Late Kanniappan Thiruvngadam, Chennai V. DCIT, Non Corporate Circle-10(1), Chennai

ITA 96/CHNY/2018

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 7192 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 11 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 08-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K AUSHIK M M R AR V
• Section: 201; 13

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI , . , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN , ACCOUNTANT MEMBER ./ ITA NO. 96 /CHNY/ 201 8 / ASSESSMENT YEAR: 20 13 - 14 LATE KANNIAPPAN THIRUVENGADAM, (REP. BY LEGAL HEIR SHRI T. PALANI) NO .78/12, PERUMBUR HIGH ROAD, JAMALIYA, CHENNAI 600 012. [PAN: ABNPT 3323R ] VS. THE DEPUTY COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE 10(1), CHENNAI ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : M R . K AUSHIK. M , ADV OCATE /RESPONDENT BY : M R. AR.V.SREENIVASAN, JCIT / DATE OF HEARING : 18 . 1 2 .2019 / DATE OF PRONOUNCEMENT : 18 .12 .2019 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED COMMIS SIONER OF INCOME TAX (APPEALS) - 12 , CHENNAI IN APPEAL NO. I.T.A. NO . 4/CIT(A) - 12/2016 - 17 DATED 27.11.2017 FOR THE ASSESSMENT YEAR 20 13 - 14. 2. MR. KAUSHIK. M , ADVOCATE REPRESENTED ON BEHALF OF THE ASSESSEE AND MR. AR.V.SREENIVASAN, JCIT REPRE SENTED ON BEHALF OF THE R EVENUE . ITA NO .96 CHNY / 201 8 : - 2 - : 3. IT WAS SUBMITTED BY THE LEARNED AUTHORIZED REPRESENTATIVE THAT THE ONLY ISSUE IN THE ASSESSEES WAS AGAINST THE ACTION OF THE LEARNED CIT(A) IN CONFIRMING THE DISALLOW ANCE OF THE LOSS ON ACCOUNT OF THE DEATH OF LIVE - STOCK TO THE EXTENT OF RS.14.00 LAKHS. IT WAS SUBMITTED BY THE LEARNED AUTHORIZED REPRESENTATIVE THAT THE ASSESSEE IS RUNNING A DAIRY FARM UNDER THE NAME AND STYLE AS M/S. T.G. FARM. DURING THE RELEVANT AS SESSMENT YEAR, THERE WAS DEATH OF TWENTY BUFFALOES OUT OF MORE THAN THREE - HUNDRED BUFFALOES MAINTAINED BY THE ASSESSEE. IT WAS A SUBMISSION THAT THE ASSESSEE HAD TAKEN THE TOTAL COST OF THE BUFFALOES AS MAINTAINED IN HIS BOOKS DIVIDED BY THE NUMBER OF BU FFALOES AND THEN MULTIPLIED THE SAID DERIVATIVE BY TWENTY REPRESENTING THE DEATH OF THE LIFE - STOCK AND HAD CLAIMED AN AMOUNT OF RS.14.00 LAKHS AS LOSS. THE LEARNED AUTHORIZED REPRESENTATIVE DREW OUR ATTENTION TO THE BALANCE SHEET AND PROFIT AND LOSS ACCOU NT AS ALSO THE STATEMENT OF FIXED ASSETS IN RESPECT OF HIS DAIRY FARM. THE LEARNED AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE TOTAL VALUE OF THE LIVE - STOCK AS ON 01.04.2012 WAS RS.2,64,05,283/ - . OUT OF THE SAID LIFE - STOCK, THE ASSESSEE HAD SOLD A FEW A ND ON ACCOUNT OF THE DEATH OF TWENTY BUFFALOES, THE SAME WAS VALUED AT RS.14.00 LAKHS AND THE TOTAL DELETIONS FROM THE LIVE - STOCK WAS AT RS.64,12,000/ - . IT WAS A SUBMISSION THAT THE ASSESSING OFFICER DISALLOWED THE ASSESSEES CLAIM BY HOLDING THAT THE ASS ESSEE HAD NOT PRODUCED ANY EVIDENCE TO SHOW AS TO HOW THE LOSS FIGURE WAS ARRIVED AT. IT WAS A SUBMISSION THAT ON IDENTICAL REASONS THE LEARNED CIT(A) HAD CONFIRMED THE DISALLOWANCE. IT WAS A SUBMISSION THAT THE CERTIFICATE FROM THE VETERINARY DOCTOR HAS ALSO BEEN PRODUCED, WHEREIN THE ITA NO .96 CHNY / 201 8 : - 3 - : COST OF THE BUFFALOES HAD BEEN CLEARLY MENTIONED TO BE AROUND RS.70,000/ - PER BUFFALO. IT WAS A SUBMISSION THAT THERE WAS NO OTHER WAY THAT THE ASSESSEE COULD HAVE VALUED THE LIVE - STOCK. 4. IN REPLY, THE LEARNED DEPARTME NTAL REPRESENTATIVE VEHEMENTLY SUPPORTED THE ORDER THE LEARNED ASSESSING OFFICER AND THE LEARNED CIT(A). 5 . WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. 6. THE ASSESSEE HAS MAINTAINED HIS BOOKS IN RESPECT OF THE DAIRY FARM RUN BY HIM. THE ASSESSEE HAS ALSO SHOWN THE DEDUCTION IN RESPECT OF THE LIFE - STOCK TO AN EXTENT OF RS.64, 1 2,000/ - . THE ASSESSEE HAS ALSO PRODUCED BEFORE THE LOWER AUTHORITIES A CERTIFICATE FROM THE VETERINARY DOCTOR SPECIFYING THAT THE DEAD B UFFALOES COULD HAVE COST AN AMOUNT OF RS.70,000/ - EACH. THE DEATH OF THE BUFFALOES NOR THE LOSS IN RESPECT OF THE BUFFALOES ARE DOUBTED BY THE REVENUE. THE ASSESSEE HAS FOLLOWED A PARTICULAR METHOD FOR DETERMINING THE COST OF HIS LOSS. THE SAID LIVE - STO CK ADMITTEDLY IS NOT A DEPRECIABLE ASSET . A DEAD BUFFALO WOULD ALSO ADMITTEDLY HAVE NO VALUE. THE METHOD ADOPTED BY THE ASSESSEE HAS ALSO NOT BEEN SHOWN TO BE WRONG BY THE REVENUE. THE ASSESSING OFFICER HAS A ONLY MENTION THAT HE IS NOT ACCEPTING THE VA LUATION. IF THAT IS SO, THEN IT WAS FOR THE ASSESSING OFFICER TO ADOPT ANY OTHER PROPER OR SCIENTIFIC METHOD OF VALUATION WHICH HE FELT IS THE RIGHT METHOD. THIS HAS NOT BEEN DONE BY THE ASSESSING OFFICER. THE LOSS OF THE LIVE - STOCK BEING AN ACCEPTED FA CT AND THE ASSESSING OFFICER HAVING NOT PUT FORWARD AN ALTERNATIVE ITA NO .96 CHNY / 201 8 : - 4 - : VALUATION, WE ARE OF THE VIEW THAT THE VALUATION AS ADOPTED BY THE ASSESSEE BY ADOPTING THE COST AS MENTIONED BY THE VETERINARY DOCTOR IS AN ACCEPTABLE METHOD ON THE FACTS OF THE CASE. 7. IN THE RESULT, THE ASSESSING OFFICER IS DIRECTED TO GRANT THE ASSESSEE THE LOSS OF RS.14.00 LAKHS IN RESPECT OF THE DEATH OF THE FOURTEEN BUFFALOES AS CLAIMED BY THE ASSESSEE. 8 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH DECEMBER , 2019 IN CHENNAI. SD/ - ( . ) ( S. JAYARAMAN ) /ACCOUNTANT MEMBER / CHENNAI, / DATED: 18 TH DECEMBER , 2 019 . IA, SR. PS SD/ - ( ) (GEORGE MATHAN) /JUDICIAL MEMBER / COPY TO: 1. / APPELLANT 2. / RESPONDENT 3. ( ) / CIT(A) 4. / CIT 5. / DR 6. / GF