DCIT, Circle - 4, Kolkata, Kolkata v. M/s. Ganeshbari Tea Co. (P) Ltd., Kolkata

IN THE INCOME TAX APPELLATE TRIBUNAL BEN CH B KOLKATA () BEFORE . .. . . .. . SHRI B.R.MITTAL JUDICIAL MEMBER. /AND . .. .!' !'!' !'. .. . #$ SHRI C.D.RAO ACCOUNTANT MEMBER % % % % / ITA NO . 2088/KOL/2010 &' ()/ ASSESSMENT YEAR : 2006-07 (+ / APPELLANT ) D.C.I.T. CIRCLE-4 KOLKATA - & - - VERSUS - . (./+ / RESPONDENT ) M/S. GANESHBARI TEA (P) LTD. KOLKATA (PAN:AABCG 7880 Q) + 0 1 #/ FOR THE APPELLANT: SHRI P.P.SARKAR ./+ 0 1 #/ FOR THE RESPONDENT: SHRI SUNDEEP MUKHERJEE #2 / ORDER ( (( ( . .. .!' !'!' !'. .. . ) )) ) #$ PER SHRI C.D.RAO AM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE OR DER DATED 22.01.2010 OF THE CIT(A)-IV KOLKATA PERTAINING TO A.YR. 2006-07. 2. IN THIS APPEAL THE REVENUE HAS TAKEN THE FOL LOWING EFFECTIVE GROUNDS OF APPEAL :- 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CAS E LD. CIT(A) KOLKATA HAS ERRED IN LAW IN DIRECTING THE A.O. TO RESTRICT THE DISALLOWANCE OF CONTRIBUTION TO P.F. OF RS.16 00 000/- EACH U/S 2(24)(X AND 43B TO RS.11 33 440/- EACH BASED ON THE JUDGEMENT OF THE HONBLE ITAT IN THE ASSESS EES WON CASE FOR A.Y. 2005-06 VIDE ITA NO.1009(KOL) OF 2008 DATED 21.08.2 009 WITHOUT CONSIDERING THE FACT THAT REVENUE HAS FILED APPEAL U/S 260A BEF ORE THE HONBLE CALCUTTA HIGH COURT ON 08.12.2009 AGAINST THE DECISION OF HO NBLE ITAT. 2. THAT ON FACTS AND CIRCUMSTANCES OF THE CASE LD. CIT(A) KOLKATA HAS ERRED IN LAW IN DELETING THE DISALLOWANCE OF RS.40 55 188/- ON ACCOUNT OF INTEREST BASED ON THE DECISION OF HONBLE ITAT C BENCH KOLKATA IN THE ASSESSEES OWN CASE FOR THE A.Y. 2005-06 WITHOUT CONSIDER4ING THE FACT THAT REVENUE HAS FILED 2 APPEAL U/S 260A BEFORE THE HONBLE CALCUTTA HIGH CO URT ON 08.12.2009 AGAINST THE DECISION OF HONBLE ITAT. 3. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE LD. CIT(A) KOLKATA HAS ERRED IN LAW IN DELETING THE ADDITION OF RS.3 83 61 0/- ON ACCOUNT OF CESS ON GREEN LEAF WITHOUT CONSIDERING THE FACT THAT EXPENS ES ON ACCOUNT OF CESS ON GREEN LEAF IS RELATED TO 100% AGRICULTURAL OPERATIO N AND SLP IS PENDING BEFORE THE HONBLE SUPREME COURT AGAINST THE DECISION OF C ALCUTTA HIGH COURT IN THE CASE OF AFT INDUSTRIES LTD VS- CIT (270 ITR 167) I N THE LIGHT OF WHICH LD. CIT(A) DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE. 3. AT THE OUTSET AT THE TIME OF HEARING BEFORE US THE LD. AR APPEARING ON BEHALF OF THE ASSESSEE HAS SUBMITTED THAT ALL THESE ISSUES ARE BEING DECIDED BY THIS TRIBUNAL IN REVENUES APPEAL FOR THE IMMEDIATELY PRECEDING YEAR 2005-06 AND THE TRIBUNAL DISMISSED THE REVENUES APPEAL. HE REQUESTED TO DIS MISS THE APPEAL OF THE REVENUE . 5. ON THE OTHER HAND THE LD. DR THOUGH RELIED ON T HE ORDERS OF THE A.O. COULD NOT CONTRADICT THE SUBMISSIONS MADE BY THE LD. COUNSEL APPEARING FOR THE ASSESSEE. 6. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CAREF UL PERUSAL OF THE ASSESSMENT ORDER IT IS OBSERVED THAT ALL THE THREE ISSUES ARE SQUARELY COVERED BY THE ORDERS OF THIS TRIBUNAL IN THE ASSESSEES OWN CASE FOR IMMEDIATELY PRECEDING YEAR I.E. 2005-06 WHEREIN THE FOLLOWING GROUNDS WERE DECIDED BY THE T RIBUNAL : 1. THAT THE LD.CIT(A) HAS ERRED IN LAW AS WELL AS ON FACTS BY RESTRICTING THE DISALLOWANCE U/S 26(1)(VA) AND U/S 43B TO RS.11 76 640/- EACH AS AGAINST RS.16 00 000/- EACH. 2. THAT THE LD. CIT(A) HAS ERRED IN LAW AS WELL AS ON FACTS BY DELETING THE ADDITION OF RS.5 40 514/- BEING THE NOTIONAL INTERE ST COMPUTED @10 PER CENT ON THE INTEREST FREE LOAN ADVANCED TO SISTER CONCERNS. 3. THAT THE LD. CIT(A) HAS ERRED IN LAW AS WELL AS ON FACTS BY DELETING THE DISALLOWANCE OF THE SUM OF RS.7 49 577/- BEING THE CESS ON GREEN LEAF. 6.1. SINCE THIS TRIBUNAL IN ITS ORDER DATED 21.08.2 009 HAS DISMISSED THE REVENUES APPEAL BY OBSERVING THAT NO INTERFERENCE ON THESE I SSUES ARE REQUIRED. RESPECTFULLY FOLLOWING THE SAME WE DISMISS THE REVENUES APPEAL. 3 7. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMI SSED. ORDER PRONOUNCED IN THE OPEN COURT ON 01.02.2011. SD/- SD/- . .. . . .. . B.R.MITTAL JUDICIAL MEMBER . .. .!' !'!' !'. .. . #$ #$ #$ #$ C.D.RAO ACCOUNTANT MEMBER. ( (( ('$ '$ '$ '$) )) ) DATE: 01.02.2011. #2 0 .3 4#3(5- COPY OF THE ORDER FORWARDED TO: 1. M/S. GANESHBARI TEA CO.(P) LTD. 13 PAUL MANSIONS 6-BISHOP LEFFROY ROAD KOLKATA-700053. 2 THE DCIT CIRCLE-4 KOLKATA 3. THE CIT 4. THE CIT(A)-IV KOLKATA 5. DR KOLKATA BENCHES KOLKATA /3 ./ TRUE COPY #2&:/ BY ORDER DEPUTY /ASST. REGISTRAR ITAT KOLKATA BENCHES R.G.(.P.S.)