ACIT 2(2)(1), MUMBAI V. L & T CUTTING TOOLS LTD, MUMBAI

ITA 2855/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9959 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 20-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V JANARDHANAN

Judgement Text

, SMC , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC, MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO.2855/MUM/2017 : ASST.YEAR 2012-2013 ASST .COMMISSIONER OF INCOME - TAX CIRCLE 2(2)(1) MUMBAI. / VS. M/S. L & T CUTTING TOOLS LIMITED L & T HOUSE, N.M.MARG BALLARD ESTATE, MUMBAI 400 001. PAN : AAACT4499B. ( / APPELLANT) ( / RESPONDENT) /APPELLANT BY : SHRI V.JANARDHANAN /RESPONDENT BY : SHRI VIJAY MEHTA / DATE OF HEARING : 28.06.2017 / DATE OF PRONOUNCEMENT : 01.09.2017 / O R D E R THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A) DATED 05.01.2017 AND PERTAINS TO ASSESSMENT YEAR 2012-2013. 2. THE GROUNDS OF APPEAL READ AS UNDER:- '1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) ERRED IN DIRECTING TO VERIFY THE DISALLOWANCE OF RS.33,45,631/- MADE BY THE A.O. ON ACCOUNT OF RESEARCH & DEVELOPMENT EXPENSES WITHOUT APPRECIATING THE FACT THAT THE AO HAD ALREADY GIVEN HIM ENOUGH OPPORTUNITY DURING ASSESSMENT PROCEEDINGS AND THE SAME WAS NOT AVAILED BY THE ASSESSEE. 2. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, THE DECISION OF THE CIT(A) MAY BE SET ASIDE AND THAT OF THE AO RESTORED. 3. IN THIS CASE THE ASSESSING OFFICER MADE THE DISALLOWANCE OF THE CLAIM OF R & D EXPENSES AMOUNTING TO RS.33,45,631 BY OBSERVING THAT THE ITA NO.2855/MUM/2017. M/S.L & T CUTTING TOOLS LIMITED. 2 ASSESSEE HAS GIVEN ORDINARY GENERAL EXPLANATION WITHOUT ANY EVIDENCE IN RESPECT OF THE CLAIM OF THE RESEARCH AND DEVELOPMENT EXPENSES. 4. UPON ASSESSEES APPEAL, LEARNED CIT(A) REMITTED THE MATTER TO THE FILE OF THE ASSESSING OFFICER BY MAKING FOLLOWING OBSERVATION:- THIS ISSUE IS ALSO A RECURRING ISSUE IN THE CASE OF THE APPELLANT AND THE SAME HAS BEEN DECIDED BY THE CIT(A) IN AY 2010-11 AS UNDER: 'I DIRECT THE AO TO VERIFY AS TO WHETHER ALL THE ITEMS OF THE ABOVE EXPENDITURE ARE REVENUE IN NATURE AND IF SO, THE CLAIM OF THE APPELLANT SHOULD BE ALLOWED TO THE EXTENT THE ABOVE EXPENDITURE IS REVENUE IN NATURE.' SINCE THE FACTS OF THE CASE ARE IDENTICAL FOR THE YEAR UNDER CONSIDERATION, IN VIEW OF THE DECISION OF THE CIT(A), FOR THIS YEAR ALSO, THE AO IS DIRECTED TO VERIFY J AS TO WHETHER ALL THE ITEMS OF THE ABOVE EXPENDITURE ARE REVENUE IN NATURE AND IF SO, THE CLAIM OF THE APPELLANT SHOULD BE ALLOWED TO THE EXTENT THE ABOVE EXPENDITURE IS REVENUE IN NATURE. 5. AGAINST THE ABOVE ORDER, REVENUE IS IN APPEAL BEFORE THE ITAT. 6. I HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RECORDS. I FIND THAT LEARNED CIT(A) HAS FOLLOWED AN EARLIER APPELLATE ORDER AND REMITTED THE MATTER TO THE FILE OF THE A.O. TO EXAMINE THE ISSUE AND THEREAFTER MAKE THE DECISION. I DO NOT FIND ANY INFIRMITY IN THE DIRECTION OF THE LEARNED CIT(A). HENCE, I UPHOLD THE SAME. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED ON THIS 01 ST DAY OF SEPTEMBER, 2017. SD/- ( SHAMIM YAHYA ) ACCOUNTANT MEMBER MUMBAI; DATED : 01 ST SEPTEMBER, 2017. DEVDAS* ITA NO.2855/MUM/2017. M/S.L & T CUTTING TOOLS LIMITED. 3 / COPY OF THE ORDER FORWARDED TO : / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT, MUMBAI. 4. / CIT(A), MUMBAI 5. , , / DR, ITAT, MUMBAI 6. [ / GUARD FILE.