M/s Maya Spiners Ltd., v. The ACIT, 1(1),

ITA 664/IND/2004 | 1996-1997
Pronouncement Date: 25-01-2010 | Result: Allowed

Appeal Details

RSA Number 66422714 RSA 2004
Bench Indore
Appeal Number ITA 664/IND/2004
Duration Of Justice 5 year(s) 5 month(s) 4 day(s)
Appellant M/s Maya Spiners Ltd.,
Respondent The ACIT, 1(1),
Appeal Type Income Tax Appeal
Pronouncement Date 25-01-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 25-01-2010
Date Of Final Hearing 25-01-2010
Next Hearing Date 25-01-2010
Assessment Year 1996-1997
Appeal Filed On 20-08-2004
Judgment Text
PAGE 1 OF 6 I.T.A.NOS. 767 & 664/IND/2004 MAYA SPINNERS LIMITED INDORE. IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH : INDORE BEFORE SHRI JOGINDER SINGH JUDICIAL MEMBER AND SHRI V.K. GUPTA ACCOUNTANT MEMBER PAN NO. : N.A. I.T.A.NO.767/IND/2004 A.Y. : 1996-97 DY. CIT M/S. MAYA SPINNERS LIMITED 1(1) VS MANAS BHAWAN INDORE. RNT MARG INDORE. APPELLANT RESPONDENT PAN NO. : N.A. I.T.A.NO.664/IND/2004 A.Y. : 1996-97 M/S. MAYA SPINNERS LIMITED DY. CIT MANAS BHAWAN VS 1(1) RNT MARG INDORE. INDORE. APPELLANT RESPONDENT DEPARTMENT BY : SHRI K.K.SINGH CIT DR RESPONDENT BY : SHRI C.P.RAWKA FCA DATE OF HEARING : 25/01/2010 O R D E R PER BENCH THESE CROSS APPEALS ARISE OUT OF THE ORDER OF THE L D. CIT(A)-I INDORE DATED 2.6.2004 FOR THE ASSESSMENT YEAR 1996 -97. PAGE 2 OF 6 I.T.A.NOS. 767 & 664/IND/2004 MAYA SPINNERS LIMITED INDORE. 2. GROUNDS RAISED IN BOTH THE APPEALS READ AS UNDER :- GROUNDS IN I.T.A.NO. 767/IND/2004 : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF (I) RS. 5 00 000/- ON ACCOUNT OF DISALLOWANCES OF EXPENSES. (II) RS. 2 00 44 282/- ON ACCOUNT OF DISALLOWANCES IN COMPUTATION OF INCOME U/S 37(1). (III) RS. 10 00 000/- ON ACCOUNT OF PROFIT EARNED ON BUSINESS DONE OUT OF BOOKS. (IV) RS. 63 032/- ON ACCOUNT OF CONTRAVENTION OF PROVISI ONS OF SECTION 40A(3). 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) ERRED IN DIRECTING THE A.O. TO VERIFY THE FA CTS ON THE FOLLOWING ADDITIONS :- (I) OF RS. 14 98 657/- ON ACCOUNT OF DISALLOWANCE OUT O F CLAIMS OF DISCOUNT AND REBATE TO KOWA SPINNING LIMI TED. (II) OF RS. 17 31 200/- ON ACCOUNT OF INFLATION OF PURCH ASES. (III) OF RS. 21 31 212/- ON ACCOUNT OF INFLATION OF ASSET S ESPECIALLY WHEN THE CIT(A) HAS NO SUCH POWER TO SET ASIDE THE MATTER U/S 251M OF THE INCOME-TAX ACT 1961. PAGE 3 OF 6 I.T.A.NOS. 767 & 664/IND/2004 MAYA SPINNERS LIMITED INDORE. GROUNDS IN I.T.A.NO. 664/IND/2004 : 1. THAT THE LD. CIT(A) ERRED IN LAW AND FACTS OF THE C ASE AND CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICE R AT RS. 5 26 984/- WHICH IS TOTALLY WRONG ON FACTS OF THE C ASE. 2. THAT THE LD. CIT(A) ERRED IN LAW AND FACTS OF THE CASE AND CONFIRMED THE ADDITIONS OF RS. 38 73 100/- MADE BY THE ASSESSING OFFICER SAME IS TOTALLY WRONG ON FACTS. 3. THAT THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITI ON OF RS. 48 963/- BEING DIFFERENCE IN CASH MADE BY THE ASSES SING OFFICER WITHOUT AT APPRECIATING THE FULL FACTS. 4. THAT THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITI ON OF RS. 9 72 012/- AS MADE BY THE ASSESSING OFFICER BEING S ALES NOT RECORDED AS MADE BY THE ASSESSING OFFICER WITHOUT A PPRECIATING THE FULL FACTS. 5. THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS. 28 00 005/- BEING FICTITIOUS DEBTORS AS MADE BY THE ASSESSING OFFICER WITHOUT APPRECIATING THE FACT THAT SAME WAS OPENING BALANCE IN BOOKS OF ACCOUNT. 6. THAT THE LD. CIT(A) ERRED IN LAW AND FACTS OF THE CASE AND CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICE R AT RS. 3.35 CRORES BEING SHARE APPLICATION MONEY NOT PROVE D. PAGE 4 OF 6 I.T.A.NOS. 767 & 664/IND/2004 MAYA SPINNERS LIMITED INDORE. 7. THAT THE LD. CIT(A) ERRED IN LAW AND FACTS OF THE CASE AND CONFIRMED THE DISALLOWANCE MADE BY THE ASSESSING OF FICER AT RS. 3 75 000/- OUT OF TRAVELING EXPENSES. 8. THAT THE LD. CIT(A) ERRED IN LAW AND FACTS OF THE CASE AND CONFIRMED THE DISALLOWANCE OF RS. 1 06 105/- AS MAD E BY THE ASSESSING OFFICER OF SALES PROMOTIONS. 9. THAT THE LD. CIT(A) ERRED IN LAW AND FACTS OF THE CASE AND CONFIRMED THE DISALLOWANCE OF RS. 47 584/- BEING EX PENSES OF EARLIER YEARS AS MADE BY THE ASSESSING OFFICER. 10. THAT THE LD. CIT(A) ERRED IN LAW AND FACTS OF THE CASE AND CONFIRMED THE DISALLOWANCE OF RS. 5 96 801/- BEING INTEREST AS MADE BY THE ASSESSING OFFICER WITHOUT APPRECIATING THE FULL FACTS. 11. THAT THE LD. CIT(A) ERRED IN LAW AND FACTS OF THE CASE IN CONFIRMING THE DISALLOWANCE OF RS. 2 50 000/- AS MA DE BY THE ASSESSING OFFICER OUT OF SELLING AND DISTRIBUTION E XPENSES FORWARD OF DETAILS. 12. THAT THE LD. CIT(A) ERRED IN LAW AND FACTS OF THE CASE IN CONFIRMING THE DISALLOWANCE OF DEPRECIATION AT RS. 1 09 04 170/- AS MADE BY THE ASSESSING OFFICER WITHOUT CONSIDERIN G THE FULL FACTS. PAGE 5 OF 6 I.T.A.NOS. 767 & 664/IND/2004 MAYA SPINNERS LIMITED INDORE. 13. THAT THE LD. CIT(A) ERRED IN LAW AND FACTS OF THE CASE IN CONFIRMING THE LEVY OF INTEREST U/S 234A AND 234B A S LEVIED BY THE ASSESSING OFFICER WITHOUT CONSIDERING THE LEGAL POSITION. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE COMPANYS BUSINESS HAD BEEN CLOSED SUCH COMPANY WA S UNDER LIQUIDATION/DEFUNCT. IN THESE CIRCUMSTANCES THE AS SESSMENT ORDERS WERE PASSED U/S 144 AND IF AN OPPORTUNITY OF REHEARING/R E-ADJUDICATION OF THE ISSUES INVOLVED IN THESE APPEALS WAS GRANTED THE A SSESSEE WOULD TRY TO COMPLY WITH THE REQUIREMENTS OF LAW IN ITS FULLEST EXTENT BY ADDUCING THE MATERIAL/EVIDENCES TO JUSTIFY ITS CLAIMS. 4. THE LD. DEPARTMENTAL REPRESENTATIVE HOWEVER ON THE OTHER HAND SUBMITTED THAT NO DOUBT THE ASSESSMENTS WERE FRAM ED U/S 144 AND THE LD. CIT(A) GAVE RELIEF TO THE ASSESSEE ON THE BASIS OF MATERIAL ON RECORD ONLY WHICH PERHAPS WAS NOT JUSTIFIED. HENCE THE MATTER COULD BE RESTORED TO THE FILE OF A.O. TO EXAMINE ALL THE ISS UES AFRESH AS PER LAW. ACCORDINGLY WE RESTORE ALL THE ISSUES RAISED IN BO TH THE APPEALS TO THE FILE OF A.O. FOR ADJUDICATION THEREOF AFRESH AS PER LAW AFTER GIVING AN ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE WHO SHALL B E UNDER OBLIGATION TO FULLY COOPERATE WITH THE DEPARTMENT FOR EXPEDITIOUS DISPOSAL OF THESE APPEALS AND FAILING WHICH A VIEW CAN BE TAKEN ON VA RIOUS ISSUES BY THE ASSESSING OFFICER ON THE BASIS OF MATERIAL AVAILABL E ON RECORD. PAGE 6 OF 6 I.T.A.NOS. 767 & 664/IND/2004 MAYA SPINNERS LIMITED INDORE. 5. IN THE RESULT BOTH THE APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES IN TERMS INDICATED ABOVE. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 25 TH JANUARY 2010. SD/- SD/- (JOGINDER SINGH) (V. K. GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED :25 TH JANUARY 2010. CPU* 25271