DCIT, New Delhi V. M/s Shriram Pistons & Rings Ltd., New Delhi

ITA 4278/DEL/2015

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4365 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 02-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAINA SOIN KAPIL
• Assessee Lawyers: R K KAPOOR
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: D , NEW DELHI BEFORE SMT. BEENA A PILLAI, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 4278 /DEL/201 5 AY: 20 11 - 12 DCIT, CIRCLE 23 (1) ROOM NO. 248 C.R.BUILDING I.P.ESTATE NEW DELHI 110 002 VS . SHRIRAM PISTONS & RINGS LTD. 23, KASTURBA GANDHI MARG NEW DELHI 110 001 PAN: AAACS0229G (APPELLANT) (RESPONDENT) D EPARTMENT BY : SMT.NAINA SOIN KAPIL, SR. DR . ASSESSEE BY : SH. R.K.KAPOOR, C.A. DATE OF HEARING : 29/01/2019 DATE OF PRONOUNCEMENT : 12 /02/2019 ORDER PER BEENA A PILLAI, JUDICIAL MEMBER P RESENT APPEAL HAS BEEN FILED BY REVENUE AGAINST ORDER DATED 30/04/15 PASSED BY LD.CIT(A) FOR A SSESSMENT Y EAR 2011 - 12 ON FOLLOWING GROUNDS OF APPEAL: 1. THE LD. CIT (A) HAS ERRED IN DELETING THE ADDITION OF RS. 88,54,934/ - MADE BY THE AO ON ACCOUNT OF DISALLOWANCE OF EXPENDITURE ON DIES FOR NEW MODEL DEVELOPMENT, ITA NO.4278/DEL/2015 A.Y.2011 - 12 DCIT VS. SHRIRAM PISTONS & RINGS LTD. 2 2. THE LD. CIT (A) HAS ERRED IN DELETING THE ADDITION OF RS. 5,68,067/ - MADE BY THE AO ON ACCOUNT OF DISALLOWANCE OF EXPENDITURE ON TOTAL PRODUCTIVITY MAINTENA N CE/ISO 9 001. 3. THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 25,30,330/ - MADE BY THE AO ON ACCOUNT OF DISALLOWANCE OF CO MMIS SI ON ON SAL ES TO GOVERNMENT UNDERTAKING . 4. THE APPELLANT CRAVES TO AMEND , MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) OF APPEA L AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 2. BRIEF FACTS OF CASE ARE AS UNDER : ASSESSEE FILED ITS RETURN OF INCOME ON 30/09/11 DECLARING TOTAL INCOME OF RS.1,08,62,48,130/ - WHICH WAS SUBSEQUENTLY REVISED ON 30/03/13 AT TAXABLE INCOME O F RS.1,08,67,88,130/ - . NOTICE UNDER SECTION 143(2) AND 142(1) ALONG WITH QUESTIONNAIRE WAS ISSUED TO ASSESSEE SUBSEQUENTLY. IN RESPONSE TO STATUTORY NOTICES REPRESENTATIVE OF ASSESSEE APPEARED BEFORE LD.AO AND FILED REQUISITE DETAILS/DOCUMENTS AS CALLED FO R. 2.1. DURING YEAR LD.AO OBSERVED THAT ASSESSEE IS ENGAGED IN BUSINESS OF MANUFACTURING VARIOUS AUTOMOBILE COMPONENTS LIKE PISTON, PISTON RINGS, ENGINE VALVES ETC., AS ITS FACTORY LOCATED AT GHAZIABAD. AFTER CALLING FOR VARIOUS DETAILS/SUBMISSIONS, LD. AO PASSED ASSESSMENT ORDER BY MAKING FOLLOWING ADDITIONS: I) EXPENDITURE ON DYES FOR NEW MODEL DEVELOPMENT : RS.88,54,934/ II) EXPENDITURE ON TOTAL PRODUCTIVITY MAINTENANCE/ISO 9001 : RS.5,68,067/ - III) COMMISSION ON SALES TO GOVERNMENT UNDERTAKING : RS.25,30,330/ - 3. A GGRIEVED BY ADDITIONS MADE BY LD.AO ASSESSEE PREFERRED APPEAL BEFORE LD.CIT(A) WHO DELETED ADDITION BY PLACI NG RELIANCE ITA NO.4278/DEL/2015 A.Y.2011 - 12 DCIT VS. SHRIRAM PISTONS & RINGS LTD. 3 UPON DECISION OF ITAT IN ASSESSEES OWN CASE FOR PRECEDING ASSESSMENT YEAR. 4. AGGRIEVED BY ORDER OF LD.CIT A) REVENUE IS IN APPEAL BEFORE US NOW. 5 . LD.SR.DR PLACED RELIANCE UPON ORDER OF LD.AO. 6. LD.AR PLACED RELIANCE UPON ORDER OF LD.CIT (A), AND SUBMITTED THAT ALL ISSUES RAISED BY REVENUE STANDS FULLY COVERED BY ORDER DATED 31/10/13 OF THIS TRIBUNAL IN ITA NO.5438/ D EL/2012 FOR A SSESSMENT Y EAR 2009 - 10 IN ASSESSEES OWN CASE. 7. WE HAVE PERUSED SUBMISSIONS ADVANCED BY BOTH SIDES IN LIGHT OF RECORDS PLACED BEFORE US. 8. ON PERUSAL OF ORDER PASSED BY THIS T RIBUNAL FOR A SSESSMENT Y EAR 2009 - 10 IN ASSESSEES OWN CASE, IT IS OBSERVED THAT ASSESSEE HAS BEEN CARRYING OUT SIMILAR BUSINESS IN PRECEDING YEARS A ND DISALLOWANCE MADE BY LD. AO ARE ALSO SAME. IT IS OBSERVED THAT LD. CIT(A) ON BASIS OF VIEW TAKEN BY THIS T RIBUNAL IN EARLIER YEAR DELETED ADDITIONS MADE BY LD.AO . THIS TRIBUNAL FURTHER RECORDED REGARDING COMMISSION PAID BY ASSESSSEE ON SALES TO GOVERNMENT UNDERTAKING, THAT REVENUE RAISED ISSUE BEFORE HONBLE DELHI HIGH COURT FOR A SSESSMENT Y EAR 19 98 - 99 WHEREIN HONBLE COURT DECIDED THE ISSUE IN FAVOUR OF ASSESSEE. 8.1 . THERE IS NOTHING ON RECORD BROUGHT BY REVENUE TO DISTINGUISH PRESENT YEAR FROM THE PRECEDING ASSESSMENT YEARS R ELIED UPON BY LD.AR. UNDER SUCH CIRCUMSTANCES RESPECTFULLY FOLLOWING DECISION OF THIS T RIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2009 - 10 (SUPRA) WE UPHOLD VIEW TAKEN BY LD. C IT(A). ITA NO.4278/DEL/2015 A.Y.2011 - 12 DCIT VS. SHRIRAM PISTONS & RINGS LTD. 4 8.2. ACCORDINGLY GROUND RAISED BY REVENUE STANDS DISMISSED. 9. IN THE RESULT APPEAL FILED BY REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 2 T H FEBRUARY, 2019. S D / - S D / - ( PRASHANT MAHARISHI) (BEENA A PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DT. 1 2 T H FEBRUARY, 2019 GMV COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT - TRUE COPY - BY ORDER, ASSISTANT REGISTRAR ITAT DELHI BENCHES ITA NO.4278/DEL/2015 A.Y.2011 - 12 DCIT VS. SHRIRAM PISTONS & RINGS LTD. 5 DATE DRAFT DICTATED ON 06.02.19 DRAFT PLACED BEFORE AUTHOR 06.02.19 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. APPROVED DRAFT COMES TO THE SR.PS/PS KEPT FOR PRONOUNCEMENT ON & ORDER UPLOADED ON : 1 2 . 0 2 . 1 9 FILE SENT TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.