The ACIT, Circle-8, Ahmedabad V. M/s. Zeppelin Mobile Systems India Ltd., Ahmedabad

ITA 1465/AHD/2012

• Counselvise Citation: 146520514 RSA 2012
• Duration Of Justice: 3 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 28-09-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 02-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD .. , ( .) , BEFORE SHRI G.D. AGARWAL,VICE PRESIDENT (AZ) AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ I.T.A. NO.1465/AHD/2012 ( / ASSESSMENT YEAR : 2009-10) THE ACIT CIRCLE-8 AHMEDABAD / VS. M/S.ZEPPELIN MOBILE SYSTEMS INDIA LTD. 7 TH FLOOR ABHIJIT, MITHAKHALI SIX ROAD ELLISBRIDGE,AHMEDABAD-380 006 % & ./ ./ PAN/GIR NO. : AAACZ 0279 K ( %( / APPELLANT ) .. ( )*%( / RESPONDENT ) %( + / APPELLANT BY : SHRI RAKESH JHA, SR.DR )*%( , + / RESPONDENT BY : NONE (WRITTEN SUBMISSIONS) -. , /& / DATE OF HEARING 28/09/2015 0123 , /& / DATE OF PRONOUNCEMENT 29/09/2015 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-XIV, AHMEDAB AD [CIT(A) IN SHORT] DATED 09/04/2012 PERTAINING TO ASSESSMEN T YEAR (AY) 2009-10. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APP EAL:- ITA NO.1465/AHD /2012 ACIT VS. ZEPPELIN MOBILE SYSTEMS INDIA LTD. ASST.YEAR 2009-10 - 2 - 1) THE LD.COMMISSIONER OF INCOME-TAX (APPEALS)-XIV, A HMEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISAL LOWANCE OF RS.18,00,000/- MADE BY THE ASSESSING OFFICER ON ACC OUNT OF PROVISIONS FOR REPLACEMENT & WARRANTY CHARGE U/S.37 OF THE ACT. 2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.COMMISSIONER OF INCOME-TAX (APPEALS)-XIV, AHMEDA BAD OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 3) IT IS THEREFORE, PRAYED THAT THE ORDER OF THE LD.CO MMISSIONER OF INCOME-TAX (APPEALS)-XIV, AHMEDABAD MAY BE SET-A-SI DE AND THAT OF THE ORDER OF THE ASSESSING OFFICER BE RESTORED. 2. BRIEFLY STATED FACTS ARE THAT THE CASE OF THE AS SESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S.143( 3) OF THE INCOME TAX ACT,1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VIDE ORDER DATED 29/04/2011, THEREBY THE ASSESSING OFFICER (AO IN SHORT) DISALLOWED A SUM OF RS.18 LACS CLAIMED AS PROVISION S FOR REPLACEMENT & WARRANTY CHARGES U/S.37 OF THE ACT. AGGRIEVED BY THAT THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD.CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS AND FOLLOWING HIS PREDECESSORS ORDER P ASSED IN AY 2008- 09, DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE. AGGRIEVED BY THE ORDER OF THE LD.CIT(A), THE REVENUE IS NOW IN APPEAL BEFO RE US. 3. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE RESPONDENT- ASSESSEE. HOWEVER, LETTER DATED 25/9/2015 ON BEHAL F OF THE ASSESSEE SHRI BHAVIN MARFATIA, CHARTERED ACCOUNTANT HAS BEEN PLAC ED ON RECORD, WHEREIN A COPY OF THE TRIBUNALS ORDER PASSED IN IT A NO.2724/AHD/2011 FOR AY 2008-09 IN ASSESSEES OWN CASE IS ENCLOSED, BUT NO LETTER OF ITA NO.1465/AHD /2012 ACIT VS. ZEPPELIN MOBILE SYSTEMS INDIA LTD. ASST.YEAR 2009-10 - 3 - AUTHORITY HAS BEEN PLACED BY SHRI BHVIN MARFATIA, C A. UNDER THESE FACTS, WE FIND THAT LETTER DATED 25/09/2015 ON BEHA LF OF THE ASSESSEE SHRI BHAVIN MARFATIA IS WITHOUT ANY PROPER AUTHORIZATION . 4. WE HAVE HEARD THE LD.SR.DR AND GONE THROUGH THE AFORESAID LETTER DATED 25/09/2015 ON BEHALF OF THE ASSESSEE SUBMITTE D BY SHRI BHAVIN MARFATIA, CA. WE FIND THAT THE IDENTICAL ISSUE (BY WAY OF REVENUES APPEAL IN ITA NO.2724/AHD/2011 FOR AY 2008-09) TRAV ELLED UPTO THE STAGE OF ITAT C BENCH, AHMEDABAD AND THE COORDINA TE BENCH VIDE ORDER DATED 13/08/2015 HAD DECIDED THIS ISSUE IN PA RA-11 OF ITS ORDER AS UNDER:- 11. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUS ED THE MATERIAL ON RECORD. THE ISSUE IN THE PRESENT GROUN D IS WITH RESPECT TO ALLOWABILITY OF PROVISIONS FOR WARRANTY. WE FI ND THAT WHILE DELETING THE ADDITION LD.CIT(A) HAS ACCEPTED THE CO NTENTION OF THE ASSESSEE THAT IT WAS HAVING PRESENT OBLIGATION AS A RESULT OF PAST EVENTS RESULTING IN A OUTFLOW OF RESOURCES. LD.CIT (A) HAS FURTHER GIVEN A FINDING THAT THE METHOD OF ACCOUNTING FOLLO WED BY THE ASSESSEE IN RESPECT OF WARRANTY PROVISIONS IS CONSI STENT AND IS BASED ON DEFINITE SCIENTIFIC METHOD AND THAT THE PR OVISION OF WARRANTY MADE BY THE ASSESSEE WAS NOT A CONTINGENT LIABILITY. BEFORE US, REVENUE COULD NOT CONTROVERT THE FINDING OF LD.CIT(A) AND WE THEREFORE FIND NO REASON TO INTERFERE WITH T HE ORDER OF LD.CIT(A) AND THUS THE GROUND OF REVENUE IS DISMISS ED. 4.1. THE FACTS OF THE PRESENT CASE ARE IDENTICAL TO THE FACTS AS WERE RAISED IN AY 2008-09. SINCE THE REVENUE HAS NOT PO INTED OUT ANY ITA NO.1465/AHD /2012 ACIT VS. ZEPPELIN MOBILE SYSTEMS INDIA LTD. ASST.YEAR 2009-10 - 4 - CHANGE INTO THE FACTS, THEREFORE TAKING A CONSISTEN T VIEW, WE DO NOT SEE ANY REASON TO INTERFERE WITH THE ORDER OF THE LD.CI T(A), SAME IS HEREBY UPHELD. THUS, GROUND NO.1 OF REVENUES APPEAL IS REJECTED. 5. GROUND NOS.2 & 3 ARE GENERAL IN NATURE WHICH REQ UIRE NO INDEPENDENT ADJUDICATION. 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON TUESDAY, THE 29 TH DAY OF SEPTEMBER, 2015 AT AHMEDABAD. SD/- SD/- ( .. ) ( ) ( . ) ( G.D. AGARWAL ) ( KUL BHARAT ) VICE PRESIDENT (AZ) JUDICIAL MEMBER AHMEDABAD; DATED 29/ 09 /2015 6/..-, .-../ T.C. NAIR, SR. PS !'#$%&' &$ / COPY OF THE ORDER FORWARDED TO : 1. %( / THE APPELLANT 2. )*%( / THE RESPONDENT. 3. 789 : / CONCERNED CIT 4. : ( ) / THE CIT(A)-XIV, AHMEDABAD 5. ;< )-89 , / 893 , 7 / DR, ITAT, AHMEDABAD 6. <= >. / GUARD FILE. ! / BY ORDER, *; ) //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD ITA NO.1465/AHD /2012 ACIT VS. ZEPPELIN MOBILE SYSTEMS INDIA LTD. ASST.YEAR 2009-10 - 5 - 1. DATE OF DICTATION ..28.9.15 (DICTATION-PAD 3+ PAGES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ..29.9.15 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S.29.9.15 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 29.9.15 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER