M/s. Checkmate Services Pvt.Ltd., Ahmedabad V. The Dy.CIT.,Circle-1(1), Baroda

CO 100/AHD/2012

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 7560 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 7 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 07-09-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 30-05-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMIT R SHAH
• Assessee Lawyers: B K S PANDYA
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, B BENCH, AHMEDABAD BEFORE SHRI G. C. GUPTA, HONBLE VICE PRESIDENT AND SHRI A. K. GARODIA, ACCOUNTANT MEMBER I.T.A.NO. 759 / AHD/20 12 (ASSESSMENT YEAR 2008-09) DCIT, CIRCLE 1(1), BARODA VS. CHECKMATE SERVICES P. LTD., GROUND FLOOR, AMAN TOWERS, FATEHGUNJ, BARODA C.O. NO.100/AHD/2012 IN I.T.A.NO. 759/AHD/2012 (ASSESSMENT YEAR 2008-09) CHECKMATE SERVICES P. LTD., VS. DCIT, CIRCLE 1(1), GROUND FLOOR, BARODA AMAN TOWERS, FATEHGUNJ, BARODA PAN/GIR NO. : AAACC8465A (APPELLANT) .. (RESPONDENT) APPELLANT BY: SHRI B.K.S.PANDYA CIT DR RESPONDENT BY: SHRI AMIT R. SHAH, AR DATE OF HEARING: 21.08.2012 DATE OF PRONOUNCEMENT: 07.09.2012 O R D E R PER SHRI G. C. GUPTA, VP:- THIS APPEAL OF THE REVENUE AND THE CROSS OBJECTIO N OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2008-09 ARE DIRECT ED AGAINST THE ORDER DATED 12.01.2012 OF LD. CIT(A)-I, BARODA. I.T.A.NO. 759/AHD/2012 (REVENUES APPEAL): 2. GROUND NO.1 OF THE REVENUES APPEAL IS AS UNDE R: I.T.A.NO. 759 /AHD/2012 C.O.NO.100/AHD/2012 2 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(APPEALS) ERRED IN DELETING THE ADDITION U/S.36(L)(VA) OF RS.1,96,78,184/- ON ACCOUNT OF DISALLOWANCE OF EMPL OYEES CONTRIBUTION TOWARDS PF AND ESIC PAID BEYOND DUE DA TE, WITHOUT APPRECIATING THAT AS PER THE PROVISIONS OF SECTION 36(L)(VA) R.W.S.2(24)(X) OF THE ACT; DEDUCTION IS ALLOWABLE O F THE SUM IF SUCH SUM WHICH HAS BEEN RECEIVED FROM ANY OF HIS EMPLOYE ES IS CREDITED BY THE ASSESSEE TO THE EMPLOYEES ACCOUNT I N THE RELEVANT FUND OR FUNDS ON OR BEFORE THE DUE DATE. 3. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT ASSESSEE HAS DEPOSITED EMPLOYEES CONTRIBUTION TOWARDS PF & ESIC PRIOR TO THE DUE DATE OF FILING OF RETURN AND, THEREFORE, NO DISALLO WANCE ON THIS ACCOUNT WAS CALLED FOR. HE RELIED ON THE DECISION OF AHMED ABAD BENCH OF THE TRIBUNAL IN THE CASE OF JMC PROJECTS (INDIA) LTD. I N I.T.A.NO. 4175/AHD/2007 ORDER DATED 28.03.2008. 4. LD. D.R. OF THE REVENUE COULD NOT CONTROVERT THE SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. THE F ACT THAT THE ASSESSEE HAS DEPOSITED THE EMPLOYEES CONTRIBUTION TOWARDS PF & ESIC PRIOR TO THE DUE DATE OF FILING OF RETURN, COULD NO T BE CONTROVERTED BY THE LD. D.R. OF THE REVENUE. THE ISSUE IS COVERED IN F AVOUR OF THE ASSESSEE WITH THE DECISION OF AHMEDABAD BENCH OF THE TRIBUNA L IN THE CASE OF JMC PROJECTS (INDIA) LTD. (SUPRA) AND ACCORDINGLY, WE DECIDE THIS ISSUE IN FAVOUR OF THE ASSESSEE AND THE ORDER OF LD. CIT(A) ON THIS ISSUE IS CONFIRMED. GROUND NO.1 OF THE REVENUES APPEAL IS DISMISSED. 6. GROUND NO.2 OF THE REVENUES APPEAL IS AS UNDER: 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(APPEALS) ERRED IN HOLDING THAT THE VEHICLES WERE IN ASSESSEE'S POSSESSION BEFORE 31.03.2008 AND THEREBY CANCELLING THE DISALLOWANCE OF DEPRECIATION RS.7,00,985/- ON THE V EHICLES, WITHOUT CONSIDERING THE FACTUAL POSITION OF THE CASE THAT H OW THE VEHICLES WHICH WERE BOOKED ON 31.03.2008 CAN BE IN THE POSSE SSION OF THE I.T.A.NO. 759 /AHD/2012 C.O.NO.100/AHD/2012 3 ASSESSEE PRIOR TO 31.03.2008 AND HOW THE VEHICLES C AN BE INSURED PRIOR TO THE DATE OF PURCHASE. 7. LD. D.R. HAS RELIED ON THE ORDER OF THE A.O. WHE REAS, THE LD. COUNSEL FOR THE ASSESSEE HAS RELIED ON THE ORDER OF LD. CIT(A). 8. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIN D THAT THE LD. CIT(A) HAS RECORDED THAT THE ASSESSEE HAS PURCHASED 12 VEHICLES EARLIER TO 31.03.2008 AND ONLY 3 VEHICLES WERE PURCHASED ON 31 .03.2008. LD. CIT(A) HAS FURTHER RECORDED THAT THE INSURANCE COVE RS SHOW THAT ALL THE VEHICLES WERE INSURED BEFORE 31.03.2008. HE ALSO R ECORDED A FINDING THAT THERE IS NO DOUBT THAT ALL THE VEHICLES WERE IN THE POSSESSION OF THE ASSESSEE BEFORE 31.03.2008 AND ACCORDINGLY, THE DIS ALLOWANCE OF DEPRECIATION WAS CANCELLED. THE REVENUE COULD NOT CONTROVERT THE FINDING RECORDED BY LD. CIT(A). IN VIEW OF THE FACT THAT A LL THE VEHICLES WERE IN ASSESSEES POSSESSION BEFORE 31.03.2008, WE HOLD TH AT NO DISALLOWANCE OF DEPRECIATION COULD BE MADE OUT BY THE DEPARTMENT AN D ACCORDINGLY, THE ORDER OF LD. CIT(A) ON THIS ISSUE IS CONFIRMED. GR OUND NO.2 OF THE REVENUES APPEAL IS ALSO DISMISSED. C.O.NO.100/AHD/2012 (ASSESSEES CROSS OBJECTION): 9. THE GROUNDS OF THE C.O. ARE AS UNDER: 1) THE LD. CIT(A) HAS RIGHTLY HELD THAT RS .1,96,78,184/- BEING AMOUNT PAID BY THE RESPONDENT COMPANY TOWARDS EMPLOYEES CONTRIBUTION TOWARDS PF AND ESIC WAS DEDUCIBLE IN C OMPUTING TOTAL INCOME IN VIEW OF PROVISIONS OF LAW AS WELL AS VARI OUS JUDGEMENTS OF APPELLATE AUTHORITIES. IT IS THEREFORE SUBMITTED THAT THE GROUND OF APPEAL OF THE DEPARTMENT BE DISMISSED. 2) THE LD. CIT(A) HAS ALSO RIGHTLY HELD THAT CLAIM OF DEPRECIATION ON VEHICLES OF THE RESPONDENT COMPANY OF RS.7,00,985 WAS ALLOWABLE IN COMPUTING TOTAL INCOME SINCE THE VEHICLES WERE PURCHASED AND PUT TO USE DURING THE F INANCIAL YEAR RELEVANT TO ASST. YEAR 2008-09. I.T.A.NO. 759 /AHD/2012 C.O.NO.100/AHD/2012 4 10. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THESE ARE SUPPORTIVE IN NATURE AND ACCORDINGLY, MAY BE DISPOS ED OFF. LD. D.R. HAS RELIED ON THE ORDER OF THE A.O. 11. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. THE C.O. OF THE ASSESSEE BEING MERELY SUPPORTIVE TO THE ORDER OF LD . CIT(A), THE SAME IS DISMISSED ACCORDINGLY. 12. IN THE RESULT, BOTH THE APPEAL OF THE REVENUE A ND THE CROSS OBJECTION OF THE ASSESSEE ARE DISMISSED. SD./- SD./- (A. K. GARODIA) (G. C. GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT SP COPY OF THE ORDER FORWARDED TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT (APPEALS) 5. THE DR, AHMEDABAD BY ORDER 6. THE GUARD FILE AR,ITAT,AHMEDABAD 1. DATE OF DICTATION 21/08/12 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 21/08/12.OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P .S./P.S. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 07/9/2012 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S.10/9/12 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 10/09/2012 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 9. DATE OF DESPATCH OF THE ORDER. .