Watertec (India) Pvt. Ltd., Coimbatore V. DCIT, Coimbatore

ITA 2696/CHNY/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 4938 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 06-03-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 19-09-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAL

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , !.. # $%, ' () BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./ ITA NO.2696/MDS/2016 + ,+ / ASSESSMENT YEAR : 2012-13 M/S WATERTEC (INDIA) PVT. LTD., (FORMERLY WATERTEC SYSTEMS (INDIA) PRIVATE LIMITED), GOPAL BAGH, 1060, AVINASHI ROAD, COIMBATORE 641 018. PAN : AAACW 1645 G V. THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE I, COIMBATORE. (.// APPELLANT) (01.// RESPONDENT) ./ 2 3 / APPELLANT BY : NONE 01./ 2 3 / RESPONDENT BY : SHRI SUPRIYO PAL, JCIT # 2 4' / DATE OF HEARING : 07.03.2017 56, 2 4' / DATE OF PRONOUNCEMENT : 07.04.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -1, COIMBA TORE, DATED 24.06.2016 AND PERTAINS TO ASSESSMENT YEAR 2012-13. 2 I.T.A. NO.2696/MDS/16 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS DISAL LOWANCE OF CONTRIBUTION MADE BY THE ASSESSEE TOWARDS GRATUITY FUND CONSTITUTED UNDER LIFE INSURANCE CORPORATION OF IND IA GROUP GRATUITY SCHEME. 3. NO ONE APPEARED FOR THE ASSESSEE INSPITE OF ISSU E OF NOTICE. THEREFORE, WE HEARD LD. DEPARTMENTAL REPRESENTATIVE AND PROCEEDED TO DISPOSE THE APPEAL ON MERIT. 4. SHRI SUPRIYO PAL, THE LD. DEPARTMENTAL REPRESENT ATIVE, SUBMITTED THAT THE ASSESSEE HAS CONTRIBUTED ` 11,39,861/-, DURING THE YEAR UNDER CONSIDERATION, TOWARDS LIC GRATUITY FUND. SINCE THE LIC GRATUITY FUND WAS NOT APPROVED BY COMMISSIONER OF INCOME TAX, THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE ASSESSEE UNDER SECTION 40A(7) OF THE INCOME-TAX ACT, 1961 (I N SHORT 'THE ACT'). THE ASSESSEE HAS ALSO CLAIMED DEDUCTION TO THE EXTENT OF ` 6,69,105/- IN RESPECT OF CONTRIBUTION MADE TO GRATU ITY FUND FOR THE ASSESSMENT YEAR 2011-12. TOTALLY THE ASSESSING OFF ICER DISALLOWED ` 18,08,966/-. SINCE THE FUND WAS NOT APPROVED, THE CIT(APPEALS) CONFIRMED THE DISALLOWANCE. 3 I.T.A. NO.2696/MDS/16 5. WE HAVE CONSIDERED THE SUBMISSION OF THE LD. DEP ARTMENTAL REPRESENTATIVE AND ALSO PERUSED THE MATERIAL AVAILA BLE ON RECORD. THE ASSESSMENT YEAR UNDER CONSIDERATION IS 2012-13. DURING THE YEAR UNDER CONSIDERATION, ADMITTEDLY, THE ASSESSEE CONTRIBUTED ONLY ` 11,39,861/- AND BALANCE ` 6,69,105/- RELATES TO ASSESSMENT YEAR 2011-12. SINCE THE APPEAL OF THE ASSESSEE FOR ASSE SSMENT YEAR 2011-12 IS NOT BEFORE THIS TRIBUNAL, THIS TRIBUNAL CANNOT ENTERTAIN ANY CLAIM IN RESPECT OF THE CONTRIBUTION MADE FOR T HE ASSESSMENT YEAR 2011-12. THEREFORE, WE CONFINE OURSELVES ONLY TO THE CONTRIBUTION MADE TO THE EXTENT OF ` 11,39,861/-. 6. ADMITTEDLY, THE CONTRIBUTION WAS MADE TO THE GRA TUITY FUND CONSTITUTED BY LIFE INSURANCE CORPORATION OF INDIA. IT IS NOT IN DISPUTE THAT THE ASSESSEE HAS PAID THE MONEY. IN O THER WORDS, THE MONEY TO THE EXTENT OF ` 11,39,861/- HAS GONE OUT OF THE HANDS OF THE ASSESSEE AND IT WILL NOT COME BACK TO THE ASSES SEE. IN THOSE CIRCUMSTANCES, THIS TRIBUNAL IS OF THE CONSIDERED O PINION THAT THERE IS NO JUSTIFICATION IN DISALLOWING THE CLAIM OF THE ASSESSEE. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT WHEN THE AMOUNT HAS GONE OUT OF THE HANDS OF THE ASSESSEE AND THERE IS NO DOUBT THAT MONEY WILL NOT COME BACK TO THE ASSESSEE, DISALLOWA NCE MADE BY 4 I.T.A. NO.2696/MDS/16 THE ASSESSING OFFICER CANNOT BE SUSTAINED. ACCORDI NGLY, THE ORDERS OF THE AUTHORITIES BELOW ARE SET ASIDE TO THE EXTEN T OF CONTRIBUTION MADE BY THE ASSESSEE TOWARDS LIC GRATUITY FUND AT ` 11,39,861/- AND THE ASSESSING OFFICER IS DIRECTED TO ALLOW THE CLAIM OF THE ASSESSEE ONLY TO THE EXTENT OF ` 11,39,861/-. SINCE THE BALANCE AMOUNT OF ` 6,69,105/- RELATES TO ASSESSMENT YEAR 2011-12, THIS TRIBUNAL COULD NOT GO INTO THE ISSUE SINCE NO APPEA L IS PENDING BEFORE THIS TRIBUNAL FOR THAT ASSESSMENT YEAR. 7. WITH THE ABOVE OBSERVATION, THE APPEAL OF THE AS SESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED ON 7 TH APRIL, 2017 AT CHENNAI. SD/- SD/- ( ! . . # $% ) ( . . . ) (D.S. SUNDER SINGH) (N.R.S. GANESAN) ' / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 8 /DATED, THE 7 TH APRIL, 2017. KRI. 2 04$9 :9,4 /COPY TO: 1. ./ /APPELLANT 2. 01./ /RESPONDENT 3. # ;4 () /CIT(A)-1, COIMBATORE 4. PRINCIPAL CIT-1, COIMBATORE 5. 9< 04 /DR 6. !+ = /GF.