The ACIT(OSD)-I,Range-4,, Ahmedabad v. Globe Ecologistics Ltd.,, Ahmedabad

ITA 326/AHD/2011 | 2007-2008
Pronouncement Date: 05-07-2011 | Result: Dismissed

Appeal Details

RSA Number 32620514 RSA 2011
Assessee PAN AAACG3938J
Bench Ahmedabad
Appeal Number ITA 326/AHD/2011
Duration Of Justice 4 month(s) 28 day(s)
Appellant The ACIT(OSD)-I,Range-4,, Ahmedabad
Respondent Globe Ecologistics Ltd.,, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 05-07-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 05-07-2011
Date Of Final Hearing 02-05-2016
Next Hearing Date 02-05-2016
Assessment Year 2007-2008
Appeal Filed On 07-02-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI JM AND D. C. AGRAWAL AM) ITA NO.326/AHD/2011 A. Y.: 2007-08 THE A. C. I. T.(OSD) CIRCLE- 4 NAVJIVAN TRUST BUILDING OFF. ASHRAM ROAD AHMEDABAD VS GLOBE ECOLOGISTICS LTD. 61 NEW YORK TOWER-A THALTEJ CIRCLE S. G. HIGHWAY AHMEDABAD PA NO. AAACG 3938 J (APPELLANT) (RESPONDENT) APPELLANT BY SHRI H. K. LAL DR RESPONDENT BY SHRI VINIT MOONDRA AR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-VI II AHMEDABAD DATED 16 TH NOVEMBER 2010 FOR ASSESSMENT YEAR 2007-08. 2. THE REVENUE ON GROUND NO.1 CHALLENGED THE ORDER OF THE LEARNED CIT(A) IN RESTRICTING THE DISALLOWANCE OUT OF OPERATIONAL EXPENSES TO RS.3 34 200/- AS AGAINST DISALLOWANCE OF RS.13 36 830/. THE AO ASKED THE ASSESSEE TO PRODUCE THE VOUCHERS O F TRANSPORTATION BUSINESS FOR CONSIDERING THE OPERATI ONAL EXPENSES. THE AO ON VERIFICATION OF THE VOUCHERS OF TEN RANDO MLY SELECTED TRIPS FOUND THAT SUBSTANTIAL AMOUNTS CLAIMED UNDER THE HE AD OPERATIONAL EXPENSES WERE NOT SUPPORTED BY VOUCHERS AND EVIDEN CES. THE ASSESSEE PRODUCED THE DETAILS BEFORE THE AO AND FIL ED EXPLANATION WHICH WAS NOT FOUND SATISFACTORY BY THE AO. THE AO ON THE BASIS OF ITA NO.326/AHD/2011 ACIT (OSD) CIRCLE-1 AHMEDABAD VS GLOBE ECOLOGISTI CS LTD. 2 SAMPLE CONCLUDED THAT 9.53% OF THE EXPENSES WERE NO T SUPPORTED BY VOUCHERS AND ACCORDINGLY ADDITION WAS MADE. THE LEA RNED CIT(A) CONSIDERING THE EXPLANATION OF THE ASSESSEE RESTRIC TED THE DISALLOWANCE TO 25% AND RESTRICTED THE ADDITION TO RS.3 34 200/-. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THIS ISSUE WAS CONSIDERED SIMILARLY IN ASSESSMENT YEAR 2006-07 AND SUBSTANTIAL RELIEF IS GRANTED BY THE TRIBUNAL IN THE CASE OF TH E SAME ASSESSEE IN ITA NO.3277/AHD/2009 DATED 31-05-2011 AND THE DISAL LOWANCE IS RESTRICTED TO 10%. COPY OF THE ORDER IS FILED ON RE CORD. THE ASSESSEES COUNSEL ADMITTED THAT THE ASSESSEE DID N OT PREFER ANY APPEAL IN ASSESSMENT YEAR UNDER APPEAL. 4. THE DR ADMITTED THAT SINCE THE TRIBUNAL RESTRICT ED THE ADDITION TO 10% OF THE EXPENSES THEREFORE HE MERELY RELIED ON THE ORDER OF THE AO. 5. ON CONSIDERATION OF THE ABOVE FACTS WE DO NOT F IND ANY MERIT IN THE APPEAL OF THE REVENUE. IN THE PRECEDING ASSESSM ENT YEAR 2006- 07 THE TRIBUNAL ON THE SAME ISSUE RESTRICTED THE A DDITION TO 10% OF THE EXPENSES ON THE SAME ISSUE. HOWEVER IN THE ASS ESSMENT YEAR UNDER APPEAL THE LEARNED CIT(A) RESTRICTED THE ADDI TION TO 20%. FURTHER THE ASSESSEE IS NOT IN APPEAL. THEREFORE BY FOLLOWING THE ORDER OF THE TRIBUNAL WE DISMISS THE APPEAL OF THE REVENUE. 6. IN THE RESULT GROUND NO.1 OF THE APPEAL OF THE REVENUE IS DISMISSED. ITA NO.326/AHD/2011 ACIT (OSD) CIRCLE-1 AHMEDABAD VS GLOBE ECOLOGISTI CS LTD. 3 7. ON GROUND NO.2 THE REVENUE CHALLENGED THE DELET ION OF RS.61 925/- ON ACCOUNT OF DELAYED PAYMENT OF EMPLOY EES CONTRIBUTION TOWARDS PROVIDENT FUND THE LEARNED CIT (A) NOTED THAT THE DATE OF PAYMENTS IS 28-02-2007 IN THE IMPUGNED ORDE R THAT MEANS THE PAYMENTS HAVE BEEN MADE BEFORE THE DUE DATE OF FILING OF THE RETURN. SEVERAL DECISIONS IN SUPPORT OF THE CONTENT ION HAVE BEEN RELIED UPON AND ADDITION HAS BEEN DELETED. WE FIND THAT RETURN OF INCOME IS FILED ON 31-10-2007 AND THE PAYMENTS HAVE BEEN MADE PRIOR TO THE DUE DATE OF FILING OF THE RETURN. THER EFORE THE LEARNED CIT(A) RIGHTLY DELETED THE ADDITION. THE LEARNED DR SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE D ECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF P. M. ELECTRONICS 133 ITR 161. ACCORDINGLY THIS GROUND OF APPEAL OF THE REVENUE I S DISMISSED. 8. NO OTHER POINT IS ARGUED OR PRESSED. 9. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 05-07-2011 SD/- SD/- (D. C. AGRAWAL) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 05-07-2011 LAKSHMIKANT/- ITA NO.326/AHD/2011 ACIT (OSD) CIRCLE-1 AHMEDABAD VS GLOBE ECOLOGISTI CS LTD. 4 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR ITAT AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR ITAT AHMEDABAD