DCIT, CHENNAI V. Shriram Holdings (Madras) Pvt. Ltd., CHENNAI

ITA 1475/CHNY/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68765 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 01-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T N BETGERI IRS
• Assessee Lawyers: S BALAMURUGAN
• Keywords: Revenue expenditure
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO.1475(MDS)/2013 ASSESSMENT YEAR : 2006-07 THE DEPUTY COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE VI(2), CHENNAI. VS. M/S.SHRIRAM HOLDINGS (MADRAS) PVT. LTD., MOOKAMBIKA COMPLEX, 4, LADY DESIKA ROAD, MYLAPORE, CHENNAI-600 034. PAN AABCS0264L. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T.N.BETGERI, IRS , JCIT RESPONDENT BY : SHRI S.BALAMURUGAN, ADVOCA TE DATE OF HEARING : 30 TH SEPTEMBER, 2013 DATE OF PRONOUNCEMENT : 30 TH SEPTEMBER, 2013 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT THIS APPEAL FILED BY THE REVENUE RELATES TO THE ASSESSMENT YEAR 2006-07. THE APPEAL IS DIRECTED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-V AT CHENNAI, - - ITA 1475 OF 2013 2 DATED 28-302013 AND ARISES OUT OF THE ASSESSMENT CO MPLETED UNDER SECTION 143(3) OF THE INCOME-TAX ACT, 1961. 2. THE ONLY GROUND RAISED BY THE REVENUE IN THE PRESENT APPEAL IS THAT THE COMMISSIONER OF INCOME-T AX(APPEALS) HAS ERRED IN DELETING THE DISALLOWANCE OF ` 2,00,24,494/- PERTAINING TO BANK GUARANTEE COMMISSION WHILE TAKIN G INTO ACCOUNT UNDER DIRECT EXPENDITURE AS PER RULE 8D(I), HOLDING IT AS REVENUE EXPENDITURE. 3. THE VERY SAME ISSUE HAS BEEN DECIDED BY THE INCOME-TAX APPELLATE TRIBUNAL, CHENNAI BENCH-B IN T HE CASE OF ASSESSEES SISTER CONCERN M/S.SHRIRAM CAPITAL LIMIT ED, IN ITA NOS.638, 639 & 640/MDS/2012, THROUGH THEIR ORDER DA TED 4-2-2013 FOR THE ASSESSMENT YEARS 2005-06, 2007-08 AND 2008-09. IN THE SAID COMMON ORDER, THE TRIBUNAL HA S HELD THAT SIMILAR DISALLOWANCE UNDER SIMILAR CIRCUMSTANCES WA S NOT JUSTIFIED. 4. IN THE LIGHT OF THE ABOVE JUDGMENT OF THE TRIBU NAL AND ALSO IN VIEW OF THE FACT THAT RULE 8D DOES NOT APPLY TO THE ASSESSMENT YEAR 2006-07, WE FIND THAT THE ORDER OF THE - - ITA 1475 OF 2013 3 COMMISSIONER OF INCOME-TAX(APPEALS) DELETING THE DI SALLOWANCE IS JUSTIFIED. HIS ORDER IS ACCORDINGLY CONFIRMED. 5. IN RESULT, THIS APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME O F HEARING ON MONDAY, THE 30 TH OF SEPTEMBER, 2013 AT CHENNAI. SD/- SD/- (VIKAS AWASTHY) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED, THE 30 TH SEPTEMBER, 2013. V.A.P. COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GF.