ACIT, Kota V. INSTRUMENTATION LIMITED, Kota

ITA 12/JPR/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5423 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 05-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS NEENA JEPH
• Assessee Lawyers: P C PARWAL CA DHK
• Section: 43B

Judgement Text

ITA NO. 12/JP/2015 THE ACIT, CIR CLE- 1, KOTA VS. M/S. INSTRUMENTATION LIMITED, KOTA 1 VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE:SHRI R.P.TOLANI, JM & SHRI VIKRAM SINGH YADA V, AM VK;DJ VIHY LA-@ ITA NO. 12/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 THE ACIT CIRCLE- 1 KOTA CUKE VS. M/S. INSTRUMENTATION LIMITED JHALWAR ROAD KOTA LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AAACL 4212 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : MRS. NEENA JEPH, JCIT -DR FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL, CA LQUOKBZ DH RKJH[K@ DATE OF HEARING : 18/12/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 16 /02/2016 VKNS'K@ ORDER PER R.P. TOLANI, JM:- THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A), KOTA DATED 29-10-2014 FOR THE ASSESSMENT YEAR 2009 -10 WHEREIN FOLLOWING GROUNDS HAVE BEEN RAISED BY THE REVENUE. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LD. CIT(A) HAS ERRED:- (I) DELETING THE ADDITION OF RS. 1,62,21,162/- MADE BY THE AO ON ACCOUNT OF DISALLOWANCE OF PROVISION FOR CONTRACTUAL OBLIGATION. ITA NO. 12/JP/2015 THE ACIT, CIR CLE- 1, KOTA VS. M/S. INSTRUMENTATION LIMITED, KOTA 2 (II) DELETING THE DISALLOWANCE OF RS. 11,15,32,836/ - MADE BY THE AO U/S 43B OF THE ACT. 2.1 AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT BOTH THE ABOVE ISSUES ARE COVERED IN FAVOUR BY ITAT ORDERS I N ASSESSEE'S OWN CASE. THE ISSUE ABOUT PROVISION OF CONTRACTUAL OBLIGATION , THE ITAT COORDINATE BENCH VIDE ITS ORDER DATED 5-08-2011 IN C.O. NO. 6 0/JP/2011 OUT OF ITA NO. 331/JP/2011 HAS DECIDED THE IN FAVOUR OF THE A SSESSEE BY OBSERVING AS UNDER:- 6.1 THE SECOND GROUND OF THE C.O. OF THE ASSESSE E IS THAT THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 1,05,87,365/- MADE BY THE AO ON ACCOUNT OF DISALLOWANCE OF PROVI SION FOR CONTRACTUAL OBLIGATION. 6.2 THE LD. CIT(A) HAS CONFIRMED THE DISALLOWANCE F OR THE REASON THAT IN EARLIER YEARS THE DEPARTMENT HAS FIL ED THE APPEAL BEFORE HON'BLE HIGH COURT. 6.3 AFTER HEARING BOTH THE PARTIES, WE FEEL THAT TH IS ISSUE STANDS DECIDED BY THE TRIBUNAL IN THE CASE OF THE A SSESSEE FOR THE EARLIER ASSESSMENT YEAR I.E. 1988-89 AND 1989-90. T HE ISSUE MAY BE PENDING BEFORE HON'BLE JURISDICTIONAL HIGH COURT AN D THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT WILL BE BINDING F OR BOTH THE PARTIES. THEREFORE, FOLLOWING THE ORDER OF THE TRIBUNAL IN T HE CASE OF THE ASSESSEE FOR EARLIER YEARS, WE HOLD THAT THE LD. CI T(A) WAS NOT JUSTIFIED IN CONFIRMING THE DISALLOWANCE OF RS.1,05,87,365/-. 2.2 APROPOS GROUND NO. 2 ABOUT THE ISSUE OF PAYMEN T OF EMPLOYEES CONTRIBUTION TO PROVIDENT FUND U/S 43B OF THE ACT, THE PAYMENT IN QUESTION IS MADE BEFORE FILING OF THE RETURN. THE LD. CIT(A) HAS ALLOWED THE CLAIM OF ITA NO. 12/JP/2015 THE ACIT, CIR CLE- 1, KOTA VS. M/S. INSTRUMENTATION LIMITED, KOTA 3 THE ASSESSEE FOLLOWING THE EARLIER ORDER OF ITAT. T HE OBSERVATION OF ITAT TO THIS EFFECT VIDE ITS ORDER DATED 28-11-2014 IN ITA NO. 542 & 543/JP/2012 (A.Y. 2006-07) IS AS UNDER:- 17. NOW THE REVENUE IS IN APPEALS AND THE ASSESSEE IS IN C.O BEFORE US. THE LEARNED DR SUPPORTED THE ORDE R OF THE ASSESSING OFFICER AND THE LEARNED AR FOR THE ASSESS EE ARGUED THAT THIS IDENTICAL ISSUE HAS BEEN COVERED BY THE ITAT B BE NCH, JAIPUR DECISION IN THE ASSESSEES OWN CASE IN ITA NO. 331/ JP/2011 A.Y. 2003-04 ORDER DATED 05/8/2011 WHEREIN IDENTICAL ISS UE HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE AND THE ASSESSEE HAS PAID THESE CONTRIBUTIONS BEFORE DUE DATE OF RETURN, THEREFORE, IT IS ALLOWABLE. HE RELIED UPON THE FOLLOWING CASE LAWS:- (I) CIT VS. STATE BANK OF BIKANER AND JAIPUR (2014 ) 363 ITR 70 (RAJ) (HC). (II) CIT VS. JAIPUR VIDYUT VITRAN NIGAM LTD. (2014 ) 363 ITR 307 (RAJ) (HC). (III) CIT VS. UDAIPUR DUGDH UTPADAK SAHAKARI SANGH LTD. (2014) 98 DTR 109 (RAJ.) (HC). 18. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PAR TIES AND PERUSED THE MATERIAL ON RECORD. BOTH THE PAYMEN TS ARE COVERED BY THE HONBLE JURISDICTIONAL HIGH COURTS DECISION IN VARIOUS CASES AS MENTIONED BY THE LEARNED A.R.. THEREFORE, WE ALLOW THE ASSESSEES APPEAL IN BOTH THE YEARS. ACCORDINGLY, REVENUES AP PEAL IN A.Y. 2005- 06 IS DISMISSED ON GROUND NO. IV AND ASSESSEES C.O . GROUND NO. 1 AND 2 IN A.Y. 2005-06, GROUND NO. 1 IN A.Y. 2006-07 ARE ALLOWED IN FAVOUR OF THE ASSESSEE. 2.3 THE LD. DR RELIED ON THE ORDER OF THE AO. ITA NO. 12/JP/2015 THE ACIT, CIR CLE- 1, KOTA VS. M/S. INSTRUMENTATION LIMITED, KOTA 4 2.4 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT EMERGES FROM THE RECORDS TH AT THE COORDINATE BENCH IN ITA NO. 331/JP/2011 DATED 5-08-2011 AND ITA NOS. 542 & 543 DATED 28- 11-2014 HAS DECIDED BOTH THE ISSUES IN FAVOUR OF THE ASSESSEE. RESPECTFULLY FOLLOWING THE DECISION OF COORDINATE BENCH (SUPRA), BOTH THE ISSUES ARE ALLOWED IN FAVOUR OF THE ASSESSEE AND THE APPEAL OF THE REVENUE IS DISMISSED. 3.0 IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 / 02/2016. SD/- SD/- FOE FLAG ;KNO VKJ-IH-RKSYKUH (VIKRAM SINGH YADAV) (R.P.TOLANI) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 16 /02/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT, CIRCLE- 1 KOTA 2. IZR;FKHZ@ THE RESPONDENT-M/S. INSTRUMENTATION LIMITED, KOTA 3. VK;DJ VK;QDRVIHY ) @ CIT(A) 4. VK;DJ VK;QDR@ CIT 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.12/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR