The DCITMehsana Circle,, Mehsana v. Navnidhi Specific Family Trust, Mehsana

ITA 3453/AHD/2010 | 2007-2008
Pronouncement Date: 30-09-2011 | Result: Dismissed

Appeal Details

RSA Number 345320514 RSA 2010
Assessee PAN AAATD2843C
Bench Ahmedabad
Appeal Number ITA 3453/AHD/2010
Duration Of Justice 9 month(s) 2 day(s)
Appellant The DCITMehsana Circle,, Mehsana
Respondent Navnidhi Specific Family Trust, Mehsana
Appeal Type Income Tax Appeal
Pronouncement Date 30-09-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 30-09-2011
Date Of Final Hearing 30-09-2011
Next Hearing Date 30-09-2011
Assessment Year 2007-2008
Appeal Filed On 28-12-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH AHMEDABAD (BEFORE SHRI G. D. AGARWAL VP AND SHRI BHAVNESH SA INI JM) ITA NO.3451/AHD/2010 A. Y.: 2007-08 THE D. C. I. T. MEHSANA CIRCLE 2 ND FLOOR APOLLO ENCLAVE HIGHWAY MEHSANA VS DEVIKRUPA SPECIFIC FAMILY TRUST PROP. BHOOMI PRINT PACK PLOT NO. 92 & 95 PHASE II GIDC ESTATE DEDIYASAN MEHSANA PA NO. AAATD 2843 C (APPELLANT) (RESPONDENT) ITA NO.3453/AHD/2010 A.Y.: 2007-08 THE D. C. I. T. MEHSANA CIRCLE 2 ND FLOOR APOLLO ENCLAVE HIGHWAY MEHSANA VS NAVNIDHI SPECIFIC FAMILY TRUST PROP. BHOOMI PACKING & BHOOMI ENTERPRISE PLOT NO. 280/281/282 GIDC-I MODHERA ROAD MEHSANA PA NO. AAATN 0750 E (APPELLANT) (RESPONDENT) APPELLANT BY SHRI VINOD TANWANI SR. DR RESPONDENT BY SHRI HIMANSHU SHAH AR DATE OF HEARING: 30-09-2011 DATE OF PRONOUNCEMENT: 30-09-2011 O R D E R PER BHAVNESH SAINI: THE APPEAL IN ITA NO.3451/AHD/2010 BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A) GANDHINAGAR AHMEDABAD DATED 21-10-2010 FOR ASSESS MENT YEAR 2007-08 CHALLENGING THE ORDER OF THE LEARNED CIT(A) IN DIRECTING TO TREAT THE STATUS OF THE ASSESSEE AS INDIVIDUAL AS A GAINST AOP ITA NO. 3451/AHD/2010 THE DCIT MEHSANA CIRCLE VS DEVIKRUPA SPECIFIC FAMI LY TRUST ITA NO.3453/AHD/2010 THE DCIT MEHSANA VS NAVNIDHI SPECIFIC FAMILY TRUST 2 CONSIDERED BY THE AO. THE APPEAL IN ITA NO.3453/AHD /2010 IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A) G ANDHINAGAR AHMEDABAD DATED 21-10-2010 FOR ASSESSMENT YEAR 200 7-08 CHALLENGING THE ORDER OF THE LEARNED CIT(A) IN DIRE CTING TO TREAT THE STATUS OF THE ASSESSEE AS INDIVIDUAL AS AGAINST AOP CONSIDERED BY THE AO. FURTHER DELETION OF ADDITION OF RS.3 79 91 4/- IS CHALLENGED ON ACCOUNT OF DISALLOWANCE OF BAD DEBTS. 2. THE LEARNED CIT(A) NOTED IN THE IMPUGNED ORDERS THAT THE AO WHILE PASSING THE ORDERS TAKEN THE STATUS OF THE AS SESSEES AS AOP. THE ASSESSEE TRUSTS ARE SPECIFIC FAMILY TRUSTS. COR RECT STATUS OF THE ASSESSEES IS THAT OF INDIVIDUAL. THE ASSESSEES RELI ED UPON THE DECISION OF THE HONBLE JURISDICTIONAL GUJARAT HIGH COURT IN THE CASES OF DEEPAK FAMILY TRUST 211 ITR 575 AND HARISIDDH SPECIFIC FAMILY TRUST 258 ITR 785. THE LEARNED CIT(A) ACCEPTED THE CONTENTION OF THE ASSESSEE IN BOTH THE APPEALS BECAUSE IN EARLIER YEAR THE ISSUE IS DECIDED IN FAVOUR OF THE ASSESSEE AND FURTHER IN TH E RETURN OF INCOME THE ASSESSEE ITSELF HAS CLAIMED THE STATUS OF INDIV IDUAL IN THE RETURN OF INCOME. IT WAS THEREFORE FOUND THAT THE ISSUE IS COVERED BY THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT I N THE CASE OF DEEPAK FAMILY TRUST (SUPRA). THE APPEALS OF THE ASS ESSEES WERE ACCORDINGLY ALLOWED. ON THE GROUND OF ADDITION ON A CCOUNT OF BAD DEBTS THE LEARNED CIT(A) FOLLOWING THE ORDER OF TH E HONBLE SUPREME COURT IN THE CASE OF T. R. F. LTD. VS CIT RANCHI 323 ITR 397 DELETED THE ADDITION. ITA NO. 3451/AHD/2010 THE DCIT MEHSANA CIRCLE VS DEVIKRUPA SPECIFIC FAMI LY TRUST ITA NO.3453/AHD/2010 THE DCIT MEHSANA VS NAVNIDHI SPECIFIC FAMILY TRUST 3 3. THE LEARNED DR SUBMITTED THAT THE ISSUES ARE COVERE D IN FAVOUR OF THE ASSESSEE BY THE ABOVE JUDGMENTS OF THE HONB LE HIGH COURTS. THE LEARNED COUNSEL FOR THE ASSESSEE APART FROM SUB MITTING THAT THE ISSUES OF STATUS ARE COVERED BY THE DECISION OF THE HONBLE JURISDICTIONAL GUJARAT HIGH COURT IN FAVOUR OF THE ASSESSEE AND THE ISSUE OF BAD DEBTS IS COVERED IN FAVOUR OF THE ASSE SSEE BY THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE O F T. R. F. LTD. (SUPRA) ALSO SUBMITTED THAT TAX EFFECT IN BOTH THE DEPARTMENTAL APPEALS ARE LESS THAN RS.2 LACS THEREFORE BOTH TH E APPEALS OF THE REVENUE WOULD NOT BE MAINTAINABLE. THIS FACT IS ALS O NOT DISPUTED BY THE LEARNED DR. 4. ON CONSIDERATION OF THE ABOVE FACTS WE ARE OF TH E VIEW THE ISSUES ARE COVERED WITH REGARD TO STATUS OF THE ASS ESSEE BY THE JUDGMENT OF THE HONBLE JURISDICTIONAL GUJARAT HIGH COURT MENTIONED BY THE LEARNED CIT(A) IN THE APPELLATE ORDER AND DI SALLOWANCE OF BAD IS ADMITTEDLY COVERED BY THE JUDGMENT OF THE HONBL E SUPREME COURT IN THE CASE OF T. R. F. LTD. (SUPRA). FURTHER THE TAX EFFECT IN BOTH THE DEPARTMENTAL APPEALS IS LESS THAN RS.2 LACS. THEREF ORE BOTH THE APPEALS ARE FILED IN CONTRAVENTION OF CBDT CIRCULAR . NO QUESTION OF LAW ARISES IN BOTH THE DEPARTMENTAL APPEALS. THEREF ORE BOTH THE APPEALS OF THE REVENUE ARE NOT MAINTAINABLE. IN VIE W OF THE ABOVE DISCUSSIONS BOTH THE DEPARTMENTAL APPEALS ARE DISM ISSED. COPY OF THE ORDER BE PLACED IN BOTH THE FILES. ITA NO. 3451/AHD/2010 THE DCIT MEHSANA CIRCLE VS DEVIKRUPA SPECIFIC FAMI LY TRUST ITA NO.3453/AHD/2010 THE DCIT MEHSANA VS NAVNIDHI SPECIFIC FAMILY TRUST 4 5. IN THE RESULT THE DEPARTMENTAL APPEALS ARE DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (G. D. AGARWAL) VICE PRESIDENT (BHAVNESH SAINI) JUDICIAL MEMBER LAKSHMIKANT/- 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 DY. REGISTRAR ITAT AHMEDABAD