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

ITA 1192/CHANDI/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7416 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 08-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAI SHREE SHARMA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B CHANDIGARH BEFORE SHRI H.L.KARWA, VICE PRESIDENT AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO. 1192/CHD/2011 ASSESSMENT YEAR: 2008-09 DCIT, C-6(1), V M/S CHEEMA BOILERS LTD., MOHALI. SCO 523-24, SECTOR 70, MOHALI. PAN: AABCC-4031B (APPELLANT) (RESPONDENT) DEPARTMENT BY: SMT. JAISHREE SHARMA ASSESSEE BY : SHRI AJAY JAIN DATE OF HEARING : 25.01.2012 DATE OF PRONOUNCEMENT : 25.01.2012 ORDER PER H.L.KARWA, VP THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF CIT(A), CHANDIGARH DATED 3.9.2011 RELATING TO ASSESSMENT YEAR 2008-09. 2. GROUND NOS. 1 TO 3 OF THE APPEAL READ AS UNDER : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) HAS ERRED IN ALLOWING APPEAL OF THE ASSESSEE WITHOUT APPRECIATING THE FACTS 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 EXCL USIVE METHOD OF ACCOUNTING ADOPTED BY THE ASSESSEE CONTRARY TO THE PROVISION OF SECTION 145A WHICH PROHIBITS THE SAME. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD. CIT(A) HAS ERRED IN CONSIDERING THE SPECIFI C 2 PROVISION OF SECTION 145A INSERTED W.E.F. 01.04.199 9 CAN BE IGNORED WHILE VALUING THE PURCHASE AND SALE OF GOODS AND INVENTORY FOR THE PURPOSE OF DETERMINING THE INCOME CHARGEABLE UNDER THE HEAD PROFIT AND GAIN O F BUSINESS OR PROFESSION. 3. AT THE VERY OUTSET SHRI AJAY JAIN, LD. COUNSEL F OR THE ASSESSEE POINTED OUT THAT THE ISSUE IS SQUARELY COV ERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE BY T HE DECISION OF THIS BENCH DATED 29.12.2011 IN ASSESSEES OWN CA SE IN ITA NO. 1083/CHD/2010 RELATING TO ASSESSMENT YEAR 2007- 08. HE, THEREFORE, SUBMITTED THAT ORDER DATED 29.12.2011 (S UPRA) MAY BE FOLLOWED IN THIS CASE. THE RELEVANT PART OF THE SAID ORDER IS REPRODUCED HEREUNDER : 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE AL SO PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE ISSUE INVOLVED IN THIS CASE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE TRIBUNAL IN THE CASE OF THE ASSESSEE ITSELF (ITA NO.1013/CHANDI/2008) VIDE ORDER DATED 29.4.200 9. WHILE DECIDING THE SIMILAR ISSUE, THE TRIBUNAL HELD AS UN DER : 2. THE ONLY ISSUE IN THIS APPEAL RAISED BY THE REVENUE RELATES TO AN ADDITION OF RS.1,55,13,949/- MADE BY THE ASSESSING OFFICER BY REFERRING TO THE PROVISIONS 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 THE 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 3 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 IN THE CASE OF ACIT VS. M/S NAHAR SPINNING MILLS (ITA NO.750/CHANDI/2002) AND HAS ALSO CONSIDERED THE DEC ISION OF HON'BLE APEX COURT IN THE CASE OF CIT VS. INDO NIPP ON CHEMICALS CO. LTD. (261 ITR 275) (SC). SINCE NO CO NTRARY 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. 4. RESPECTFULLY FOLLOWING THE ORDER OF THE TRIBUNAL ORDER (SUPRA), WE DISMISS THE APPEAL OF THE REVENUE. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH JAN.,2012. SD/- SD/- (MEHAR SINGH) (H.L.KA RWA) ACCOUNTANT MEMBER VICE PRESIDENT DATED: 25 TH JAN.,2012. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT CHANDIGARH