Swati Auto Link Pvt.Ltd.,, Ahmedabad v. The Income Tax Officer, Ward-8(2),, Ahmedabad

ITA 559/AHD/2014 | 2003-2004
Pronouncement Date: 27-09-2016 | Result: Allowed

Appeal Details

RSA Number 55920514 RSA 2014
Assessee PAN AACCS1328L
Bench Ahmedabad
Appeal Number ITA 559/AHD/2014
Duration Of Justice 2 year(s) 7 month(s) 3 day(s)
Appellant Swati Auto Link Pvt.Ltd.,, Ahmedabad
Respondent The Income Tax Officer, Ward-8(2),, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 27-09-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 27-09-2016
Date Of Final Hearing 19-09-2016
Next Hearing Date 19-09-2016
Assessment Year 2003-2004
Appeal Filed On 24-02-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD BEFORE SHRI S. S. GODARA JUDICIAL MEMBER AND SHRI MANISH BORAD ACCOUNTANT MEMBER. ITA. NO.559/AHD/2014 (ASSESSMENT YEAR:2003-04) SWATI AUTO LINK PVT. LTD. NEAR GANDHI ASHRAM VADAJ AHMEDABAD - 380005 APPELLANT VS. INCOME TAX OFFICER WARD 8(2) AHMEDABAD RESPONDENT & ITA NOS. 638 & 639/AHD/2014 (ASSESSMENT YEAR:2003-04) INCOME TAX OFFICER WARD 8(2) AHMEDABAD APPELLANT VS. SWATI AUTO LINK PVT. LTD. NEAR GANDHI ASHRAM VADAJ AHMEDABAD - 380005 RESPONDENT PAN NO. AACCS1328L ITA NOS.559 638 & 639/AHD/2014 (SWATI AUTO LINK PV T. LTD. VS. ITO) A.Y. 2003-04 - 2 - / BY ASSESSEE : URVASHI SHODHAN A.R. / BY REVENUE : SHRI PRASUM KABRA SR.D.R. /DATE OF HEARING : 19.09.2016 /DATE OF PRONOUNCEMENT : 27.09.2016 ORDER PER S. S. GODARA JUDICIAL MEMBER THIS BATCH OF THREE APPEALS PERTAINS TO A.YS.2003-0 4. THE ASSESSEE & REVENUE HAVE FILED CROSS APPEALS ITA NOS .559 & 638/AHD/2014 AGAINST THE COMMON ORDER OF CIT(A)-XIV AHMEDABAD DATED 05.12.2013 IN CASE NO. CIT(A) XIV/ WARD- 8(2)/44/2012-13 IN PROCEEDINGS U/S.143(3) R.W.S. 25 0 OF THE INCOME TAX ACT 1961 IN SHORT THE ACT . THIS I S FOLLOWED BY LATTERS YET ANOTHER APPEAL ITA NO.639/AHD/2014 ARI SING AGAINST THE VERY CIT(A)S ORDER OF EVEN DATE IN CASE NO. CI T(A)- XIV/ITO/WARD-8(2)/14/12-13 IN PROCEEDINGS U/S.271(1 )(C) OF THE ACT. 2. WE COME TO RIVAL PLEADINGS FIRST. THE ASSESSEE RAISES SOLE SUBSTANTIVE GROUND IN CHALLENGING THE CIT(A)S ORDE R CONFIRMING ASSESSING OFFICERS ACTION IN DISALLOWING DISCOUNT EXPENSES/SHORT PAYMENTS FROM CUSTOMERS OF RS.19 88 211/- OUT OF RS.39 76 422/- IN SET ASIDE PROCEEDINGS. THE REVEN UE IN TURN SEEKS TO REVIVE THE ENTIRE DISALLOWANCE AMOUNT AS R ESTRICTED IN THE LOWER APPELLATE PROCEEDINGS. ITS LATTER APPEAL SEEKS TO RESTORE THE ENTIRE SUM OF RS.14 62 000/- OF SECTION 271(1)( C) PENALTY AS ITA NOS.559 638 & 639/AHD/2014 (SWATI AUTO LINK PV T. LTD. VS. ITO) A.Y. 2003-04 - 3 - DELETED TO THE TUNE OF RS.7 31 000/- IN COURSE OF T HE LOWER APPELLATE PROCEEDINGS. 3. LD. COUNSEL FOR THE ASSESSEE SUBMITS THAT AT THE OUTSET THAT BOTH REVENUES APPEALS INVOLVE TAX EFFECT OF LESS T HAT RS.10LACS IN VIEW OF ITS PLEADINGS THEREIN. SHE QUOTES CBDT CIR CULAR NO. 21 OF 2015 DATED 10.12.2015. 4. LD. DEPARTMENTAL REPRESENTATIVE FAILS TO REBUT T HIS FACTUAL POSITION. WE ACCORDINGLY QUOTE CIRCULAR TO DISMISS THESE TWO REVNEUES APPEALS ITA NOS. 638 & 639/AHD/2014 TO BE INVOLVING LOW TAX EFFECT. 5. WE NOW MOVE ON TO ASSESSEES APPEAL SEEKING TO D ELETE THE DISALLOWANCE OF DISCOUNT EXPENSES OF RS.19 88 211/- . THIS APPEARS TO BE SECOND ROUND OF LITIGATION BETWEEN TH E PARTIES ON THE VERY ISSUE. THE ASSESSEE IS A CAR DEALER. IT FILED RETURN ON 25.11.2003 STATING INCOME OF RS.4 75 278/-. THE AS SESSING OFFICER FRAMED A REGULAR ASSESSMENT ON 09.03.2006 I NTER ALIA DISALLOWING ITS DISCOUNT CLAIM OF RS.19 88 211/-. THE CIT(A) CONFIRMED ASSESSING OFFICERS ACTION. THE ASSESSEE FILED APPEAL ITA NO. 1213/AHD/2007. THE MATTER CAME TO THIS TRI BUNAL. A LD. COORDINATE BENCH RESTORED THE ISSUE BACK TO THE ASSESSING OFFICER FOR DECISION AFRESH AS PER LAW ON ASSESSEE S DISCOUNT CLAIM IN QUESTION. ITS COUNSEL APPEARS TO HAVE ARGUED TH AT THE ASSESSEE WAS READY AND WILLING TO PRODUCE 20 OF ITS DISCOUNT CUSTOMERS ON RANDOM BASIS. THIS MADE THE LD. COORD INATE BENCH TO AGREE WITH THE PRAYER AND DIRECT THE ASSESSING O FFICER TO VERIFY THE 20 PARTIES OF ITS CHOICE WITH A FURTHER SPECULA TION THAT IN CASE ITA NOS.559 638 & 639/AHD/2014 (SWATI AUTO LINK PV T. LTD. VS. ITO) A.Y. 2003-04 - 4 - MAJORITY OF THEM DENY THE IMPUGNED CLAIM THE ENTIR E FIGURE WOULD BE DISALLOWED AND VICE VERSA. 6. THE ASSESSING OFFICER TOOK UP CONSEQUENTIAL PROC EEDINGS. HE ISSUED NOTICES TO MANY PARTIES U/S.133 (6) OF TH E ACT. SHRI ASHISHBHAI PRAFULBHAI DINESH LAXMILAL HITENDRA A LUNKAD AND SANJAY R PRAJAPATI REPLIED AS NOT TO HAVE RECEIVED ANY DISCOUNT. THIS MADE THE ASSESSING OFFICER TO REITERATE THE IM PUGNED DISALLOWANCE OF RS.39 76 422/- IN HIS ORDER DATED 3 0.09.2011. 7. THE ASSESSEE PREFERRED APPEAL. THE CIT(A) HOLDS THAT THE ASSESSING OFFICER COULD NOT HAVE EXCEEDED THAT IMPU GNED DISALLOWANCE AMOUNT MADE IN FIRST ROUND TO THE TUNE OF RS.19 88 211/- TO RS.39 76 422/-. HE ACCORDINGLY R ESTRICTS THE SAME TO THE FORMER FIGURE. THIS LEAVES THE ASSESS EE AGGRIEVED. 8. LD. COUNSEL FOR THE ASSESSEE STRONGLY REITERATES ITS IMPUGNED DISCOUNT CLAIMED IN THE COURSE OF HEARING BEFORE US . WE PUT SPECIFIC QUERY IN LIGHT OF EARLIER TRIBUNALS ORDER AS TO HOW MANY ARE ACTUAL RECIPIENTS OF THE DISCOUNT BENEFIT IN QU ESTION. SHE QUOTES FIGURES RUNNING IN THOUSANDS OF CUSTOMERS. WE DREW HER ATTENTION TO THIS TRIBUNALS SPECIFIC DIRECTION TO PRODUCE 20 DISCOUNT CUSTOMERS OF ASSESSEES CHOICE WHICH IT HA S FAILED TO COMPLY. LD. COUNSEL REPLIES THAT THE IMPUGNED ASSES SMENT YEAR IS 2003-04 AND MUCH WATER HAS FLOWN DOWN THE STREAM AT THIS BELATED STAGE. THIS PLEA FAILS TO IMPRESS UPON US. WE OBSERVED THAT ONCE THE LD. CO-ORDINATE BENCH IN EARLIER ROUN D OF LITIGATION HAS SPECIFICALLY QUOTED ASSESSEES UNDERTAKING TO P RODUCE 20 DISCOUNT CUSTOMERS OF ITS CHOICE THE SAME HAS TO B E ITA NOS.559 638 & 639/AHD/2014 (SWATI AUTO LINK PV T. LTD. VS. ITO) A.Y. 2003-04 - 5 - UNFLINCHINGLY ADHERED TO LIVING BEHIND NO SCOPE OF ANY DILUTION THEREOF IN THIS CONSEQUENTIAL ROUND. WE ACCORDINGL Y FIND NO REASON TO INTERFERE IN THE IMPUGNED DISALLOWANCE MA DE BY THE AUTHORITIES BELOW. THE ASSESSEE LOOSES IN ITS SOLE SUBSTANTIVE GROUND AS WELL AS APPEAL ITA 559/AHD/2014. 9. ALL THESE THREE APPEALS ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS THE 27 TH DAY OF SEPTEMBER 2016. SD/- SD/- (MANISH BORAD) (S. S. GOD ARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 27/09/2016 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )* + --. . /0 / DR ITAT AHMEDABAD 1 + 23 4 5 / GUARD FILE. BY ORDER / . // . /0