Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: TDS :: VAT RATES :: VAT Audit :: Central Excise rule to resale the machines to a new company :: form 3cd :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: empanelment :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: ACCOUNTING STANDARD
From the Courts »
 Prabhatam Investment Pvt. Ltd vs. ACIT (ITAT Delhi)
 CIT vs. Laxman Industrial Resources Pvt.Ltd (Delhi High Court)
  State Of Jharkhand vs. Lalu Prasad Yadav (Supreme Court)
 CIT vs. Krishan K. Aggarwal (Supreme Court)
 Ambuja Cements Ltd. Vs. Commissioner, Service Tax Commissionerate, Delhi
 Director Of Income Tax (Exemptions) Vs. Vishwa Hindu Parishad
 ITAT Proposes Important Changes To Tribunal Rules
 Meherjee Cassinath Holdings Pvt. Ltd vs. ACIT (ITAT Mumbai)
  CIT vs. Pashupati Nath Agro Food Products Pvt. Ltd (Allahabad High Court)
  Raj Dadarkar & Associates vs. ACIT (Supreme Court)
 CST vs. Sunil Haribhau Pote (Bombay High Court)

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
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions