DCIT, Chandigarh V. M/s SED Engineers & Fabricators (P) Ltd., Chandigarh

ITA 1119/CHANDI/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8396 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 03-11-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA NO. 1119/CHD/2016 ASSESSMENT YEAR: 2011-12 THE DCIT, VS M/S SED ENGINEERS & CIRCLE 1(1), FABRICATORS PVT. LTD., CHANDIGARH. PLOT NO. 25, INDL AREA, . PHASE- 2, CHANDIGARH. PAN: AAJCS8554R (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH RESPONDENT BY : SHRI VINEET AGGARWAL DATE OF HEARING : 12.01.2017 DATE OF PRONOUNCEMENT : 12.01.2017 O R D E R THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS)-1 CHANDIGARH DATED 31.08.2016 FOR ASSESSMENT YEAR 2011-2012 CHALLENGIN G THE DELETION OF ADDITION OF RS. 49,73,708/- MADE ON ACCOUNT OF EXCESS EXPENSES CLAIMED UNDER THE HEAD ERECTION & COMMISSIONING. 2. THE ASSESSING OFFICER MADE THE ABOVE ADDITION UNDER SECTION 40(A)(2) OF INCOME TAX ACT CONSIDERIN G THE EXPENSES TO BE EXCESSIVE UNDER THE HEAD ERECTION & 2 COMMISSIONING. THE ASSESSING OFFICER COMPARED THES E EXPENSES WITH THE PRECEDING ASSESSMENT YEARS. THE ASSESSEE CHALLENGED THE ADDITION BEFORE LD. CIT(APP EALS) AND SUBMITTED THAT ADDITION IS WHOLLY UNJUSTIFIED. IT WAS ALSO SUBMITTED THAT ITAT CHANDIGARH BENCH IN ASSESSEE'S OWN CASE FOR ASSESSMENT YEAR 2010-11 IN APPEAL NO. 138/CHD/2015 VIDE ORDER DATED 11.08.2016 DELETED THE IDENTICAL ADDITION. 3. THE LD. CIT(APPEALS) REPRODUCED THE ORDER OF THE TRIBUNAL IN HIS FINDINGS AND CONSIDERING THE IDENTI CAL ISSUE, DELETED THE ENTIRE ADDITION. 4. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY ORDER OF THE ITAT CHANDIGARH BENCH IN THE CASE OF THE ASSESSEE F OR PRECEDING ASSESSMENT YEAR 2010-11 DATED 11.08.2016 (SUPRA) WHEREBY THE TRIBUNAL DELETED THE ADDITION O N IDENTICAL FACTS, COPY OF THE ORDER IS PLACED ON REC ORD. THE LD. DR DID NOT DISPUTE THE ABOVE CONTENTION OF LD. COUNSEL FOR THE ASSESSEE AND STATED THAT ISSUE IS C OVERED BY ABOVE ORDER OF THE TRIBUNAL. 5. IN THIS VIEW OF THE MATTER, I AM OF THE VIEW LD. CIT(APPEALS) CORRECTLY DELETED THE ADDITION BECAUSE ON IDENTICAL FACTS, THE DIVISION BENCH OF ITAT CHANDIG ARH BENCH IN THE CASE OF THE ASSESSEE ITSELF, DELETED T HE ENTIRE ADDITION ON IDENTICAL ISSUE VIDE ORDER DATED 3 11.08.2016. THE DEPARTMENTAL APPEAL HAS NO MERIT, SAME IS ACCORDINGLY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DATED: 12 TH JANUARY,2017. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD