ACIT, CHENNAI V. Vishay Transducers India Ltd., CHENNAI

ITA 2444/CHNY/2014

• Counselvise Citation: 244421714 RSA 2014
• Duration Of Justice: 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 24-06-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 29-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN
• Section: 43B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , . !' , $ % BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NOS.2443 & 2444/MDS/2014 ' (' / ASSESSMENT YEARS : 2005-06 & 2008-09 THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE III(4), CHENNAI - 600 034. V. M/S VISHAY TRANSDUCERS INDIA LTD., 2 ND FLOOR (2B), NAWAZISH BUILDING, DOOR NO.30 (OLD NO.17), KHADER NAWAZ KHAN ROAD, NUNGAMBAKKAM, CHENNAI - 600 034. PAN : AAACS 3783 M (*+/ APPELLANT) (,-*+/ RESPONDENT) *+ . / / APPELLANT BY : SH. P. RADHAKRISHNAN, JCIT ,-*+ . / / RESPONDENT BY : SH.SAROJ KUMAR PARIDA, ADVOCATE 0 . 1$ / DATE OF HEARING : 24.06.2015 2!( . 1$ / DATE OF PRONOUNCEMENT : 03.07.2015 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THESE APPEALS OF THE REVENUE ARE DIRECTED AGAINST THE RESPECTIVE ORDERS PASSED BY THE COMMISSIONER OF INC OME TAX (APPEALS)-III, CHENNAI, FOR THE ASSESSMENT YEARS 20 05-06 AND 2008- 09. SINCE COMMON ISSUE ARISES FOR CONSIDERATION IN BOTH THESE 2 I.T.A. NOS.2443 & 2444/MDS/14 APPEALS, WE HEARD THESE APPEALS TOGETHER AND DISPOS ING OF THE SAME BY THIS COMMON ORDER. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REGARD TO DISALLOWANCE OF PROVISION MADE FOR PAYMENT OF GRATU ITY. 3. SH. P. RADHAKRISHNAN, THE LD. DEPARTMENTAL REPRE SENTATIVE, SUBMITTED THAT THE ASSESSEE MADE PROVISION FOR PAYM ENT OF GRATUITY. SINCE THE PAYMENT WAS NOT MADE DURING TH E YEAR UNDER CONSIDERATION, THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE ASSESSEE. HOWEVER, THE CIT(APPEALS) FOUND THAT THE APPROVED GRATUITY FUND IS COVERED UNDER SECTION 40A(7)(B) OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). THE CIT(APPEALS), BY FOLLOWING HIS OWN DECISION IN M/S TYCO SANMAR LIMITED IN ITA NO.3 16/09-10 DATED 1.12.2013, ALLOWED THE CLAIM OF THE ASSESSEE. ACCORDING TO THE LD. D.R., IN THE ABSENCE OF DETAILS OF THE PAYM ENT, THE SAME CANNOT BE ALLOWED UNDER SECTION 43B OF THE ACT. 4. ON THE CONTRARY, SH. SAROJ KUMAR PARIDA, THE LD. COUNSEL FOR THE ASSESSEE, SUBMITTED THAT UNDER SECTION 40A(7)(B ) OF THE ACT, A PROVISION MADE FOR PAYMENT OF GRATUITY, AN APPROVED FUND IS AN ALLOWABLE EXPENDITURE, WHILE COMPUTING TAXABLE INCO ME. A SIMILAR VIEW WAS TAKEN BY THIS TRIBUNAL IN I.T.A. NO.1551/M DS/2014 DATED 3 I.T.A. NOS.2443 & 2444/MDS/14 12.12.2014. THIS TRIBUNAL HAS ALSO FOLLOWED THIS O RDER IN I.T.A. NO.611/MDS/2012 DATED 12.6.2015. THEREFORE, THE CI T(APPEALS) HAS RIGHTLY ALLOWED THE CLAIM OF THE ASSESSEE. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS NOT IN DISPUTE THAT THE GRATUITY FUND IS AN APPROVED ONE. THE ASSESSEE HAS ALSO MADE A PROVISION FOR PAYMENT. SINCE THE PROVISION WAS MAD E FOR PAYMENT OF GRATUITY FUND, WHICH IS AN APPROVED ONE, THIS TR IBUNAL IS OF THE CONSIDERED OPINION THAT SECTION 40A(7)(B) OF THE AC T WOULD COME INTO OPERATION. THEREFORE, THE CIT(APPEALS) HAS RI GHTLY ALLOWED THE CLAIM OF THE ASSESSEE. THIS TRIBUNAL DO NOT FIND A NY INFIRMITY IN THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY, THE S AME IS CONFIRMED. 6. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. ORDER PRONOUNCED ON 3 RD JULY, 2015 AT CHENNAI. SD/- SD/- (. !' ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 3 RD JULY, 2015. KRI. 4 I.T.A. NOS.2443 & 2444/MDS/14 . ,156 76(1 /COPY TO: 1. *+ /APPELLANT 2. ,-*+ /RESPONDENT 3. 0 81 () /CIT(A)-III, CHENNAI-34 4. 0 81 /CIT, CHENNAI-III, CHENNAI-34 5. 69 ,1 /DR 6. :' ; /GF.