ITO, Wd. 3(1),, Nanded v. Shetkari SSK Ltd., Latur

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A PUNE BEFORE SHRI I.C. SUDHIR AND SHRI D. KARUNAKARA RAO ITA NO. 274/PN/07 (ASSTT. YEAR 1998-99) ITO WARD 3(1) NANDED .... APPELLANT VS. SHETKARI S.S.K. LTD. A/P. KILLARI TQ. AUSA DIST. LATUR PAN NO. AABTS7314J . RESPONDENT APPELLANT BY : SHRI HARESHWAR SHARMA RESPONDENT BY : SHRI N.M. MANE ORDER PER D. KARUNAKARA RAO AM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A)-II AURANGABAD DATED 30-11-2006 FOR THE A.Y 1998-99. 2. DURING THE PROCEEDINGS IT IS INFORMED THAT THE ASS ESSEE IS IN LIQUIDATION AND A LIQUIDATION HAS BEEN APPOINTED. MR. N.M. MANE DULY AUTHORIZED BY THE LIQUIDATOR APPEARED FOR THE LIQUIDATOR AND INFORMED THA T THERE ARE NO EMPLOYEES TO ASSIST THE ASSESSEE OR LIQUIDATOR TO ASSIST THE RE PRESENTATION BEFORE THE TRIBUNAL AND THEREFORE HE REQUESTED FOR DECIDING THE AP PEAL BASED ON THE AVAILABLE MATERIAL ON RECORDS WITH THE TRIBUNAL. 3. PER CONTRA LD. DR FOR THE REVENUE ARGUED STATING THAT WITH FEW EXCEPTIONS MOST OF THE ADDITIONS WERE MADE IN THIS CASE FOR WANT OF SUPPORTING VOUCHERS AND DETAILS. LD. DR MENTIONED THAT GROUNDS AT 2 TO 5 AND 7 ARE INCIDENTAL TO THE DISALLOWANCE BY THE AO FOR ASSESSE ES FAILURE TO FILE THE SUPPORTING VOUCHERS AND OTHER DETAILS FOR EVIDENCING TH E GENUINENESS AND THE BUSINESS NATURE OF THE EXPENDITURE INVOLVED. REFERRING TO THE OTHERS IE 1 6 8 & ITA NO.274/PN/07 A.Y 1998-99 PAGE 2 OF 3 9 LD DR STATED THAT THEY ARE EITHER COVERED IN FAVOUR O F THE ASSESSEE BY THE BINDING JUDGMENTS OR HAVE TO BE SET ASIDE FOR FRESH DE CISION. 4. WE HAVE PERUSED THE ORDERS OF THE REVENUE AND THE AV AILABLE DECISIONS OF THE JUDICIAL FORA FIND THAT THE DRS SUMMATION HAS STRENGTH AND THE BAIS. ON PERUSAL OF THE RECORDS IN CONNECTION WITH THE GROUNDS A T 2 TO 5 AND 7 RELATING TO THE ADHOC ADDITIONS WE FIND THE CIT(A) DECIDED THE ISSUES GIVING PART RELIEF TO THE ASSESSEE. AGGRIEVED WITH THE SAME RELIEF REVENU E FILED THE PRESENT APPEAL WITH THESE IMPUGNED GROUNDS. ON PERUSAL OF THE DISCUS SION IN THE IMPUGNED ORDER WE FIND THAT THE CIT(A) HAS TAKEN A JUDICIOUS VIEW IN RESTRICTING THE ADHOC ADDITIONS MADE BY THE A.O. CONSIDERING THE FACTS A ND CIRCUMSTANCES OF THE CASE WE ARE OF THE OPINION THAT ORDER OF THE CIT(A) DOES NOT CALL FOR ANY INTERFERENCE IN THIS REGARD. ACCORDINGLY GROUNDS 2 3 4 5 AND 7 OF THE REVENUE ARE DISMISSED. 5. REGARDING REST OF THE GROUND NO. 1 8 & 9 RELATING TO CANE DEVELOPMENT EXPENSES (GROUND 1) HARVESTING & TRANSPORT EXPENSES (G ROUND 8) AND SALE OF SUGAR AT CONCESSIONAL RATE (GROUND 9) LD. DR FAIRLY ME NTIONED THAT THESE ISSUES HAVE TO BE DECIDED IN FAVOUR OF THE ASSESSEE BY VARIO US BINDING JUDICIAL PRONOUNCEMENTS. OTHERWISE HE RELIED ON THE ORDER OF THE A.O. WE HAVE GONE THROUGH THE RELEVANT INFORMATION ON THESE ISSUES AND O UR FINDINGS ON EACH ISSUE IS AS FOLLOWS. 6. IT IS NOTICED THAT THE ISSUE OF CANE DEVELOPMENT EXPENSES IS COVERED BY THE SUPREME COURTS JUDGMENT IN THE CASE OF SIDDHE SHWAR SSK LTD. 270 ITR 1 AND THEREFORE THE ORDER OF THE CIT(A) DOES NOT CALL FO R ANY INTERFERENCE. SIMILARLY THE ISSUE OF HARVESTING AND TRANSPORT EXPENSES HAS TO BE DECIDED IN FAVOUR OF THE ASSESSEE IN THE LIGHT OF THE CIRCULA R ISSUED BY THE CBDT WHERE IT IS MENTIONED THAT SAID EXPENDITURE ARE ALLOWABLE EXPE NDITURE. THEREFORE ASSESSEE SHALL WIN ON THIS ISSUE AND THE SAME IS AG AINST THE REVENUE. ACCORDINGLY ORDER OF THE CIT(A) DOES NOT CALL FOR INTE RFERENCE IN THIS REGARD AND HENCE THE RELEVANT GROUND OF REVENUE HAS TO BE DISMIS SED. THE NEXT ISSUE REGARDING SALE OF SUGAR AT CONCESSIONAL RATE IS FOUND TO HAVE BEEN DECIDED BY CIT(A) IN FAVOUR OF THE ASSESSEE RELYING ON THE DE CISION OF THE ITAT PUNE BENCH IN THE CASE OF CHHATRAPATI SHAHU SSK LTD. BE ARING ITA NO. 138/PN/2007 FOR A.Y 2003-04 ORDER DATED 22.06.200 AND THE SAME IS IN FAVOUR OF THE ASSESSEE. THEREFORE THE REVENUE WILL NOT SUCCEED IN RESPECT OF GROUND NO. 9 ITA NO.274/PN/07 A.Y 1998-99 PAGE 3 OF 3 TOO. CONSIDERING THE ABOVE WE ARE OF THE OPINION THE ISSUE DECIDED BY THE CIT(A) IN RESPECT OF MENTIONING IN GROUND NO. 1 8 AN D 9 DOES NOT CALL FOR ANY INTERFERENCE. ACCORDINGLY GROUND NO. 1 8 AND 9 ARE DISMISSED. 7. REGARDING ISSUE OF GROUND NO. 6 RELATING TO TAXABI LITY INTEREST ON NRDS AND ADDITIONAL RDS IT IS NOTICED THAT THE CIT(A) H AS DECIDED THE ISSUE RELYING ON SUPREME COURT JUDGEMENT IN THE CASE OF CHHATRAPATI SHA HU SSK LTD 270 ITR 1 (SC). IT IS SURPRISING TO NOTE THAT A GROUND IS RAISED ON THIS ISSUE WHEN THERE EXISTS A BINDING JUDGMENT OF THE APEX COURT ON THE T OPIC. THEREFORE WE ARE OF THE OPINION THAT THE ORDER OF THE CIT(A) DOES NOT CAL L FOR ANY INTERFERENCE ON THIS ISSUE. 8. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 09 TH FEBRUARY 2011. SD/- SD/- (I.C. SUDHIR) (D.KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBE R PUNE DATED THE 09 TH FEBRUARY 2011 R COPY OF THE ORDER IS FORWARDED TO : 1. ITO WARD 3(1) NANDED 2. ASSESSEE 3. CIT(A)-II AURANGABAD 4. CIT AURANGABAD 5. DR ITAT A BENCH PUNE BY ORDER ASSISTANT REGISTRAR I.T.A.T PUNE