Assistant Commissioner Of Income Tax, Circle- 5(1)(2), Bangalore V. M/s. Page Industries Limited, Bangalore

ITA 1832/BANG/2016

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2442 (ITAT-BANGALORE)
• Duration Of Justice: 3 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 26-10-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: KUMAR AJEET
• Keywords: TDS
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES : B, BANGALORE BEFORE SHRI A.K.GARODIA, ACCOUNTANT MEMBER AND SMT.BEENA PILLAI, JUDIC I AL MEMBER ITA NO. 1832 (BANG)/201 6 (ASSESSM E NT YEAR : 201 1 - 12 ) THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 5(1)(2), ROOM N O .234, 2 ND FLOOR, BMTC COMPLEX, 80 FT. ROAD, KORAMANGALA, BANGALORE - 560 011 APPELLANT VS M/S PAGE INDUSTRIES LTD. 6/2 & 6/4, HONGASANDRA, BEGUR HOBLI, JOCKLEY CAMPUS, BANGALORE - 560 0 68 . PAN NO.AABC P2603 D RESPONDENT REVENUE BY : SHRI KUMAR AJEET, ADDL.CIT APPELLANT BY : SMT SUMAN LUNKAR, CA DATE OF HEARING : 07 - 11 - 2019 DATE OF PRONOUNCEMENT : O R D E R PER BEENA PILLAI, JUDICIAL MEMBER : P RESENT APPEAL HAS BEEN FILED BY REVENUE AGAINST ORDER DATED 08/07/16 PASSED BY LD. CIT (A) - 5, BANGALORE FOR ASSESSMENT YEAR 2011 - 12 ON FOLLOWING GROUNDS OF APPEAL: ITA NO. 1832 (B)/201 6 PAGE 2 OF 4 1. THE ORDER OF THE CIT(A) - 5, BANGALORE IS OPPOSED TO THE LAW AND NOT ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 2.WHETHER THE CIT(A) IS RIGHT, IN LAW IN HOLDING THAT THE D EDUCTION CLAIMED BY THE ASSESSEE U/S 870JJA TO BE ALLOWED WITHOUT APPRECIATING THE MEANING OF THE SECTION, WHICH DOES NOT ALLOW THE DEDUCTION FOR EARLIER PREVIOUS YEARS OTHER THAN THE ONE RELEVANT TO THE ASSESSMENT YEAR. 3. THE APPELLANT CRAVES LEAVE TO A DD, ALTER, AMEND OR DELETE ANY OTHER GROUNDS ON OR BEFORE HEARING OF THE APPEAL. 2. BRIEF FACTS OF THE CASE ARE AS UNDER: A SSESSEE FILED ITS RETURN OF I NCOME DECLARING TOTAL INCOME OF RS.82,45,64, 615/ - . LD. AO COMPLETED ASSESSMENT UNDER SECTI ON 143 (3) READ WITH SECTION 14 4C OF THE A CT , DETERMINING TOTAL INCOME AT RS.85,80,64, 750/ - . THE DISALLOWANCES WERE MADE BY LD. A O PERTAINS TO SECTION 14 A AND DEDUCTION DISALLOWED UNDER SECTION 80JJAA OF THE A CT. LD. AO DISALLOWED DEDUCTION U/S 80JJAA BY HOLDING THAT DEDUCTION HAS BEEN CLAIMED BY ASSESSEE IN RESPECT OF EMPLOYMENT OF NEW WORKMEN DURING PREVIOUS WHICH IS NOT PROVIDED SUGGESTIVE IN THE PROVISIONS. THE LD. AO THEREFORE , DISALLOWED EXCESS DEDUCTION CLAIMED IN COMPUTATION AMOUNTING TO RS.3,1 4,48, 959/ - . 3. AGGRIEVED BY ADDITION MADE BY LD. AO , ASSES SEE PREFERRED APPEAL BEFORE LD. CIT (A) WHO ALLOWED THE CLAIM OF ASSESSEE. 4. AGGRIEVED BY ORDER OF LD.CIT (A) , REVENUE IS IN APPEAL BEFORE US NOW. ITA NO. 1832 (B)/201 6 PAGE 3 OF 4 4.1 ONLY ISSUE ALLEGED BY REVENUE IS IN RESPECT OF THE DEDUCTION ALLOWED UNDER SECTION 80JJAA OF THE ACT BY LD. CIT (A). BEFORE US, LD. AR PLACED RELIANCE ON TRIBUNAL ORDER IN ASSESSEES OWN CASE FOR VARIOUS ASSESSMENT YEARS HAVE BEEN FILED. IT IS OBSERVED THAT THIS TRIBUNAL FOR ASS ESSMENT YEAR 2007 - 08 IN ITA NO.1 31/B/2014 VIDE ORDER DATED 24/07/15 HELD THAT ONCE NEW WORKMEN IS EMPLOYED IN PREVIOUS YEAR AND WORKS FOR 300 DAYS IN THAT YEAR, ADDITIONAL WAGES PAID TO HIM IS TO BE ALLOWED AS DEDUCTION AT 30% OF SUCH ADDITIONAL WAGES TO HIM IN THAT YEAR AND THE SAME SHOULD BE ALLOWED AS DEDUCTION FOR THREE ASSESSMENT YEARS AND THAT SUCH WORKMEN NEED NOT BE EMPLOY ED FOR SUBSEQUENT PERIOD TO CLAIM DEDUCTION UNDER SECTION 80 JJAA OF THE ACT. IT WAS HELD THAT ONCE DEDUCTION IS ALLOWED IN FIRST YEAR THEN 30% OF SUCH ADDITIONAL WAGES IS TO BE ALLOWED AS DEDUCTION IN EACH OF SUBSEQUENT TWO YEARS. HOWEVER, FOR ASSESSMENT YEAR S 2 005 - 06 AND 2006 - 07 IN ITA NOS. 151 AND 152/B/2016 VIDE ORDER DATED 16/12/16 AND FOR ASSESSMENT YEAR 2010 - 11 IN ITA (TP)A N O. 163/B/2015 VIDE ORDER DATED 24/06/16 REMANDED THE ISSUE TO LD.AO FOR FRESH CONSIDERATION. SINCE THE LATER ORDERS ON IDENTICAL ISSUE S WERE REMANDED BY THIS TRIBUNAL TO LD. AO FOR FRESH CONSIDERATION, WE DEEM IT FIT TO RESTORE THIS ISSUE TO LD. AO FOR FRESH CONSIDERATION , IN ACCORDANCE WITH LAW , AS APPLICABLE DURING RELEVANT PERIOD. 5. LD. CIT DR D ID NOT OBJECT FOR THE SAME. ACCORDINGLY, GROUND RAISED BY REVENUE STANDS ALLOWED FOR STATISTICAL PURPOSES. ITA NO. 1832 (B)/201 6 PAGE 4 OF 4 IN THE RESULT , APPEAL FILED BY REVENUE STANDS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON (A.K.GARODIA) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: *AM COPY OF THE ORDER FORWARDED TO: 1.APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5. DR 6. ITO (TDS) 7.G UARD FILE BY ORDER ASSTT.REGISTRAR