The ACIT, Circle-4(1), Visakhapatnam v. M/s Sandhya Marines Ltd., Visakhapatnam

ITA 427/VIZ/2010 | 2007-2008
Pronouncement Date: 08-10-2010 | Result: Dismissed

Appeal Details

RSA Number 42725314 RSA 2010
Assessee PAN AADCS1423K
Bench Visakhapatnam
Appeal Number ITA 427/VIZ/2010
Duration Of Justice 2 month(s) 3 day(s)
Appellant The ACIT, Circle-4(1), Visakhapatnam
Respondent M/s Sandhya Marines Ltd., Visakhapatnam
Appeal Type Income Tax Appeal
Pronouncement Date 08-10-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 08-10-2010
Date Of Final Hearing 07-10-2010
Next Hearing Date 07-10-2010
Assessment Year 2007-2008
Appeal Filed On 04-08-2010
Judgment Text
ITANO.427 OF 2010 SANDHYA MARINES LTD VISAKHAPATNAM PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO.427/VIZAG/2010 ASSESSMENT YEAR: 2007 - 08 ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-4(1) VISAKHAPATNAM VS. SANDHYA MARINES LTD. VISAKHAPATNAM (APPELLANT) (RESPONDENT) PAN NO.AADCS 1423 K APPELLANT BY: SHRI T.L. PETER DR RESPONDENT BY: SHRI G.V.N. HARI CA ORDER PER SHRI B. R. BASKARAN ACCOUNTANT MEMBER: THE APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 07.05.2010 PASSED BY LEARNED CIT(A) VISAKHAPATNAM AND IT RELATES TO THE ASSESSMENT YEAR 2007-08. THE REVENUE IS CHALLENGIN G THE DECISION OF THE LEARNED CIT (A) IN HOLDING THAT THE FORWARD CONTRAC T LOSS OF RS.38 49 114/- IS NOT SPECULATION LOSS BUT ONLY A TRADING LOSS. 2. IT WAS BROUGHT TO OUR NOTICE BY LEARNED AUTHORISE D REPRESENTATIVE THAT IDENTICAL ISSUES HAVE BEEN ADJUDICATED BY THIS BENCH IN FAVOUR OF THE ASSESSEE IN THE ASSESSEES OWN CASE VIDE ITS ORDER DATED 24-3-2010 IN ITA NO.380/VIZAG/2008 AND ITA NO.349/VIZAG/2009 RELATIN G TO THE ASSESSMENT YEARS 2005-06 AND 2006-07. WE HAVE GONE THROUGH THE SAID ORDER AND EXTRACT BELOW THE OPERATIVE PORTION OF THE SAID ORD ER FOR THE SAKE OF CONVENIENCE: WE HAVE HEARD THE RIVAL SUBMISSION AND CAREFULLY P ERUSED THE ORDERS OF THE AUTHORITIES BELOW AND ORDERS OF T HE TRIBUNAL REFERRED TO AND FROM ITS PERUSAL WE FIND F ORCE IN THE CONTENTIONS OF THE ASSESSEE. THIS BENCH OF THE TRIB UNAL HAS TAKEN A CONSISTENT VIEW IN THE CASE OF COASTAL CORP ORATION LTD. (ITA NO.149/VIZAG/2002) AND LAVANYA ENTERPRISE S (ITA NO.505/VIZAG/2004) THAT IF THERE IS A SETTLEMENT ON CONTRACT BETWEEN TWO PARTIES OTHERWISE THAN BY DELIVERY IT CAN BE ITANO.427 OF 2010 SANDHYA MARINES LTD VISAKHAPATNAM PAGE 2 OF 2 TERMED AS SPECULATIVE TRANSACTIONS. BUT THERE IS NO SETTLEMENT AND THE SETTLEMENT IS INTERMEDIARY I.E. WITH BANK AND WHAT IS ACTUALLY PAID TO THE BANK BY THE ASSESS EE IS CANCELLATION CHARGES FOR CANCELING THE FORMAL CONTR ACT AND HENCE IT CAN ONLY BE HELD TO THE BUSINESS LOSS. SIN CE THE FACTS OF THE IMPUGNED CASE ARE SIMILAR TO THE AFORE SAID CASES WE FIND NO REASON TO TAKE A CONTRARY VIEW. F OLLOWING THE ORDER OF THE TRIBUNAL IN THE CASE OF COASTAL CO RPORATION LTD. AND LAVANYA ENTERPRISES (SUPRA) WE DECIDE TH IS ISSUE IN FAVOUR OF THE ASSESSEE. SINCE NO INFIRMITIES IS POINTED OUT IN THE ORDER OF THE CIT (A) WE CONFIRM HIS ORDER. 3. WE NOTICE FROM THE ORDER OF LEARNED CIT(A) T HAT THE FIRST APPELLATE AUTHORITY HAS FOLLOWED THE DECISION OF THIS BENCH C ITED ABOVE TO DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE. HENCE THE LEARNE D CIT(A) HAS FOLLOWED THE DECISION OF THIS BENCH WE DO NOT FIND ANY REAS ON TO INTERFERE WITH HIS DECISION. 4. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMI SSED. PRONOUNCED IN THE OPEN COURT ON 8 TH OCTOBER 2010. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE:08-10-2010 COPY TO 1 THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-4(1) VISAKHAPATNAM 2 M/S SANDHYA MARINES LTD. 32 PANDURANGAPURAM VI SAKHAPATNAM 3 4. THE CIT 2 VISAKHAPATNAM THE CIT(A) VISAKHAPATNAM 5 THE DR ITAT VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM