ACIT, CHENNAI V. M/s. Vibromech Engineers & Services Pvt. Ltd., CHENNAI

ITA 1432/CHNY/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 52026 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 11-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M ANAN DAKUMAR
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER ITA NO.1432(MDS)/2011 & CO NO.163(MDS)/2011 ASSESSMENT YEAR: 2007-08 THE ASSISTANT COMMISSIONER OF INCOME-TAX, CO.CIRCLE III(4), CHENNAI. VS. M/S. VIBROMECH ENGINEERS & SERVICES PVT. LTD., 115-INDUSTRIAL ESTATE, PERUNGUDI, THURAIPAKKAM, CHENNAI-600 096. PAN AAACV2011P. (APPELLANT) ( RESPONDENT/CROSS OBJECTOR) APPELLANT BY : SHRI A. C.JOSEPH, IRS, JOINT COMMISSIONER OF INCOME-TAX RESPONDENT BY : SHRI M.ANAN DAKUMAR, FCA. DATE OF HEARING : 17 TH NOVEMBER, 2011 DATE OF PRONOUNCEMENT : 17 TH NOVEMBER, 2011 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THIS APPEAL IS FILED BY THE REVENUE AND THE CROSS OBJECTION IS FILED BY THE ASSESSEE. THE RELEVANT A SSESSMENT YEAR IS 2007-08. THE APPEAL AND THE CROSS OBJECTIO N ARE - - ITA1432 & CO163 OF 2011 2 DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME- TAX(APPEALS)-III AT CHENNAI DATED 25-5-2011 AND ARI SE OUT OF THE ASSESSMENT COMPLETED UNDER SECTION 143(3) OF THE IN COME-TAX ACT, 1961. 2. THE GRIEVANCE OF THE REVENUE IS THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS ERRED IN RE STRICTING THE DISALLOWANCE OF EXPORT TURNOVER TO THE EXTENT O F ` 81,70,787/- WITHOUT GIVING THE ASSESSING AUTHORITY AN OPPORTUNI TY TO EXAMINE THE SAME. THE MAIN GRIEVANCE OF THE REVENUE IS ON VIOLATION OF RULE 46A OF THE INCOME-TAX RULES, 1962. 3. WHILE THE ASSESSEE CLAIMED DEDUCTION UNDER SECTION 10A, EVIDENCES SUPPORTING THE REALIZATION O F FOREIGN EXCHANGE WERE NOT AVAILABLE WITH THE ASSESSEE, AS T HE NECESSARY CERTIFICATES WERE NOT ISSUED AT THAT POIN T OF TIME BY THE BANKS IN MUMBAI. IN THE COURSE OF FIRST APPEAL, TH E ASSESSEE COULD PRODUCE BANK CERTIFICATES TO SUPPORT REALIZAT ION OF TWO SETS OF AMOUNTS. THE COMMISSIONER OF INCOME-TAX(APPEALS ) ASKED FOR A REMAND REPORT FROM THE ASSESSING AUTHORITY RE GARDING THE DEDUCTION IN THE LIGHT OF THE CERTIFICATES PRODUCED BY THE ASSESSEE. IN THE REMAND REPORT THE ASSESSING AUTHO RITY - - ITA1432 & CO163 OF 2011 3 SUGGESTED THAT IN THE LIGHT OF THE EVIDENCES PRODUC ED BY THE ASSESSEE, THE SAID TWO SETS OF AMOUNTS BE CONSIDERE D FOR DEDUCTION. THEREAFTER THE ASSESSEE ALSO COULD PROD UCE BANK CERTIFICATES BEFORE THE COMMISSIONER OF INCOME-TAX( APPEALS) IN RESPECT OF FOREIGN EXCHANGE REALIZATION OF ` 90,44,648/-. IN THE LIGHT OF THE EVIDENCE, THE COMMISSIONER OF INCOME-T AX(APPEALS) ALLOWED THE SAID AMOUNT ALSO. IT IS BECAUSE OF THE ALLOWANCE OF THE ABOVE STATED THIRD AMOUNT THAT THE REVENUE IS A GGRIEVED THAT THE DISALLOWANCE HAS BEEN REDUCED BY THE COMMISSION ER OF INCOME-TAX(APPEALS). 4. THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS ACCEPTED THE CONTENTION OF THE ASSESSEE IN RESPECT OF THE AMOUNT OF ` 90,44,648/- ON THE BASIS OF THE BANK CERTIFICATES PRODUCED BY THE ASSESSEE. SIMILAR BANK CERTIFICATE S WERE PRODUCED BY THE ASSESSEE IN RESPECT OF THE OTHER AM OUNTS, WHICH WERE ACCEPTED BY THE DEPARTMENT. IT IS TO BE FURTHER SEEN THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS DI RECTED THE ASSESSING OFFICER TO VERIFY THE CERTIFICATES PRODUC ED BY THE ASSESSEE AND THEREAFTER TO GIVE CREDIT TO THE EXPOR T TURNOVER. WE - - ITA1432 & CO163 OF 2011 4 DO NOT FIND ANY VIOLATION OF RULE 46A IN THIS MATTE R. THIS APPEAL FILED BY THE REVENUE IS LIABLE TO BE DISMISSED. 5. AS THE APPEAL FILED BY THE REVENUE IS DISMISSED , THE SUPPORTING CROSS OBJECTION FILED BY THE ASSESSE E ALSO STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON THURSDAY, THE 17 TH OF NOVEMBER, 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 17 TH NOVEMBER, 2011. V.A.P. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.