Deputy Commissioner of Income-tax, Bangalore V. M/s. Mysore Minerals Ltd, Bangalore

ITA 1767/BANG/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5588 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 10-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PADMA MEENAKSHI
• Assessee Lawyers: V CHANDRASHEKAR
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH B BEFORE SHRI JASON P BOAZ , ACCOUNTANT MEMBER AND SHRI LALIT KUMAR, JUDICIAL MEMBER I.T . A. NO. 1767 /BANG/20 16 (ASSESSMENT YEAR : 20 11 - 12 ) ASST. COMMISSIONER OF INCOME TAX, CIRCLE 4(1)(2), BANG ALORE. . APPELLANT. VS. M/S. MYSORE MINERALS LTD., BMTC, SHANTHINAGAR TTMC BUILDING, A BLOCK, 5 TH FLOOR, SHANTHINAGAR, BANGALORE - 560 027 . .. RESPONDENT. APPELLANT BY : SMT. PADMA MEENAKSHI, JCIT (D.R) R E SPONDENT BY : SHRI V. CHANDRASHEKAR, ADVOCATE. DATE OF H EARING : 24.01.2018. DATE OF P RONOUNCEMENT : 31.1 .201 8 . O R D E R PER SHRI JASON P BOAZ, A .M . : THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 4 , BANGALORE DT. 22.07.2016 FOR THE ASS ESSMENT YEAR 20 11 - 12. 2. BRIEFLY STATED, THE FACTS OF THE CASE RELEVANT FOR DISPOSAL OF THIS APPEAL ARE AS UNDER : - 2 IT A NO. 1767 /BANG/201 6 2.1 THE ASSESSEE - COMPANY, A GOVT. OF KARNATAKA UNDERTAKING ENGAGED IN EXTRACTION AND MARKETING OF MINERALS , FILED ITS RETURN OF INCOME FOR ASSESSMENT YEAR 2011 - 12 ON 30.09.2011 DECLARING INCOME OF RS.423,78,09,750. THE RETURN WAS PROCESSED UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT') AND THE CASE WAS SUBSEQUENTLY TAKEN UP FOR SCRUTINY. THE A SSESSMENT W AS CONCLUDED UNDER SECTION 143(3 ) OF THE ACT, VIDE ORDER DT.14.3.2014 WHEREIN THE ASSESSEE'S INCOME WAS DETERMINED AT RS.427,31,46,005; WHICH, INTER ALIA, INCLUDED AN ADDITION OF RS.3,47,05,200 ON ACCOUNT OF SUPPRESSED SALES TO M/S. KALYANI STE ELS LTD., DISALLOWANCE OF SALES AND PROMOTION EXPENSES OFRS.6,15,013 AND DISALLOWANCE OF RS.15,452 UNDER SECTION 14A R.W. RULE 8D. 2.2 AGGRIEVED BY THE ORDER OF ASSESSMENT DT.14.3.2014 FOR ASSESSMENT YEAR 2011 - 12, THE ASSESSEE PREFERRED AN APPEAL BEFOR E THE CIT (APPEALS) - 4, BANGALORE. THE LEARNED CIT (APPEALS) DISPOSED OF THE APPEAL VIDE THE IMPUGNED ORDER ALLOWED THE ASSESSEE PARTIAL RELIEF BY DELETING ONLY THE ADDITION OF RS.3,47,05,368 MADE ON ACCOUNT OF SUPPRESSED SALES TO M/S. KALYANI STEELS LIMI TED. 3.1 REVENUE, BEING AGGRIEVED BY THE ORDER OF THE LEARNED CIT (APPEALS) DT.22.6.2016 FOR ASSESSMENT YEAR 2011 - 12 IN DELETING THE ADDITION MADE ON ACCOUNT OF SUPPRESSED SALES TO M/S. KALYANI STEELS LTD. HAS FILED THIS APPEAL RAISING THE FOLLOWING GR OUNDS ON THIS ISSUE : - 3 IT A NO. 1767 /BANG/201 6 3.2 THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR REVENUE WAS HEARD IN SUPPORT OF THE GROUNDS RAISED (SUPRA). 3. 3 PER CONTRA, THE LEARNED AUTHORISED REPRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT THERE WAS NO ERROR IN THE IMPUGNED ORDER OF THE LEARNED CIT (APPEALS) ON THIS ISSUE AS HE HAS RIGHTLY FOLLOWED THE DECISION OF THE CO - ORDINATE BENCH OF THIS TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEARS 2008 - 09 AND 2009 - 10 IN ITA NOS.683 & 1105/BANG/2012 AND ITA NOS.80 8 AND 1309/BANG/2012 DT.10.10.2014, WHICH HAD IN TURN FOLLOWED THE DECISION OF ANOTHER CO - ORDINATE BENCH IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEAR 2005 - 06 IN ITA NO.351/BANG/2011 DT.2.11.2012. IT WAS FURTHER SUBMITTED THAT A CO - ORDINATE BENCH OF THI S TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEAR 2010 - 11 IN ITA NO.1496/BANG/2014 DT.3.8.2015 HAD 4 IT A NO. 1767 /BANG/201 6 ALSO DELETED THE SIMILAR ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF SUPPRESSED SALES TO M/S. KALYANI STEELS LIMITED, FOLLOWING THE AFORESAI D DECISION OF THE CO - ORDINATE BENCH IN ASSESSEE'S OWN CASE FOR ASSESSMENT YEAR 2005 - 06 (SUPRA). 3.4.1 WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED AND CAREFULLY CONSIDERED THE MATERIAL ON RECORD; INCLUDING THE JUDICIAL PRONOUNCEMENTS (CITED) ON THE ISSU E BEFORE US; I.E. ADDITION ON ACCOUNT OF SUPPRESSED SALES TO M/S. KALYANI STEELS LIMITED. AS BROUGHT TO OUR NOTICE , THIS ISSUE HAS BEEN CONSIDERED AND HELD IN FAVOUR OF THE ASSESSEE AND AGAINST REVENUE BY THE ORDERS OF VARIOUS CO - ORDINATE BENCHES OF THI S TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEAR 2005 - 06 IN ITA NO.351/BANG/2011 DT.2.11.2012; FOR ASSESSMENT YEARS 2008 - 09 AND 2009 - 10 IN ITA NOS.683 & 1109/BANG/2011 AND 808 & 1309/BANG/2012 DT.10.10.2014 AND FOR ASSESSMENT YEAR 2010 - 11 IN ITA N O.1496/BANG/2014 DT.3.8.2015. IN ITS ORDER FOR ASSESSMENT YEAR 2010 - 11 (SUPRA), THE CO - ORDINATE BENCH AT PARAS 8 & 9 OF ITS ORDER HAS HELD AS UNDER : 8. AT THE TIME OF HEARING OF THE APPEAL, IT WAS BROUGHT TO OUR NOTICE THAT THIS TRIBUNAL ON AN IDENTI CAL ISSUE IN ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEAR 2005 - 06 IN ITA NO.351/BANG/2011 BY ORDER DT.2.11.2012, HELD AS FOLLOWS : 5 IT A NO. 1767 /BANG/201 6 6 IT A NO. 1767 /BANG/201 6 9. WE ARE OF THE VIEW THAT THE FACTS AND CIRCUMSTANCES GIVING RISE TO APPEAL ON THE ABOVE ISSUE ARE IDENTICAL AS IN THE E ARLIER ASSESSMENT YEAR. RESPECTFULLY FOLLOWING THE DECISION OF THE TRIBUNAL (SUPRA), WE UPHOLD THE ORDER OF THE CIT (APPEALS) AND DISMISS THE APPEAL BY THE REVENUE. 3.4.2 WE ARE OF THE VIEW THAT THE FACTS AND CIRCUMSTANCES OF THE CASE GIVING RISE T O THE APPEAL ON THE ABOVE ISSUE ARE IDENTICAL TO THAT OF THE EARLIER ASSESSMENT YEARS. THEREFORE RESPECTFULLY FOLLOWING THE DECISION OF THE CO - ORDINATE BENCH IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEAR 2005 - 06 IN ITA NO.351/BANG/2011 DT.2.11.2012 AND ASSESSMEN T YEAR 2010 - 11 IN ITA NO.1496/BANG/2014 DT.7.8.2015, WE UPHOLD THE ORDER OF THE LEARNED CIT (APPEALS) AND CONSEQUENTLY DISMISS REVENUE S APPEAL. 4. IN THE RESULT, REVENUE S APPEAL FOR A.Y. 2011 - 12 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 31ST DAY OF JAN., 201 8 . SD/ - ( LALI T KUMAR ) JUDICIAL MEMBER SD/ - ( JASON P BOAZ ) ACCOUNTANT MEMBER BANGALORE, DT. 31 .01 .2018. *REDDY GP 7 IT A NO. 1767 /BANG/201 6 COPY TO : 1 APPELLANT 4 CIT(A) 2 RESPONDENT 5 DR. ITAT, BANGALORE 3 CIT 6 GUARD FILE SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL BANGALORE.