The Income tax Offier,Vapi Ward-4, Nani Daman V. M/s. Mars Packaging Industries, Nani Daman

ITA 3211/AHD/2009

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7685 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 01-05-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 30-11-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAHUL KUMAR

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI G.C.GUPTA VICE-PRESIDENT(AZ) AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A. NO.3211/AHD/2009 ( / / / / ASSESSMENT YEAR : 2006-07) THE ITO VAPI WARD-4 DAMAN / VS. M/S.MARS PACKAGING INDUSTRIES SURVEY NO.98/1, DAMAN IND.ESTATE, KADAIYA NAN-DAMAN !' ./#$ ./ PAN/GIR NO. : AAIFM 3136 H ( % / // / APPELLANT ) .. ( &' % / RESPONDENT ) AND CO NO.292/AHD/2009 A.Y. 2006-07 (ARISING OUT OF ITA NO.3211/AHD/2009 A.Y. 2006-0 7) M/S.MARS PACKAGING INDS. VS. ITO,VAPI WAR D-4,DAMAN (CROSS OBJECTOR) .. (RESPONDENT) REVENUE BY : SHRI RAHUL KUMAR, SR.D.R. ASSESSEE BY : SHRI TUSHAR P.HEMANI, A.R. () * +,' / / / / DATE OF HEARING : 01/05/2012 -. * +,' / DATE OF PRONOUNCEMENT : 02/05/2012 !/ / O R D E R PER SHRI G.C.GUPTA, VICE PRESIDENT (AZ): THIS APPEAL BY THE REVENUE AND THE CROSS OBJECT ION BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2006-07 ARE DIREC TED AGAINST THE ORDER OF THE LD.CIT(APPEALS)-VALSAD DATED 31/08/200 9. THESE HAVE BEEN DISPOSED OF WITH THIS CONSOLIDATED ORDER. ITA NO.321 1/AHD/2009& CO NO.292/AHD/ 2009 ITO VS. M/S.MARS PACKAGING INDS. (BY REVENUE) ASST.YEAR 2006-07 - 2 - [A] REVENUES APPEAL; ITA NO.3211/AHD/2009 THE ONLY GROUND OF THE REVENUES APPEAL IS AS UND ER:- (1) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) HAS ERRED IN ALLOWING THE DEDUCTION U/S.80IB ON DISALLOWANCE U/S.40(A)(IA), AS THE DISALLOWANCE BEING TECHNICAL IN NATURE AND ASSESSEE IS ENTITLED TO DED UCTION OF SUCH DISALLOWANCE IN NEXT YEAR ON PAYMENT BASIS. T HIS WOULD LED TO DOUBLE BENEFIT TO THE ASSESSEE. 2. THE LD.DR HAS RELIED ON THE ORDER OF THE ASSESSI NG OFFICER. HE SUBMITTED THAT THE ASSESSEE IS ENTITLED TO DEDUCTI ON OF SUCH AMOUNT IN NEXT YEAR ON ACTUAL BASIS AND IT SHALL RESULT IN DO UBLE BENEFIT TO THE ASSESSEE. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTE D THAT THE ISSUE IS COVERED IN FAVOUR OF ASSESSEE WITH THE DECISION OF ITAT AHMEDABAD BENCH A IN THE CASE OF M/S.RAMESH INDUSTRIES VS. ITO IN ITA NO.3131/AHD/2008 FOR ASST.YEAR 2005-06, DATED 21/01 /2011 AND THAT THE ASSESSEE HAS NOT CLAIMED THE DEDUCTION IN THE SUBSE QUENT YEARS ON PAYMENT BASIS. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FI ND THAT THE ISSUE IN THE GROUND OF APPEAL OF THE REVENUE REGARDING DE DUCTION U/S.80IB OF THE I.T.ACT ON DISALLOWANCE U/S.40(A)(IA) IS COVERE D IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF ITAT AHMEDABAD IN THE CASE OF M/S.RAMESH INDUSTRIES(SUPRA), WHEREIN HELD THAT IF THE DISALLOWANCE IS SUSTAINED UNDER THE PROVISIONS OF SECTION 40(A)(IA) OF THE I.T.ACT, THE SAME WOULD BE TREATED AS BUSINESS PROFIT FOR THE PURPOSE OF DEDUCTION U/S.80-IB OF THE I.T.ACT AND, ACCORDINGLY, THE ISSU E IS DECIDED IN FAVOUR OF THE ASSESSEE. HOWEVER, WE DIRECT THE ASSESSING OFFICER TO VERIFY THAT ITA NO.321 1/AHD/2009& CO NO.292/AHD/ 2009 ITO VS. M/S.MARS PACKAGING INDS. (BY REVENUE) ASST.YEAR 2006-07 - 3 - THE ASSESSEE HAS NOT CLAIMED AND HAS NOT BEEN ALLOW ED THE DEDUCTION ON THE SAME AMOUNT IN SUBSEQUENT YEAR/YEARS ON ACTUAL PAYMENT BASIS AND SUBJECT TO THIS VERIFICATION, THE ISSUE IS DECIDED IN FAVOUR OF THE ASSESSEE. [B] ASSESSEES CROSS OBJECTION NO.292/AHD/2009 4. THE ONLY CROSS OBJECTION OF THE ASSESSEE IS AS UNDER:- 1. THE CIT(APPEAL) ERRED IN CONFIRMING THE ORDER OF AS SESSING OFFICER IN SO FAR AS ADDITION ON ACCOUNT OF CAPITAL CONTRIBUTION BY PARTNERS IS CONCERN EVEN THOUGH CONFIRMATION FRO M PARTNERS ALONG WITH THEIR PERSONAL BALANCE SHEET & COPY OF T HEIR ACKNOWLEDGEMENT FOR FILING OF RETURN OF INCOME HAS BEEN SUBMITTED. 4.1. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE OF ADDITION ON ACCOUNT OF CAPITAL CONTRIBUTION BY PART NERS IN THE HANDS OF THE FIRM IS COVERED IN FAVOUR OF ASSESSEE WITH THE DECI SION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. PA NKAJ DYESTUFF INDUSTRIES IN INCOME TAX REFERENCE NO.241 OF 1993, DATED 06/07/2005, WHICH IS BINDING ON THE TRIBUNAL. THE LD.DR HAS RE LIED ON THE ORDER OF THE ASSESSING OFFICER. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. THE DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF P ANKAJ DYESTUFF INDUSTRIES(SUPRA) IS BINDING ON THE TRIBUNAL AND, A CCORDINGLY, THE ISSUE OF ADDITION ON ACCOUNT OF CAPITAL CONTRIBUTION BY THE PARTNERS IN THE HANDS OF THE FIRM IS DECIDED IN FAVOUR OF THE ASSESSEE AND T HE ADDITION IS DELETED AND THE GROUND OF THE CROSS OBJECTION OF THE ASSESS EE IS ALLOWED. ITA NO.321 1/AHD/2009& CO NO.292/AHD/ 2009 ITO VS. M/S.MARS PACKAGING INDS. (BY REVENUE) ASST.YEAR 2006-07 - 4 - 6. IN THE RESULT, THE APPEAL OF THE REVENUE I S DISPOSED OF AS DIRECTED ABOVE AND THE CROSS OBJECTION FILED BY THE ASSESSEE IS ALLOWED. SD/- SD/- (A. MOHAN ALANKAMONY) ( G.C. GUPTA ) ACCOUNTANT MEMBER VICE PRES IDENT (AZ) AHMEDABAD; DATED 02/ 05 /2012 0,.., .../ T.C. NAIR, SR. PS !/ * &+1 2!1+ !/ * &+1 2!1+ !/ * &+1 2!1+ !/ * &+1 2!1+/ COPY OF THE ORDER FORWARDED TO : 1. % / THE APPELLANT 2. &' % / THE RESPONDENT. 3. + (3 / CONCERNED CIT 4. (3() / THE CIT(A)-VALSAD 5. 167 &+ , , / DR, ITAT, AHMEDABAD 6. 78 9) / GUARD FILE. !/( !/( !/( !/( / BY ORDER, '1+ &+ //TRUE COPY// : :: :/ // / # # # # ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD 1. DATE OF DICTATION.. 01/05/2012 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 01/05/2012 OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S2/5/12 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 2/5/12 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 9. DATE OF DESPATCH OF THE ORDER