Sri Tirupati Ispat, Ranchi V. DCIT,Circle-3, Ranchi

ITA 225/RAN/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8731 (ITAT-RANCHI)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 10-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDAN DAS J
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH SMC RANCHI BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.225/RAN/2018 ASSESSMENT YEAR:2014-15 SRI TIRUPATI ISPAT EAST MARKET ROAD, UPPER BAZAR, RANCHI-834001 [ PAN NO.ABDFS 5681 F ] / V/S . DCIT, CIRCLE-3, RANCHI /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI DEVESH PODDAR, ADVOCATE /BY RESPONDENT SHRI CHANDAN DAS, JCIT-DR /DATE OF HEARING 11-01-2019 /DATE OF PRONOUNCEMENT 08-04-2019 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2014-15 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-RANCHIS ORDER DATED 09.05.2018 PASSED IN CASE NO. CIT(A), RANCHI/10306/2016-17, INVOLVING P ROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE CHAL LENGES BOTH THE LOWER AUTHORITIES ACTION DISALLOWING WITH ITS PARTNERS REMUNERATION C LAIM OF 4.80 LAC TO THE EXTENT OF 2.40 LAC TO BE EXCESSIVE AND BEYOND THE RELEVANT ST IPULATION INCORPORATE IN THE SCHEDULE. THERE IS NO DISPUTE THAT THE ASSESSEE-FIR M DOES HAVE THREE PARTNERS, SHRI NIKHIL PODDAR, ADITYA MURARKA & ROHIT MURARKA HAVIN G 50% AND 25% STAKE EACH; RESPECTIVELY. THE ASSESSEE PAID THEM REMUNERATION O F 2.40 LAC AND 1.20 LAC EACH; RESPECTIVELY IN THE RELEVANT PREVIOUS YEAR. THE ASS ESSING OFFICER DISALLOWED THE SAME TO THE EXTENT OF 50% IN EACH CASE ON THE GROUND THA T THE RELEVANT PARTNERSHIP DEED ITA NO.225/RAN/2018 A.Y. 2014-15 SRI TIRUPATI ISPAT VS. DCIT, CIR-3, RNC PAGE 2 NEVER CONTAINED SUCH A QUANTUM OF REMUNERATION AS U PHELD IN THE LOWER APPELLATE PROCEEDINGS. 3. IT EMERGES DURING THE COURSE OF HEARING THAT ASS ESSEE HAS ALREADY SUCCEEDED ON THE VERY ISSUE BOTH IN ASSESSMENT YEARS 2012-13 AS WELL AS IN 2013-14 QUA THE IMPUGNED REMUNERATION CLAIM OF 4.80 LAC PAID TO THE ABOVE THREE PARTNERS. IT HAS PLACED ON RECORD ITS PROFIT AND LOSS ACCOUNT AS WEL L AS CAPITAL ACCOUNT IN THE SAID FORMER AND SECTION 143(3) ASSESSMENT ORDER DATED 28 .01.2016 TO THIS EFFECT. THE REVENUES ONLY ARGUMENT IS THAT EACH YEAR IS A DIFF ERENT ASSESSMENT YEAR RES JUDICATA PRINCIPLE DOES NOT APPLY IN INCOME TAX PROCEEDINGS. HE IS FAIR ENOUGH IN NOT PIN- POINTING ANY FACTUAL DISTINCTION QUA THE IMPUGNED CLAIM IN ALL THESE THREE ASSESSMENT YEARS. I THEREFORE ADOPT JUDICIAL CONSISTENCY IN TH ESE FACTS AND CIRCUMSTANCES AND DIRECT THE ASSESSING OFFICER TO DELETE THE IMPUGNED PARTNERS REMUNERATION DISALLOWANCE. 4. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN ACCORDANCE WITH RULE 34(4) OF T HE ITAT RULES BY PUTTING ON NOTICE BOARD ON 08/04/2019 SD/- (S.S. GODARA) JUDICIAL MEMBE R RANCHI, *DKP/SR.PS - 08/04/2019 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-SRI TIRUPATI ISPAT, EAST MARKET ROAD, U PPER BAZAR, RANCHJII-834001 2. /RESPONDENT-DCIT, CIRCLE-3, RANCHI 3. $ ' / CONCERNED CIT 4. ' - / CIT (A) 5. ( ++$ , $ / DR, ITAT, RANCHI 6. - / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY/P.S $,