DCIT, CHENNAI V. M/s. KCP Sugar and Industries Corporation Ltd., CHENNAI

ITA 1926/CHNY/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 1177 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2002-2003
• Appeal Filed On: 12-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JR
• Assessee Lawyers: K R ADIVARAHAN
• Section: 143(3); 260A; 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCH D : CHENNAI [BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER] I.T.A NO.1926/MDS/2010 ASSESSMENT YEAR : 2002-03 THE DEPUTY COMMISSIONER OF INCOME-TAX COMPANY CIRCLE II(4) CHENNAI VS M/S KCP SUGAR AND INDUSTRIES CORPORATION LTD RAMAKRISHNA BUILDING 239, ANNA SALAI CHENNAI 600 006 [PAN AAACK2325F] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.E.B RENGARAJAN, JR. STANDING COUNSEL RESPONDENT BY : SHRI K.R. ADIVARAHAN O R D E R PER DR. O.K.NARAYANAN, VICE-PRESIDENT: THIS APPEAL FILED BY THE REVENUE, RELATES TO TH E ASSESSMENT YEAR 2002-03, IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER(APPEALS)-III, AT CHENNAI, DATED 31.08. 2010. THE APPEAL ARISES OUT OF THE ASSESSMENT COMPLETED U/S 143(3) R EAD WITH SECTION 147 OF THE INCOME-TAX ACT, 1961. 2. IN COMPLETING THE ASSESSMENT, THE PROVISION MAD E BY THE ASSESSEE TOWARDS THE LIABILITY OF LEAVE ENCASHMENT WAS DISALLOWED BY ITA 1926/10 :- 2 -: THE ASSESSING AUTHORITY AND ADDED TOWARDS THE INCOM E OF THE ASSESSEE. IN FIRST APPEAL, THE COMMISSIONER(APPEAL S) DELETED THE SAID DISALLOWANCE IN THE LIGHT OF THE DECISION OF ITAT, CHENNAI, RENDERED IN ASSESSEES OWN CASE, THROUGH THEIR COMMON ORDER DAT ED 12.5.2006 PASSED IN I.T.A.NO.755/MDS/2003 AND OTHERS RELATING TO THE EARLIER ASSESSMENT YEARS 1999-2000 AND 2000-01. THE TRIBUN AL HAS TAKEN THE SAID DECISION RELYING ON THE JUDGMENT OF THE HO N'BLE SUPREME COURT IN THE CASE OF BHARAT EARTH MOVERS VS CIT, 245 ITR 428. 3. NOW, THE CONTENTION OF THE REVENUE IS THAT THE EARL IER ORDER OF THE TRIBUNAL IN ASSESSEES CASE HAS NOT BEEN ACCEPT ED BY THE REVENUE AND THE MATTER IS NOW PURSUED BEFORE THE HON'BLE HI GH COURT IN APPEAL FILED U/S 260A AND THEREFORE, THE ORDER OF THE COMM ISSIONER(APPEALS) IS NOT SUSTAINABLE. 4. THE REVENUE IS FULLY JUSTIFIED IN KEEPING ALIVE THE CONTENTIOUS ISSUES BY FILING APPEAL BEFORE THE COURT OF LAW IF IT IS NOT SATISFIED IN THE DECISION DELIVERED BY THE APPELLATE TRIBUNAL. BUT AS ON DATE, THE HON'BLE HIGH COURT HAS NOT PASSED ANY ORDER REVERSI NG THE COMMON ORDER PASSED BY THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE EARLIER ASSESSMENT YEARS. AS OF NOW, THE ORDER OF THE TRIB UNAL IS BINDING ON THE COMMISSIONER(APPEALS) AND IS BINDING ON THIS CO -ORDINATE BENCH, TOO. ITA 1926/10 :- 3 -: 5. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THIS APPEAL FILED BY THE REVENUE IS LIABLE TO BE DISMISS ED. 6. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON THURSDAY, THE 13 TH OF JANUARY, 2011, AT CHENNAI. SD/- SD/- (HARI OM MARATHA) JUDICIAL MEMBER (DR. O.K. NARAYANAN) VICE-PRESIDENT DATED: 13 TH JANUARY, 2011 RD COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR