The ITO., Ward-8(2),, Ahmedabad v. Sneh Tradelink Pvt.Ltd.,, Ahmedabad

MA 41/AHD/2010 | 2001-2002
Pronouncement Date: 29-07-2011 | Result: Allowed

Appeal Details

RSA Number 4120524 RSA 2010
Assessee PAN AAFCS1407H
Bench Ahmedabad
Appeal Number MA 41/AHD/2010
Duration Of Justice 1 year(s) 5 month(s) 2 day(s)
Appellant The ITO., Ward-8(2),, Ahmedabad
Respondent Sneh Tradelink Pvt.Ltd.,, Ahmedabad
Appeal Type Miscellaneous Application
Pronouncement Date 29-07-2011
Appeal Filed By Department
Order Result Allowed
Bench Allotted B
Tribunal Order Date 29-07-2011
Assessment Year 2001-2002
Appeal Filed On 26-02-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B AHMEDABAD BEFORE SHRI D.K.TYAGI JUDICIAL MEMBER AND SHRI A.N.PAHUJA ACCOUNTANT MEMBER MA NO.41/AHD/2010 (ARISING OUT ITA NO.552/AHD/2005 & 1989/AHD/2006 ASSESSMENT YEAR:2001-02 DATE OF HEARING:10.6.11 DRAFTED:26.7.11 INCOME TAX OFFICER WARD-8(2) AHMEDABAD V/S . SNEH TRADLINK PVT. LTD. 9 MADHUKANT-II OPP. LAKHAJI KUWARJI HALL BARODLPURA AHMEDABAD PAN NO.AAFCS1407H APPELLANT (ORIGINAL RESPONDENT) .. RESPONDENT (ORIGINAL APPELLANT) APPELLANT BY :- SHRI B.L. YADOV SR-DR RESPONDENT BY:- SHRI SURESH GANDHI AR O R D E R PER D.K.TYAGI JUDICIAL MEMBER:- BY WAY OF THIS MISCELLANEOUS APPLICATION (MA) REVE NUE HAS REQUESTED US TO ISSUE CLARIFICATION IN RESPECT OF T HE ORDER PASSED BY THE TRIBUNAL IN ITA NO.552/AHD/2005 & 1989/AHD/2006 DATED 09-10-2009. THE MA FILED BY THE REVENUE READS AS UNDER:- IN THIS CASE THE RETURN OF INCOME WAS FILED ON 25. 10.09 SHOWING LOSS OF RS.2 04 017/-. THE ASSESSEE'S PROFIT AND LOSS INCLUDED APART FROM THE SALES OF RS 53 25 11 2727- OTHER INCOME OF RS 11 02 0287-. ORDER U/S. 143(3) WAS FINALIZED ON 20.12.2003 AT AN ASSESSED INCOME OF RS.63 94 0347-. THE FOLLOWING ADDITIONS WERE MADE: 7) ON ACCOUNT OF LOW G.P. RS.53 25 112 MA NO.41/AHD/2010 (A/O ITA NO.552/AHD/05 & 1989/AHD/06) SSNEH TRADELINK PVT. LTD. V. ITO WD-8(2) ABD PAGE 2 8) DISALLOWANCE OF ADMN. EXPENSES RS. 31 570 9) DISALLOWANCE OF INTEREST EXP. RS. 8 15 310 TOTAL RS.61 71 992 THE TOTAL INCOME OF THE ASSESSEE COMPANY WAS COMPUT ED AS UNDER IN THE ASSESSMENT ORDER: RS GROSS PROFIT AS DISCUSSED 53 25 112 ADD: OTHER INCOME 11 02 028 LESS ALLOWABLE EXPENSES: 1. SALARY AND WAGES 1 537 2. ADMINISTRATIVE EXPENSES CLAIMED 63 139 DISALLOWED 31 570 31 570 3. INTEREST EXPENSES CLAIMED 8 15 310 DISALLOWED 8 15 310 NIL 33.106 TOTAL INCOME 63 94 03 4 THUS IT CAN BE SEEN THAT ASSESSEE HAS APART FROM TH E BUSINESS INCOME DECLARED OTHER INCOME OF RS 11 02 0287- IN ITS P&L ACCOUNT. THE A. O ASSESSED INCOME OF RS 63 94 034/- AFTER MAKING ADDITION AS STATED SUPRA. THE OTHER INCOME OF RS.11 02 028/- REPRESENTS THE INTEREST INCOME OF THE ASSESSEE AND THE SAME DOES NOT FORM PART OF ROUTINE BUSINESS ACTIVITY ACCORDINGLY WHILE ESTIM ATING THE PROFIT OF THE ASSESSEE THE OTHER INCOME DECLARED BY THE ASSESSEE WAS NOT DISTU RBED. NO SEPARATE ADDITION WAS MADE. IN THE PARA 15 OF THE ORDER PASSED BY THE HON BLE IT AT THE FOLLOWING HAS BEEN OBSERVED 'WE FIND FROM THE ABOVE AND FROM THE ARGUMENTS OF T HE LD COUNSEL FOR THE ASSESSEE AND THE ASSESSMENT ORDER THAT THE AMOUNT O F RS 11 02 028/- HAS ALREADY BEEN RECORDED IN THE PROFIT AND LOSS ACCOUNT AND HE DISPLAYED BEFORE US FROM THE AUDITED ACCOUNTS THIS FACT. AS THE AMOUNT HAS ALREA DY BEEN ACCOUNTED FOR IF ADDITION IS SUSTAINED THIS WILL TANTAMOUNT TO DOUB LE ADDITION. ACCORDINGLY WE DELETE THIS ADDITION AND THIS ISSUE OF THE ASSESSEE 'S APPEAL IS DISALLOWED'. THE GROSS PROFIT WAS ESTIMATED ON COMPARISON OF THE BUSINESS OF OTHER COMPANY AND NO SEPARATE ADDITION WAS MADE ON ACCOU NT OF OTHER INCOME IN THE ASSESSMENT ORDER. ASSESSEE IS NOT IN BUSINESS O F MONEY LENDING AND THE INTEREST INCOME EARNED IS NOT A PART OF BUSINESS AC TIVITIES OF THE ASSESSEE. IN VIEW OF THE FACTS NARRATED ABOVE IT IS REQUESTED THAT A CLARIFICATION MAY KINDLY BE MADE IN THIS REGARD THAT THE OTHER INCOME OF RS11 02 028/-DECLARED BY THE ASSESSEE-COMPANY IN ITS PROFIT AND LOSS INCO ME IS BESIDES THE GROSS PROFIT ESTIMATED BY THE ASSESSING OFFICER. 2. AT THE TIME OF HEARING LD. DR PLACED RELIANCE ON THE CONTENTS OF ABOVEMENTIONED MA. LD. AR ON THE OTHER HAND SUBMITT ED THAT THERE IS NO MA NO.41/AHD/2010 (A/O ITA NO.552/AHD/05 & 1989/AHD/06) SSNEH TRADELINK PVT. LTD. V. ITO WD-8(2) ABD PAGE 3 MISTAKE APPARENT FROM THE RECORD IN THE ORDER DATED 09-10-2009 AND THEREFORE THE MA FILED BY REVENUE IS DEVOID OF ANY MERIT AND DESERVES TO BE DISMISSED. IN CASE THE MA OF REVENUE IS ALLOWED IT WILL AMOUN T TO REVIEWING OF THE EARLIER ORDER PASSED BY TRIBUNAL. THE LAW IS SETTLED THAT T RIBUNAL HAS NO SUCH POWER AND THEREFORE HE CONCLUDED HIS ARGUMENT BY PRAYING THAT MA FILED BY REVENUE MAY KINDLY BE DISMISSED. 3. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORD WE FIND THAT AT THE TIME OF HEARING OF ORIGINAL APPEAL IT APPEARS THAT FULL FACTS WERE NOT BROUGHT TO THE NOTICE OF THE BENCH IN RESPECT OF ADDITION OF R S.11 02 028/- MADE BY ASSESSING OFFICER AND SUSTAINED BY LD CIT(APPEALS). THEREFORE THE ORDER DATED 09-10-2009 IS RECALLED IN RESPECT OF ADDITION OF RS.11 02 028/-ONLY. THE REGISTRY IS DIRECTED TO FIX THE APPEAL IN DUE COURS E FOR THIS PURPOSE. THE MA FILED BY REVENUE IS ACCORDINGLY ALLOWED. 5. IN THE RESULT REVENUES MA IS ALLOWED AS INDICATED ABOVE. ORDER PRONOUNCED IN OPEN COURT ON 29/07/2011 SD/- SD/- (A.N.PAHUJA) (D.K.TYAGI) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD DATED : 29/07/2011 *DKP COPY OF THE ORDER FORWARDED TO :- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)-XIV AHMEDABAD 4. THE CIT CONCERNS. 5. THE DR ITAT AHMEDABAD 6. GUARD FILE. BY ORDER /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT AHMEDABAD