DCIT, CHENNAI V. BS & B Safety Systems (India) Ltd., CHENNAI

ITA 359/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90745 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 21-07-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 13-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: R DHIRAJ

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI ... , ! ', $ %& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ./ ITA NO.359/MDS/2015 ( )( / ASSESSMENT YEAR : 2007-08 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 1(2), CHENNAI - 600 034. V. M/S BS & B SAFETY SYSTEMS (INDIA) LTD., 9, CATHEDRAL ROAD, CHENNAI - 600 086. PAN : AAACB 1438 Q (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : SHRI A.V. SREEKANTH, JCIT -.+, / 0 / RESPONDENT BY : SHRI R. DHIRAJ, ADVOCATE 1 / 2$ / DATE OF HEARING : 21.07.2015 34) / 2$ / DATE OF PRONOUNCEMENT : 31.07.2015 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE CIT(APPEALS)-I, CHENNAI, DATED 15.10.2014 AND P ERTAINS TO ASSESSMENT YEAR 2007-08. 2 I.T.A. NO.359/MDS/15 2. SHRI A.V. SREEKANTH, THE LD. DEPARTMENTAL REPRES ENTATIVE, SUBMITTED THAT THE ASSESSING OFFICER DISALLOWED THE PROVISION FOR GRATUITY UNDER SECTION 40(A)(7) OF THE INCOME-TAX A CT, 1961 (IN SHORT 'THE ACT'). HOWEVER, ON APPEAL BY THE ASSESS EE, THE CIT(APPEALS), BY FOLLOWING HIS OWN ORDER FOR THE AS SESSMENT YEAR 2005-06, ALLOWED THE CLAIM OF THE ASSESSEE. REFERR ING TO SECTION 40A(7)(A) OF THE ACT, THE LD. D.R. SUBMITTED THAT N O PROVISION SHALL BE ALLOWED IN RESPECT OF PAYMENT OF GRATUITY. THE LD. D.R. SUBMITTED THAT THE GRATUITY FUND WAS APPROVED BY TH E COMMISSIONER. THE LD. D.R. FURTHER SUBMITTED THAT IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEARS 2005-06 AN D 2008-09, THIS TRIBUNAL ALLOWED SIMILAR CLAIM OF THE ASSESSEE . 3. WE HEARD SHRI R. DHIRAJ, THE LD.COUNSEL FOR THE ASSESSEE. ACCORDING TO THE LD. COUNSEL, FOR THE ASSESSMENT YE ARS 2005-06 AND 2008-09, THIS TRIBUNAL ALLOWED THE CLAIM OF THE ASSESSEE UNDER SECTION 40A(7)(B) OF THE ACT CONFIRMING THE IDENTIC AL ORDER PASSED BY THE CIT(APPEALS) FOR THE ASSESSMENT YEARS 2005-0 6 AND 2008- 09. THE CIT(APPEALS) HAS FOLLOWED HIS OWN ORDER FO R THE ASSESSMENT YEAR 2005-06, WHICH WAS IN FACT CONFIRME D BY THE TRIBUNAL BY AN ORDER DATED 03.07.2015 IN I.T.A. NOS .2443 & 2444/MDS/2014. 3 I.T.A. NO.359/MDS/15 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS NOT IN DISPUTE THAT THE GRATUITY FUND IS AN APPROVED ONE. THE ASSESSEE ALS O MADE PROVISION FOR PAYMENT OF GRATUITY. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT SECTION 40A(7)(A) MAY NOT B E APPLICABLE TO THE FACTS OF THE CASE. IN FACT, SECTION 40A(7)(B) OF THE ACT WOULD BE APPLICABLE. BY REFERRING TO SECTION 40A(7)(B) OF T HE ACT, THIS TRIBUNAL, ON IDENTICAL SET OF FACTS, ALLOWED THE CL AIM OF THE ASSESSEE FOR ASSESSMENT YEARS 2005-06 AND 2008-09 BY CONFIRM ING AN IDENTICAL ORDER OF THE CIT(APPEALS). THEREFORE, TH IS TRIBUNAL DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(APPEALS) AND ACCORDINGLY, THE SAME IS CONFIRMED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED ON 31 ST JULY, 2015 AT CHENNAI. SD/- SD/- ( ! ' ) ( ... ) (CHANDRA POOJARI) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 6 /DATED, THE 31 ST JULY, 2015. KRI. 4 I.T.A. NO.359/MDS/15 / -278 98)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 :2 () /CIT(A)-I, CHENNAI 4. 1 :2 /CIT, CHENNAI-I, CHENNAI 5. 8; -2 /DR 6. <( = /GF.