ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3(2), CHENNAI V. MS VA TECH WABAG LIMITED, CHENNAI

MA 118/CHNY/2025

AI Insights

The case involves the Assistant Commissioner of Income Tax, Central Circle-3(2), Chennai, as the appellant, and M/s. VA Tech Wabag Ltd as the respondent. The dispute centered on the disallowance of a consultant marketing fee for the Assessment Year 2017-18. The Revenue sought to recall the Tribunal's order which had dismissed their appeal on the grounds of this disallowance, citing inconsistency with previous Tribunal decisions. The Tribunal, however, found that their earlier decision was consistent with the principles established in similar cases and dismissed the Revenue's application for recall.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 713207 (ITAT-CHENNAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 01-08-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2017-2018
• Other Referred Cases: ITA No.953/Chny/2015, ITA No.807/Chny/2016, ITA No.2246/Chny/2024, ITA No.2256/Chny/2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. VIJAYARAGHAVAN
• Assessee Lawyers: R. ANITHA
• Keywords: Rule of consistency; Double taxation relief

Judgement Text

" आयकर अपीलीय अधिकरण’ ‘ए’ न्यायपीठ चेन्नई में। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय श्री मनु क ुमार गिरि, न्यागयक सदस्य एवं माननीय श्री जगदीश, लेखा सदस्य क े समक्ष। BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI JAGADISH, ACCOUNTANT MEMBER आयकरअपील सं./ MA No.118/2025 IN ITA No.2256/Chny/2024 (धििाारणवर्ा / Assessment Year: 2017-18) Assistant Commissioner of Income Tax, Central Circle-3(2), Chennai. Vs. M/s.VA Tech Wabag Ltd, ‘Wabag House’, No.17, 200 feet Redial Road, S.Kolathur ONear Kamakshi Hospital), Chennai-600 117. [PAN:AABCV0225G] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Appellant by : Mr.R.Vijayaraghavan, Advocate प्रत्यर्थी की ओर से /Respondent by : Ms.R.Anitha, Addl.CIT. सुनवाई की तारीख/Date of Hearing : 01.08.2025 घोषणा की तारीख /Date of Pronouncement : 01.08.2025 आदेश / O R D E R MANU KUMAR GIRI (Judicial Member) Revenue way of this Miscellaneous Application (MA No.118/Chny/2025) is praying for recall of the Tribunal Order passed in ITA No.2256/Chny/2024 dated 24.02.2025. 2. The Ld. DR for the Revenue pleaded that the Tribunal while dismissing the issue relating to disallowance of consultant marketing fee in ITA No.2246, Printed from counselvise.com 2 MA No.118/Chny/2025 (AY 2017-18) MS VA Tech Wabag Limited 2247 & 2248/Chny/2024 dated 24.02.2025 has erred in dismissing the appeal the ground of appeal placing reliance on the decision of the Co-ordinate bench of Tribunal in ITA No.953/Chny/2015 and ITA No.807/Chny/2016 wherein the issue was remitted back to the file of AO for examining the nature of the Marketing Fee rendered. She further pleaded that on the basis of earlier order referred supra, the issue should have been remitted back to the file of AO claiming principle of consistency. The Ld.Counsel for the assessee has pointed Para 16 and Page 13 of our order dated 24.02.2025 in which we have relied upon the coordinate bench order of Tribunal in ITA No.953/Chny/2015 and ITA No.807/Chny/2016 for AY 2010-11 and AY 2011-12 dated 31.08.2023 by which the Tribunal has dismissed the revenue’s appeal on this issue. In our order in ITA No.2256/Chny/2024 dated 24.02.2025 at para 18, we have clearly held as under: “We have gone through the order of the id.CIT(A) and find that in the present AY-2017-18 there was sufficient discussion regarding the issue in question. Hence, respectfully following the order of the co-ordinate bench of Tribunal in ITA No.953/Chny/2015 and ITA No.87/Chny/2016 and also in the light of Article 14 of India Sri Lanka DTAA, we refrain from interfering in the impugned order of the Id.CIT(A). In result, we dismiss the grounds of the revenue on this issue.” 3. Therefore, in the light of above conspectus of matter, the Ld.DR’s argument is not tenable.This is also not a case which falls under the preview of section 254(2) of the Act. We find that there is nothing apparent mistake from the record in the Tribunal order dated 24.02.2025. Hence, we dismiss the MA No.118/Chny/2025 of the revenue. Printed from counselvise.com 3 MA No.118/Chny/2025 (AY 2017-18) MS VA Tech Wabag Limited 4. In the result, the MA No.118/Chny/2025 of the Revenue is dismissed. Order pronounced in the open court on 1st day of Aug, 2025 at Chennai. Sd/- Sd/- (जगदीश) (JAGADISH) लेखा सदस्य / ACCOUNTANT MEMBER (मनु क ुमार गिरि) (MANU KUMAR GIRI) न्यागयक सदस्य / JUDICIAL MEMBER चेन्नई Chennai: दिन ांक Dated : 01-08-2025 KB/ आदेश की प्रततललपप अग्रेपषत /Copy to : 1. अपील र्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकरआयुक्त/CIT, Chennai/Coimbatore/Madurai/Salem. 4. दिभ गीयप्रदिदनदि/DR 5. ग र्डफ ईल/GF Printed from counselvise.com "