ACIT, CHENNAI V. Tractors and Farm Equipments Ltd., CHENNAI

ITA 1365/CHNY/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9702 (ITAT-CHENNAI)
• Duration Of Justice: 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 29-03-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 03-06-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AJIT KUMAR VARMA
• Assessee Lawyers: R VIJAYARAGHAVAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , . !'# ! , % !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.1365/MDS/2015 ( )( / ASSESSMENT YEAR : 2007-08 THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE -3(1), CHENNAI - 600 034. V. M/S TRACTORS AND FARM EQUIPMENTS LTD ., NO.35, UTHAMAR GANDHI SALAI, NUNGAMBAKKAM, CHENNAI - 600 034 PAN : AAACT 2761 Q (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : SH. AJIT KUMAR VARMA, CIT -.+, / 0 / RESPONDENT BY : SH. R. VIJAYARAGHAVAN, ADVOCAT E 1 / 2% / DATE OF HEARING : 29.03.2016 3') / 2% / DATE OF PRONOUNCEMENT : 07.04.2016 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) 11, CHEN NAI, DATED 10.02.2015 AND PERTAINS TO ASSESSMENT YEAR 2007-08. 2. SHRI AJIT KUMAR VARMA, THE LD. DEPARTMENTAL REPR ESENTATIVE, SUBMITTED THAT THE ONLY ISSUE ARISES FOR CONSIDERAT ION IS WITH REGARD 2 I.T.A. NO.1365MDS/15 TO DISALLOWANCE UNDER SECTION 40(A)(I) OF THE INCOM E-TAX ACT, 1961 (IN SHORT 'THE ACT') IN RESPECT OF THE COMMISSION P AID TO NON-RESIDENT SELLING AGENTS, REIMBURSEMENT OF EXPENDITURE TO TAF E INC, USA. THE CIT(APPEALS), BY FOLLOWING HIS OWN ORDER FOR TH E ASSESSMENT YEAR 2006-07, ALLOWED THE CLAIM OF THE ASSESSEE. WH EN THE REVENUE FILED AN APPEAL AGAINST THE ORDER OF THE CI T(APPEALS) FOR THE ASSESSMENT YEAR 2006-07 IN I.T.A. NO.815/MDS/20 12, THIS TRIBUNAL BY AN ORDER DATED 30.09.2013, REMITTED BAC K THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR RECONSIDERATI ON. SINCE FACTS ARE IDENTICAL, ACCORDING TO THE LD. D.R., THIS ISSUE AR ISEN FOR THE ASSESSMENT YEAR UNDER CONSIDERATION MAY ALSO BE REM ITTED BACK TO THE FILE OF THE ASSESSING OFFICER. 3. WE HAVE HEARD SH. R. VIJAYARAGHAVAN, THE LD.COUN SEL FOR THE ASSESSEE ALSO. ACCORDING TO THE LD. COUNSEL, T HE ISSUE IS IDENTICAL WITH THAT OF ASSESSMENT YEAR 2006-07. SI NCE THE TRIBUNAL HAS ALREADY REMITTED BACK THE ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR THE ASSESSMENT YEAR 2006-07, THE LD.COU NSEL SUBMITTED THAT HE HAS NO OBJECTION IN REMITTING BACK THE ISSU E TO THE FILE OF THE ASSESSING OFFICER FOR THE YEAR UNDER CONSIDERATION ALSO. 3 I.T.A. NO.1365MDS/15 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REGARD TO DISALLOW ANCE MADE BY THE ASSESSING OFFICER UNDER SECTION 40(A)(I) OF THE ACT IN RESPECT OF THE COMMISSION PAID TO THE NON-RESIDENT SELLING AGENTS AND REIMBURSEMENT OF EXPENDITURE. THE CIT(APPEALS) SIM PLY FOLLOWED HIS OWN ORDER FOR THE ASSESSMENT YEAR 2006-07 IN TH E ASSESSEE'S OWN CASE AND ALLOWED THE CLAIM OF THE ASSESSEE. WH EN THE REVENUE CHALLENGED THE ORDER OF THE CIT(APPEALS) FO R THE ASSESSMENT YEAR 2006-07, BEFORE THIS TRIBUNAL IN I. T.A. NO. 815/MDS/2012, THIS TRIBUNAL BY AN ORDER DATED 30.09 .2013, SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES AND REMIT TED BACK THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR REC ONSIDERATION. SINCE, ADMITTEDLY, FACTS ARE IDENTICAL, THIS TRIBUNAL IS O F THE CONSIDERED OPINION THAT THE ISSUE OF DISALLOWANCE UNDER SECTIO N 40(A)(I) OF THE ACT MADE BY THE ASSESSING OFFICER FOR THE YEAR UNDE R CONSIDERATION ALSO NEEDS TO BE REMITTED BACK TO THE FILE OF THE A SSESSING OFFICER FOR RECONSIDERATION IN THE LIGHT OF THE OBSERVATION MADE BY THIS TRIBUNAL FOR THE ASSESSMENT YEAR 2006-07. ACCORDIN GLY, WE SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND THE E NTIRE ISSUE RAISED BEFORE THIS TRIBUNAL IS REMITTED BACK TO THE FILE O F THE ASSESSING 4 I.T.A. NO.1365MDS/15 OFFICER FOR RECONSIDERATION AFRESH IN THE LIGHT OF THE OBSERVATION MADE BY THIS TRIBUNAL FOR THE ASSESSMENT YEAR 2006- 07 AND THEREAFTER DECIDE THE SAME IN ACCORDANCE WITH LAW A FTER GIVING REASONABLE OPPORTUNITY TO THE ASSESSEE. 5. IN THE RESULT, APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 7 TH APRIL, 2016 AT CHENNAI. SD/- SD/- (. !'# ! ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 7 TH APRIL, 2016. KRI. / -267 87)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 92 () /CIT(A)-11, CHENNAI-34 4. 1 92 /CIT, CHENNAI-3, CHENNAI 5. 7: -2 /DR 6. ;( < /GF.