DCIT, CHENNAI V. Metropolitan Transport Corporation (Chennai) Ltd., CHENNAI

ITA 1169/CHNY/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4528 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2013
• Appeal Filed By: Department
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 27-05-2013
• Court: TRIBUNAL
• Department Lawyers: GURU BHASHYAM
• Assessee Lawyers: K SANTHANAKRISHNAN
• Section: 143(3); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI [BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT & SHRI VIKAS AWASTHY, JUDICIAL MEMBER] I.T.A. NO. 1169/MDS/2013 ASSESSMENT YEAR : 2005-06 DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE IV(2)(I/C), AAYAKAR BHAVAN, MAIN BUILDING, IV FLOOR, 121, M.G. ROAD, NUNGAMBAKKAM, CHENNAI 600 034. VS M/S. METROPOLITAN TRANSPORT CORPORATION (CHENNAI) LTD., PALLAVAN HOUSE, ANNA SALAI, CHENNAI 600 002. [PAN: AAACP 1935 C] (APPELLANT) (RE SPONDENT) REVENUE BY : SHRI GURU BHASHYAM, JCIT ASSESSEE BY : SHRI K. SANTHANAKRISHNAN, C.A., DATE OF HEARING : 07-08-2013 DATE OF PRONOUNCEMENT : 07-08-2013 O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER THE APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-V, CHEN NAI DATED 25-02-2013 RELEVANT TO THE ASSESSMENT YEAR (AY) 200 5-06. I.T.A. NO. 1169/MDS/2013 2 2. THE ASSESSEE HAD FILED ITS RETURN OF INCOME FOR THE AY. 2005- 06 ON 28-10-2005 DECLARING LOSS OF ` 3,18,38,169/-. THE ASSESSMENT IN THE CASE OF THE ASSESSEE WAS COMPLETE D U/S. 143(3) OF THE INCOME TAX ACT, 1961 (HEREIN AFTER RE FERRED TO AS THE ACT) ON 27-12-2007 DETERMINING THE INCOME OF THE ASSESSEE AS NIL. RE-ASSESSMENT PROCEEDINGS WERE INITIATED AG AINST THE ASSESSEE AND NOTICE U/S. 148 OF THE ACT WAS ISSUED TO THE ASSESSEE ON 15-07-2009. THE ASSESSMENT WAS RE-OPEN ED INTER- ALIA ON THE GROUND THAT INSURANCE FUND AND NO FAULT LIABILITY AMOUNTING TO ` 1,70,44,851/- REMAINED UNPAID. THE ASSESSEE HAD CLAIMED ` 13,49,71,788/- TOWARDS INSURANCE FUND AND NO FAULT LIABILITY. AGAINST THE SAID AMOUNT, THE ASSESSEE H AD PAID ` 11,79,26,937/-. THE ASSESSING OFFICER WAS OF THE V IEW THAT THE REMAINING AMOUNT OF ` 1,70,44,851/- IS TO BE DIS-ALLOWED AS THE SAME WAS PAID DURING THE YEAR. AGGRIEVED AGAINST THE ASSESSMENT ORDER, THE ASSESS EE PREFERRED AN APPEAL BEFORE THE CIT(APPEALS). THE C IT(APPEALS) FOLLOWING THE DECISION OF THE TRIBUNAL IN THE CASE OF M/S. CHOLAN ROADWAYS CORPORATION LTD., KUMBAKONAM ALLOWED THIS GROUND OF APPEAL OF THE ASSESSEE FOR STATISTICAL PURPOSES. T HE CIT(APPEALS) DIRECTED THE ASSESSING OFFICER TO ALLOW THE CLAIM O F THE ASSESSEE I.T.A. NO. 1169/MDS/2013 3 AFTER VERIFICATION OF THE FACTS RELATING TO THE NUM BER OF FATAL OR OTHER ACCIDENTS HAVING TAKEN PLACE DURING THE YEAR AND TH E PROVISION OF LIABILITY HAVING BEEN MADE BASED ON THE SAME. AGGR IEVED AGAINST THE ORDER OF THE CIT(APPEALS), THE REVENUE HAS COME IN APPEAL BEFORE US. 3. AT THE OUTSET, SHRI SANTHANAKRISHNAN, APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT THE CASE OF THE ASSESSE E IS SQUARELY COVERED BY THE ORDER OF THE CO-ORDINATE BENCH OF TH E TRIBUNAL IN ASSESSEES OWN CASE IN ITA NOS. 661 TO 666/MDS/2012 RELATING TO THE AYS. 2000-01, 2001-02, 2002-03, 2004-05, 2006- 07 & 2007- 08. THE LD. AR PLACED ON RECORD THE COPY OF THE OR DER OF THE TRIBUNAL DATED 17-09-2012 IN THE AFORESAID APPEALS. THE LD. DR FAIRLY CONSIDERED THAT THE ISSUE IS COVERED IN FAVO UR OF THE ASSESSEE BY THE ORDER OF THE CO-ORDINATE BENCH OF T HE TRIBUNAL. WE FIND THAT THE ISSUE IN HAND IS IDENTICAL TO THE ONE ALREADY DECIDED BY THE TRIBUNAL IN ASSESSEES OWN CASE IN T HE ABOVE MENTIONED APPEALS. THE RELEVANT EXTRACT OF THE ORD ER OF THE TRIBUNAL DATED 17-09-2012 IS RE-PRODUCED HEREIN BEL OW: I.T.A. NO. 1169/MDS/2013 4 6. WE HAVE HEARD BOTH THE SIDES, PERUSED THE RECOR DS AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. S ECTION 140 OF THE MOTOR VEHICLES ACT READS AS FOLLOWS : 140. LIABILITY TO PAY COMPENSATION IN CERTAIN CASE S ON THE PRINCIPLE OF NO FAULT .- (1) WHERE DEATH OR PER MANENT DISABLEMENT OF ANY PERSON HAS RESULTED FROM AN ACCIDENT ARISING OUT OF THE USE OF A MOTOR VEHICLE OR MOTOR VEHICLES, THE OWNER OF THE VEHICLES SHALL, OR AS THE CASE MAY BE, THE OWNERS OF THE VEHICLES SHALL, JOIN TLY AND SEVERALLY, BE LIABLE TO PAY COMPENSATION IN RES PECT OF SUCH DEATH OR DISABLEMENT IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION. (2) THE AMOUNT OF COMPENSATION WHICH SHALL BE PAYAB LE UNDER SUB-SECTION (1) IN RESPECT OF THE DEATH OF AN Y PERSON SHALL BE A FIXED SUM OF FIFTY THOUSAND RUPEE S AND THE AMOUNT OF COMPENSATION PAYABLE UNDER THAT SUB- SECTION IN RESPECT OF THE PERMANENT DISABLEMENT OF ANY PERSON SHALL BE A FIXED SUM OF TWENTY FIVE THOUSAND RUPEES. 7. WE FIND THAT AS PER THE ABOVE PROVISIONS OF THE MOTOR VEHICLES ACT, THE ASSESSEE HAS AN ASCERTAINED LIABI LITY AND ACCORDINGLY PROVISION WAS MADE. THEREFORE, WE FIND NO INFIRMITY IN THE ORDER PASSED BY THE LEARNED CIT(AP PEALS). ACCORDINGLY, WE CONFIRM HIS ORDER FOR ALL THE ASSES SMENT YEARS UNDER APPEAL. THE GROUND RAISED BY THE REVENUE IN A LL THE APPEALS IS THEREFORE DISMISSED. I.T.A. NO. 1169/MDS/2013 5 4. IN VIEW OF THE ABOVE, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE FINDINGS OF THE CIT(APPEALS) AND DISMISS, THE APPEAL OF THE REVENUE. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON WEDNESDAY, THE 7 TH AUGUST, 2013 AT CHENNAI. SD/- SD/- (DR. O.K. NARAYANAN) (VI KAS AWASTHY) VICE PRESIDENT JUDICIAL MEMBER DATED: 7 TH AUGUST, 2013 TNMM COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR