The ITO, Ward 5(2), Ahmedabad V. Ocmi Glass Machinery Manufactures India Pvt.Ltd., Ahmedabad

ITA 2047/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0486 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-10-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 18-08-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 02-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER ./ ITA NO. 2047/AHD/2013 / ASSESSMENT YEAR : 2009-10 INCOME-TAX OFFICER, WARD 5 (2), AHMEDABAD VS OCMI GLASS MACHINERY MANUFACTURES INDIA PVT LTD, 202, 2 ND FLOOR, PARITOSHY, USMANPURA, (RIVERSIDE), USMANPURA, AHMEDABAD-13 PAN : AAACO 7995 D / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI SATISH SOLANKI, SR DR ASSESSEE BY : NONE (WRITTEN SUBMISSION) / DATE OF HEARING : 18/08/2016 / DATE OF PRONOUNCEMENT: 06/10/2016 / O R D E R THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-XI, AH MEDABAD DATED 28.052013 FOR ASSESSMENT YEAR 2009-10. 2. FOLLOWING GROUNDS ARE RAISED :- I) THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE DISALLOWANCE OF SALARY RS.35,06,247/- PAID TO SHRI TUSHAR MAJMUD AR, CEO OF THE ASSESSEE-COMPANY. II) THE LD. CIT(A) HAS FURTHER ERRED IN LAW AND ON FACT S IN NOT APPRECIATING THAT THE INCREASED SALARY WAS ON ACCOUNT OF CLOSURE OF BUSINESS BY THE CEO, AS EVIDENT FROM THE EXPLANATION GIVEN BY THE A SSESSEE DURING THE COURSE OF ASSESSMENT PROCEEDINGS. 3. LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT SIMIL AR SALARY WAS DISALLOWED IN AYS 2007-08 AND 2008-09. ON ASSESSEE S APPEAL, THE LD. CIT(A) ALLOWED THE CLAIM, AGAINST WHICH DEPARTMENT HAS NOT FILED ANY APPEAL. SMC-ITA NO. 2047/AHD/2013 ITO VS. OCMI GLASS MACHINERY AY : 2009-10 2 3.1 SIMILARLY, IN AY 2010-11, SAME SALARY HAS BEEN ALLOWED BY THE AO IN ASSESSMENT FRAMED U/S 143(3) OF THE ACT. THEREFORE , THE DEPARTMENT HAVING ACCEPTED THE ALLOWABILITY OF PAYMENT OF SALARY TO S HRI TUSHAR MAJMUDAR, CEO OF THE ASSESSEE-COMPANY IN ALL THESE YEARS, THE RE IS NO JUSTIFICATION IN THIS REVENUE APPEAL. 4. ON THE OTHER HAND, LD. DR DID NOT DISPUTE THESE FACTS. 5. I HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. SINCE THE ISSUE ABOUT ALLOWABILITY OF SALARY TO SHRI TUSHAR MAJMUDA R BEING ALLOWABLE STANDS ACCEPTABLE BY THE REVENUE IN AYS 2007-08, 20 08,09 AND 2010-11, THERE IS NO INFIRMITY IN THE ORDER OF LD. CIT(A) FOR THE IMPUGNED YEAR, I.E. AY 2009-10. IN VIEW THEREOF, THE ORDER OF THE LD. CIT (A) IS UPHELD AND THE REVENUES APPEAL IS DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 6 TH OCTOBER, 2016 AT AHMEDABAD. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 06/10/2016 *BIJU T. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD