ACIT, Jaipur V. MODERN THREADS (INDIA) LTD., Jaipur

ITA 346/JPR/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2125 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 03-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VARINDER MEHTA
• Assessee Lawyers: HIMANSHU GOYAL CA DHK
• Section: 43B; 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NO. 346/JP/2017 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2012-13. THE ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-6, JAIPUR. CUKE VS. M/S. MODERN THREADS (INDIA) LTD., A-4, VIJAY PATH, TILAK NAGAR, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AABCM 1850 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI VARINDER MEHTA (CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI HIMANSHU GOYAL (CA) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 09.08.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 10/08/2017. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THIS APPEAL BY THE BY THE REVENUE IS FILED AGAINST THE ORDER OF LD. CIT (A)-5, JAIPUR DATED 07.02.2017 PERTAINING TO ASSESSMENT YE AR 2012-13. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE AND IN LAW, THE CIT (APPEALS) WAS JUSTIFIED IN DELETING TH E ADDITION OF RS. 3,91,35,608/- MADE BY THE AO ON ACCOUNT OF REMISSIO N OF LIABILITY U/S 41(1) OF THE INCOME TAX ACT, 1961. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE AND IN LAW, THE CIT (APPEALS) WAS JUSTIFIED IN DELETING TH E ADDITION OF RS. 9,90,079/- MADE BY AO ON ACCOUNT OF EXCISE DUTY LEV IABLE ON CLOSING STOCK. 2 ITA NO. 346/JP/2017 M/S. MODERN THREADS (INDIA) LTD., JAIPUR. 3. (A) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE AND IN LAW, THE CIT (APPEALS) WAS JUSTIFIED IN DELETING THE ADDITION OF RS. 63,894/- MADE BY THE AO FOR DEPOSITING THE EMPL OYEES CONTRIBUTION TO PF &ESI BEYOND THE PRESCRIBED TIME LIMIT PROVIDED IN RESPECTIVE ACTS. 3.(B) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT (APPEALS) WAS JUSTIFIED IN HOLDING THA T EMPLOYEES CONTRIBUTION TO PF & ESI ARE GOVERNED BY THE PROVIS ION OF SECTION 43B AND NOT BY SECTION 36(1)(VA) R.W.S. 2(24)(X) OF THE I.T. ACT. 4. THE APPELLANT CRAVES ITS RIGHTS TO ADD, AMEND OR AL TER ANY OF THE GROUNDS ON OR BEFORE THE HEARING. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMEN T UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS TH E ACT) WAS FRAMED VIDE ORDER DATED 12.03.2015. WHILE FRAMING THE ASSESSMENT, TH E AO MADE ADDITION ON ACCOUNT OF REMISSION OF LIABILITY OF RS. 3,91,35,608/-, ADD ITION ON ACCOUNT OF VALUATION OF CLOSING STOCK OF RS. 9,90,079/- BY INVOKING PROVISI ONS OF SECTION 145A OF THE ACT AND INCLUDED THE VALUE OF EXCISE DUTY IN THE CLOSING ST OCK. THE AO HAS ALSO MADE ADDITION OF RS. 63,894/- FOR DEPOSITING THE PF & ES I BEYOND THE PRESCRIBED DUE DATE IN TERMS OF PROVISIONS OF SECTION 36(1)(VA) READ WI TH SECTION 2(24)(X) OF THE ACT. BEING AGGRIEVED BY THIS ORDER, THE ASSESSEE PREFERR ED APPEAL BEFORE LD. CIT (A), WHO BY FOLLOWING THE DECISION OF THE COORDINATE BENCH I N THE ASSESSEES OWN CASE IN ITA NO. 671/JP/2014 DATED 22.01.2016 AND ALSO FOLLOWING THE JUDGMENT OF HONBLE JURISDICTIONAL HIGH COURT DELETED THE ADDITIONS. 3. NOW THE REVENUE IS IN APPEAL BEFORE THIS TRIBUNA L. 3 ITA NO. 346/JP/2017 M/S. MODERN THREADS (INDIA) LTD., JAIPUR. 4. GROUNDS NOS. 1 & 2 RELATES TO ADDITION ON ACCOUN T OF REMISSION OF LIABILITY OF RS. 3,91,35,608/- AND ADDITION ON ACCOUNT OF NON-CO MPLIANCE OF PROVISIONS OF SECTION 145A OF RS. 9,90,079/- RESPECTIVELY. THE LD. D/R H AS VEHEMENTLY SUPPORTED THE ORDER OF THE ASSESSING OFFICER. 4.1. ON THE CONTRARY, THE LD. COUNSEL FOR THE ASSES SEE, AT THE OUTSET, SUPPORTED THE ORDER OF THE LD. CIT (A). HE SUBMITTED THAT ALL THE ISSUES RAISED IN THIS APPEAL ARE COVERED BY THE DECISIONS OF THE TRIBUNAL IN EARLIER YEARS. THE LD. CIT (A) BY FOLLOWING THOSE DECISIONS DELETED THE ADDITIONS. THE LD. COU NSEL, THEREFORE, SUBMITTED THAT IN VIEW OF THE BINDING PRECEDENTS, THE ORDER OF LD. CI T (A) BE AFFIRMED BY REJECTING THE GROUNDS OF THE ASSESSEE. 4.2. WE HAVE HEARD RIVAL CONTENTIONS AND GONE THROU GH THE ORDERS OF THE AUTHORITIES BELOW. ON GOING THROUGH THE MATERIAL A VAILABLE BEFORE US, WE FIND THAT CASE OF THE ASSESSEE IS SQUARELY COVERED BY THE DEC ISIONS OF THE COORDINATE BENCH OF THE TRIBUNAL IN THE ASSESSEES OWN CASE PASSED IN I TA NO. 671/JP/2014 DATED 22.01.2016 FOR THE A.Y. 2009-10 AND ITA NO. 729/JP/ 2016 DATED 07.10.2016 FOR THE A.Y. 2010-11. THE LD. CIT (A) WHILE ALLOWING THE A PPEAL OF THE ASSESSEE, HAS FOLLOWED THOSE DECISIONS. THERE IS NO CHANGE IN THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE. THE LD. D/R HAS NOT CONTROVERTED THE FINDINGS OF THE LD. CIT (A) BY BRINGING ANY FRESH MATERIAL. WE, THEREFORE, FIND N O INFIRMITY IN THE ORDER OF LD. CIT (A) AND THE SAME IS HEREBY AFFIRMED. THE GROUNDS NO . 1 AND 2 OF THE APPEAL ARE REJECTED. 5. GROUND NO. 3(A) AND 3(B) RELATES TO ADDITION OF RS. 63,894/- ON ACCOUNT LATE DEPOSIT OF PF AND ESI. 4 ITA NO. 346/JP/2017 M/S. MODERN THREADS (INDIA) LTD., JAIPUR. 5.1. THE LD. D/R SUPPORTED THE ORDER OF AO AND REQU ESTED TO SET ASIDE THE ORDER OF LD. CIT (A) AND RESTORE THE ORDER OF AO. 5.2. ON THE OTHER HAND, THE LD. A/R SUPPORTED THE O RDER OF THE LD. CIT (A) AND SUBMITTED THAT THE LD. CIT (A) HAS RIGHTLY DELETED THE ADDITION BY FOLLOWING VARIOUS PRONOUNCEMENTS OF HONBLE JURISDICTIONAL HIGH COURT . 5.3. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSE D THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE COORDINATE BENCH OF THE TR IBUNAL IN ITA NO. 166/JP/2012 BY FOLLOWING THE JUDGMENT OF THE HONBLE SUPREME COURT IN THE CASE OF CIT VS. VINAY CEMENT, 213 CTR 268 (SC) HAS DECIDED THE ISSUE IN F AVOUR OF THE ASSESSEE. THE HONBLE JURISDICTIONAL HIGH COURT HAS ALSO DECIDED THIS ISSUE IN FAVOUR OF THE ASSESSEE IN THE CASES OF JAIPUR VIDHYUT VITHRAN NIG AM LTD., 265 CTR 62 (RAJ.) AND CIT VS. STATE BANK OF BIKANER AND JAIPUR (2014) 99 DTR 131 (RAJ.). IN THE LIGHT OF ABOVE FACTS, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF LD. CIT (A), WHICH IS HEREBY AFFIRMED. THE GROUND OF THE REVENUE IS REJECTED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 10.08.20 17. SD/- SD/- ( HKKXPUN ( DQY HKKJR ) ( BHAGCHAND) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 10/08/2017. DAS/ 5 ITA NO. 346/JP/2017 M/S. MODERN THREADS (INDIA) LTD., JAIPUR. VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ACIT CIRCLE-6, JAIPUR. 2. THE RESPONDENT M/S. MODERN THREADS (INDIA) LTD ., JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 346/JP/2017) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 6 ITA NO. 346/JP/2017 M/S. MODERN THREADS (INDIA) LTD., JAIPUR.