Tide Water Oil Co. (I) Ltd., Kolkata V. ACIT, Circle - IV, Kolkata

ITA 1028/KOL/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2697 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2010
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 08-04-2010
• Assessment Year: 2003-2004
• Appeal Filed On: 12-06-2009
• Court: TRIBUNAL
• Assessee Lawyers: S MOITRA
• Keywords: Reasonable cause; Condonation of delay

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH - A , KOLKATA ( ) BEFORE . . , SHRI B.R.MITTAL, JUDICIAL MEMBER. /AND . . , , SHRI C.D. RAO, ACCOUNTANT M EMBER . / I.T.A.NO. 1028/KOL/2009 / ASSESSMENT YEAR 2003 - 04 TIDE WATER OIL CO.,(I) LTD., YULE HOUSE, 8 , DR. RAJENDRA PRASAD SARANI, KOLKATA 700 001. AABCT 1122 C - - - VERSUS - . ACIT, CIRCLE IV, KOLKATA ( / A PPELLANT ) ( / RESPONDENT ) / FOR THE APPELLANT : / SHRI S.MOITRA, AR / FOR THE RESPONDENT : / SHRI VINAY KUMAR, DR / ORDER . . , SHRI B.R.MITTAL, JUDICIAL MEMBER. THE ASSESSEE HAS FILED THIS APPEAL FOR THE ASSESSMENT YEAR 2003 - 04 AGAINST ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) DT.23.1.2009, ALONGWITH AN APPLICATION FOR CONDONATION OF DELAY OF 39 DAYS, STATING THE FOLLOWING GROUNDS. 1. (A) THAT THE LEARNED COMM ISSIONER OF INCOME TAX (A), CENTRAL - III , ERRED ON FACT AND IN LAW IN DISALLOWING CORPORATE EXPENSES OF RS. 1,49,79,933/ - IN RESPECT OF SILVASSA UNIT ON THE GROUND THAT THE SAID EXPENDITURE HAS DIRECT RELATION FOR EARNING PROFIT OF THE SILVASSA UNIT WHICH I S ELIGIBLE FOR DEDUCTION UNDER SECTION 80I B OF THE INCOME TAX ACT, 1961. (B) THAT THE LEARNED COMMISSIONER OF INCOME TAX (A), CENTRAL - III, HAS WHOLLY ADOPTED ERRONEOUS APPROACH WHILE INTERPRETING OF THE PROVISION OF SECTION 801A TO HOLD THAT THE CORPORA TE EXPENSES INCURRED BY THE ASSESSEE COMPANY AT KOLKATA DURING THE FINANCIAL YEAR 2002 - 2003 RELEVANT TO THE ASSESSMENT YEAR 2003 - 2004 WERE ESSENTIAL EXPENSES FOR EARNING PROFIT OF THE SILVASSA UNIT. (C) THAT THE LEARNED COMMISSIONER OF INCOME TAX (A), CEN TRAL - III, SHOULD HAVE GONE INTO THE DETAILED NATURE OF THE CORPORATE EXPENSES BEFORE COMING INTO THE SAME CONCLUSION WHICH IS SIMILAR IN NATURE IN RESPECT OF THE ASSESSEE COMPANYS EARLIER YEARS CASE AS ADJUDICATED BY THE 1TAT, KOLKATA BENCH, WITHOUT CON SIDERING THE COMPANYS PLEA THAT REFERENCE APPLICATION AGAINST THE ABOVE / I.T.A.NO.1028/KOL/2009 TIDE WATER OIL CO.,(I) LTD V. ACIT ASSESSMENT YEAR 2003 - 04 2 1TAT DECISION HAS BEEN ADMITTED BY THE HONBLE HIGH COURT AT CALCUTTA AND LYING PENDING FOR FINAL HEARING. (D) THAT THE LEARNED COMMISSIONER OF INCOME TAX (A), CENTRAL - ILL, BE DIRECT ED TO ALLOW THE DEDUCTION UNDER SECTION 801A IN RESPECT OF SILVASSA UNIT OF THE ASSESSEE BEFORE DEDUCTION OF CORPORATE EXPENSES OF RS. 1,49,79,933/ - . 2. THAT YOUR APPELLANT CRAVES LEAVE TO SUPPLEMENT, CANCEL AND/OR OTHERWISE MODIFY ANY OF THE GROUNDS STA TED HEREINABOVE . 2. IN RESPECT OF DELAY, THE ASSESSEE HAS STATED THAT THE AR OF THE ASSESSEE WAS ON LEAVE DUE TO PERSONAL AILMENT AND THEREFORE, THE APPEAL COULD NOT BE FILED BY THE DUE DATE BEFORE THE TRIBUNAL. AT THE TIME OF HEARING, TH E LEARNED DR HAS NOT DISPUTED THE ABOVE CONTENTS OF THE APPLICATION OF THE ASSESSEE. WE FIND A REASONABLE CAUSE FOR DELAY IN FILING THIS APPEAL. IN THE INTEREST OF JUSTICE, WE CONDONE THE DELAY OF 39 DAYS AND ENTERTAIN THE APPEAL ON MERITS. 3. AT THE TIME OF HEARING, THE LEARNED AR OF THE ASSESSEE REQUESTED FOR ADJOURNMENT ON THE GROUND THAT THE ASSESSEE HAS FILED APPEAL BEFORE THE HONBLE HIGH COURT IN RESPECT OF EARLIER AYS AGAINST THE ORDER OF THE TRIBUNAL. HOWEVER, THE LEARNED AR OF THE ASSESSEE SUBMITT ED THAT THERE IS NO STAY IN RESPECT OF THE EARLIER ORDER PASSED BY THE TRIBUNAL IN ASSESSEES CASE. THE LEARNED AR OF THE ASSESSEE HAS NOT DISPUTED THE FACT THAT THE ISSUE INVOLVED IN THIS APPEAL IS IDENTICAL ON SIMILAR FACTS. THE LEARNED DR SUBMITTED THAT THE LEARNED CIT(A) HAS DECIDED THE ISSUE INVOLVED, ON THE BASIS OF THE EARLIER ORDER OF THE TRIBUNAL FOR AYS 1998 - 99 TO 2000 - 01 IN ITA NO.1791 TO 1793/KOL/2007 DT.29.8.2008, COPY PLACED ON RECORD. THE LEARNED DR SUBMITTED THAT THE SAID ORDER OF THE TRIBUN AL (SUPRA) HOLDS GOOD TILL DATE AND THEREFORE, THE ORDER OF THE LEARNED CIT(A) BE CONFIRMED. 4. WE HAVE CONSIDERED THE ORDER OF THE AUTHORITIES BELOW, SUBMISSIONS OF THE LEARNED REPRESENTATIVES OF THE PARTIES AND ALSO THE EARLIER ORDER OF THE TRIBUNAL DT.2 9.8.2008 (SUPRA) IN ASSESSEES OWN CASE. SINCE THE LEARNED AR OF THE ASSESSEE HAS NOT DISPUTED THE FACT THAT THE SAME ISSUE ON IDENTICAL FACTS HAS BEEN DECIDED BY THE TRIBUNAL IN ASSESSEE S OWN CASE ( SUPRA) AND THE LEARNED CIT(A) HAS DECIDED THE APPEAL FOR THE ASSESSMENT YEAR UNDER CONSIDERATION BY FOLLOWING THE EARLIER OF / I.T.A.NO.1028/KOL/2009 TIDE WATER OIL CO.,(I) LTD V. ACIT ASSESSMENT YEAR 2003 - 04 3 THE TRIBUNAL, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LEARNED CIT(A) . HENCE, WE REJECT THE GROUNDS OF APPEAL TAKEN BY THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF T HE ASSESSEE IS DISMISSED. THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT. 08.04.2010 SD/ - SD/ - ( . . ) (C.D. RAO), ACCOUNTANT MEMBER ( . . ), ( B.R.MITTAL ), JUDICIAL MEMBER ( ) DATE 08.04.2 010 - COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT : TIDE WATER OIL CO.,(I) LTD., YULE HOUSE, 8 , DR. RAJENDRA PR ASAD SARANI, KOLKATA 700 001 2 / THE RESPONDENT - ACIT, CIRCLE IV, KOLKATA 3. / THE CIT, 4. ( )/ THE CIT(A), 5. / DR, KOLKATA BENCH 6. GUARD FILE . / TRUE CO PY , / BY ORDER , / DEPUTY REGISTRAR . ( /) H.K.PADHEE / SNR.PRIVATE SECRETARY.