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TMI Blog2012 (7) TMI 789X X X X Extracts X X X X X X X X Extracts X X X X ..... de by the AO after estimation the cold storage rent at Rs.79,36,705/- lacs ignoring the fact that the assessee was suppressing the rental receipt by showing under utilization of the capacity of cold storage. 2. That the ld. Commissioner of Income Tax (Appeals) has erred in law and on facts in holding that the AO was not justified in invoking the provisions of section 145(3) of the I.T. Act in the case of assessee, ignoring the facts regarding non-maintenance of records of loading/unloading expense, excessive consumption of power, hence, on account of non-maintenance of such details the books of account cannot be treated as correct and complete. 3. That the ld. Commissioner of Income Tax (Appeals) has erred in law and on fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in ITA No.268/Agr/2011 order dated 28.12.2011. It is also submission of the ld. Authorised Representative that in A.Y. 2003-04 & 2004-05 similar orders were passed by the Assessing Officer. The orders of the Assessing Officer have been set aside by the CIT(A) vide order dated 17.03.2010. The relevant findings of I.T.A.T. for A.Y. 2006-07 in respect of ground nos.1 & 2 are reproduced from paragraph nos.4 & 6 as under :- "4. I have heard the both parties, perused the relevant record available with us and I am of the considered opinion that the assessee has allowed rebate of Rs.5/- per bag to the farmers on account of loading and unloading expenses which the farmers themselves did this job. The Assessing Officer has asked the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otatoes. The Assessing Officer noticed that the assessee has charged Rs.40/- per bag and while raising the bills a discount of Rs.5/- was allowed to the farmers on account of loading and unloading expenses. The Assessing Officer estimated the rental income by applying the rate of Rs.40/- and accordingly addition of Rs.11,62,210/- was made. The CIT(A) deleted the addition observing as under :- (CIT(A) paragraph no.3.1) "3.1 While deciding ground nos.1 to 3, I have held that the AO was not right in rejecting the books of account of the assessee by invoking the provisions of sec. 145(3) of the Act. There is nothing on record to suggest that the receipts shown by the assessee on account of rent of cold storage are less than what ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , here also I am in agreement with the Ld. AR that fuel and power expenses are directly related to the running of cold storage, some cold storage might run for longer time than the others particularly in view of the fact that rent is relatable to whole year and is not charged on day to day basis. Therefore, I am of the opinion that AO was not justified in invoking the provisions of sec. 145(3) of the Act. The grounds are allowed." 6. We find that on identical set of facts, the I.T.A.T. had decided the issue in favour of the assessee vide order dated 28.12.2011 in assessee's own case for A.Y. 2006-07. Therefore, by respectfully following the order of I.T.A.T. and to maintain consistency, we confirm the order of the CIT(A) on the issue. &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . No such exercise was carried out by the AO. Therefore, the addition made by the AO is deleted. Ground is allowed." 8. We have heard the ld. Representatives of the parties and records perused. We find that the assessee has given advance to farmers to keep their potato in cold storage of the assessee. The assessee did not charge interest on such advance given to farmers. We find that the CIT(A) has rightly appreciated the fact and found that such interest free advances to the farmers is in accordance with commercial expediency. Under such circumstances, charging of interest on advance given for the purpose of business is a decision of businessman and not the decision of Assessing Officer. In the light of the fact, we do not find any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te itself that the membership is valid for one year. We find that such type of payment is revenue in nature and the CIT(A) has rightly deleted the addition. Order of the CIT(A) is confirmed on the issue. 11. Ground no.5 is in respect of deletion of addition of Rs.15,600/- on account of loans taken from concerns of Ganga Ram Group. At the outset, the ld. Authorised Representative pointed out that this issue is also covered by the order of I.T.A.T., Agra Bench in assessee's own case for Assessment Year 2006-07 (supra) wherein the I.T.A.T. has followed their other order dated 06.02.2009 passed in ITA No.210/Agr/2006. 12. Brief facts of the issue are that the Assessing Officer disallowed interest of Rs.15,600/- paid on loan, det ..... X X X X Extracts X X X X X X X X Extracts X X X X
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