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Income Tax Appellate Tribunal - Ahmedabad

Gujarat Co.Op.Milk Marketing ... vs Assessee

             IN THE INCOME TAX APPELLATE TRIBUNAL
                      'D' BENCH - AHMEDABAD

     (BEFORE S/SHRI BHAVNESH SAINI, JM AND D. C. AGRAWAL, AM)

                           ITA No.627/Ahd/2009
                                A. Y.: 2005-06

     Gujarat Coop. Milk Marketing    Vs    The Addl. C. I. T.,
     Federation Lt., Amul Dairy            Anand Range,
     Road, Vithal Udyognagar,              Anand
     Anand
                         PA No. AAACG 7189 H
             (Appellant)                   (Respondent)

             Appellant by      Shri Himanshu Chauhan, AR
            Respondent by      Shri H. K. Lal, DR

                                    ORDER

PER BHAVNESH SAINI: This appeal by the assessee is directed against the order of the learned CIT(A)-IV, Baroda dated 27th January, 2009, for assessment year 2005-06, challenging the order of the learned CIT(A) in confirming disallowance of Rs.1,90,31,000/- being the amount transferred to reserve fund during the year.

2. The learned CIT(A) noted that similar issue was referred in assessment years 1994-95, 1995-96, 1996-97, 1999-2000 and 2001- 02 where facts were same and similar disallowance was upheld by the learned CIT(A) as well as by the Tribunal. The AO, therefore, held that claim of the assessee for expenditure of Rs.1,90,31,000/- being 25% of profit transferred to reserve fund cannot be allowed. However, since the assessee had not claimed the same as deduction in the computation of income in assessment year 2005-06, no disallowance ITA No.627/Ahd/2009 2 Gujarat Co-op. Milk Marketing Federation Lt. Vs Addl. CIT, Anand was made by the AO. It was submitted before the learned CIT(A) that appeal is pending before the Hon'ble High Court. However, it was admitted position that there was no material change in the facts and circumstances of the case. The learned CIT(A) following orders of the proceeding assessment years dismissed the appeal of the assessee.

3. The learned Counsel for the assessee conceded that the issue is decided against the assessee by the Tribunal in the preceding assessment years. He has filed copy of the order in the case of the same assessee passed by the Tribunal in assessment year 2000-01 in ITA No.102/Ahd/2006 dated 26-09-2006 and submitted that the issue is covered against the assessee. Copy of the same is placed on record.

4. On consideration of the above facts and considering the submissions of the assessee's Counsel that the issue is covered against the assessee by the order of the Tribunal in earlier assessment years, we do not find any merit in this ground of appeal of the assessee. The same is accordingly dismissed.

5. In the result, the appeal of the assessee is dismissed.

Order pronounced in the open Court on 30-06-2011 Sd/- Sd/-

        (D. C. AGRAWAL)                           (BHAVNESH SAINI)
     ACCOUNTANT MEMBER                            JUDICIAL MEMBER
Date : 30-06-2011
Lakshmikant/-
 ITA No.627/Ahd/2009                                                   3

Gujarat Co-op. Milk Marketing Federation Lt. Vs Addl. CIT, Anand Copy of the order forwarded to:

1. The Appellant
2. The Respondent
3. The CIT concerned
4. The CIT(A) concerned
5. The DR, ITAT, Ahmedabad
6. Guard File BY ORDER Dy. Registrar, ITAT, Ahmedabad