ACIT 6(3), MUMBAI V. MANDHANA INDUSTRIES LTD, MUMBAI

ITA 4384/MUM/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2052 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 20-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S RANA; HARIGOVIND SINGH
• Assessee Lawyers: MANOJ ANCHALIA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B, MUMBAI. BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER I.T.A. NO. 4384/MUM/2009. ASSESSMENT YEAR : 2005-06. ASSTT. COMMISSIONER OF M /S MANDHANA INDUSTRIES LTD., INCOME TAX, VS. 205-214, PENINSULA CENTRE, CIRCLE-6(3), MUMBAI. DR. S.S. RAO ROAD, PAREL, MUMBAI 400 012. PAN : AABCM6615M. APPELLANT RESPONDENT C.O. NO. 26 /MUM/2010 (ARISING OUT OF ITA NO.4384/MUM/2009 ) ASSESSMENT YEAR : 2005-06 . M/S MANDHAN INDUSTRIES LTD., A SSTT. COMMISSIONER OF MUMBAI. VS. INCOME TAX, CIR.6(3), MUMBAI. DEPARTMENT BY : S/SHRI HARI GOVIND SINGH AND S.S. RANA. ASSESSEE BY : SHRI MANOJ ANCHALIA. O R D E R PER J. SUDHAKAR REDDY, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST TH E ORDER OF THE CIT(APPEALS)-VI, MUMBAI DATED 08-05-2009 FOR TH E ASSESSMENT YEAR 2005-06 ON THE FOLLOWING EFFECTIVE GROUND : 2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LD. CIT(A) ERRED IN ALLOWING THE CLAIM OF THE ASSESSEE RELYING ON THE DECISION OF MADRAS HIGH COURT IN THE CASE OF SALEM CO.OP SPINNING MILLS LTD. 258 ITR 360, WITHOUT APPRECIATING THE FA CT THAT THE BOMBAY HIGH COURT IN THE CASE OF CIT VS. PAMWI TISS UES LTD. 215 CTR 150 HAS ALLOWED REVENUES APPEAL. 2. THE ASSESSEE HAS FILED THE CROSS OBJECTION SUPP ORTING THE ORDER OF THE CIT(APPEALS) AND STATING THAT THE BOM BAY HIGH COURT DECISION IN THE CASE OF CIT VS. PAMVI TISSUES LTD. 215 CTR 150 ON THE STRENGTH OF WHICH THE REVENUE HAS FILED THE APPEAL HAS BEEN REVERSED BY HONBLE SUPREME COURT IN THE CASE OF CIT VS. ALOM E XTRUSIONS LTD. (2009) 319 ITR 306 (SC). 3. AFTER HEARING RIVAL CONTENTIONS, WE FIND THAT T HE CIT(APPEALS) AT PAGE 2 PARA 2.3 OF HIS ORDER HELD A S FOLLOWS : I HAVE DULY CONSIDERED THE SUBMISSIONS OF THE A.R . AS REGARDS THE EMPLOYEES CONTRIBUTION, THE SAME ARE A LLOWABLE IN VIEW OF DECISION OF MADRAS HIGH COURT IN THE CASE O F SALEM CO-OP SPINNING MILLS LTD. 258 ITR 360 WHERE IT WAS HELD T HAT DUE DATE INCLUDES THE GRACE PERIOD ALLOWED UNDER THE PF AND ESIC ACT. HENCE, THESE GROUNDS OF APPEAL ARE ALLOWED. 4. AS THE EMPLOYEES CONTRIBUTION HAS BEEN PAID WI THIN THE GRACE PERIOD ALLOWED UNDER THE RESPECTIVE ACTS, WE UPHOLD THE ORDER OF THE CIT(APPEALS) AND DISMISS THIS APPEAL OF THE REV ENUE. 5. AS THE CROSS OBJECTION SIMPLY SUPPORT THE ORDER OF THE FIRST APPELLATE AUTHORITY BY RELYING ON THE DECISION OF H ONBLE SUPREME COURT IN THE CASE OF CIT VS. ALOM EXTRUSIONS LTD. (2009) 319 ITR 306 (SC) AND AS WE HAVE DISMISSED THE REVENUES APPEAL, THE CROSS OBJECTION BECOME INFRUCTUOUS AND NO SEPARATE ORDER NEED BE PA SSED. 3 6. IN THE RESULT, THE APPEAL OF THE REVENUE AS WEL L AS THE CROSS OBJECTION OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED ON THIS 21 ST DAY OF MAY, 2010. SD/- SD/- (D. MANMOHAN) (J. SUDHAKAR REDDY) VICE PRESIDENT. ACCOUNTANT MEMBER. MUMBAI, DATED : 21 ST MAY, 2010. WAKODE COPY FORWARDED TO : 1. APPELLANT. 2. RESPONDENT 3. C.I.T. 4. CIT(A) 5. DR, B-BENCH. (TRUE COPY) BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI BENCHES, MUMBAI.