The ACIT, Circle-5, RAJKOT-GUJARAT V. M/s Decolight Ceramics Ltd., Morbi

ITA 147/RJT/2011

• Counselvise Citation: 14724914 RSA 2011
• Duration Of Justice: 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 09-06-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 19-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LD BHARTI
• Assessee Lawyers: J C RANPURA
• Keywords: Revised return
• Section: 115JB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH SMC, RAJKOT BEFORE SHRI A.L. GEHLOT (AM) I.T.A. NO.147/RJT/2011 (ASSESSMENT YEAR 2005-06) THE ACIT, CIR.5 VS M/S DECOLIGHT CERAMICS LTD RAJKOT OLD GHUNTU ROAD, MORBI PAN :AABCD0687Q (APPELLANT) (RESPONDENT) C.O. NO. 44/RJT/2011 (ARISING OUT OF I.T.A. NO.147/RJT/2011) (ASSESSMENT YEAR 2005-06) M/S DECOLOGHT CERAMICS LTD VS THE ACIT, CIR.5 MORBI RAJKOT (CROSS OBJECTOR) (RESPONDENT) REVENUE BY : SHRI LD BHARTI ASSESSEE BY : SHRI JC RANPURA O R D E R THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-XXI, AHMEDABAD DATED 28-01-2011 FOR THE ASSESSMENT YEAR 2005-06. THE CROSS OBJECTION IS FILED BY THE ASSESSEE. 2. THE GROUND RAISED IN THE REVENUES APPEAL IS THA T THE CIT(A) HAS ERRED IN DIRECTING THE ASSESSING OFFICER TO ALLOW ASSESSEES CLAIM FOR DEFERRED TAX LIABILITY OF RS. 92,55,496 AGAINST THE NET PROFIT OF RS.58,76 ,285 WHILE WORKING OUT TAX U/S 115JB OF THE ACT. 3. THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND SELLING OF CERAMIC, VITRIFIED TILES. DURING THE AS SESSMENT PROCEEDINGS THE ASSESSEE, VIDE LETTER DATED 03-12-2007 HAS SUBMITTE D BEFORE THE ASSESSING OFFICER THAT WHILE CALCULATING PROFIT FOR THE YEAR UNDER CONSIDERATION AN AMOUNT OF RS.92,55,496 BEING DIFFERED TAX LIABILITY HAS NOT B EEN CONSIDERED TO ARRIVE AT THE ITA NO.147/RJT/2011 CO 44/RJT/2011 2 BOOK PROFIT. THE ASSESSING OFFICER DID NOT ACCEPT THE ASSESSEES CLAIM FOLLOWING THE JUDGMENT OF THE SUPREME COURT IN THE CASE OF GO ETZE INDIA LTD 284 ITR 323 (SC) THAT A FRESH CLAIM BEFORE THE ASSESSING OFFICE R CAN BE MADE ONLY BY FILING REVISED RETURN OR NOT OTHERWISE. THE CIT(A) DIRECT ED THE ASSESSING OFFICER TO ALLOW THE CLAIM OF THE ASSESSEE FOLLOWING ANOTHER O RDER OF ITAT, RAJKOT BENCH IN ITA NO.793/RJT/2010 DATED 23-09-2010 WHEREIN THE IT AT, ON IDENTICAL SET OF FACTS DISMISSED THE APPEAL FILED BY THE REVENUE. THE CIT (A) ALSO RELIED UPON THE JUDGMENT OF THE DELHI HIGH COURT IN THE CASE OF PAR ABOLIC SPRINGS LTD 6 DTR 233 (DEL). 4. AFTER HEARING THE LD. REPRESENTATIVES OF THE PAR TIES I DO NOT FIND ANY ERROR IN THE ORDER OF THE CIT(A) AS IN THE JUDGMENT OF GOETZ E INDIA LTD, THE APEX COURT ITSELF HAS BEEN OBSERVED THAT SUCH CLAIM CAN BE ADM ITTED AT THE APPELLATE STAGE. SINCE THE CIT(A) IS AN APPELLATE AUTHORITY, WHO ADM ITTED THE CLAIM OF THE ASSESSEE, I DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A). THE SAME IS CONFIRMED. 5. THE CROSS OBJECTION HAS NOT BEEN PRESSED BEFORE ME; HENCE THE SAME IS DISMISSED. 6. IN THE RESULT, BOTH THE APPEAL AS WELL AS THE CR OSS OBJECTION ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 10-06-2011. SD/- (A.L. GEHLOT) ACCOUNTANT MEMBER RAJKOT, DT : 10 TH JUNE, 2011 PK/- ITA NO.147/RJT/2011 CO 44/RJT/2011 3 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A)-XXI, AHMEDABAD 4. THE CIT-III, RAJKOT 5. THE DR (TRUE COPY) BY ORDER ASSTT.REGISTRAR, ITAT, RAJKOT