Swati Auto Link Pvt. Ltd. v. Income-tax Officer, Ward– 8(2), Ahmedabad
[Citation -2016-LL-0927-53]

Citation 2016-LL-0927-53
Appellant Name Swati Auto Link Pvt. Ltd.
Respondent Name Income-tax Officer, Ward– 8(2), Ahmedabad
Court ITAT-Ahmedabad
Relevant Act Income-tax
Date of Order 27/09/2016
Assessment Year 2003-04
Judgment View Judgment
Keyword Tags regular assessment • specific direction • tax effect
Bot Summary: The assessee Revenue have filed cross appeals ITA Nos.559 638/Ahd/2014 against the common order of CIT(A)-XIV, Ahmedabad dated 05.12.2013 in case no. The assessee raises sole substantive ground in challenging the CIT(A) s order confirming Assessing Officer s action in disallowing discount expenses/short payments from customers of Rs.19,88,211/- out of Rs.39,76,422/- in set aside proceedings. We now move on to assessee s appeal seeking to delete the disallowance of discount expenses of Rs.19,88,211/-. Coordinate bench restored the issue back to the Assessing Officer for decision afresh as per law on assessee s discount claim in question. Its counsel appears to have argued that the assessee was ready and willing to produce 20 of its discount customers on random basis. Ld. counsel for the assessee strongly reiterates its impugned discount claimed in the course of hearing before us. Co-ordinate bench in earlier round of litigation has specifically quoted assessee s undertaking to produce 20 discount customers of its choice, the same has to be ITA Nos.559, 638 639/Ahd/2014 A.Y. 2003-04 -5- unflinchingly adhered to living behind no scope of any dilution thereof in this consequential round.


IN INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER. ITA. No.559/Ahd/2014 (Assessment Year:2003-04) Swati Auto Link Pvt. Ltd., Near Gandhi Ashram, Vadaj, Ahmedabad - 380005 Appellant Vs. Income Tax Officer, Ward 8(2), Ahmedabad Respondent & ITA Nos. 638 & 639/Ahd/2014 (Assessment Year:2003-04) Income Tax Officer, Ward 8(2), Ahmedabad Appellant Vs. Swati Auto Link Pvt. Ltd., Near Gandhi Ashram, Vadaj, Ahmedabad - 380005 Respondent PAN No. AACCS1328L ITA Nos.559, 638 & 639/Ahd/2014 (Swati Auto Link Pvt. Ltd. vs. ITO) A.Y. 2003-04 -2- By Assessee : Urvashi Shodhan, A.R. By Revenue : Shri Prasum Kabra, Sr.D.R. Date of Hearing : 19.09.2016 Date of Pronouncement : 27.09.2016 ORDER PER S. S. GODARA, JUDICIAL MEMBER This batch of three appeals pertains to A.Ys.2003-04. assessee & Revenue have filed cross appeals ITA Nos.559 & 638/Ahd/2014 against common order of CIT(A)-XIV, Ahmedabad dated 05.12.2013 in case no. CIT(A) XIV/Ward- 8(2)/44/2012-13 in proceedings u/s.143(3) r.w.s. 250 of Income Tax Act, 1961, in short Act . This is followed by latter s yet another appeal ITA No.639/Ahd/2014 arising against very CIT(A) s order of even date in case no. CIT(A)- XIV/ITO/Ward-8(2)/14/12-13 in proceedings u/s.271(1)(c) of Act. 2. We come to rival pleadings first. assessee raises sole substantive ground in challenging CIT(A) s order confirming Assessing Officer s action in disallowing discount expenses/short payments from customers of Rs.19,88,211/- out of Rs.39,76,422/- in set aside proceedings. Revenue in turn seeks to revive entire disallowance amount as restricted in lower appellate proceedings. Its latter appeal seeks to restore entire sum of Rs.14,62,000/- of Section 271(1)(c) penalty as ITA Nos.559, 638 & 639/Ahd/2014 (Swati Auto Link Pvt. Ltd. vs. ITO) A.Y. 2003-04 -3- deleted to tune of Rs.7,31,000/- in course of lower appellate proceedings. 3. Ld. counsel for assessee submits that at outset that both Revenue s appeals involve tax effect of less that Rs.10lacs in view of its pleadings therein. She quotes CBDT Circular No. 21 of 2015 dated 10.12.2015. 4. Ld. Departmental Representative fails to rebut this factual position. We accordingly quote circular to dismiss these two Revneue s appeals ITA Nos. 638 & 639/Ahd/2014 to be involving low tax effect. 5. We now move on to assessee s appeal seeking to delete disallowance of discount expenses of Rs.19,88,211/-. This appears to be second round of litigation between parties on very issue. assessee is car dealer. It filed return on 25.11.2003 stating income of Rs.4,75,278/-. Assessing Officer framed regular assessment on 09.03.2006 inter alia disallowing its discount claim of Rs.19,88,211/-. CIT(A) confirmed Assessing Officer s action. assessee filed appeal ITA No. 1213/Ahd/2007. matter came to this Tribunal. ld. coordinate bench restored issue back to Assessing Officer for decision afresh as per law on assessee s discount claim in question. Its counsel appears to have argued that assessee was ready and willing to produce 20 of its discount customers on random basis. This made ld. coordinate bench to agree with prayer and direct Assessing Officer to verify 20 parties of its choice with further speculation that in case ITA Nos.559, 638 & 639/Ahd/2014 (Swati Auto Link Pvt. Ltd. vs. ITO) A.Y. 2003-04 -4- majority of them deny impugned claim, entire figure would be disallowed and vice versa. 6. Assessing Officer took up consequential proceedings. He issued notices to many parties u/s.133 (6) of Act. Shri Ashishbhai Prafulbhai, Dinesh Laxmilal, Hitendra Lunkad and Sanjay R Prajapati replied as not to have received any discount. This made Assessing Officer to reiterate impugned disallowance of Rs.39,76,422/- in his order dated 30.09.2011. 7. assessee preferred appeal. CIT(A) holds that Assessing Officer could not have exceeded that impugned disallowance amount made in first round to tune of Rs.19,88,211/- to Rs.39,76,422/-. He accordingly restricts same to former figure. This leaves assessee aggrieved. 8. Ld. counsel for assessee strongly reiterates its impugned discount claimed in course of hearing before us. We put specific query in light of earlier Tribunal s order as to how many are actual recipients of discount benefit in question. She quotes figures running in thousands of customers. We drew her attention to this Tribunal s specific direction to produce 20 discount customers of assessee s choice which it has failed to comply. Ld. counsel replies that impugned assessment year is 2003-04 and much water has flown down stream at this belated stage. This plea fails to impress upon us. We observed that once ld. co-ordinate bench in earlier round of litigation has specifically quoted assessee s undertaking to produce 20 discount customers of its choice, same has to be ITA Nos.559, 638 & 639/Ahd/2014 (Swati Auto Link Pvt. Ltd. vs. ITO) A.Y. 2003-04 -5- unflinchingly adhered to living behind no scope of any dilution thereof in this consequential round. We accordingly find no reason to interfere in impugned disallowance made by authorities below. assessee looses in its sole substantive ground as well as appeal ITA 559/Ahd/2014. 9. All these three appeals are dismissed. Pronounced in open Court on this 27th day of September, 2016. Sd/- Sd/- (MANISH BORAD) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 27/09/2016 True Copy S.K.SINHA Copy of Order Forwarded to:- 1. Revenue 2. Assessee 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order Swati Auto Link Pvt. Ltd. v. Income-tax Officer, Ward 8(2), Ahmedabad
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