M/s Tata Precsion Industries (India) Ltd, Dewas V. The ITO, Dewas

CO 15/IND/2010

• Counselvise Citation: [2011] 122 COUNSELVISE.COM (IT) 6203 (ITAT-INDORE)
• Duration Of Justice: 11 month(s) 29 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 19-07-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2003-2004
• Appeal Filed On: 20-07-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ARUN DEWAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARMA, A.M. PAN NO. : AABCT1854H I.T.A.NO. 357 / IND /20 10 A.Y. : 2003 - 04 INCOME TAX OFFICER, DEWAS M/S. TATA PRECISION INDUSTRIES (INDIA) LIM ITED, VS DEWAS APPELLANT RESPONDENT C.O.NO.15/IND/2010 (ARISING OUT OF I.T.A.NO. 357 / IND /20 10) A.Y. : 2003 - 04 M/S. TATA PRECISION INDUSTRIES (INDIA) LIMITED, INCOME TAX OFFICER, DEWAS DEWAS VS CROSS OBJECTOR RESPONDENT DEPAR TMENT BY : SHRI ARUN DEWAN SR. DR ASSESSEE BY : SHRI ASHOK MAHAJAN, C. A. O R D E R PER R. C. SHARMA, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AND CROSS OBJECTION FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) DATED 18 TH MARCH, 2010, FOR TH E ASSESSMENT YEAR 2003 - 04. - : 2 : - 2 2. THE ONLY GRIEVANCE OF THE REVENUE RELATES TO DELETION OF ADDITION OF RS. 20,83,862/ - MADE BY THE ASSESSING OFFICER BEING INCENTIVE RECEIVABLE. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORDS PERUSED. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE COMPANY I S ENGAGED IN MANUFACTURING AND SALE OF HIGH PRECISION, PRECISION COMPONENTS, PLASTIC COMPONENTS ETC. FROM THE AUDITED ACCOUNTS, THE AO OBSERVED THAT THE ASSESSEE COMPANY HAD SHOWN EXPORT INCENTIVE RECEIVABLE AT RS. 20,83,862/ - IN TH E BALANCE - SHEET WHILE IN THE PROFIT AND LOSS ACCOUNT SUCH EXPORT INCENTIVE WERE SHOWN AT RS. 20,27,449/ - . SINCE TOTAL EXPORT INCENTIVE DURING THE ENTIRE YEAR WAS RECEIVED BY THE ASSESSEE AT RS. 21,97,690/ - , THE AO CONCLUDED THAT THE DIFFERENCE OF RS. 1,70 ,241/ - ( RS. 2197690 RS. 20,27,449 ) ESCAPED ASSESSMENT. ACCORDINGLY, THE AO MADE ADDITION OF RS. 20,83,862/ - UNDER THE HEAD INCENTIVE RECEIVABLE AND RS. 1,70,241/ - AS DIFFERENCE OF INCENTIVE NOT OFFERED BY THE ASSESSEE. - : 3 : - 3 4. BY THE IMPUGNED ORDER, THE LD. CIT(A) DELETED THE ADDITION AFTER HAVING THE FOLLOWING OBSERVATIONS : - THE FACTS OF THE CASE AS WELL AS THE SUBMISSIONS MADE BY THE APPELLANT HAVE BEEN CONSIDERED CAREFULLY. IT IS OBSERVED THAT THE APPELLANT COMPANY HAS CLEARLY SHOWN THE EXPORT INCENTIVE S IN THE PROFIT AND LOSS ACCOUNT . AS THE APPELLANT HAS SHOWN EXPORT BENEFITS AMOUNTING TO RS. 1,70,241 UNDER THE HEAD OTHER SOURCES , THE AO WAS NOT IN A POSITION TO RECONCILE THE FIGURE. REGARDING RS. 20,83,862/ - , SINCE THE AMOUNT HAS BEEN SHOWN AS R ECEIVABLE IN THE ASSET SIDE OF THE BALANCE SHEET, IT IS BOUND TO BE REFLECTED IN THE TRADING/P& L A/C. AS PER NORMAL ACCOUNTING PRINCIPLES. AS THE APPELLANT HAS PROPERLY EXPLAINED THE ENTRIES MADE IN RESPECT OF EXPORT INCENTIVE AS WELL AS EXPORT BENEFI TS , THE AO S ACTION IN MAKING ADDITION OF RS. 20,83,862/ - AND RS. 1,70,241/ - IS NOT JUSTIFIED AND THE SAME IS DIRECTLY TO BE DELETED. - : 4 : - 4 5. REVENUE IS AGGRIEVED BY THE ABOVE ORDER OF CIT(A), THEREFORE, IN APPEAL BEFORE US, THE ASSESSEE HAS ALSO FILED CROSS OBJ ECTION JUST TO SUPPORT THE ACTION OF THE CIT(A). 6. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS AND GONE THROUGH THE MATERIAL PLACED BEFORE US AND FOUND THAT THE ASSESSEE HAS DULY OFFERED INCENTIVE OF RS. 21, 97,690/ - IN ITS PROFIT AND LOSS ACCOUNT . OTHE R INCOME WAS DECLARED AT RS. 3,82,935/ - . SINCE THE INCENTIVE WAS NOT ACTUALLY RECEIVED, THEREFORE, THE ASSESSEE HAD ALSO SHOWN IT IN THE BALANCE SHEET AS RECEIVABLE IN THE ASSETS SIDE. TOTAL VALUE OF DEPB BENEFITS WORKS OUT TO BE RS.21.97 LAKHS, OUT OF IT VALUE OF DEPB BENEFIT UTILIZED WORKS OUT TO BE RS. 1.13 LAKHS. THUS, THE BALANCE VALUE OF DEPB BENEFIT AMOUNTING TO RS. 20.83 LAKHS WAS DULY SHOWN AS INCOME IN THE AUDITED ACCOUNTS . A CATEGORICAL FINDING HAS BEEN RECORDED BY THE LD. CIT(A) AT PAGE 3 OF HIS ORDER, WHICH HAS NOT BEEN CONTROVERTED. ACCORDINGLY,, WE DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF CIT(A) FOR DELETING THE SAID ADDITION. AS WE HAVE ALREADY CONFIRMED THE ACTION OF THE CIT(A), THE CROSS OBJECTION FILED BY THE ASSESSEE - : 5 : - 5 BECOMES IN FRUCTUOUS, WHICH IS ONLY IN SUPPORT OF THE CIT(A) S ORDER. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED WHEREAS CROSS OBJECTION FILED BY THE ASSESSEE IS AL SO DISMISSED BEING INFRUCTUOUS. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 19 TH JU LY , 2011. S D/ - S D/ - (JOGINDER SINGH) ( R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 19 TH JU LY , 2011 . CPU* 18 19 7