The DCIT, Circle-1, Ahmedabad V. M/s. Alfa Ica (India) Ltd., Ahmedabad

ITA 2893/AHD/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85557 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 31-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Keywords: Revised return
• Section: 143(3); 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD , LH LHLH LH BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER. ITA. NO.2893/AHD/2014 (ASSESSMENT YEAR:2011-12) DCIT, CIRCLE-1, AHMEDABAD APPELLANT VS. M/S. ALFA ICA (INDIA) LTD. ALFA PLAZA, NR. SHIVRANJANI CROSS ROADS, SATELLITE, AHMEDABAD-380015 RESPONDENT PAN: AAFCA9521J /BY APPELLANT : SHRI M. K. SINGH, SR. D.R. /BY RESPONDENT : SHRI GAURAV NAHTA, A.R. !' /DATE OF HEARING : 04.02.2015 #$% !' /DATE OF PRONOUNCEMENT : 06.02.2015 ITA NO. 2893/AHD/14 A.Y. 11-12 [DCIT VS. M/S. ALFA ICA (INDIA) LTD.] PAGE 2 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-6, AH MADABAD, DATED 25.08.2014 FOR A.Y. 2011-12 ON THE FOLLOWING GROUNDS: (1) THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN DE LETING THE ADDITION OF RS.1,32,87,226/- WHICH WAS MADE U/S 40(A)(IA) DESPITE THE FACT THAT NO PAYMENT IS EXCLU DED FROM TDS U/S 194C OF THE I.T.ACT, 1961. (2) THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE DISALLOWANCE OF RS.19,85,553/- MADE ON ACCOUNT OF UN-UTILIZED CENVAT CREDIT. (3) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) OUGHT TO HAVE UPHELD THE ADDITION MADE SINCE THE ASSESSEE HAD CONTRAVENED THE PROVISIONS O F SECTION 145A BY FOLLOWING EXCLUSIVE METHOD OF ACCOUNTING INSTEAD OF INCLUSIVE METHOD MANDATED U/S 145A. 2. ASSESSEE COMPANY IS ENGAGED IN MANUFACTURING OF LAMINATE SHEETS. THE RETURN OF INCOME FOR A.Y. 201 1-12 WAS FILED DECLARING TOTAL INCOME AT RS.68,68,500/-. TH EREAFTER, ASSESSEE FILED REVISED RETURN OF INCOME DECLARING T OTAL INCOME OF RS.70,49,270/-. IN SCRUTINY ASSESSMENT, ORDER U /S. 143(3) WAS PASSED BY CONCERNED DCIT. MATTER WAS CARRIED B EFORE THE CIT(A) WHO GRANTED RELIEF TO ASSESSEE. 3. SAME HAS BEEN OPPOSED BEFORE US ON BEHALF OF REV ENUE. AT THE OUTSET, LEARNED AUTHORIZED REPRESENTATIVE PO INTED OUT ITA NO. 2893/AHD/14 A.Y. 11-12 [DCIT VS. M/S. ALFA ICA (INDIA) LTD.] PAGE 3 THAT ISSUE IN THIS APPEAL IS COVERED BY DECISION IN ASSESSEES OWN CASE IN ITA NO. 1349/AHD/2012 FOR A.Y. 09-10, W HEREIN WITH REGARDS TO ADDITION MADE U/S. 40(A)(IA) R.W.S. 194C OF THE ACT HAS BEEN DECIDED IN FAVOUR OF ASSESSEE BY OBSER VING AS UNDER: 9.2 WE HAVE HEARD BOTH SIDES. APPARENTLY THE ISSU E STOOD COVERED BY THE PRECEDENTS CITED. FOLLOWING THESE D ECISIONS, WE HEREBY HOLD THAT THE PROVISIONS OF SECTION 40(A) (IA) WERE WRONGLY INVOKED UNDER THE FACTS AND CIRCUMSTANCES O F THE CASE WHERE IT WAS PROVED THAT THE PAYMENT WAS MEREL Y REIMBURSEMENT OF THE PETTY EXPENSES, HENCE, THE REL IEF GIVEN BY THE LD. CIT(A) IS HEREBY CONFIRMED. THIS GROUND OF THE REVENUE IS THEREFORE DISMISSED. APPEAL OF THE REVE NUE IS DISMISSED. 3.1 NOTHING CONTRARY WAS BROUGHT TO OUR NOTICE. FA CTS BEING SIMILAR SO FOLLOWING SAME REASONING, WE ARE NOT INC LINED TO INTERFERE IN THE FINDING OF CIT(A). WE HOLD THAT P ROVISIONS OF SECTION 40(A)(IA) WRONGLY INVOKED. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT PAYMENT WAS MERELY REIMBURSEMENT EXPENSES, RELIEF GRANTED BY CIT(A) IS CONFIRMED. 4. NEXT ISSUE IS WITH REGARDS TO DISALLOWANCE OF RS.19,85,553/- MADE ON ACCOUNT OF UN-UTILIZED CENVA T CREDIT. IN THIS REGARD LEARNED AUTHORIZED REPRESEN TATIVE POINTED OUT THAT THIS ISSUE IS ALSO COVERED BY DECI SION OF ASSESSEES OWN CASE FOR A.Y. 09-10, WHEREIN VIDE PA RA 12, TRIBUNAL HAS UPHELD THE ORDER OF CIT(A) WHO HAS GRA NTED RELIEF TO ASSESSEE IN SIMILAR SET OF FACTS. NOTHING CONTR ARY WAS BROUGHT TO OUR NOTICE. FACTS BEING SIMILAR SO FOLL OWING SAME REASONING, WE ARE NOT INCLINED TO INTERFERE IN THE FINDING OF ITA NO. 2893/AHD/14 A.Y. 11-12 [DCIT VS. M/S. ALFA ICA (INDIA) LTD.] PAGE 4 CIT(A) WHO HAS RIGHTLY DELETED THE DISALLOWANCE OF RS.19,85,553/- MADE ON ACCOUNT OF UN-UTILIZED CENVA T CREDIT. SAME IS UPHELD. 5. AS A RESULT, APPEAL FILED BY THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON THIS THE 06 TH DAY OF FEBRUARY, 2015. SD/- SD/- (ANIL CHATURVEDI) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER TRUE COPY S.K.SINHA & & & & ' ' ' ' ('% ('% ('% ('% / COPY OF ORDER FORWARDED TO:- 1. +, / REVENUE 2. / ASSESSEE 3. // 0 / CONCERNED CIT 4. 0- / CIT (A) 5. '45 , , / DR, ITAT, AHMEDABAD 6. 589 :; / GUARD FILE. BY ORDER / & ,