ACIT CC 35, MUMBAI V. DIMPLE DRUMS & BARRELS P.LTD, MUMBAI

ITA 1128/MUM/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4046 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2016
• Appeal Filed By: Department
• Bench Allotted: D
• Next Hearing Date: 08-12-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 20-02-2014
• Court: TRIBUNAL
• Department Lawyers: KUSUM BANSAL SR
• Assessee Lawyers: BEHARILAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER I.T.A. NO.1128/M/2014 (ASSESSMENT YEAR: 2010 - 2011 ) ACIT - CC 35, R.NO.104, 1 ST FLOOR, AAYAKAR BHAVAN, MUMBAI 400 020. / VS. DIMPLE DRUMS & BARRELS P. LTD., 1 ST FLOOR, SITA NIWAS, DR. CHARAT SINGH COLONY, ANDHERI KURLA ROAD, ANDHERI (E), MUMBAI 400 093. ./ PAN : AAACD4604L ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : MS. KUSUM BANSAL, SR. AR / RESPONDENT BY : SHRI BEHARILAL / DATE OF HEARING : 05.04.2016 / DATE OF PRONOUNCEMENT : 20 .04.2016 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE REVENUE ON 20.2.2014 IS AGAINST THE ORDER OF THE CIT (A) - 41, MUMBAI DATED 29.11.2013 FOR THE ASSESSMENT YEAR 2010 - 2011. IN THIS APPEAL, REVENUE RAISED THE FOLLOWING EFFECTIVE GROUND WHICH READS AS UNDER: - ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD CIT (A) ERRED IN DELETING THE ADDITION MADE U/S 145A OF THE ACT ON ACCOUNT OF UNUTILISED MODVAT CREDITS, DISREGARDING THE AMENDMENT OF SECTION 145A OF THE ACT WITH EFFECT FROM 1.4.1999 ACCORDING TO WHICH ANY TAX, DUTY ETC PAID OR INCURRED BY ASSESSEE HAS TO BE INCLUDED IN THE INVENTORIES. 2. AT THE OUTSET, LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE RAISED IN THE ABOVE GROUND RELATES TO THE APPLICATION OF PROVISIONS OF SECTION 145A OF THE ACT IN MATTERS RELATING TO ADJUSTMENTS QUA THE UNUTILISED MODVAT CREDIT. IN THIS REGARD, LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT SIMILAR ISSUE CAME UP FOR ADJUDICATION IN THE A SSESSEES OWN CASE FOR THE AYS 2003 - 2004 TO 2005 - 2006 AND 2009 - 2010 IN ITA NOS.5437 TO 5439/MUM/2011 AND ITA NOS. 6469 TO 6472/MUM/2011 DATED 13.5.2015. HE ALSO MENTIONED THAT SIMILAR ISSUE WAS ADJUDICATED BY THE ITAT IN ASSESSEES OWN CASE FOR THE AY 2002 - 2003 IN ITA NO.4270/M/2005 (AY 2002 - 2003), DATED 28.2.2008 VIDE PARA 6 OF ITS ORDER AND THE REVENUES GROUND WAS DISMISSED. FOR THE SAKE OF COMPLETENESS OF THIS ORDER, THE SAID PARA 6 FROM THE TRIBUNALS ORDER DATED 28.2.2008 IS EXTRACTED AS UNDER: - 6. WE HAVE CONSIDERED THE SUBMISSIONS MADE BY BOTH SIDES, MATERIAL ON RECORD AND ORDERS OF AUTHORITIES BELOW. IT IS NOTICED FROM THE PERUSAL OF RECORDS THAT ASSESSEE IS MAINTAINING ITS BOOKS OF ACCOUNT ON EXCLUSIVE METHOD OF ACCOUNTING AND, THEREFORE, AD JUSTMENTS ARE TO BE MADE AS PER THE PROVISIONS OF SECTION 145A OF THE ACT, IN RESPECT OF INVENTORIES (BOTH CLOSING AND OPENING), PURCHASE AND SALES AND NOT ONLY TO THE CLOSING STOCK. THEREFORE, IT WOULD BE HAVING NO IMPACT ON THE PROFITS OF THE YEAR UNDER CONSIDERATION BECAUSE THE SAME AMOUNT WOULD BE ADDED TO THE CLOSING STOCK AND TO THE PURCHASE / OPENING STOCK AS THE CASE MAY BE. ALTHOUGH THIS SHOULD BE DONE IN VIEW OF THE SPECIFIC PROVISIONS OF SECTION 145A, HOWEVER, TO AVOID THE MULTIPLICITY OF PROCE EDINGS HAVING NO IMPACT ON THE ULTIMATE PROFIT SHOWN BY THE ASSESSEE, WE DISMISS THIS GROUND OF THE REVENUE. 3. CONSIDERING THE ABOVE SETTLED NATURE OF THE ISSUE, WE ARE OF THE OPINION, THE DECISION TAKEN BY THE CIT (A) IS FAIR AND REASONABLE AND IT DOES NOT CALL FOR ANY INTERFERENCE. ACCORDINGLY, GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOU NCED IN THE OPEN COURT ON 20 TH APRIL, 2016. SD/ - SD/ - ( RAM LAL NEGI ) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 20.7 .2016 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI