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Shri Bablu Ghosh Vs. I.T.O Ward 49(1), Kolkata
July, 16th 2014

        Before Hon'ble Sri Shamim Yahya, AM & Sri Hon'ble George Mathan, JM
                        ITA No. 1325/Kol/2012 A.Y 2008-06
     Shri Bablu Ghosh                      -- I.T.O Ward 49(1), Kolkata
     PAN: AHCPGO 582C
          (/APPELLANT )                      .     (×/RESPONDENT)
                 /                        ^/Shri Indranil Banerjee, FCA, ld.AR
     For the Appellant/Department
     ×         /                  ^/Shri P.B. Pramanik, JDIT/ld. Sr.DR
     For the Respondent/Assessee:
                          /Date of Hearing: 10-07-2014
                    /Date of Pronouncement: 10-07--2014

 Sri Shamim Yahya, Accountant Member

       This appeal by the Assessee is directed against the order of the Ld. Commissioner
of Income Tax (Appeals), XXX, Kolkata dated 15-06-2012 pertaining to assessment year

2.     The issue raised by the assessee is that the ld. CIT(A) has erred in confirming the
disallowance of Rs. 1,89,228/- representing purchase of plastic made milk cans, which
are used for carriage and delivery of milk by the assesee being milk trader.

3.     The above expenditure was treated by the AO as capital in nature rejecting the
assessee's submission that the same is revenue in nature. The assessee submitted that
longevity of milk scan is scanty i.e. one year. On perusal of the Profit & Loss Account for
the F.Ys. 2006-07 and 2007-08 the AO observed that no expenditure was claimed by the
assessee under the head `purchase of milk can' Hence, he concluded that expenditure was
capital in nature. The above action of the AO was confirmed by the ld.CIT(A).

4.     Against the above order of the ld.CIT(A), the assessee has filed appeal before us.
                                                          ITA No. 1325/Kol/12-A-AM Sh. Bablu Ghosh   2

5.         We have heard both the Counsel and perused the record. We find that the assessee
is a milk trader and used plastic made milk cans for carriage and delivery of milk. The
price of each plastic made can is at Rs. 835/-.We find that this price of each milk can is
less than Rs. 900. Such plastic can by no stretched of imagination can be treated as capital
expenditure. Hence, we set aside the orders of the lower authorities and decide the issue in
favour of the assessee. We hold that the expenditure is revenue expenditure.

6.        In the result, the appeal of the assessee stands allowed as stated above.


         Sd/-                              Sd/-
 ( [ 1, Û  )                         (  ,   )
( George Mathan, Judicial Member) (Shamim Yahya, Accountant Member)
()Date 10/07/2014
     / Copy of the order forwarded to:
     1.       /Appellant- Shri Bablu Ghosh, Nahata, Gopalnagar, North 24 Pgs,
             PIN 743290 (W.B).,

     2       ×/ Respondent : The I T O W 49(1), Uttarapan Building, Manicktala
             Civic Centre, Ultadanga, Kol-54.

     3.       /The CIT,

     4.        ()/The CIT(A),                       Kolkata

     5.       /DR, Kolkata Benches, Kolkata

 × /True Copy, / By order,                         /Asstt. Registrar
ITA No. 1325/Kol/12-A-AM Sh. Bablu Ghosh   3
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