ACIT Circle 1, Salem V. Tamil Nadu State Transport Corporation (Salem) Ltd., Salem

ITA 3169/CHNY/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 4614 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 26-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR M SRINIVASA RAO
• Assessee Lawyers: G BASKAR; SUSHMA HARINI

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . , . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A.NO.3169/CHNY/2017 / ASSESSMENT YEAR: 2011-2012 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1, SALEM. VS. M/S. TAMIL NADU STATE TRANSPORT CORPORATION (SALEM) LTD., NO. 12, RAMAKRISHNA ROAD, SALEM 636007. [PAN: AAACT7678J] ( APPELLANT ) (R ESPONDENT ) / APPELLANT BY : DR. M. SRINIVASA RAO, CIT / RESPONDENT BY : SHRI G. BASKAR, ADVOCATE & MS. SUSHMA HARINI, ADVOCATE / DATE OF HEARING : 02.08.2018 /DATE OF PRONOUNCEMENT : 15.10.2018 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS), SALEM DATED 29.09.2017 RELEVANT TO THE ASSESSMENT YEAR 2010-11. THE ONLY EFFECTIVE GROUND RAISED IN THE APPEAL OF THE REVENUE IS THAT THE LD. CIT(A) FAILED TO ADJUDICATE THE ISSUE ON DAMAGES FOR REMITTANCE TO PENSION FUND IN THE APPELLATE ORDER. I.T.A. NO. 3169/CHNY/17 2 2. THE APPEAL FILED BY THE REVENUE IS DELAYED BY THREE DAYS, FOR WHICH, THE REVENUE HAS FILED PETITION IN SUPPORT OF AN AFFIDAVIT FOR CONDONATION OF THE DELAY, TO WHICH; THE LD. COUNSEL FOR THE ASSESSEE HAS NOT RAISED ANY SERIOUS OBJECTION. CONSEQUENTLY, THE DELAY OF THREE DAYS IN FILING OF THE APPEAL STANDS CONDONED AND THE APPEAL IS ADMITTED FOR ADJUDICATION. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT AGAINST THE ORDER OF THE LD. CIT(A) DIRECTING THE ASSESSING TO FIND OUT HOW MUCH OF THE EXPENDITURE IS COMPENSATORY IN NATURE OR PENAL IN NATURE AND ALLOW ONLY THE EXPENDITURE COMPENSATORY IN NATURE, BY CONSIDERING THE SUBMISSIONS OF THE ASSESSEE THAT THE PAYMENTS WERE COMPENSATORY IN NATURE AND NOT PENALTY IN SUPPORT OF GOVERNMENTS ORDER, DETAILS OF INTEREST PAID AND DETAILED EXPLANATION, THE ASSESSING OFFICER ALLOWED THE DAMAGES FOR REMITTANCE OF PENSION FUND TRUST OF .2,35,91,384/- VIDE HIS ORDER DATED 15.11.2017. IN VIEW OF THE ABOVE THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE APPEAL FILED BY THE DEPARTMENT IS NOT MAINTAINABLE AND LIABLE TO BE DISMISSED AS INFRUCTUOUS. THE LD. DR FAIRLY CONCEDED THE ABOVE SUBMISSIONS OF THE I.T.A. NO. 3169/CHNY/17 3 LD. COUNSEL FOR THE ASSESSEE. BEING SO, THE APPEAL FILED BY THE REVENUE STANDS DISMISSED AS INFRUCTUOUS. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON THE 15 TH OCTOBER, 2018 AT CHENNAI. SD/ - SD/ - (A.MOHAN ALANKAMONY) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 15.10.2018 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.