THE ACIT CEN CIR-37, MUMBAI V. MR AKASAKA ELECTRONICS LTD, MUMBAI

ITA 2481/MUM/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 7884 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2010
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 01-02-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 09-04-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KALIKA SINGH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH A, MUMBAI BEFORE SHRI R.K. GUPTA, J.M. AND SHRI A.L. GEHLOT, A.M. ITA NO. 2481/M/2008 ASSESSMENT YEAR: 2005-06 THE ASSTT. COMMISSIONER OF INCOME-TAX, APPELLANT CENTRAL CIRCLE 37, AAYAKAR BHAVANK, ROOM NO. 11, GROUND FLOOR, MUMBAI 400 020. VS. M/S AKASAKA ELECTRONICS LTD., RESPONDENT 13A, NAND BHAVAN INDUSTRIAL ESTATE, MAHAKALI CAVES ROQAD, ANDHERI(E) MUMBAI 400 093. (PAN AAACA4420F) APPELLANT BY : MR. KALIKA SINGH RESPONDENT BY : MR. FARROKH IRANI ORDER PER A.L. GEHLOT, A.M.: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAI NST THE ORDER OF CIT(A)- CENTRAL VIII, MUMBAI, PASSED ON 07.12.2007 FOR THE ASSESSMENT YEAR 2005-06. 2. THE GROUND RAISED IN THIS APPEAL IS AGAINST THE ACTION OF THE CIT(A) IN DELETING THE ADDITION MADE BY THE AO IN R ESPECT OF UNUTILIZED MODVAT CREDIT U/S 145A OF THE ACT. 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO NOTICED THAT THE ASSESSEE HAS SHOWN UNUTILIZED MODVAT CREDI T OF RS. 15,13,705/- AS CURRENT ASSET IN THE BALANCE SHEET. THE AO WAS OF THE VIEW THAT IT SHOULD HAVE BEEN INCLUDED IN THE VALUA TION OF CLOSING STOCK TO COMPLY WITH THE PROVISIONS OF SECTION 145A OF THE ACT. HE, ITA NO. 2481/MUM/2008 M/S AKASAKA ELECTRONICS LTD . 2 ACCORDINGLY, MADE THE ADDITION OF RS. 15,13,705/-. THE CIT(A) FOLLOWED HIS EARLIER ORDER FOR AY 2004-05 AND DELETED THE AD DITION. 4. THE LEARNED DR RELIED UPON THE ORDER OF AO WHERE AS THE LEARNED AR SUBMITTED THAT ON IDENTICAL SET OF FACTS, THE IS SUE HAS BEEN DECIDED BY THE ITAT IN ASSESSEES OWN CASE IN EARLI ER YEARS. HE FURTHER SUBMITTED THAT IN AY 2001-02, THE ITAT SENT THE MAT TER BACK TO THE FILE OF THE AO PASSED FRESH ORDER WHEREIN NO ADDITI ON WAS MADE. A COPY OF THE ASSESSMENT ORDER FILED, WHICH IS PLACED AT PAGE 16 OF THE PAPER BOOK. THE ASSESSEE HAS ALSO FILED THE COPIES OF THE EARLIER ORDERS OF ITAT IN ITS OWN CASES, WHICH HAVE BEEN PLACED IN THE PAPER BOOK. 5. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF THE PARTIES AND PERUSED THE RECORD. WE FIND THAT ON IDENTICAL SET O F FACTS, THE CIT(A) HAS FOLLOWED HIS EARLIER ORDER FOR AY 2004-05, AGAI NST WHICH THE REVENUE HAS CHALLENGED BEFORE THE ITAT. THE ITAT VI DE ITA NO. 3921/MUM/07 ORDER DATED 03.02.2009 DIRECTED THE AO TO ALLOW THE OPPORTUNITY TO THE ASSESSEE TO PREPARE TRADING ACCO UNT AS PER THE DIRECTION OF THE TRIBUNAL INDICATED IN THE CASE OF M/S CYANAMID AGRO LTD. AND TO SEE IF ANY ADDITION IS WARRANTED AND TH E ISSUE SHALL BE DECIDED ACCORDINGLY. WE RESPECTFULLY FOLLOW THE ABOVE ORDER OF ITAT FOR AY 2004-05 AND IN THE LIGHT OF THAT WE REMIT THE MA TTER BACK TO THE FILE OF THE AO WITH IDENTICAL DIRECTIONS AS GIVEN B Y THE ITAT IN AY 2004-05 CITED SUPRA. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. PRONOUNCED ON THIS 9 TH DAY OF FEBRUARY, 2010 SD/- SD/- (R.K. GUPTA) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTAN T MEMBER DATED: FEBRUARY, 2010 ITA NO. 2481/MUM/2008 M/S AKASAKA ELECTRONICS LTD . 3 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) CONCERNED. 4) THE CIT CONCERNED. 5) THE DEPARTMENTAL REPRESENTATIVE, A BENCH, I.T .A.T., MUMBAI. BY ORDER //TRUE COPY// ASST. REGISTRAR, I.T.A.T., MUMBAI. KV