY HIM IS HEREBY UPHELD. 3. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (ANIL CHATURVEDI) ( D.K. TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 28/03/2014 I.T.A NO. 839/AHD/2012 A.Y. 2008-09 PAGE NO HAKMICHAND D & SONS, VS. CIT 3 AK / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,