ACIT, Alwar V. ASHIANA ISPAT LIMITED, Alwar

ITA 13/JPR/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5105 (ITAT-JAIPUR)
• Duration Of Justice: 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 01-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAGHUVIR SINGH DAGUR
• Assessee Lawyers: PK MISHRA C AS DHK

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS [KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO.13 & 14/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2010-11 & 2012-13. THE ACIT, CIRCLE-2, ALWAR. CUKE VS. M/S. ASHIANA ISPAT LIMITED, A-1116, RIICO INDUSTRIAL AREA, PHASE-III, BHIWADI, ALWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AACCA 8749 B VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAGHUVIR SINGH DAGUR (ADDL. CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI NIRAJ JAIN & SHRI PK MISHRA (C.AS) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 29.07.2016. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 29/07/2016. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAIN ST THE TWO SEPARATE ORDERS OF LD. CIT (APPEALS)-4, JAIPUR DATED 27.10.2 015 PERTAINING TO ASSESSMENT YEAR 2011-12 & 2012-13. THE REVENUE HAS RAISED THE FOLLO WING GROUND OF APPEAL :- ITA NO. 13/JP/2016 : AY 2011-12 : THAT THE LD. CIT (A) HAS ERRED ON THE FACTS & CIRC UMSTANCES OF THE CASE IN DELETING THE ADDITION OF RS. 1,37,59,464/- MADE ON ACCOUNT OF DISALLOWANCE OF COMMISSION PAYMENT MADE TO THE BROKERS. ITA NO. 14/JP/2016 : A.Y. 2012-13 : THAT THE LD. CIT (A) HAS ERRED ON THE FACTS & CIRC UMSTANCES OF THE CASE IN DELETING THE ADDITION OF RS. 1,05,51,090/- MADE ON ACCOUNT OF DISALLOWANCE OF COMMISSION PAYMENT MADE TO THE BROKERS. 2 ITA NOS. 13 & 14/JP/2016 M/S. ASHIANA ISPAT LTD. SINCE COMMON GROUND HAS BEEN TAKEN IN BOTH THE APPE ALS, THEREFORE, BOTH THESE APPEALS ARE BEING DISPOSED OFF TOGETHER, FOR THE SA KE OF CONVENIENCE. 2. BRIEFLY STATED THE FACTS ARE THAT THE ASSESSEE F ILED ITS RETURN DECLARING TOTAL INCOME OF RS. 3,65,01,658/- FOR THE ASSESSMENT YEAR 2011-12 ON 21.09.2011. WHILE FRAMING THE ASSESSMENT, THE ASSESSEE WAS ASKED TO F ILE LEDGER ACCOUNTS OF ALL THE PERSONS TO WHOM COMMISSION/BROKERAGE WAS PAID, DETA ILS OF SERVICES RENDERED FOR VERIFICATION. DESPITE OPPORTUNITIES, THE ASSESSEE H AS FAILED TO FURNISH THE REQUIRED DETAILS. THE AO NOTED THAT THE PAYMENT OF COMMISSIO N WAS IN ROUND FIGURE AND THE EXPENSES WERE BOOKED ON THE LAST DATE OF THE FINANC IAL YEAR I.E. 30.03.2010. ON BEING ASKED TO FURNISH THE CONFIRMATIONS FROM THE P URCHASERS, THE ASSESSEE HAS FAILED TO DO. THEREFORE, IN ABSENCE OF VERIFICATION OF THE ACCOUNTS, THE AO ASSESSED THE TOTAL INCOME OF THE ASSESSEE AT RS. 5,02,61,120 /- BY MAKING DISALLOWANCES OF COMMISSION PAID TO THE BROKERS TO THE TUNE OF RS. 1 ,37,59,464/-. THE ASSESSEE BEING AGGRIEVED, PREFERRED APPEAL BEFORE LD. CIT (A ), WHO HAS ALLOWED THE APPEAL OF THE ASSESSEE BY PLACING RELIANCE ON THE ORDER OF IT AT IN ASSESSEES OWN CASE DATED 19.12.2014. 3. BEING AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 3.1. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSE E SUBMITTED THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE D ECISION OF THE COORDINATE BENCH OF ITAT JAIPUR IN THE ASSESSEES OWN CASE IN ITA NO . 535/JP/2015 DATED 30.10.2015. HE SUBMITTED THAT THE AO HAS BEEN MIS-GUIDED HIMSEL F WHILE DECIDING THE ISSUE AND RECORDED WRONG FACTS. HE, THEREFORE, REQUESTED THAT THE ORDER OF LD. CIT (A) BE UPHELD. 3 ITA NOS. 13 & 14/JP/2016 M/S. ASHIANA ISPAT LTD. 3.2. ON THE CONTRARY, THE LD. D/R VEHEMENTLY ARGUED THAT ON THE REQUEST OF THE AO THE ASSESSEE HAS NOT FILED THE REQUISITE DETAILS. THE ASSESSEE HAS BOOKED THE EXPENSES AT THE FAG END OF THE FINANCIAL YEAR. THE ASSESSEE HAS NOT GIVEN ANY EXPLANATION IN THIS REGARD. HE, THEREFORE, URGED TH AT THE ORDER OF LD. CIT (A) BE SET ASIDE AND THAT OF THE AO BE RESTORED. 3.3. TO COUNTER, THE LD. A/R SUBMITTED THAT THE ASS ESSEE HAS PROVIDED ALL THE DETAILS IN RESPECT OF COMMISSION PAYMENT TO BROKERS , BILLS RAISED ETC. THE PAYMENTS WERE MADE THROUGH PROPER BANKING CHANNELS AFTER DED UCTING THE TDS DULY VERIFIED FROM LEDGER ACCOUNT AND CONFIRMATIONS OF BROKERS. 3.4. WE HAVE HEARD RIVAL CONTENTIONS, PERUSED THE M ATERIAL AVAILABLE ON RECORD AND GONE THROUGH ORDERS OF THE AUTHORITIES BELOW. T HE FACTS OF THE CASE ARE IDENTICAL TO A.Y. 2010-11. THE ASSESSEE HAD FILED THE COPY O F AGREEMENT, CONFIRMATIONS AND IT IS A FACT THAT THE ASSESSEE HAD DEDUCTED TDS, THE R ECIPIENT HAD PAN NUMBERS AND ASSESSEE HAS ESTABLISHED THAT THEY HAVE RENDERED SE RVICES TO PROVIDE THE CUSTOMER FOR SELLING THE TMT BAR & M.S. INGOTS. THE LD. CIT (A) ALLOWED THE CLAIM OF THE ASSESSEE BY PLACING RELIANCE ON THE ORDER OF THE TR IBUNAL IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEARS 2003-04 TO 2009-10. WE FIN D SUPPORT FROM THE ORDER OF THE HONBLE COORDINATE BENCH OF ITAT JAIPUR IN ITA NO. 535/JP/2015 DATED 30.10.2015 WHEREIN THE HONBLE COORDINATE BENCH BY FOLLOWING T HE EARLIER ORDER OF THE TRIBUNAL IN ITA NO. 191/JP/2014 & 472 TO 477/JP/2012 FOR THE A.Y. 2003-04 TO 2009-10 ALLOWED THE APPEAL OF THE ASSESSEE. THEREFORE, RES PECTFULLY FOLLOWING THE COORDINATE BENCH DECISION IN ASSESSEES OWN CASE ON IDENTICAL FACTS AND CIRCUMSTANCES, WE UPHOLD THE ORDER OF LD. CIT (A). ACCORDINGLY, REVEN UES APPEALS ARE DISMISSED. 4 ITA NOS. 13 & 14/JP/2016 M/S. ASHIANA ISPAT LTD. IN THE APPEAL IN ITA NO. 14/JP/2016 THE ISSUE INVOL VED AND FACTS AND CIRCUMSTANCES ARE SAME, THEREFORE, DECISION ARRIVED IN ITA NO. 13 /JP/2016 IS BEING APPLIED THEREBY DISMISSING THE APPEAL OF THE REVENUE. 4. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 29/07/201 6. SD/- SD/- FOE FLAG ;KNO ( DQY HKKJR ) (VIKRAM SINGH YADAV) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 29/07/2016. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ACIT, CIRCLE-2, ALWAR. 2. THE RESPONDENT-M/S. ASHIANA ISPAT LTD., ALWAR. 3. THE CIT, 4. THE CIT (A) 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 13 & 14/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 5 ITA NOS. 13 & 14/JP/2016 M/S. ASHIANA ISPAT LTD.