ACIT, Kota V. INSTRUMENTATION LIMITED, Kota

ITA 431/JPR/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5321 (ITAT-JAIPUR)
• Duration Of Justice: 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 30-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D S KOTHARI CIT DHK
• Section: 43B

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 FOE FLAG ;KNO] YS[KK LNL; ,OKA JH YFYR DQEKJ] U;KF;D LNL; DS LE{K BEFORE: SHRI VIKRAM SINGH YADAV, AM & SHRI LA LIET KUMAR, JM . VK;DJ VIHY LA-@ ITA NO.431/JP/15 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2010-11 ACIT, CIRCLE-I, KOTA CUKE VS. M/S INSTRUMENTATION LIMITED, JHALAWAR ROAD, KOTA LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAACL 4212 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL (C.A.) JKTLO DH VKSJ LS@ REVENUE BY :S HRI D. S. KOTHARI (CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 28.03.2016 ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 31 /03/2016. VKNS'K@ ORDER PER SHRI VIKRAM SINGH YADAV, A.M. THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER O F THE LD. CIT(A), KOTA DATED 27-02-2015 FOR THE ASSESSMENT YEAR 2010-11 WH EREIN FOLLOWING GROUNDS HAVE BEEN RAISED BY THE REVENUE. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LD. CIT(A) HAS ERRED:- (I) DELETING THE ADDITION OF RS. 60,63,537/- MADE B Y THE AO ON ACCOUNT OF DISALLOWANCE OF PROVISION FOR CONTRACTU AL OBLIGATION. (II) DELETING THE DISALLOWANCE OF RS. 8,76,34,111/- MADE BY THE AO U/S 43B OF THE ACT. ITA NO. 431/JP/15 ACIT, CIRCLE-1, KOTA VS. INSTRUMENTATION LTD. KOTA 2 2.1 AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT BOTH THE ABOVE ISSUES ARE COVERED IN FAVOUR BY ITAT ORDERS I N ASSESSEE'S OWN CASE FROM A.Y.2003-04 TO A.Y.2009-10. THE ISSUE ABOUT PROVIS ION OF CONTRACTUAL OBLIGATION, THE ITAT COORDINATE BENCH VIDE ITS OR DER DATED 5-08-2011 IN C.O. NO. 60/JP/2011 OUT OF ITA NO. 331/JP/2011 HAS DEC IDED THE IN FAVOUR OF THE ASSESSEE BY OBSERVING AS UNDER:- 6.1 THE SECOND GROUND OF THE C.O. OF THE ASSESSE E IS THAT THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 1,05,87,365/- MADE BY THE AO ON ACCOUNT OF DISALLOWANCE OF PROVISION FOR CONTRACTUAL OBLIGATION. 6.2 THE LD. CIT(A) HAS CONFIRMED THE DISALLOWANCE F OR THE REASON THAT IN EARLIER YEARS THE DEPARTMENT HAS FILED THE APPEAL BEFORE HON'BLE HIGH COURT. 6.3 AFTER HEARING BOTH THE PARTIES, WE FEEL THAT TH IS ISSUE STANDS DECIDED BY THE TRIBUNAL IN THE CASE OF THE ASSESSEE FOR THE EARLIER ASSESSMENT YEAR I.E. 1988-89 AND 1989-90. THE ISSUE MAY BE PENDING BEFORE HON'BLE JURISDICTIONAL HIGH COURT AND THE DE CISION OF HON'BLE JURISDICTIONAL HIGH COURT WILL BE BINDING FOR BOTH THE PARTIES. THEREFORE, FOLLOWING THE ORDER OF THE TRIBUNAL IN THE CASE OF THE ASSESSEE FOR EARLIER YEARS, WE HOLD THAT THE LD. CIT(A) WAS NOT JUSTIFIE D IN CONFIRMING THE DISALLOWANCE OF RS.1,05,87,365/-. 2.2 APROPOS GROUND NO. 2 ABOUT THE ISSUE OF PAYMEN T OF EMPLOYEES CONTRIBUTION TO PROVIDENT FUND U/S 43B OF THE ACT, THE PAYMENT IN QUESTION IS MADE BEFORE FILING OF THE RETURN. THE LD. CIT(A) HA S ALLOWED THE CLAIM OF THE ITA NO. 431/JP/15 ACIT, CIRCLE-1, KOTA VS. INSTRUMENTATION LTD. KOTA 3 ASSESSEE FOLLOWING THE EARLIER ORDER OF ITAT. THE O BSERVATION OF ITAT TO THIS EFFECT VIDE ITS ORDER DATED 28-11-2014 IN ITA NO. 5 42 & 543/JP/2012 (A.Y. 2006-07) IS AS UNDER:- 17. NOW THE REVENUE IS IN APPEALS AND THE ASSESSEE IS I N C.O BEFORE US. THE LEARNED DR SUPPORTED THE ORDER O F THE ASSESSING OFFICER AND THE LEARNED AR FOR THE ASSESSEE ARGUED THAT THIS IDENTICAL ISSUE HAS BEEN COVERED BY THE ITAT B BENCH, JAIPU R DECISION IN THE ASSESSEES OWN CASE IN ITA NO. 331/JP/2011 A.Y. 200 3-04 ORDER DATED 05/8/2011 WHEREIN IDENTICAL ISSUE HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE AND THE ASSESSEE HAS PAID THESE CONTRIBUTI ONS BEFORE DUE DATE OF RETURN, THEREFORE, IT IS ALLOWABLE. HE RELIED UP ON THE FOLLOWING CASE LAWS:- (I) CIT VS. STATE BANK OF BIKANER AND JAIPUR (2014 ) 363 ITR 70 (RAJ) (HC). (II) CIT VS. JAIPUR VIDYUT VITRAN NIGAM LTD. (2014 ) 363 ITR 307 (RAJ) (HC). (III) CIT VS. UDAIPUR DUGDH UTPADAK SAHAKARI SANGH LTD. (2014) 98 DTR 109 (RAJ.) (HC). 18. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PAR TIES AND PERUSED THE MATERIAL ON RECORD. BOTH THE PAYMENTS A RE COVERED BY THE HONBLE JURISDICTIONAL HIGH COURTS DECISION IN VAR IOUS CASES AS MENTIONED BY THE LEARNED A.R. THEREFORE, WE ALLOW THE ASSESSE ES APPEAL IN BOTH THE YEARS. ACCORDINGLY, REVENUES APPEAL IN A.Y. 2005-0 6 IS DISMISSED ON GROUND NO. IV AND ASSESSEES C.O. GROUND NO. 1 AND 2 IN A.Y. 2005-06, GROUND NO. 1 IN A.Y. 2006-07 ARE ALLOWED IN FAVOUR OF THE ASSESSEE. 2.3 THE LD. DR RELIED ON THE ORDER OF THE AO. ITA NO. 431/JP/15 ACIT, CIRCLE-1, KOTA VS. INSTRUMENTATION LTD. KOTA 4 2.4 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSE THE MATTER AVAILABLE ON RECORD AS WELL AS THE EARLIER DECISIONS OF CO-ORDIN ATE BENCH AS REFERRED ABOVE. IT IS NOT IN DISPUTE THAT THERE IS NO CHANGE IN FAC T FOR THE YEAR UNDER CONSIDERATION AS COMPARED TO THE EARLIER YEARS. RE SPECTFULLY FOLLOWING EARLIER DECISIONS OF THE CO-ORDINATE BENCH (SUPRA) BOTH THE GROUNDS TAKEN BY REVENUE ARE DISMISSED. 3.0 IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31/03 /2016. SD/- SD/- ( LALIET KUMAR ) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 31/ 03 /2016 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ACIT, CIRCLE-1, KOTA 2. THE RESPONDENT- M/S INSTRUMENTATION LTD. KOTA 3. THE CIT(A). KOTA 4. THE CIT-KOTA 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 431 /JP/15) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR