The DCIT(OSD),-1, Circle-4, Ahmedabad V. Mazda Limited., Ahmedabad

ITA 2784/AHD/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9927 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 25-11-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 28-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business expenditure

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD .., , BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.2784/AHD/2013 ( / ASSESSMENT YEAR : 2010-11) THE DCIT (OSD)-I CIRCLE-4 AHMEDABAD / VS. MAZDA LTD. MAZDA HOUSE PANCHVATI CIRCLE AHMEDABAD $ ./ ./ PAN/GIR NO. : AABCM 9273 H ( $' / APPELLANT ) .. ( ($' / RESPONDENT ) $') / APPELLANT BY : SHRI K. MADHUSUDAN, SR.DR ($'*) / RESPONDENT BY : SHRI S.N. SOPARKAR, AR +,*- / DATE OF HEARING 25/11/2016 ./0*- / DATE OF PRONOUNCEMENT 28/11/2016 / O R D E R PER PRADIP KUMAR KEDIA, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-VIII, AHMEDABAD DATED 08/08/2013 PASSED FOR ASSESSMENT YEAR (AY) 2010-11. 2. THE REVENUE HAS RAISED SOLITARY GROUND OF APPE AL WHICH READS AS UNDER:- 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELE TING THE DISALLOWANCE OF RS.75,36,037/- ON ACCOUNT OF LIQUID ATED ITA NO. 2784/AH D/2013 DY.CIT (OSD) VS. MAZDA LTD. ASST.YEAR 2010-11 - 2 - DAMAGES, WITHOUT PROPERLY APPRECIATING THE FACTS OF THE CASE AND THE MATERIAL BROUGHT ON RECORD. 3. THE LD.DR RELIED ON THE ORDER OF THE ASSESSIN G OFFICER (AO). 4. THE LD.AR FOR THE ASSESSEE, ON THE OTHER HAND, S UBMITTED THAT THE CIT(A) HAS FOLLOWED THE DECISION OF THE APPELLATE A UTHORITIES IN THE EARLIER AYS FROM 1997-98 TO 2009-10 IN ASSESSEES O WN CASE WHERE IDENTICAL ISSUE WAS DECIDED IN FAVOUR OF ASSESSEE. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE AO HAS MADE DISALLOWANCE OF LIQUIDATED DAMAGES OF RS.75,36,037/-. WE FIND THAT THE AFORESAID ISSUE OF DISALLOWANCE IS COVERED IN FAVOUR OF ASSESSEE BY THE DECISION OF THE COORDINATE BENCH OF THE ITAT (BENCH A AHMEDABAD) IN ASSESSEES OWN CASE FOR EARLIER A SSESSMENT YEARS. A COPY OF THE TRIBUNALS ORDER PASSED IN ITA NOS.1106 & 1750/AHD/2012 RELEVANT TO AYS 2008-09 AND 2009-10, ORDER DATED 12 /04/2013, IS PLACED ON RECORD FOR THIS PURPOSE. THE TRIBUNAL IN ITS AF ORESAID ORDER IN ASSESSEES OWN CASE HAS HELD THAT AMOUNT HAS BEEN D EDUCTED TOWARDS LIQUIDATED DAMAGES BY THE PURCHASERS OWING TO DELA Y FULFILLMENT OF TERMS OF PURCHASE ORDER. THE AFORESAID AMOUNT PAID TOWAR DS DAMAGES ON ACCOUNT OF LATE DELIVERY OF GOODS WAS HELD TO BE AL LOWABLE AS BUSINESS EXPENDITURE. WE FIND THAT THE CIT(A) IN THE IMPUGN ED ORDER HAS SIMPLY ITA NO. 2784/AH D/2013 DY.CIT (OSD) VS. MAZDA LTD. ASST.YEAR 2010-11 - 3 - FOLLOWED THE DECISION OF THE COORDINATE BENCH OF TH E TRIBUNAL IN EARLIER ASSESSMENT YEARS AND ALLOWED THE APPEAL OF THE ASSE SSEE. IN THESE FACTS OF THE CASE, WE DO NOT SEE ANY REASON TO INTERFERE WITH THE ORDER OF THE CIT(A). THE ORDER OF CIT(A) IS THUS UPHELD. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. THIS ORDER PRONOUNCED IN OPEN COURT ON 28/11/2016 SD/- SD/- (..) ( ) ( S.S. GODARA ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 28/ 11 /2016 4..+,.+../ T.C. NAIR, SR. PS !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ($' / THE RESPONDENT. 3. 567- 8- / CONCERNED CIT 4. 8- ( ) / THE CIT(A)-VIII, AHMEDABAD 5. 9:-+67 , 670 , 5 / DR, ITAT, AHMEDABAD 6. <, / GUARD FILE. / BY ORDER, (9-- //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD