The ACIT,(OSD)-I, Circle-4, Ahmedabad V. Klockneer Desma Machinery Pvt.Ltd., Ahmedabad

ITA 1877/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85682 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 09-02-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 27-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Keywords: Royalty expenses

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI ACCOUNTANT MEMBER ITA NO . 187 7 /AHD/20 1 1 A. Y. 200 8 - 0 9 THE ACIT (OSD) - I, CIRCLE - 4, AHMEDABAD, VS KLOCKNEER DESMA MACHINERY PVT. LTD., 53, MADHUBAN, NR. MADALPUR UNDER BRIDGE, ELLISBRIDGE, AHMEDABAD. PAN: AAACK 8268N (APPELLANT) (RESPONDENT) REVENUE BY : SHRI DINESH SINGH , SR. D.R. ASSESSEE(S) BY : SHRI MANISH J. SHAH , A.R. / DATE OF HEARING : 09 / 0 2 /201 5 / DATE OF PRONOUNCEMENT: 13 / 0 2 /201 5 / O R D E R PER MUKUL KUMAR SHRAWAT, JUDICIAL MEMBER THIS IS AN A PPEAL FILED BY THE REVENUE ARISING FROM THE ORDER OF THE L EA RNED CIT (A) - VIII , AHMEDABAD , DATED 18 . 05 .20 11 . THE GROUND S RAISED ARE HEREBY DECIDED AS FOLLOWS : 1. THE ID. COMMISSIONER OF INCOME - TAX (APPEAL) HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE OF RS.57,50,000/ - MADE BY THE AO ON ACCOUNT OF PROVIS ION FOR WARRANTIES WITHOUT APPRECIATING FACTS THAT PROVISION FOR WARRANTY WAS IN THE NATURE OF CONTINGENT, UNASCERTAINED AND NON - CRYSTALLIZED LIABILITY. 2. AT THE OUTSET, WE HAVE BEEN INFORMED THAT THE ADDITIONS WHICH WERE MADE BY THE AO FOR A.Y.2008 - 09 VIDE AN ORDER U/S.143(3) DATED 30 TH OF NOVEMBER, 2010 WERE REPETITIVE IN NATURE BECAUSE IN THE PAST THOSE VERY ADDITIONS HAVE ALREADY BEEN DEALT WITH EITHER BY LEARNED ITA NO. 187 7 /AHD/201 1 ACIT (OSD) - I, CIRCLE - 4, AHMEDABAD VS. KLOCKNEER DESMA MACHINERY P. LTD. FOR A.Y. 200 8 - 09 - 2 - CIT(A) OR BY RESPECTED ITAT, AHMED ABAD. IN RESPECT OF THIS GROUND, LEARNED CIT(A) HAS OB SERVED THAT IN A.Y.2007 - 08 ON IDENTICAL FACTS THE ADDITION OF PROVISION OF WARRANT IES WAS DELETED. 3. NOW BEFORE US , AN ORDER OF ITAT AHMEDABAD B BENCH BEARING ITA NO.334/AHD/2011 (A.Y.2007 - 08) DATED 20 TH DECEMBER, 2013 PRONOUNCED IN ASSESSEE S OWN C ASE IS CITED WHEREIN THE VIEW TAKEN BY THE TRIBUNAL IN ASSESSEE S OWN CASE FOR A.Y.2006 - 07 WAS MENTIONED AND THE REVENUE S GROUND WAS DISMISSED. IN THE LIKE MANNER FOR THIS YEAR AS WELL, WE FIND NO FORCE IN THIS GROUND OF THE REVENUE ; HENCE DISMISSED. 4. GROUND NO.2 IS REPRODUCED BELOW: 1. THE ID. COMMISSIONER OF INCOME - TAX (APPEAL) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.10,14,460/ - MADE BY THE AO ON ACCOUNT OF DISALLOWANCE OF TDS ON ROYALTY EXPENSES WITHOUT APPRECIATING FACTS THAT TD S WAS NOT ALLOWABLE EXPENDITURE U/S. 40(A)(II). 5. IN RESPECT OF THIS GROUND AS WELL LEARNED CIT(A) HAS MENTIONED THAT THE IMPUGNED ADDITION WAS DEALT WITH BY HON BLE ITAT IN FAVOUR OF THE ASSESSEE IN ASSESSEE S OWN CASE BEARING ITA NO.2522/AHD/2007 ORDER DATED 31.08.2007 FOR A.Y.2004 - 05. WE HAVE ALSO BEEN INFORMED THAT FOR A.Y.2007 - 08 HON BLE ITAT VIDE ORDER AS CITED ABOVE HAVE FOLLOWED THE PAST HISTORY OF THE CASE AND REVENUE S GROUND WAS DISMISSED. FOLLOWING THE JUDICIAL DISCIPLINE , WE FIND NO REASON TO DEVIATE FROM THE VIEW CONSISTENTLY TAKEN BY THE TRIBUNAL IN THE PAST ; HENCE THIS GROUND OF THE REVENUE IS HEREBY DISMISSED. 6. GROUND NO.3 IS REPRODUCED BELOW: 1. THE ID. COMMISSIONER OF INCOME - TAX (APPEAL) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.4,44,387/ - MADE BY THE AO ON ACCOUNT OF DISALLOWANCE OF INTEREST EXPENSES WITHOUT APPRECIATING FACTS THAT THE ASSESSEE ITA NO. 187 7 /AHD/201 1 ACIT (OSD) - I, CIRCLE - 4, AHMEDABAD VS. KLOCKNEER DESMA MACHINERY P. LTD. FOR A.Y. 200 8 - 09 - 3 - COMPANY HAD INCURRED SUBSTANTIAL INTEREST EXPENDITURE WHILE GIVING INTEREST FREE LOANS. 7. IN RESPECT OF THIS GROUND, L EARNED CIT(A) HAS FOLLOWED A.Y.2007 - 08 WHICH NOW STOOD COVERED BY THE ABOVE MENTIONED ORDER OF THE TRIBUNAL; HENCE EVEN THIS GROUND OF THE REVENUE IS HEREBY DISMISSE D. F OLLOWING THE JUDGMENT OF THE RESPECTED CO - ORDINATE BENCH , T HIS GROUND IS DISMISSED. 8. IN THE RESULT, REVENUE S APPEAL IS DISMISSED. SD/ - SD/ - (ANIL CHATURVEDI ) ( MUKUL KR. SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 13 / 0 2 / 20 1 5 PRABHAT KR. KESARWANI , SR. P . S . / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) - I II, AHMEDABAD 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD