ACIT, New Delhi v. SSIPL Retail (P) Ltd, New Delhi

ITA 4171/DEL/2009 | 2000-2001
Pronouncement Date: 18-03-2010 | Result: Dismissed

Appeal Details

RSA Number 417120114 RSA 2009
Assessee PAN AAACS3919D
Bench Delhi
Appeal Number ITA 4171/DEL/2009
Duration Of Justice 4 month(s) 26 day(s)
Appellant ACIT, New Delhi
Respondent SSIPL Retail (P) Ltd, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 18-03-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted G
Tribunal Order Date 18-03-2010
Date Of Final Hearing 18-03-2010
Next Hearing Date 18-03-2010
Assessment Year 2000-2001
Appeal Filed On 23-10-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G : NEW DELHI BEFORE SHRI C.L.SETHI JM AND SHRI R.C.SHARMA AM ITA NO.4171/DEL/2009 ASSESSMENT YEAR : 2000-01 ASSTT.COMMISSIONER OF INCOME TAX CIRCLE-9(1) NEW DELHI. VS. M/S SIERRA INDUSTRIAL ENTERPRISES (P) LTD. (NOW KNOWN AS SSIPL RETAIL (P) LTD.) B-1/F-4 MOHAN COOPERATIVE INDUSTRIAL ESTATE MAIN MATHURA ROAD NEW DELHI. PAN NO.AAACS3919D. (APPELLANT) (RESPONDENT) APPELLANT BY : MRS.SHUMANA SEN SR.DR. RESPONDENT BY : SHRI SUMANT CHADHA CA. ORDER PER R.C.SHARMA AM : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) DATED 21.5.2009 FOR THE AY 2001-02. 2. THE ONLY GRIEVANCE OF THE REVENUE RELATES TO CIT (A)S ACTION IN REDUCING THE DISALLOWANCE ON ACCOUNT OF CUSTOMER CLAIM AND D EFECTIVES FROM 50% TO 5%. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PER USED. FACTS IN BRIEF ARE THAT ASSESSEE IS ENGAGED IN THE TRADING OF SPORTS F OOTWEAR APPARELS AND ACCESSORIES. A CLAIM WAS MADE ON ACCOUNT OF DEFECTIVE/DAMAGED GO ODS UNDER THE HEAD CUSTOMER CLAIM AND DEFECTIVES. CONTENTION OF THE ASSESSEE BEFORE THE AO WAS THAT DEFECTIVE GOODS WERE SHREDDED OUTSIDE DELHI. NOT BEING SATISFIED WITH THE ASSESSEES CONTENTION AO DISALLOWED THE ASSESSEES CLAIM. BY THE IMPUGNED ORDER CIT(A) ALLOWED ASSESSEES CLAIM BY RECORDING A FINDING THAT ASSESSEE HAS FURNISHED COMPLETE DETAILS OF DEFECTIVE GOODS RETUR NED AS A PERCENTAGE OF ITS SALE ITA-4171/DEL/2009 2 INVOICES CONTAINING EACH OUTLETS CLAIM COMPLETE PH OTO COPY AND DOCUMENTS OF CUSTOMERS CLAIMS AND THEIR TREATMENT IN THE BOOKS O F ACCOUNTS COPY OF DISTRIBUTION/FRANCHISEE AGREEMENT AND NAMES AND AD DRESSES OF CUSTOMER CLAIM SETTLEMENTS SLIP AND CREDIT NOTES. THE CIT(A) HAD VERIFIED THE SAME AND OBSERVED THAT THE ASSESSEE IS SELLING PRODUCT BY THE BRAND N AME OF NIKE. THEY ARE EXTREMELY QUALITY CONSCIOUS AND RESPONSE TO CUSTOME RS SERVICE/COMPLAINT IS ENSURED. THE NATURE OF PRODUCT BEING FOOTWEAR AND APPAREL MINOR DEFECTS/SOME DEFECTS MAY EMERGE ON USE OF THE PRODUCTS. CONSIDE RING THAT THE ASSESSEE HAS A SALE OF APPROXIMATELY 33 CRORE UNDER REFERENCE THE GOODS DEBITED UNDER THIS HEAD OF CUSTOMER CLAIM AND DEFECTIVES APPEAR TO BE MIN IMALSTIC HOWEVER SINCE ITEM WISE TELLING OF RETURNED PRODUCT IS NOT POSSIBLE T HE DISALLOWANCE MADE BY THE AO AT 50 PER CENT IS REDUCED AND RESTRICTED TO 5 PER C ENT. 4. THE FINDING RECORDED BY THE CIT(A) HAS NOT BEEN CONTROVERTED BY THE LEARNED DR. WE ALSO FOUND THAT NO MATERIAL WAS BRO UGHT ON RECORD BY THE AO TO SUGGEST THAT ANY SALE PRICE WAS BEING FETCHED BY SU CH DEFECTIVE GOODS RETURNED BY THE CUSTOMERS. SINCE THE ASSESSEE WAS SELLING THE PRODUCT BY THE BRAND NAME NIKE THEY ARE EXTREMELY QUALITY CONSCIOUS AND EVER Y COMPLAINT OF THE CUSTOMER IS BEING MET WITH. KEEPING IN VIEW THE NATURE OF T HE PRODUCT BEING FOOTWEAR AND APPARELS SOME DEFECTS ARE INEVITABLE AND THE ASSES SEES CLAIM FOR SUCH DEFECTIVE GOODS IS VERY NEGLIGIBLE LOOKING TO ITS TOTAL TURNO VER. WE THEREFORE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A) FOR RESTRICTIN G THE DISALLOWANCE TO THE EXTENT OF 5% IN PLACE OF 50% MADE BY THE AO. 5. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 18 TH MARCH 2010. SD/- SD/- (C.L.SETHI) (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 18.03.2010. VK. ITA-4171/DEL/2009 3 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT DEPUTY REGISTRAR