Income Tax Appellate Tribunal - Cochin
Kitex Garments,, Cochin vs Department Of Income Tax on 9 January, 2015
1
ITA No.75/Coch/2012
IN THE INCOME TAX APPELLATE TRIBUNAL
COCHIN BENCH, COCHIN
Before Shri N.R.S. Ganesan (JM) and Shri Chandra Poojari (AM)
I.T.A No. 75/Coch/2012
(Assessment year 2008-09)
ACIT, Cir.1(2) vs Kitex Garments Ltd
Kochi Kitex House, Ernakulam
PAN : AABCK0714F
(Appellant) (Respondent)
Appellant by : Shri K.K. John
Respondent by : Shri R Krishna Iyer
Date of hearing : 01-12-2014
Date of pronouncement : 09-01-2015
ORDER
Per N.R.S. Ganesan (JM) This appeal of the revenue was disposed of earlier by an order dated 31-12-2013. However, the assessee filed miscellaneous application in M.A. No.32/Coch/2014 on the ground that ground No.3 raised by the revenue with regard to disallowance of expenses on purchase of water was not disposed of. Accordingly, the appeal of the revenue was reopened only for the purpose of disposing of ground No.3 i.e. the issue relating to expenses for purchase of water and posted for hearing only for disposal of ground No.3.
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2. Shri K.K. John, the ld.DR submitted that the assessee claimed Rs.28,97,041 as expenditure. The auditors in the audit report certified that the assessee has not deducted tax. Accordingly, the assessing officer disallowed the claim of the assessee to the extent of Rs.28,97,041. However, on appeal, the assessee explained before the CIT(A) that the expenditure to the extent of Rs.23,85,100 represents payment made for supply of water. After considering the contention of the assessee, the CIT(A) allowed the claim of the assessee to the extent of Rs. 23,85,100; however, confirmed the addition to the extent of Rs.5,11,941. According to the ld.DR, the (CIT(A) ought not have allowed the claim of the assessee.
3. On the contrary, Shri R Krishna Iyer, the ld.representative for the assessee submitted that the assessee purchased water for running the canteen. Out of the total sum of Rs.28,97,041 a sum of Rs.23,85,100 relates to expenditure for purchase of water. The payments were made to M/s AMA Transport, Pattimattom. Payments were also made to Shri A. Rasheed and Shri Badhar. According to the ld.representative, the assessee has filed specimen bills before the CIT(A), who examined the same thoroughly, which contained the details of payment of water charges, lorry No.etc. The copy of the trip sheet of the lorry was also furnished before the CIT(A). The CIT(A), after examining the same has allowed the claim of the assessee to the extent of Rs. 23,85,100. 3 ITA No.75/Coch/2012
4. We have considered the rival submissions on either side and also perused the material available on record. The assessing officer disallowed the claim of the assessee on the basis of the audit report said to be filed by the assessee. The assessing officer has not examined the nature of the payment. However, the CIT(A) examined the nature of the payment made by the assessee and found that what was paid by the assessee is only payment towards water supply. The CIT(A) has also examined specimen copies of the bills filed by the assessee which contained the details of payment for water charges with reference to lorry No., etc. Further, the CIT(A) has also examined the copies of the trip sheets filed by the assessee. Therefore, it is obvious that what was paid by the assessee to the extent of Rs.23,85,100 is only for payment towards purchase of water for running the canteen. All payments relating to water charges does not require any deduction of tax at source, therefore, there is no question of disallowance of Rs.23,85,100. Therefore, this Tribunal is of the considered opinion that the CIT(A) has rightly deleted the disallowance to the extent of Rs.23,85,100 and confirmed the disallowance to the extent of Rs.5,11,941. The ground of the revenue fails.
5. The order of the Tribunal dated 31-12-2013 in respect of other issues remains as such.
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6. In the result, the appeal of the revenue stands dismissed.
Order pronounced in the open court on this 09th January, 2015.
Sd/- sd/- (Chandra Poojari) (N.R.S. Ganesan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cochin, Dt : 09th January, 2015 pk/- copy to: 1. ACIT, Cir.1(2), Kochi
2. Kitex Garments Ltd, Kitex House, P.B. No.5, Kizhakkambalam, Choorakodu, Ernakulam 683 562
3. The Commissioner of Income-tax, Kochi
4. The Commissioner of Income-tax(A)-II, Kochi
5. The DR (True copy) By order Asstt. Registrar, Income-tax Appellate Tribunal, Cochin Bench