DCIT, Coimbatore V. M/s. Savio India Ltd., Coimbatore

ITA 1496/CHNY/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68917 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 31-12-2012
• Assessment Year: 2010-2011
• Appeal Filed On: 23-07-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K K ARUMUGAN
• Assessee Lawyers: R MAHADEVAN
• Keywords: Reasonable cause; Condonation of delay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ITA NO. 1496/MDS/2012 ASST. YEAR : 2010-11 THE DY . COMMISSIONER OF INCOME TAX, COMPANY CIRCLE IV(2), CHENNAI. (APPELLANT) V. M/S. SAVIO INDIA LIMITED, NO.1, COIMBATORE ROAD, NALLATIPALAYAM, THAMARAIKULAM, COIMBATORE 641 109. PAN : AABCV0154G. (RESPONDENT) APPELLANT BY : MR. K.K. ARUMUGAN, CI T RESPONDENT BY : MR. R. MAHADEVAN, CA DATE OF HEARING : 31 DEC 2012 DATE OF PRONOUNCEMENT : 31 DEC 20 12 O R D E R PER CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST TH E ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-I, COIMBATO RE DATED 17.4.2012 FOR THE ASST. YEAR 2010-11. THE APPEAL FILED BY THE REVENUE IS TIME BARRED BY 20 DAYS. THE REVENUE FILED AN AFFIDAVIT ITA 1496/MDS/12 2 DATED 19.7.2012, EXPLAINING THE REASONS FOR DELAY I N FILING THE APPEAL AND PRAYED FOR CONDONATION OF THE DELAY. WE HAVE C AREFULLY GONE THROUGH THE AFFIDAVIT, SEEKING CONDONATION OF DELAY IN FILING THE APPEAL. AFTER CONSIDERING THE REASONS ADVANCED I N THE AFFIDAVIT, WE ARE SATISFIED THAT THERE WAS REASONABLE CAUSE FOR D ELAY IN FILING THE APPEAL AND, THEREFORE, WE CONDONE THE DELAY OF 20 D AYS IN FILING THE APPEAL AND ADMIT THE SAME FOR CONSIDERATION. 2. THE ONLY GRIEVANCE OF THE DEPARTMENT IS THAT THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN DIREC TING THE ASSESSING OFFICER TO RECTIFY THE INTIMATION PASSED UNDER SEC.143(1) OF THE I.T. ACT AND RECOMPUTE THE PROFITS UNDER SEC.11 5JB OF THE ACT. 3. THE FACTS OF THE CASE ARE THAT THE ASSESSEE FIL ED RETURN OF INCOME DECLARING BOOK PROFITS UNDER SEC.115JB OF TH E ACT AT D.1,17,69,556/-. THE RETURN WAS PROCESSED UNDER SE C.143(1) OF THE ACT BY THE COMPUTER PROCESSING CENTRE, BANGALORE, D ETERMINING BOOK PROFITS AT D.2.51,88,146/-. THE ASSESSEE FILED A P ETITION UNDER SEC.154 OF THE ACT STATING THAT THE COMPUTATION MAD E BY IT IS CORRECT AND IS DULY SUPPORTED BY THE AUDITORS CERTIFICATE IN FORM NO.29B. THE ASSESSEE CONTENDED THAT THE DETERMINATION OF BO OK PROFIT UNDER ITA 1496/MDS/12 3 SEC.115JB OF THE ACT BY THE COMPUTER PROCESSING CE NTRE, BANGALORE, IS ON ACCOUNT OF ERRONEOUS COMPUTATION OF TOTAL INC OME. THE ASSESSEE FURNISHED IN ITS RECTIFICATION PETITION, A WORKING SHOWING HOW THE COMPUTATION OF PROFITS UNDER SEC.115JB OF THE ACT HAVE BEEN MADE BY IT AND REQUESTED THE COMPUTER PROCESSING CE NTRE, BANGALORE TO RECTIFY THE INTIMATION PASSED UNDER SE C.143(1) OF THE ACT AND RE-COMPUTE THE BOOK PROFIT UNDER SEC.115JB OF THE ACT CORRECTLY. AN ORDER UNDER SEC.154 OF THE ACT WAS P ASSED BY COMPUTER PROCESSING CENTRE, BANGALORE ON 8.7.2011 R EJECTING THE RECTIFICATION PETITION BY OBSERVING AS UNDER :- DURING THE PROCESSING OF THE RETURN U/S 143(1) CURRENT YEAR LOSS HAS NOT BEEN ALLOWED AS ASSESSEE HAS NOT FILED THE LOSSES IN THE CORRESPONDING SCHEDULES, HOWEVER DURING THE RECTIFICATION THE SAME HAS NOT BEEN CORRECTED BY THE ASSESSEE. 4. THE ASSESSEE FILED APPEAL BEFORE THE COMMISSION ER OF INCOME TAX (APPEALS) AGAINST THE ORDER OF COMPUTER PROCESSING CENTRE, BANGALORE, REJECTING ITS RECTIFICATION PETI TION FOR MODIFYING THE INTIMATION. THE COMMISSIONER OF INCOME TAX (APPEAL S) CONSIDERED THE SUBMISSIONS OF THE ASSESSEE AND THE RELEVANT DO CUMENTS, COPY OF ITA 1496/MDS/12 4 RETURN, BALANCE SHEET ETC., CAME TO THE CONCLUSION THAT THERE WERE NO LOSSES FOR THE CURRENT YEAR OR ANY CLAIM FOR THE PU RPOSE OF SEC.115JB BY THE ASSESSEE. THE COMMISSIONER OF INCOME TAX (A PPEALS) HELD THAT THE ASSESSEE HAS BROUGHT FORWARD LOSS ONLY TO THE EXTENT OF D.67,17,933/- IN THE REGULAR COMPUTATION AND THIS B ROUGHT FORWARD LOSS OF D.67,17,933/- HAS BEEN PLACED IN THE RELEVA NT SCHEDULE IN THE RETURN OF INCOME. THEREFORE, THE COMMISSIONER OF I NCOME TAX (APPEALS) HELD THAT THE REASON STATED BY THE COMPUT ER PROCESSING CENTRE, BANGALORE, IN THE ORDER UNDER SEC.154 OF TH E ACT IS NOT RELEVANT FOR COMPUTATION OF SEC.115JB OF THE ACT. HENCE, THE COMMISSIONER OF INCOME TAX (APPEALS) DIRECTED THE A SSESSING OFFICER TO RECTIFY THE INTIMATION UNDER SEC.147(1) OF THE A CT AND RECOMPUTE THE BOOK PROFIT UNDER SEC.115JB OF THE ACT AFTER VE RIFYING THE DETAILS SHOWN BY THE ASSESSEE IN THE RETURN OF INCOME. HE ALSO DIRECTED TO ALLOW CREDIT FOR TDS AS PER RETURN OF INCOME. 5. THE COUNSEL FOR THE ASSESSEE BY RELYING ON THE COMMISSIONER OF INCOME TAX (APPEALS)S ORDER SUBMIT S THAT THERE SHOULD NOT BE ANY GRIEVANCE TO THE REVENUE SINCE TH E COMMISSIONER OF INCOME TAX (APPEALS) HAS DIRECTED THE ASSESSING OFFICER TO MODIFY ITA 1496/MDS/12 5 THE INTIMATION UNDER SEC.143(1) OF THE ACT AND RECO MPUTE THE BOOK PROFITS UNDER SEC.115JB AFTER VERIFYING THE DETAILS SHOWN BY THE ASSESSEE IN THE RETURN OF INCOME. THE COUNSEL FOR THE ASSESSEE FURTHER SUBMITS THAT IN ANY CASE, SCRUTINY ASSESSME NT PROCEEDINGS ARE GOING ON FOR COMPLETION OF ASSESSMENT UNDER SEC .143(3) OF THE ACT. 6. THE DEPARTMENTAL REPRESENTATIVE SUBMITS THAT TH E ISSUE MAY BE REMITTED TO THE FILE OF THE ASSESSING OFFICE R TO EXAMINE THE DETAILS BY THE ASSESSING OFFICER AND RECONCILE THE MISTAKES COMMITTED BY THE COMPUTER PROCESSING CENTRE, BANGALORE. HE C ONCEDES THAT THERE IS A MISTAKE COMMITTED BY COMPUTER PROCESSING CENTRE, BANGALORE IN PROCESSING THE RETURN. 7. WE HAVE HEARD BOTH SIDES AND PERUSED THE ORDERS OF LOWER AUTHORITIES. WE AGREE WITH THE SUBMISSIONS M ADE BY THE COUNSEL FOR THE ASSESSEE THAT THERE SHOULD NOT BE A NY GRIEVANCE TO THE REVENUE IN THIS APPEAL SINCE THE COMMISSIONER O F INCOME TAX (APPEALS) HAS ONLY DIRECTED THE ASSESSING OFFICER T O MODIFY THE INTIMATION UNDER SEC.143(1) OF THE ACT FOR RE-COMPU TING THE BOOK ITA 1496/MDS/12 6 PROFITS UNDER SEC.115JB OF THE ACT AFTER VERIFYING THE DETAILS SHOWN BY THE ASSESSEE IN THE RETURN OF INCOME. IN ANY EVENT , SINCE THE ASSESSMENT PROCEEDINGS ARE ALSO UNDER PROCESS, THE ASSESSING OFFICER CAN VERIFY THE CORRECTNESS OF THE CLAIM OF THE ASSE SSEE IN COMPUTING THE BOOK PROFITS UNDER SEC.115JB OF THE ACT. IN TH E CIRCUMSTANCES, WE REMIT THE MATTER TO THE FILE OF THE ASSESSING OF FICER TO CARRY OUT THE DIRECTIONS OF THE COMMISSIONER OF INCOME TAX (A PPEALS). 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALL OWED FOR STATISTICAL PURPOSE. 9. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON MONDAY, THE 31 ST DECEMBER 2012, AT CHENNAI. SD/- SD/- ( DR. O.K. NARAYANAN) (CHALLA NAGENDR A PRASAD) VICE PRESIDENT JUDICIAL MEMBE R CHENNAI, DATED : 31 ST DECEMBER 2012. JLS. ITA 1496/MDS/12 7 COPY TO:- (1) APPELLANT (2) RESPONDENT (3) CIT-(A), CHENNAI (4) C.I.T., CHENNAI (5) D.R. (6) GUARD FILE