Income Tax Appellate Tribunal - Ahmedabad
Ganga Automobiles, Surat vs Department Of Income Tax on 30 September, 2011
आयकर अपीलीय अिधकरण,
अिधकरण, अहमदाबाद Ûयायपीठ 'डȣ
डȣ'
डȣ अहमदाबाद ।
IN THE INCOME TAX APPELLATE TRIBUNAL
" D " BENCH, AHMEDABAD
सव[ौी मुकुल कुमार ौावत, Ûयाियक सदःय एवं ौी ए.के.गरोǑडया, लेखा सदःय के सम¢ ।
BEFORE SHRI MUKUL Kr.SHRAWAT, JUDICIAL MEMBER AND
SHRI A.K. GARODIA, ACCOUNTANT MEMBER
आयकर अपील सं./I.T.A. No.205/Ahd/2011
( िनधा[रण वष[ / Assessment Year : 2007-08)
Dy.CIT बनाम/
M/s.Ganga Automobiles
st
Circle-2 Vs. 21 Century Buisness
Surat Centre
House A, Nr. Udhna
Darwaja
Ring Road, Surat
ःथायी ले खा सं . /जीआइआर सं . / PAN/GIR No.: AADFG 2811 L
(अपीलाथȸ /Appellant) .. (ू×यथȸ / Respondent)
अपीलाथȸ ओर से / Appellant by : Shri A.K. Patel, D.R.
ू×यथȸ कȧ ओर से/Respondent by : Shri Hardik Vora, A.R.
सुनवाई कȧ तारȣख / Date of Hearing : 30/09/2011
घोषणा कȧ तारȣख /Date of Pronouncement : 14.10.11
आदे श / O R D E R
PER SHRI MUKUL Kr. SHRAWAT, JUDICIAL MEMBER :
This is an appeal at the behest of the Revenue which has emanated from the order of Learned CIT(Appeals)-II, Surat dated 01/11/2010 passed for A.Y. 2007-08 and the grounds raised are decided as follows:-
2. Ground No.1 reads as under:-ITA No. 205/Ahd/2011
Dy.CIT vs. M/s.Ganga Automobiles Asst.Year - 2007-08 -2- [1] On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in deleting the addition made on account of Keyman Insurance Premium even though the assessee wasn't able to prove any employer-employee relationship between the partnership firm and partners.
2.1. Facts in brief as emerged from the assessment order passed u/s. 143(3) of the I.T.Act dated 28/10/2009 were that the assessee-firm is an automobile dealer of two wheelers manufactured by Honda Motor Cycle and Scooters India Ltd. A sum of Rs.12,08,935/- was debited under the head "Keyman Insurance Premium". In response to the show-cause notice, details furnished were as under:-
Sr.No. Name Age Duties and Amount of Sum responsibility Premium Insured (in (Rs.) lacs)
1. Naresh J. 45 Day to day 4,84,489 45.82 Intwala sales, purchase, inventory, fund management, Company dealings
2. Prakash J. 54 Head of 3,01,670 27.55 Intwala Workshop at Ring Road, Customer care
3. Harshad 46 Day to day cash 1,80,667 17.11 T.Dalwadi - Bank -
Finance, Expenses, Credit control etc.
4. Dilipsinh 57 Workshop at 2,42,109 10.44 M.Solanki Varachha & Citylight Total 12,08,935 ITA No. 205/Ahd/2011 Dy.CIT vs. M/s.Ganga Automobiles Asst.Year - 2007-08 -3-
3. A decision of ITAT Delhi Bench in the case of P.G. Electronics vs. ITO 98 TTJ 896 was cited before AO along with the CBDT Circular No.762 dated 18/02/1998. However, the AO was not convinced and held that the insurance premium was not deductible u/s.37(1) of the I.T. Act. The said addition was challenged.
4. After a detailed discussion and considering the nature of the payment, the ld.CIT(A) has followed CBDT Circular(supra), P.G. Electronics vs. ITO(supra), CIT vs. B.N. Exports 37 DTR 381(Bom), Sunita Finlease Ltd. vs. DCIT 118 TTJ 263 (ITAT)[Bilaspur] and ITO vs. Modi Motors 27 SOT 476 [ITAT](Bom) and allowed the claim.
5. Having heard the submissions of both the sides, we have found that in assessee's own case for A.Y. 2005-06 ITAT "D" Bench Ahmedabad in ITA No.3921/Ahd/2008 (for A.Y. 2005-06) order dated 15/03/2011 titled as "M/s.Ganga Automobiles vs. ACIT" has allowed the claim. Since a view has already been taken in the past in assessee's own case by the Respected Co-ordinate Bench, therefore on identical facts we find no force on this ground of the Revenue, hence dismissed.
6. Ground No.2 reads as under:
[2] On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in deleting the addition made on account of 20% of petrol and vehicle expenses inspite the authenticity of the claim was unverifiable by the A.O. ITA No. 205/Ahd/2011 Dy.CIT vs. M/s.Ganga Automobiles Asst.Year - 2007-08 -4- 6.1. The AO had disallowed the 20% of the total claim on the ground that the complete supporting evidences were not furnished by the assessee. When the matter was carried before the first appellate authority, the ld.CIT(A) has upheld the action of the AO primarily on the ground that the appellant had not controverted the finding of the AO.
After citing certain decisions of the ITAT Ahmedabad, the action of the AO was confirmed.
7. Having heard the submissions of both the sides, it is apparent that once the ld.CIT(A) has already affirmed the action of the AO and the addition was sustained, then there was no occasion on the part of the Revenue to agitate the said finding of ld.CIT(A). It has also been informed by ld.AR that the assessee has not preferred any appeal against the said affirmation of the addition. In view of this, the ground of the Revenue is infructuous, hence dismissed.
8. In the result, Revenue's appeal stands dismissed.
Order signed, dated and pronounced in the Court on 14.10. 2011.
Sd/- Sd/- ( A.K. GARODIA ) ( MUKUL Kr. SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 14 / 10 /2011
टȣ.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS ITA No. 205/Ahd/2011 Dy.CIT vs. M/s.Ganga Automobiles Asst.Year - 2007-08 -5- आदे श कȧ ूितिलǒप अमेǒषत/Copy षत of the Order forwarded to :
1. अपीलाथȸ / The Appellant
2. ू×यथȸ / The Respondent.
3. संबंिधत आयकर आयुƠ / Concerned CIT
4. आयकर आयुƠ(अपील) / The CIT(A)-II, Surat
5. ǒवभागीय ूितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad
6. गाड[ फाईल / Guard file.
आदे शानुसार/ BY ORDER, स×याǒपत ूित //True Copy// उप/सहायक पंजीकार (Dy./Asstt.Registrar) उप/ आयकर अपीलीय अिधकरण, अिधकरण, अहमदाबाद / ITAT, Ahmedabad
1. Date of dictation.......................10.10.2011
2. Date on which the typed draft is placed before the Dictating Member 11.10.2011.................. Other Member.....................
3. Date on which the approved draft comes to the Sr.P.S./P.S.................
4. Date on which the fair order is placed before the Dictating Member for pronouncement......
5. Date on which the fair order comes back to the Sr.P.S./P.S......14.10.11
6. Date on which the file goes to the Bench Clerk.................. 14.10.11
7. Date on which the file goes to the Head Clerk..................................
8. The date on which the file goes to the Assistant Registrar for signature on the order..........................
9. Date of Despatch of the Order..................