FOURESS ENGG (I) LTD, MUMBAI V. DCIT RG 5(1), MUMBAI

ITA 1310/MUM/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 8407 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 23-12-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 17-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: L K AGARWAL
• Keywords: Revised return

Judgement Text

I.T.A NO.1310/ MUM/2010 FOURESS ENGG(I) LTD 1 IN THE INCOME TAX APPELLATE TRIBUNAL, F BENCH, MUMBAI. [ CORAM: D.K. AGARWAL, JM AND PRAMOD KUMAR, AM ] I.T.A NO.1310/ MUM/2010 ASSESSMENT YEAR: 2006-07 FOURESS ENGG(I) LTD., .. APPELLANT 22, BHULABHAI DESAI ROAD, MAHALXMI CHAMBER, MUMBAI-26. PA NO.AAACF 5897 K VS DCIT 5(1) ,. RESPONDEN T AAYAKAR BHAVAN, M.K. ROAD, MUMBAI. APPEARANCES: PARAS S.SAVLA, FOR THE APPELLANT L.K.AGARWAL, FOR THE RESPONDENT O R D E R PER PRAMOD KUMAR: 1. BY WAY OF THIS APPEAL, THE ASSESSEE HAS CALLED INTO QUESTION CORRECTNESS OF CIT(A)S ORDER DATED 16TH DECEMBER, 2009, IN THE M ATTER OF ASSESSMENT UNDER SECTION 115WE(3) OF THE INCOME TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2006-07 ON THE FOLLOWING GROUNDS: 1. LD CIT (A) ERRED IN NOT ACCEPTING THE CLAM OF A PPELLANT TO TAKE VALUE OF FRINGE BENEFITS AT S.90,71,315 INSTEAD OF ` .92,19,471. APPELLANT PRAYS TO TAKE VALUE OF FRINGE BENEFITS AT ` .90,71,315 AS PER DETAILS SUBMITTED. I.T.A NO.1310/ MUM/2010 FOURESS ENGG(I) LTD 3 5. WE FIND THAT ONLY REASON OF LD CIT (A) DECLINING TO ADJUDICATE THE MATTER ON MERITS IS ON ACCOUNT OF RELIANCE OF THE HONBLE SUP REME COURTS JUDGEMENT IN THE CASE OF GOETZ INDIA PRIVATE LIMITED, 284 ITR 323 (S C), WHEREIN, IT HAS BEEN OBSERVED THAT A CLAIM FOR A DEDUCTION MADE IN THE RETURN CAN NOT BE ENTERTAINED BY THE AO OTHERWISE THAN FILING A REVISED RETURN. THERE IS N O DISPUTE ABOUT THE FUNDAMENTAL POSITION THAT THE DECISION IN THE CASE OF GOETZ IND IA PRIVATE LIMITED (SUPRA) IS BINDING BY THE TRIBUNAL AS HAS BEEN SPECIFICALLY NO TED IN THE SAID JUDGEMENT BY THE HONBLE SUPREME COURT. WE, THEREFORE, SET ASIDE THE ORDER OF THE CIT (A) AND REMIT THE MATTER TO THE FILE OF THE AO TO EXAMINE THE MAT TER ON MERITS AND ASSESS THE VALUE OF FRINGE BENEFIT TAX IN ACCORDANCE WITH LAW. THE FACT THAT THE ASSESSEE HIMSELF HAS COMMITTED THE ERRORS IN COMPUTATION OF FRINGE BENEF IT VALUATION, WHICH SHOULD NOT BE USED AGAINST THE ASSESSEE. 6. IN THE RESULT, THE APPEAL STANDS ALLOWED FOR STA TISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 23 RD FEBRUARY, 2011 SD/- (D.K.AGARWAL ) (JUDICIAL MEMBER) SD/- (PRAMOD KUMAR) (ACCOUNTANT MEMBER) MUMBAI, DATED 23 RD FEBRUARY, 2011 PARIDA COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS),9, MUMBAI 4. COMMISSIONER OF INCOME TAX, 5, MUMBAI 5. DEPARTMENTAL REPRESENTATIVE, BENCH F, MUMBAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI