Masibus Process Instruments Pvt. Ltd., Gandhinagar V. The ACIT., GNR Circle, Gandhinagar

MA 367/AHD/2009

• Counselvise Citation: [2010] 123 COUNSELVISE.COM (IT) 4816 (ITAT-AHMEDABAD)
• Duration Of Justice: 9 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 13-08-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2001-2002
• Appeal Filed On: 26-10-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R K DHANESTA
• Assessee Lawyers: S N DIVATIA
• Keywords: Rectification of order

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B AHMEDABAD BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER AND SHRI D.C. AGARWAL, ACCOUNTANT MEMBER M.A.NO.367/AHD/2009 (ARISING OUT WITH ITA NO.551/AHD/2005 ASSESSMENT YEAR:2001-02 DATE OF HEARING:13.8.10 DRAFTED:13.8. 10 M/S. MASIBUS PROCESS INSTRUMENTS PVT. LTD., B/30, GIDC, ELECTRONIC ZONE, SECTOR-25, GANDHINAGAR PAN NO.AACM9906A V/S . ACIT, GANDHINAGAR CIRCLE, GANDHINAGAR (ORIGINAL APPELLANT) (ORIGINAL RESPONDENT) (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI S.N.DIVATIA, AR RESPONDENT BY:- SHRI R.K.DHANESTA, DR O R D E R PER MAHAVIR SINGH, JUDICIAL MEMBER:- BY WAY OF THIS MISCELLANEOUS APPLICATION (MA), THE ASSESSEE HAS REQUESTED FOR RECTIFICATION OF MISTAKE ARISING OUT ITA NO.551/AHD/2005 DATED 11-09-2009. THE LD. COUNSEL FOR THE ASSESSEE DRAWN OUR ATTENTION PARA-3 AND 4 OF THE TRIBUNALS ORDER AND THE FINDINGS IN PARA-5 . HE STATED THAT THE FINDINGS GIVEN BY THE TRIBUNAL IN PARA-5 OF ITS ORDER IS FACTUALLY INCORRECT, EVEN BY GOING THROUGH THE PAPER BOOK PRODUCED BEFORE IT AND THE OBSERVATIONS MADE IN PARA-3 AND 4 . HE FURTHER STATED THAT THE ASSESSEE-COMPANY MADE EFFORTS FOR MARKETING OF THE PRODUCT OF M/S. ROVSING DYNAMICS A/S. DENMARK, THE PERUSAL OF THE EVIDENCE PRODUCED AT PAGE 67 TO 77 OF THE PAPER BOOK SHOWS THAT VARIOUS E-MAIL HAVE BEEN EXCHANGED WITH THE FOREIGN COMPANY AND THE PROGRESS OF THE EFFORTS MADE WITH T HE PROSPECTIVE BUYERS LIKE GEB, AEC, TATA ELECTRICALS, ETC. THE LD. COUNSEL STATED THAT THE EVIDENCES RELATES TO ASSESSMENT YEAR 2000-01, I.E. AN YEAR PROCEEDING TO THE YEAR UNDER APPEAL. AS MA NO.367/AHD/2009 (A/O ITA NO.551/AHD/09) M/S. MASIBUS PROCESS INSTRUMENTS PVT. LTD. V. ACIT GNR CIR. PAGE 2 REGARDS TO THE TRIBUNALS FINDING THAT THE EXPENSES INCURRED WERE IN THE NATURE OF PRE- OPERATIVE EXPENSES FOR PROPOSED NEW VENTURE IS FACT UALLY INCORRECT BECAUSE THE ASSESSEE-COMPANY HAS CARRIED OUT AGENCY BUSINESS FO R THE FOLLOWING PRINCIPLES:- A) KIPP & ZONEN DELFT BV, HOLLAND B) HATHWAY SYSTEMS CORPORATION, CARROLTON C) MIKRON INSTRUMENT COMPANY, INC., WYCKOFF, NJ. AS REGARDS TO TRIBUNALS FINDING THAT THE FOREIGN T RAVEL WAS NOT RELATED TO THE INCOME EARNED TO THE RELEVANT PREVIOUS YEAR, THE LD. COUNS EL REFERRED TO CBDT CIRCULAR NO.4 DATED 19-06-1950. ACCORDINGLY, LD. COUNSEL URGED TH E BENCH TO RECTIFY THE MISTAKE AND ALLOW THE FOREIGN TRAVEL EXPENSES. 2. ON THE OTHER HAND, LD. SR-DR SUPPORTED THE ORDER OF TRIBUNAL AND STATED THAT FROM THE ARGUMENTS OF THE LD. COUNSEL FOR THE ASSES SEE, IT IS CLEAR THAT THE ASSESSEE WANT REVIEW OF THE ORDER. ACCORDING TO HIM, THERE I S NO MISTAKE APPARENT FROM RECORDS IN THE ORDER OF THE TRIBUNAL. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND GONE THR OUGH THE CASE RECORDS. WE FIND FROM THE ORDER OF THE TRIBUNAL THAT THE FOREIG N TRAVEL EXPENSES DOES NOT RELATES TO THE INCOME EARNED BY THE ASSESSEE FROM THE BUSINESS CARRIED ON DURING THE RELEVANT PREVIOUS YEAR. EVEN OTHERWISE, FROM THE ARGUMENTS M ADE AS WELL AS THE CONTENTIONS RAISED IN THE PETITION CLEARLY DEMONSTRATE THAT THE ASSESSEE WANTS REVIEW OF THE ORDER. WE FIND THAT THERE IS NO MISTAKE APPARENT FR OM THE RECORD IN THE ORDER OF THE TRIBUNAL. ACCORDINGLY, THIS MA OF ASSESSEE IS DISMI SSED. 4. IN THE RESULT, ASSESSEES MA IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 13/ 08/2010 SD/- SD/- (D.C.AGARWAL) (MAHA VIR SINGH) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, DATED : 13/08/2010 *DKP MA NO.367/AHD/2009 (A/O ITA NO.551/AHD/09) M/S. MASIBUS PROCESS INSTRUMENTS PVT. LTD. V. ACIT GNR CIR. PAGE 3 COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD