DCIT, C-1(1), Chandigarh V. Spray Engineering Devices Limited, Chandigarh

ITA 1586/CHANDI/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2685 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 20-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH . . , , BEFORE SHRI N.K. SAINI, VICE PRESIDENT & SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NOS. 1586/CHD/2018 / ASSESSMENT YEAR : 2013-14 THE DCIT, CIRCLE-1(1), CHANDIGARH VS. ! M/S SPRAY ENGINEERING DEVICES LTD., PLOT NO.25, INDUSTRIAL AREA-II, CHANDIGARH ' # ./ PAN NO:AAICS5252M '$/ APPELLANT &' '$ / RESPONDENT C.O. NO. 11/CHD/2019 (IN ITA NO. 1586/CHD/2018) / ASSESSMENT YEARS : 2013-14 M/S SPRAY ENGINEERING DEVICES LTD., PLOT NO.25, INDUSTRIAL AREA-II, CHANDIGARH VS. ! THE DCIT, CIRCLE-1(1), CHANDIGARH ' # ./ PAN NO: AAICS5252M '$/ APPELLANT &' '$ / RESPONDENT () / REVENUE BY : SHRI MANJIT SINGH, CIT DR *+() / ASSESSEE BY : NONE , -(+ .# / DATE OF HEARING : 27.08.2019 /0 (+ .# / DATE OF PRONOUNCEMENT : 27.08.2019 / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE CAPTIONED APPEAL BY THE REVENUE AND CORRESPONDI NG CROSS OBJECTIONS BY THE ASSESSEE ARE ARISING FROM THE ORD ER DATED 28.09.2018 ITA NO.1586-CHD-2018 & C.O. 11-C-2019 M/S SPRAY ENGINEERING DEVICES LTD, CHANDIGARH 2 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-4, LUDH IANA [HEREINAFTER REFERRED TO AS CIT(A)] 2. FIRST, WE TAKE UP REVENUES APPEAL IN ITA NO. 15 86/CHD/2018. ITA NO. 1586CHD/2018: 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. IT IS N OTICED THAT THIS APPEAL FILED BY THE DEPARTMENT IS NOT MAINTAINABLE IN VIEW OF THE RECENT CIRCULAR NO. 17/2019 DT. 08/08/2019 ISSUED BY CBDT , WHEREIN, THE MONETARY LIMIT FOR FILING THE APPEALS BY THE DEPART MENT BEFORE THE ITAT HAS BEEN INCREASED TO RS. 50,00,000/- FROM RS. 20,0 0,000/- AS SPECIFIED IN THE EARLIER CIRCULAR NO. 3/2018 DATED 11.07.2019 . IT HAS BEEN FURTHER CLARIFIED BY THE CBDT VIDE F.NO . 279/MISC./ITJ DATED 20.08.2019 THAT THE REVISED MON ETARY LIMIT MENTIONED IN CIRCULAR NO. 17 OF 2019 IS APPLICABLE TO ALL THE PENDING SLPS/ APPEALS/ CROSS-OBJECTIONS / REFERENCES AND TH AT ALL SUCH PENDING APPEALS WITHIN THE REVISED LIMIT SHALL BE WITHDRAWN BY THE DEPARTMENT ON OR BEFORE 31.10.2019. 4. IN VIEW OF THE AFORESAID DISCUSSION, THE PRESENT APPEAL FILED BY THE DEPARTMENT IS DISMISSED DUE TO LOW TAX EFFEC T. IT IS, HOWEVER, CLARIFIED THAT THE DISMISSAL OF THE ABOVE APPEAL SHALL NOT BE TAKEN TO BE AFFIRMATION OF THE ORDER OF THE CIT(A) ON MERITS. THE LEGAL ITA NO.1586-CHD-2018 & C.O. 11-C-2019 M/S SPRAY ENGINEERING DEVICES LTD, CHANDIGARH 3 ISSUE RAISED BY THE REVENUE IS BEING LEFT OPEN TO B E ADJUDICATED IN AN APPROPRIATE CASE. C.O. NO. 11/CHD/2019 BY ASSESSEE : 5. THE ASSESSEE HAS TAKEN FOLLOWING CROSS OBJECTION S:- 1. LD. CIT (APPEALS) WHILE ALLOWING AMOUNT PAID TO FOREIGN EXPORT AGENT, FAILED TO APPRECIATE THE FACT THAT FROM THE FULL AMOUNT OF USD 1,89,000/- BOOKED AS EXPENDITURE, USD 89,000/- WAS WRITTEN BACK AS INCOME IN FY 2015-16 AS EXCESS PROVISION WRITTEN BACK AND ADDED TO THE TOTAL INCOME OF AY 2016-17. BUT AMOUNT EQUIVALENT TO USD 89000 WAS NOT ALLOWED. DISALLOWANCE IS UNLAWFUL AND LIABLE TO BE DELETED. 6. VIDE AFORESAID CROSS OBJECTIONS, THE ASSESSEE H AS CLAIMED THAT OUT OF THE TOTAL DISALLOWANCE OF EXPENDITURE OF USD 1 ,89,000/-, THE ASSESSEE HAS ALREADY WRITTEN BACK THE AMOUNT OF USD 89,000/- AND HAS SHOWN THE SAME AS INCOME OF THE ASSESSEE IN FINANCI AL YEAR 2015-16. HOWEVER, THE ASSESSEE HAS NOT BEEN GIVEN THE BENEF IT OF SAID INCOME SHOWN OUT OF THE DISALLOWANCE MADE BY THE ASSESSING OFFICER. THIS GROUND IS ACCORDINGLY RESTORED TO THE FILE OF THE A SSESSING OFFICER TO VERIFY THE CONTENTION OF THE ASSESSEE AND DECIDE THE SAME IN ACCORDANCE WITH LAW. IN THE RESULT, THE CROSS OBJECTIONS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ITA NO.1586-CHD-2018 & C.O. 11-C-2019 M/S SPRAY ENGINEERING DEVICES LTD, CHANDIGARH 4 IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED, WHEREAS, CROSS OBJECTIONS OF THE ASSESSEE ARE ALLOWED FOR ST ATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 27.08.2019. SD/- SD/- ( . . / N.K. SAINI) ( ! / SANJAY GARG) '#$ / VICE PRESIDENT %& / JUDICIAL MEMBER DATED : 27.08.2019 .. 2(&+3454+ / COPY OF THE ORDER FORWARDED TO : 1. '$ / THE APPELLANT 2. &' '$ / THE RESPONDENT 3. , 6+ / CIT 4. , 6+ ( )/ THE CIT(A) 5. 47 &+8 , . 8 , 9:;< / DR, ITAT, CHANDIGARH 6. ;= - / GUARD FILE 2 , / BY ORDER, > / ASSISTANT REGISTRAR ITA NO.1586-CHD-2018 & C.O. 11-C-2019 M/S SPRAY ENGINEERING DEVICES LTD, CHANDIGARH 5 [2009] 317 ITR 218 (SC) [IN THE SUPREME COURT OF INDIA] LIBERTY INDIA V. COMMISSIONER OF INCOME-TAX 1. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) H AS ERRED IN RESTRICTING THE ADDITION TO 5% OF THE TOTAL EXPENSE S OF RS. 1, 19, 34, 080/- AGAINST THE ADDITION OF 10% AS MADE B Y THE ITA NO.1586-CHD-2018 & C.O. 11-C-2019 M/S SPRAY ENGINEERING DEVICES LTD, CHANDIGARH 6 ASSESSING OFFICER AS PER PAGE 30 OF THE ORDER OF TH E CIT (APPEAL) . 2 . THAT THE LD. COMMISSIONER OF INCOME TAX (APPEAL S) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSES SING OFFICER IN NOT ALLOWING DEDUCTION U/S 80 IB ON DEPB AND DUTY DRAW BACK BEING EXPORT INCENTIV ES AS PAR PAGE JO' 6~F THE ORDER OF CIT* (APPEAL). 3. THAT THE RESPONDENT CRAVES LEAVE TO ADD OR AMEND AN Y GROUND OF CROSS-OBJECTIONS BEFORE THE APPEAL IS FINALLY HEARD OR DISPOSED OFF.