The DCITBharuch Circle, Bharuch V. M/s. Technoforge Ltd., Bharuch

ITA 2316/AHD/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6119 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 28-06-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 30-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMIR TEKRIWA LA
• Assessee Lawyers: KAMLESH N BHATT
• Keywords: Gross profit estimation
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL : B BENCH : AHMEDABAD (BEFORE HONBLE SHRI T.K. SHARMA, J.M. & HONBL E SHRI A.K.GARODIA, A.M.) I.T.A. NO. 2316/AHD./2009 ASSESSMENT YEAR : 2006-2007 DCIT, BHARUCH CIRCLE, BHARUCH VS- M/S . TECHNO FORGE LTD. ANKLESHWAR (PAN : AAACT 7773L) (APPELLANT) (R ESPONDENT) APPELLANT BY : SHRI SAMIR TEKRIWAL A, SR.D.R. RESPONDENT BY : SHRI KAMLESH N BHATT, A.R. O R D E R PER SHRI T.K. SHARMA, JUDICIAL MEMBER : THIS APPEAL IS FILED BY THE REVENUE AGAINST THE OR DER DATED 04-05-2009 OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-VI, BAR ODA FOR THE ASSESSMENT YEAR 2006-07. 2. GROUND NO.1 RAISED BY THE REVENUE READS AS UNDER : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.64,48,356/ - ON ACCOUNT OF LOW GROSS PROFIT DISCLOSED BY THE ASSESSEE. 3. WE HAVE HEARD BOTH THE SIDES. AT THE TIME OF HEA RING, SHRI KAMLESH N. BHATT APPEARED ON BEHALF OF THE ASSESSEE AND PRODUCED A C OPY OF THE DECISION DATED 10 TH JULY, 2009 OF THE ITAT, D BENCH, AHMEDABAD IN ASS ESSEES OWN CASE IN ITA NO.3543/AHD/2208 AND CO NO.312/AHD/2008 FOR THE ASS ESSMENT YEAR 2005-06, WHEREIN ALSO, ON IDENTICAL FACTS, THE G.P. ADDITION OF RS.13,47,626/-, MADE BY THE AO, WAS DELETED BY THE LD. CIT(A). ON FURTHER APPEAL, T HE VIEW TAKEN BY THE LD. CIT(A) WAS UPHELD. THE LD. D.R. COULD NOT CONTROVERT THE CONTENTION OF THE ASSESSEE THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE D ECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2005-06. IN VIEW O F THIS, WE, FOLLOWING THE DECISION OF THE TRIBUNAL, IN ASSESSEES OWN CASE, UPHOLD THE VIEW TAKEN BY THE LD. CIT(A) ITA NO.2316/AHD/2009 2 DELETING THE ADDITION OF RS.64,48,356/- ON ACCOUNT OF LOW GROSS PROFIT ALLEGED TO BE DECLARED BY THE ASSESSEE IN THE ASSESSMENT YEAR UND ER APPEAL. THIS GROUND OF APPEAL IS ACCORDINGLY REJECTED. 4. GROUND NO.2 OF THE REVENUES APPEAL IS AS UNDER: 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.80,795/- DISAL LOWANCE U/S.36(I)(VA) R.W.S. 2(24)(X) OF THE ACT. 5. WE HAVE HEARD BOTH THE SIDES. IN THE IMPUGNED OR DER, THE LD. CIT(A) HAS DELETED THIS DISALLOWANCE, FOLLOWING VARIOUS DECISI ONS ON THE ISSUE RELYING ON THE LOGIC OF CIT VS SABRI ENTERPRISE 213 CTR 269 (KARNATAKA) AND CIT VS. P.M. ELECTRONICS LTD. 220 CTR 635 (DEL.) AND ALSO THE DECISION OF HO NBLE APEX COURT IN THE CASE OF VINAY CEMENT LTD. 213 CTR 268 (SC), WHEREIN IT HAS BEEN HELD THAT THE EMPLOYEES CONTRIBUTION TOWARDS P.F. BEING MADE WITHIN DUE DAT E OF FILING OF RETURN IS TO BE ALLOWED IN TERMS OF SECTION 43B. AT THE TIME OF HEA RING BEFORE US, THE COUNSEL OF THE ASSESSEE POINTED OUT THAT THE VIEW TAKEN BY THE LD. CIT(A) BE UPHELD, KEEPING IN VIEW THE JUDGEMENT OF THE HONBLE SUPREME COURT IN THE C ASE OF CIT-VS- ALOM EXTRUSIONS LTD. REPORTED IN 319 ITR 306 (SC) WHEREIN IT WAS HE LD THAT OMISSION OF THE SECOND PROVISO TO SECTION 43B OF THE INCOME-TAX ACT, 1961, BY THE FINANCE ACT, 2003, OPERATED, RETROSPECTIVELY, WITH EFFECT FROM APRIL 1 , 1988 AND NOT PROSPECTIVELY FROM APRIL 1, 2004. WE, THEREFORE, FOLLOWING THE DECISIO N OF THE HONBLE SUPREME COURT IN THE CASE OF ALOM EXTRUSIONS LTD. ( SUPRA ), UPHOLD THE VIEW TAKEN BY THE LD. CIT(A) DELETING THE DISALLOWANCE OF RS.80,795/-. THUS, THI S GROUND OF THE APPEAL OF THE REVENUE IS ALSO REJECTED. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. THE ORDER PRONOUNCED IN THE CO URT ON 08.07.2011 SD/- SD/- (A.K.GARODIA) (T.K. SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 08/07/2011 ITA NO.2316/AHD/2009 3 COPY OF THE ORDER IS FORWARDED TO:- (1) THE ASSESSEE (2) THE DEPARTMENT. (3) CIT (A.) CONCERNED. (4) CIT CONCERNED. (5) D.R., ITAT, AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGISTRAR, ITAT, AH MEDABAD. TALUKDAR/ SR. P.S.