AT & S India Private Limited, Karnataka V. Addl C.I.T Range - 11,kolkata, Kolkata

ITA 1335/KOL/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5021 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2016
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 03-03-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 17-05-2013
• Court: TRIBUNAL
• Department Lawyers: RAJENDRA PRASAD
• Assessee Lawyers: SOUMITRA CHOW DHURY
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA [BEFORE SHRI MAHAVIR SINGH, JM & SHRI M. BALAGANES H, AM] I.T.A NO.1335/KOL/2013 ASSESSMENT YEAR: 2008-09 AT&S INDIA PVT. LTD. VS. ASSISTANT COMMISSIONER OF INCOME-TAX, (PAN: AAECA2930J) RANGE-11, KOLKATA. ( APPELLANT ) ( RESPONDENT ) DATE OF HEARING: 03.03.2016 DATE OF PRONOUNCEMENT: 09.03.2016 FOR THE APPELLANT: SHRI SOUMITRA CHOWDHURY, ADVOC ATE FOR THE RESPONDENT: SHRI RAJENDRA PRASAD, JCIT ORDER PER SHRI MAHAVIR SINGH, JM: THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A)-XII, KOLKATA VIDE APPEAL NO. 526/CIT(A)-XII/11/11-12 DATED 05.02.2013. ASSES SMENT WAS FRAMED BY ADDL. CIT, RANGE-11, KOLKATA U/S. 143(3) OF THE INCOME TAX ACT , 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2008-09 VIDE HIS ORDER DA TED 30.12.2011. 2. THE ONLY ISSUE IN THIS APPEAL OF REVENUE IS AGA INST THE ORDER OF CIT(A) CONFIRMING THE DISALLOWANCE MADE BY AO ON ACCOUNT OF REVERSAL OF P ROVISION FOR SLOW MOVING STORES AMOUNTING TO RS.31,82,801/-. 3. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE IS EN GAGED IN THE BUSINESS OF MANUFACTURING PROFESSIONAL GRADE PRINTED CIRCUIT BOARDS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO NOTICED THAT THE ASSESSEE IN ITS COMPUTATION OF INCOME CLAIMED TOTAL DEDUCTION OF RS.78,80,232/- ON ACCOUNT OF PROVISION FOR SLOW MOV ING STORES. THE ASSESSEE BEFORE AO EXPLAINED THAT THE PROVISION WAS TREATED AS INCOME FOR EARLIER YEAR BUT THE AO WAS NOT CONVINCED AND ON EXAMINATION OF COMPUTATION OF TOTA L INCOME FOR AY 2007-08 NOTED THAT THE PROVISION FOR STORES ADDED TO THE TOTAL INCOME WAS RS.46,97,431/- AND ACCORDINGLY, HE ADDED THE EXCESS CLAIM OF DEDUCTION TO THE TUNE OF RS.31,82,801/- TO THE RETURNED INCOME OF THE ASSESSEE. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A) WHO ALSO CONFIRMED THE ACTION OF AO. AGGRIEVED, NOW ASSESSEE IS IN SECOND APPEAL BEFORE TRIBUNAL. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE ASSESSEE HAS CLAIMED DEDUCT ION TOWARDS REVERSAL OF PROVISION OF SLOW 2 ITA NO.1335/KOL/2013 AT&S INDIA PVT. LTD., AY 2008- 09 MOVING STORES AMOUNTING TO RS.78,80,232/- DURING TH E PREVIOUS YEAR 2007-08 RELEVANT TO THIS ASSESSMENT YEAR 2008-09. THE ASSESSEE CLAIMED THAT IT HAD ADDED BACK THE PROVISIONS OF SLOW MOVING STORES AS TAXABLE INCOME OF THE PREVIOU S YEARS IN WHICH PROVISION IS CREATED AND THE PROVISION FOR SLOW MOVING STORES TAXED BY A DDING BACK TO THE TAXABLE INCOME IN EARLIER YEARS. WHEN THESE PROVISIONS WERE CREATED AND THE SAME HAS BEEN CLAIMED AS DEDUCTION ON REVERSAL OF SUCH PROVISION FOR ARRIVIN G AT TAXABLE INCOME IN THE RESPECTIVE YEARS, THE ASSESSEE FILED COMPLETE DETAILS IN RESPE CT TO DISALLOWANCE OF THESE ITEMS IN AY 2006-07 AND 2007-08 AND CORRESPONDING CLAIM OF AMOU NT REVERSED FROM AY 2008-09 WHICH IS AS UNDER: ASSESSMENT YEAR AMOUNT DISALLOWED WHILE COMPUTING TAXABLE INCOME AMOUNT CLAIMED WHILE COMPUTING TAXABLE INCOME AY 2006-07 AY 2007-08 AY 2008-09 TOTAL 13,931,535 4,697,431 NIL 18,628,966 NIL NIL (-) 7,880,232 (-) 7,880,232 WE FIND THAT THE ASSESSEE HAS RIGHTLY REVERSE THE P ROVISION FOR SLOW MOVING STORES TO THE EXTENT OF RS.78,80,232/- AND ADDED BACK THIS PROVIS ION IN AY 2007-08 AND 2006-07 WHICH IS CLEARLY EVIDENT FROM THE ABOVE TABLE AND CLAIMED THE SAME WHILE COMPUTING TAXABLE INCOME FOR THE RELEVANT ASSESSMENT YEAR. LD. COUNS EL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE 18 OF ASSESSEES PAPER BOOK IN RESPECT TO PROV ISIONS FOR STORE FOR AY 2007-08 AND 2006-07. ACCORDING TO LD. COUNSEL, THESE DETAILS W ERE PRODUCED BEFORE THE AO AND FOR THIS A LETTER WAS WRITTEN TO HIM ON 19.12.2011 WHICH IS ENCLOSED IN ASSESSEES PAPER BOOK AT PAGES 14 TO 16 AND THE RELEVANT REPLY VIDE PARA 4 A T PAGE 15 IS GIVEN GIVING THE DETAILS WHICH ARE NARRATED ABVE. IN VIEW OF THESE FACTS, WE FIND NO INFIRMITY IN THE CLAIM OF THE ASSESSEE AND ACCORDINGLY, THE SAME IS ALLOWED. THE APPEAL O F ASSESSEE IS ALLOWED. 5. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 09.03.2016 SD/- SD/- (M. BALAGANESH) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 9TH MARCH , 2016 JD. SR. P.S 3 ITA NO.1335/KOL/2013 AT&S INDIA PVT. LTD., AY 2008- 09 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT AT&S INDIA PVT. LTD., 12A, INDUSTRIAL A REA, NANJANGUD, MYSORE, KARNATAKA-571301 2. RESPONDENT ACIT, RANGE-11, KOLKATA. 3. CIT(A) , KOLKATA 4. CIT , KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .