Appeal details
Counselvise Citation
109820114 RSA 2013
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 year(s) 6 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
04-03-2015
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
G
Next Hearing Date
26-02-2015
Assessment Year
2008-2009
Appeal Filed On
26-02-2013
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH G GG G : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI T.S. KAPOOR T.S. KAPOOR T.S. KAPOOR T.S. KAPOOR, , , , ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 1098/DEL/2013 1098/DEL/2013 1098/DEL/2013 1098/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2008 2008 2008 2008 - -- - 09 0909 09 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -7(1), 7(1), 7(1), 7(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S SALORA INTERNATIONAL LIMITED, M/S SALORA INTERNATIONAL LIMITED, M/S SALORA INTERNATIONAL LIMITED, M/S SALORA INTERNATIONAL LIMITED, D DD D- -- -13/04, OKHLA INDUSTRIAL AREA, 13/04, OKHLA INDUSTRIAL AREA, 13/04, OKHLA INDUSTRIAL AREA, 13/04, OKHLA INDUSTRIAL AREA, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 020. 110 020. 110 020. 110 020. PAN : AAACS3041G. PAN : AAACS3041G. PAN : AAACS3041G. PAN : AAACS3041G. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B.R.R. KUMAR, SR.DR. RESPONDENT BY : SHRI P.N. MEHTA, CA. DATE OF HEARING : 26.02.2015 26.02.2015 26.02.2015 26.02.2015 DATE OF PRONOUNCEMENT : 04.03.2015 04.03.2015 04.03.2015 04.03.2015 ORDER ORDER ORDER ORDER PER G.C. GUPTA PER G.C. GUPTA PER G.C. GUPTA PER G.C. GUPTA, VP , VP , VP , VP : :: : THIS APPEAL BY THE REVENUE FOR THE AY 2008-09 IS D IRECTED AGAINST THE ORDER OF LEARNED CIT(A)-X, NEW DELHI DA TED 17 TH DECEMBER, 2012. 2. THE ONLY GROUND OF APPEAL OF THE REVENUE IS AS U NDER:- THE LD.CIT(A) ERRED ON THE FACTS AND IN LAW IN DEL ETING THE ADDITION OF RS.27,49,000/- MADE BY AO UNDER SECTION 36(1)(II) OF THE ACT. 3. LEARNED DR HAS RELIED ON THE ORDER OF THE ASSESS ING OFFICER. ITA-1098/DEL/2013 2 4. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE OF ADDITION UNDER SECTION 36(1)(II) OF THE INCOME-TAX ACT, 1961 IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE EARLIER ASSESSMENT YEAR 2006-07 IN ITA NO.4164/DEL/2009 DATED 23.12.2010 WHEREIN THE DIREC TORS COMMISSION WAS ALLOWED BY THE TRIBUNAL. THE DEPARTMENTAL APPE AL TO THE HON'BLE DELHI HIGH COURT WAS DISMISSED IN INCOME TAX APPEAL NO.966/2011 VIDE ORDER DATED 22.02.2012. HE SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF HON'BLE DELHI HIGH COURT IN AMD METPLAST P.LTD. VS. DCIT [2012] 341 ITR 563 AN D CIT VS. CAREER LAUNCHER INDIA LTD. [2012] 207 ITR 28, WHEREIN COM MISSION/BONUS PAID TO WORKING DIRECTORS FOR SERVICES RENDERED HAS BEEN ALLOWED AS A DEDUCTION. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE ORDER OF THE ASSESSING OFFICER AND THE CIT(A). WE FIND T HAT THE ISSUE OF ADDITION UNDER SECTION 36(1)(II) OF THE ACT ON ACCO UNT OF COMMISSION PAID TO THE DIRECTORS IS COVERED IN FAVOUR OF THE A SSESSEE WITH THE DECISION OF DELHI TRIBUNAL IN ASSESSEES OWN CASE F OR THE EARLIER ASSESSMENT YEAR 2006-07 DATED 23.12.2010 (SUPRA) AN D THE ORDER OF HON'BLE DELHI HIGH COURT DISMISSING THE REVENUES A PPEAL AGAINST THE ORDER OF THE TRIBUNAL VIDE THEIR ORDER DATED 22.02. 2012 (SUPRA). THE ISSUE OF ALLOWABILITY OF COMMISSION PAID TO THE WOR KING DIRECTORS IS ALSO COVERED WITH THE DECISIONS OF HON'BLE DELHI HIGH CO URT CITED BY THE LEARNED CIT(A) IN HIS APPELLATE ORDER. THE ISSUE B EING COVERED IN FAVOUR OF THE ASSESSEE AND, WE BEING IN AGREEMENT W ITH THE DECISION OF THE COORDINATE BENCH OF THE DELHI TRIBUNAL IN ASSES SEES OWN CASE FOR THE EARLIER AY 2006-07 DATED 23.12.2010 (SUPRA), DE CIDE THE ISSUE IN ITA-1098/DEL/2013 3 FAVOUR OF THE ASSESSEE AND CONFIRM THE ORDER OF LEA RNED CIT(A) ON THIS ISSUE. THE GROUND OF APPEAL OF THE REVENUE IS DISM ISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 4 TH MARCH, 2015. SD/- SD/- ( (( ( T.S. KAP T.S. KAP T.S. KAP T.S. KAP OOR OOR OOR OOR ) )) ) (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : DEPUTY COMMISSIONER OF INCOME TA X, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -7(1), NEW DELHI. 7(1), NEW DELHI. 7(1), NEW DELHI. 7(1), NEW DELHI. 2. RESPONDENT : M/S SALORA INTERNATIONAL LIMITED, M/S SALORA INTERNATIONAL LIMITED, M/S SALORA INTERNATIONAL LIMITED, M/S SALORA INTERNATIONAL LIMITED, D DD D- -- -13/04, OKHLA INDUSTRIAL AREA, 13/04, OKHLA INDUSTRIAL AREA, 13/04, OKHLA INDUSTRIAL AREA, 13/04, OKHLA INDUSTRIAL AREA, NEW D NEW D NEW D NEW DELHI ELHI ELHI ELHI 110 020. 110 020. 110 020. 110 020. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR
