DCIT, Hyderabad V. Sri Krishna Pharmaceuticals Ltd, Hyderabad

ITA 1227/HYD/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53663 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 01-03-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 17-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANJALA SAHU
• Assessee Lawyers: C N PRASAD

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B ', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.1227/HYD/10 : A SSTT. YEAR 2003-04 DY. COMMISSIONER OF INCOME - TAX, CIRCLE 3(3), HYDERABAD V/S. SHRI KRISHNA PHARMACEUTICALS LTD., HYDERABAD ( PAN - AADCS 4053 P) (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. ANJALA SAHU RESPONDENT BY : S HRI C.N.PRASAD DATE OF HEARING 14.9.2011 DATE OF PRONOUNCEMENT 14.10.2011 O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEA R 2003-04 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME-TAX(APPEALS). 2. GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDER- 1. THE CIT(A) ERRED ON FACTS AND IN LAW. 2. THE CIT(A) ERRED IN NOT ALLOWING THE DISALLOWANC E MADE OF RS.4,13,434/- IN RESPECT OF GRATUITY PAYMENT AS THE FUND WAS NOT RECOGNIZED BY COMMISSIONER OF INCOME-TAX. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITT ED THAT THE CIT(A) HAS ERRED IN NOT SUSTAINING THE DISALLOWANCE MADE IN RESPECT OF GRATUITY PAYMENT, AS THE FUND WAS NOT RECOGNIZED BY THE COMMISSIONER OF INCOME-TAX. SHE RELIED ON THE ORDER OF THE ASSESSI NG OFFICER. ITA NO.1227/HYD/10 SHRI KRISHNA PHARMACEUTICALS LTD., HYDERABAD 2 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE INVOLVED IN THE GROUNDS OF APPEAL OF THE REVENUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISIONS OF THE TRIBUNAL IN ASSE SSEES OWN CASES FOR ASSESSMENT YEAR 2007-08 IN ITA NO.713/HYD/2010 DATE D 29 TH OCTOBER, 2010 AND ALSO FOR ASSESSMENT YEAR 2006-07 IN ITA NO.666/ HYD/2009 DATED 8 TH NOVEMBER, 2010. . 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE F IND THAT THE ISSUE INVOLVED IN THE GROUNDS OF APPEAL OF THE REVE NUE RELATING TO DISALLOWANCE IN RESPECT OF GRATUITY PAYMENT, WHERE THE FUND WAS NOT RECOGNISED BY THE COMMISSIONER OF INCOME-TAX IS C OVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISIONS OF THE TRIBUNAL, CITED SUPRA, IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEARS 2006-07 AND 2007-08. WE FIND THAT THE CIT(A) HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSES SEE BY FOLLOWING THE RATIO LAID DOWN BY THE HYDERABAD BENCH OF THE TRIBUNAL A S WELL AS THE HONBLE JURISDICTIONAL HIGH COURT. ACCORDINGLY, THERE WAS NO MISTAKE IN THE ORDER OF THE CIT(A) IN DELETING THE ADDITION MADE IN RESPEC T OF GRATUITY PAYMENT. IN THE CIRCUMSTANCES, THEREFORE, THE ORDER OF THE CIT( A) IS CONFIRMED AND THE GROUNDS OF APPEAL OF THE REVENUE ARE REJECTED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE COURT ON 14.10.2011 SD/- SD/- ( AKBER BASHA ) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 14.10.2011 ITA NO.1227/HYD/10 SHRI KRISHNA PHARMACEUTICALS LTD., HYDERABAD 3 COPY FORWARDED TO: 1. SHRI KRISHNA PHARMACEUTICALS LTD., C - 4, INDUSTRIAL AREA, UPPAL, HYDERABAD 2. DY. INCOME TAX OFFICER, CIRCLE 3(2), HYDERABAD 3. COMMISSIONER OF INCOME - TAX(APPEALS) IV HYDERABAD 4. COMMISSIONER OF INCOME TAX III, HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S.