Orissa Stevedors Limited, Cuttack v. DCIT, Circle-2(1), Cuttack

ITA 222/CTK/2016 | 2001-2002
Pronouncement Date: 11-03-2021 | Result: Allowed

Appeal Details

RSA Number 22222114 RSA 2016
Assessee PAN AAACO2100L
Bench Cuttack
Appeal Number ITA 222/CTK/2016
Duration Of Justice 4 year(s) 9 month(s) 5 day(s)
Appellant Orissa Stevedors Limited, Cuttack
Respondent DCIT, Circle-2(1), Cuttack
Appeal Type Income Tax Appeal
Pronouncement Date 11-03-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 11-03-2021
Last Hearing Date 23-07-2019
First Hearing Date 18-03-2020
Assessment Year 2001-2002
Appeal Filed On 06-06-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI C.M. GARG JM & SHRI L.P. SAHU AM . / ITA NO. 222 /CTK/20 1 6 ( / A SSESSMENT Y EAR : 20 01 - 20 02 ) M/S ORISSA STEVEDORES LIMITED O SL TOWER LINK ROAD CUTTACK - 753012 VS. DCIT CIRCLE - 2(1) CUTTACK PAN NO. : A AACO 2100 L ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI P.R.MOHANTY AR /REVENUE BY : SHRI S.C.MOHANTY DR / DATE OF HEARING : 10 / 0 3 /20 2 1 / DATE OF PRONOUNCEMENT : 11 / 0 3 /20 2 1 / O R D E R PER BENCH : TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 28.03.2016 PASSED BY THE CIT (A) CUTTACK FOR THE ASSES SMENT YEAR 20 01 - 20 02 ON THE FOLLOWING GROUNDS OF APPEAL : - 1. FOR THAT THE ORDER PASSED BY THE FORUM BELOW IS DEVOID OF MERIT BEING AGAINST WEIGHT OF EVIDENCE AND AS SUCH LIABLE TO BE QUASHED. 2. FOR THAT ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE C ASE THE LD. FORUM BELOW IS NOT JUSTIFIED IN DISALLOWING DATUM LOSS TO THE TUNE OF RS. 40 00 000/ - WITHOUT CONSIDERATION THE NATURE OF BUSINESS FACT AND CIRCUMSTANCES OF THE CASE AS WELL AS THE SUBMISSION MADE BY THE APPELLANT. THEREFORE DISALLOWANCE ON THIS SCORE DESERVES TO BE DELETED. 3. FOR THAT THE APPELLANT CRAVES LEAVE TO SUBMIT FURTHER POINTS IF ANY AT THE TIME OF HEARING. 2. FROM THE ABOVE GROUNDS OF APPEAL IT IS CLEAR THAT THE ASSESSEE HAS CHALLENGED ONLY ONE ISSUE RELATING TO DATUM LOSS TO THE TUNE OF ITA NO. 222 /CTK/201 6 2 RS.40 00 000/ - DISALLOWED BY THE AO WHICH WAS DEBITED INTO THE PROFIT AND LOSS ACCOUNT UNDER THE HEAD PROVISION FOR DATUM LOSS. 3. CASE FILE PERUSED AND CONSIDERED THE ARGUMENTS ADVANCED BY BOTH THE SIDES. IT IS CLEAR FROM THE MEMORANDUM OF PA YMENTS ISSUED BY THE EXECUTIVE ENGINEER (C) GOPALPUR PORT PROJECT DATED 19.10.2001 THAT THERE IS A GROSS AMOUNT OF BILLS IS RS.1 11 89 452/ - AND OTHER RECOVERY IS RS.42 75 632/ - AND SOME OTHER DEDUCTION I.E. SD IT & ST HAS ALSO BEEN MENTIONED AND THEREAFT ER N ET CHEQUE AMOUNT IS SHOWING. DURING THE COURSE OF ARGUMENT LD. AR OF THE ASSESSEE SUBMITTED THAT OTHER RECOVER Y WAS PROVISIONALLY DEBITED INTO THE PROFIT AND LOSS ACCOUNT DUE TO NON - AVAILABILITY OF MEMORANDUM OF PAYMENTS AT THE TIME OF FINALIZATION OF THE ACCOUNTS ON LUMPSUM BASIS OF RS.40 LAKHS WHICH IS OTHER RECOVERY AS SHOWN IN THE MEMORANDUM OF PAYMENTS WHICH ARE PLACED IN THE PAPER BOOK. ON PERUSAL OF THE TRADING PROFIT AND LOSS ACCOUNT UNDER THE HEAD OPERATIONAL EXPENSES WHICH IS APPEARING UNDER THE HEAD PROVISION FOR DATUM LOSS OF RS.40 LAKHS AND FURTHER ON PERUSAL OF THE EXPENSES CLAIMED INTO THE PROFIT AND LOSS ACCOUNT THERE IS NO ANY DEBIT ENTRY FOUND OF RS.42 75 632/ - AS OTHER RECOVERY. 4. CONSIDERING TO THE SUBMISSIONS OF BOTH THE SIDES I T IS CLEAR THAT THE PROVISIONAL DATUM LOSS CLAIMED BY THE ASSESSEE IS LESS THAN OTHER RECOVERY SHOWN IN THE MEMORANDUM OF PAYMENTS WHICH IS IN THE NATURE OF EXPENDITURE FROM THE GROSS AMOUNTS RECEIVED BY THE ITA NO. 222 /CTK/201 6 3 ASSESSEE WHICH IS ALLOWABLE U/S.37(1) OF THE A CT. THE CONTENTION OF THE LD. DR IS NOT ACCEPTABLE THAT IT IS A PENALTY FOR BREACH OF CONTRACT WHICH CANNOT BE ALLOWABLE U/S.37(1) OF THE I.T.ACT. IN THE MEMORANDUM OF PAYMENTS THERE IS NO ANY SINGLE WORD USED AS PENALTY. THEREFORE WE ARE OF THE OPINION T HAT THE DATUM LOSS CLAIMED BY THE ASSESSEE OF RS.40 LAKHS IS AN ALLOWABLE EXPENDITURE AND ACCORDINGLY HELD THAT THE ASSESSEE IS ELIGIBLE TO CLAIM THE EXPENDITURE UNDER THE HEAD DATUM LOSS. THUS THE SOLE GROUND RAISED BY THE ASSESSEE IS ALLOWED. 4 . IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 11 / 0 3 / 20 2 1 . S D/ - ( C.M.GARG ) SD/ - (L.P.SAHU) / JUDICIAL MEMBER / ACCOUNTANT MEMBER CUTTACK ; DATED 11 / 0 3 /20 2 1 PRAKASH KUMAR MISHRA SR.P.S. / COPY OF THE ORDER FORWARDED TO : / BY ORDER ( SENIOR PRIVATE SECRETARY ) /ITAT CUTTACK 1. / THE APPELLANT - M/S ORISSA STEVE DORES LIMITED OSL TOWER LINK ROAD CUTTACK - 753012 2. / THE RESPONDENT - DCIT CIRCLE - 2(1) CUTTACK 3. ( ) / THE CIT(A) 4. / CIT 5. / DR ITAT CUTTACK 6. / GUARD FILE. //TRUE COPY//