DCIT, Mohali V. M/s Cheema Boilers Limited, Mohali

ITA 1083/CHANDI/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 51656 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 29-12-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 16-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N K SAINI
• Assessee Lawyers: YOGESH MONGA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B, CHANDIGARH BEFORE SHRI H.L.KARWA, HONBLE VICE PRESIDENT AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO.1083/CHD/2010 (ASSESSMENT YEAR : 2007-08) THE D.C.I.T., VS. CHEEMA BOILERS LIMITED, CIRCLE 6(1), SCO 523-24, MOHALI. SECTOR 70, MOHALI. PAN: AABCC4031B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI N.K.SAINI, DR RESPONDENT BY : SHRI YOGESH MONGA DATE OF HEARING : 29.12.2011 DATE OF PRONOUNCEMENT : 29.12.2011 O R D E R PER H.L.KARWA, V.P. : THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT (APPEALS), CHANDIGARH DATED 31.05.2010 RELATING TO ASSESSMENT YEAR 2007-08. 2. IN THIS APPEAL, THE REVENUE HAS RAISED THE FOLLO WING GROUNDS OF APPEAL : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW, THE LD.CIT(A) HAS ERRED IN ALLOWING APPEAL OF THE ASSESSEE WITHOUT APPRECIATING THE FAC TS OF THE CASE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD.CIT(A) HAS ERRED IN ALLOWING THE EXCLUSIVE METHOD OF ACCOUNTING ADOPTED BY THE ASSESSEE CONTRARY TO THE PROVISION OF SECTION 145A WHICH PROHIBITS THE SAME. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD.CIT(A) HAS ERRED IN CONSIDERING THE SPECIFIC PROVISION OF SECTION 145A INSERTED WIT H EFFECT FROM 01/04/1999 CAN BE IGNORED WHILE VALUING THE PURCHASE AND SALE OF GOODS AND INVENTORY FOR TH E PURPOSE OF DETERMINING THE INCOME CHARGEABLE UNDER 2 THE HEAD PROFIT AND GAIN OF BUSINESS OR PROFESSION. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE ALS O PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE ISS UE INVOLVED IN THIS CASE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE D ECISION OF THE TRIBUNAL IN THE CASE OF THE ASSESSEE ITSELF (ITA NO.1013/CHA NDI/2008) VIDE ORDER DATED 29.4.2009. WHILE DECIDING THE SIMILAR ISSUE, THE TRIBUNAL HELD AS UNDER : 2. THE ONLY ISSUE IN THIS APPEAL RAISED BY THE REV ENUE RELATES TO AN ADDITION OF RS.1,55,13,949/- MADE BY THE ASSESSING OFFICER BY REFERRING TO THE PROVISION S OF SECTION 145A OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). THE COMMISSIONER OF INCOME TAX (APPEALS) HAS DELETED THE ADDITION FOLLOWING THE JUDGEMENT OF THE HON'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF NAHAR SPINNING MILLS LTD. IN ITA NO.503 OF 2007 DATED 25.2.2008, AS STATED IN TH E IMPUGNED ORDER. 3. THE RIVAL PARTIES HAVE BEEN HEARD. THE STAND OF THE REVENUE IS SIMILAR TO THE REASONING MADE OUT BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDER, WHEREAS THE RESPONDENT ASSESSEE HAS DEFENDED THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) BY REFERRING TO THE RELIANCE PALED BY THE COMMISSIONER OF INCOME TAX (APPEALS) ON THE JUDGEMENT OF THE HON'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF NAHAR SPINNING MILLS LTD. (SUPRA). 4. AFTER CONSIDERING THE RIVAL STANDS FOR THE REASO N THAT THE COMMISSIONER OF INCOME TAX (APPEALS) HAS FOLLOWED THE ORDER OF THE HON'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF NAHAR SPINNING MILLS LTD. , WE FIND NO REASONS TO INTERFERE. THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) IS HEREBY AFFIRMED. 5. RESULTANTLY, THE APPEAL OF THE REVENUE IS DISMISSED. 4. THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CAS E OF NAHAR SPINNING MILLS LTD. (SUPRA) IN ITA NO.503 OF 2007, DATED 25.2.2008 HAS DISCUSSED/REPRODUCED THE DECISION OF THE TRIBUNAL I N THE CASE OF ACIT VS. M/S NAHAR SPINNING MILLS (ITA NO.750/CHANDI/200 2) AND HAS ALSO 3 CONSIDERED THE DECISION OF HON'BLE APEX COURT IN TH E CASE OF CIT VS. INDO NIPPON CHEMICALS CO. LTD. (261 ITR 275) (SC). SINCE NO CONTRARY DECISION WAS BROUGHT TO OUR NOTICE BY THE LD. D.R., THEREFORE, WE DO NOT SEE ANY INFIRMITY IN THE IMPUGNED ORDER. THE SAME IS UPHELD. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 29 TH DAY OF DECEMBER, 2011. SD/ SD/- (MEHAR SINGH) (H.L.KARWA) ACCOUNTANT MEMBER VICE PRESIDENT DATED 29 TH DECEMBER, 2011 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH