ACIT, New Delhi V. M/s. Lumax Automotive Systems Ltd., Delhi

ITA 454/DEL/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7051 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 29-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Section: 37(1)

Judgement Text

1 ITA NO. 454/DEL/2016 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI G. D. AGRAWAL, PRESIDENT AND SHRI K.N. CHARY, JUDI CIAL MEMBER ITA NO. 454/DEL/2016 (A.Y 2011-12) ACIT, CIRCLE - 15(2), C.R. BUILDING, NEW DELHI (APPELLANT) VS LUMAX AUTOMOTIVE SYSTEMS LTD., 63-64, GOKHLE MARKET, DELHI PAN-AAACL6930D (RESPONDENT) APPELLANT BY MS. ASHIMA NEB, SR. DR RESPONDENT BY NONE ORDER PER G.D. AGRAWAL, V.P. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 27.11.2015 PASSED BY THE CIT(A)-5, DELHI. 2. AT THE TIME OF HEARING BEFORE US NONE APPEARED O N BEHALF OF THE ASSESSEE NEITHER THERE IS ANY REQUEST FOR ADJOURNMENT HAS BE EN MADE THEREFORE, WE PROCEEDED TO HEAR THE APPEAL EX PARTE QUA THE ASSESSEE. IN THIS APPEAL BY THE REVENUE, FOLLOWING GROUNDS HAVE BEEN RAISED:- I. THAT THE ORDER OF THE LEARNED CIT(A)(APPEALS) I S ERRONEOUS & CONTRARY TO FACTS & LAW. II. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(APPEALS) HAS ERRED IN DELETING THE ADDITION OF RS. 1,05,80,3 72/- ON ACCOUNT OF RETRENCHMENT/RETIREMENT OF THE EMPLOYEES OF THE COM PANY NOT BEING THE ALLOWABLE EXPENDITURE U/S 37(1) OF THE I.T. ACT, 19 61 AS NOT BEING EXCLUSIVELY FOR THE PURPOSE OF THE BUSINESS. DATE OF HEARING 29.04.2019 DATE OF PRONOUNCEMENT 30.04.2019 2 ITA NO. 454/DEL/2016 2. WE HAVE HEARD THE LEARNED DR AND PERUSED THE MAT ERIAL PLACED BEFORE US. 3. WE FIND THAT THIS ISSUE IS SQUARELY COVERED IN F AVOUR OF THE ASSESSEE BY THE DECISION OF ITAT IN ASSESSEES OWN CASE FOR ASS ESSMENT YEAR 2009-10 VIDE ITA NO. 1823/DEL/2014. THAT THE ASSESSING OFFICER H IMSELF WHILE DISALLOWING THE RETRENCHMENT COMPENSATION PAID HAS RECORDED THE FINDING THAT THE FACTS OF THE YEAR UNDER APPEAL ARE IDENTICAL TO ASSESSMENT Y EARS 2009-10 AND 2010-11. THE RELEVANT PORTION OF HIS FINDING READS AS UNDER: - ON SIMILAR GROUNDS AND FOR SIMILAR REASONS THE CLA IM OF THE ASSESSEE WAS REJECTED IN THE EARLIER ASSESSMENT YEA R 2009-10 AND ALSO IN ASSESSMENT YEAR 2010-11. THE ASSESSEE HAS NOT BEEN ABLE TO JUSTIFY THE CHANGE IN FACTS AND CIRCUMSTANCES OF THOSE YEARS WH EN THE SAID CLAIM WAS NOT PERMITTED TO IT, QUA THE FACTS AND CIRCUMSTANCE S OF THE ABOVE ASSESSMENT YEAR 2011-12 AND THEREFORE ON THE SAME G ROUNDS THE CLAIM OF RS. 1,05,80,372/- IS DISALLOWED AND ACCORDINGLY AN ADDITION IS BEING MADE TO THE TOTAL INCOME OF THE ASSESSEE ON THIS AC COUNT. 4. IN VIEW OF ABOVE, SINCE THE FACTS OF THE YEAR UN DER CONSIDERATION ARE ADMITTED TO BE IDENTICAL TO ASSESSMENT YEAR 2009-10 . THE DECISION OF ITAT IN ASSESSMENT YEAR 2009-10 WOULD BE SQUARELY APPLICABL E WHEREIN THE ITAT HAS UPHELD THE ORDER OF THE CIT(A) WHEREIN HE HAS DELET ED THE DISALLOWANCE MADE BY THE ASSESSING OFFICER ON ACCOUNT OF RETRENCHMENT COMPENSATION. 5. RESPECTFULLY FOLLOWING THE DECISION OF ITAT IN A SSESSEES OWN CASE, WE UPHELD THE ORDER OF CIT(A) AND DISMISSED THE APPEAL FILED BY THE REVENUE. 6. IN RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH APRIL, 2019 . SD/- SD/- (G. D. AGRAWAL) (K.N. CHARY) VICE PRESIDENT JUDICIAL MEMBER DATED: 30/04/2019 SH 3 ITA NO. 454/DEL/2016 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE 1. DRAFT DICTATED ON 29.4.2019 PS 2. DRAFT PLACED BEFORE AUTHOR PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. 11. DATE OF UPLOADING 30.4.2019