The ACIT, Trichur V. M/s.Steel & Industrial Forgings Ltd, Trichur

ITA 467/COCH/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81349 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 01-08-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 15-07-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA
• Assessee Lawyers: M RAMDAS

Judgement Text

1 ITA NO. 467/COCH/2013 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI CHANDRA PO OJARI (AM) I.T.A NO. 467/COCH/2013 (ASSESSMENT YEAR 2008-09) ACIT, CIR.1(1) VS M/S STEEL & INDUSTRIAL FORGIN GS THRISSUR LTD, ATHANI, THRISSUR PAN : AADCS4852J (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. S VIJAYAPRABHA, JR DR RESPONDENT BY : SHRI M RAMDAS DATE OF HEARING : 01-08-2014 DATE OF PRONOUNCEMENT : 17-10-2014 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE REVENUE WAS DISPOSE OF EARLIER BY AN ORDER DATED 06-11-2013. SUBSEQUENTLY, THE ASSESSEE FILED A MIS CELLANEOUS PETITION IN M.P. NO.50/COCH/2014 ON THE GROUND THAT GROUND NO.4 RAISED IN THE APPEAL WAS NOT DISPOSED OF. AFTER HEARING BOTH PAR TIES, THIS TRIBUNAL FOUND THAT GROUND NO.4 RAISED IN THE GROUNDS OF APPEAL WA S NOT DISPOSED OF. ACCORDINGLY, BY AN ORDER DATED 27-06-2014 THE APPEA L WAS REOPENED ONLY FOR THE PURPOSE OF DISPOSING GROUND NO.4. THE APPE AL WAS ACCORDINGLY HEARD IN RESPECT OF GROUND NO.4 2 ITA NO. 467/COCH/2013 4. SMT. S VIJAYAPRABHA, THE LD.DR SUBMITTED THAT TH E ASSESSEE CLAIMED RS.35,02,000 TOWARDS EX-GRATIA PROVISION AND EX-GRA TIA PAYMENT. THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS MADE A PROVISION TOWARDS EX-GRATIA PAYMENT TO THE EXTENT OF RS.29.82 LAKHS. THE EX-GRATIA AMOUNT PAID DURING THE YEAR IS RS.5.20 LAKHS. ACCORDING T O THE LD.DR, THE PAYMENT OF EX-GRATIA TO THE EXTENT OF RS.5.20 LAKHS WAS PAI D IN EXCESS OF PROVISION MADE IN THE EARLIER ASSESSMENT YEAR. THEREFORE, AC CORDING TO THE LD.DR, THE PAYMENT RELATED TO EARLIER ASSESSMENT YEAR; ACC ORDINGLY, THE ENTIRE PAYMENT OF RS. 35.02 LAKHS WAS DISALLOWED. HOWEVER , THE CIT(A) FOUND THAT THERE WAS A MEETING CONVENED BY THE LABNOUR CO MMISSIONER IN THE PRESENCE OF MINISTER FOR LABOUR & INDUSTRIES AND SE CRETARY TO GOVERNMENT OF KERALA. ACCORDINGLY, THE LIABILITY WAS CRYSTALL IZED DURING THE YEAR UNDER CONSIDERATION. HOWEVER, THE LD.DR SUBMITTED THAT T HESE DETAILS WERE NOT FURNISHED BEFORE THE ASSESSING OFFICER, THEREFORE, THESE ARE ALL ADDITIONAL MATERIALS; HENCE AN OPPORTUNITY MAY BE GIVEN TO THE ASSESSING OFFICER TO RE-EXAMINE THE MATTER. 5. ON THE CONTRARY, SHRI M RAMDAS, THE LD.REPRESENT ATIVE FOR THE ASSESSEE SUBMITTED THAT EVEN THOUGH THE AMOUNT OF R S.5.2 LAKHS WAS PERTAINING TO ASSESSMENT YEAR 2007-08 IT WAS ACTUAL LY PAID DURING THE YEAR UNDER CONSIDERATION. THE OTHER PAYMENT WAS ACTUALL Y MADE ON 06-09- 2008. THEREFORE, ACCORDING TO THE LD.REPRESENTATIV E, ALL THE PAYMENTS WERE 3 ITA NO. 467/COCH/2013 MADE DURING THE YEAR UNDER CONSIDERATION. THEREFOR E, THE CIT(A) HAS RIGHTLY ALLOWED THE CLAIM OF THE ASSESSEE AFTER CON SIDERING THE MEETING CONVENED BY THE LABOUR COMMISSIONER. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ONLY OBJECTION OF THE LD.DR IS THAT THE MATERIAL FILED BEFORE THE CIT(A) WAS NO T AVAILABLE BEFORE THE ASSESSING OFFICER. THE ASSESSEE CLAIMS THAT A MEET ING WAS CONVENED BY THE LABOUR COMMISSIONER IN THE PRESENCE OF MINISTER FOR LABOUR & INDUSTRIES AND SECRETARY TO GOVERNMENT OF KERALA. IN PURSUANCE OF THE MEETING, THE LIABILITY WAS CRYSTALLIZED, THEREFORE, IT WAS PAID DURING THE YEAR UNDER CONSIDERATION. THIS FACTUAL ASPECT IS NOT AV AILABLE BEFORE THE ASSESSING OFFICER. MOREOVER, THE MAJOR ISSUES WER E REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THEREFORE, FOR THE SAKE OF CONSISTENCY, THIS TRIBUNAL; IS OF THE CONSIDERED OPINION THAT THE ASS ESSING OFFICER SHALL EXAMINE THE MATTER WITH REGARD TO PAYMENT OF EX-GRA TIA ALONG WITH OTHER GROUNDS OF APPEAL. ACCORDINGLY, THE ISSUE IS SET A SIDE IN RESPECT OF EX- GRATIA PAYMENT AND REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RECONSIDER THE ISSUE IN ACC ORDANCE WITH LAW AFTER GIVING REASONABLE OPPORTUNITY OF HEARING TO THE ASS ESSEE. IT IS MADE CLEAR THAT THE ORDER OF THIS TRIBUNAL DATED 06-11-2013 IN RESPECT OF OTHER ISSUES REMAIN THE SAME. 4 ITA NO. 467/COCH/2013 7. WITH THE ABOVE OBSERVATIONS, THE APPEAL OF THE A SSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 17 TH OCTOBER, 2014. SD/- SD/- (CHANDRA POOJARI) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 17 TH OCTOBER, 2014 PK/- COPY TO: 1. THE ACIT, CIR.1(1), RANGE-1, THRISSUR 2. M/S STEEL & INDUSTRIAL FORGINGS LTD, ATHANI, THR ISSUR 3. THE COMMISSIONER OF INCOME-TAX, THRISSUR 4. THE COMMISSIONER OF INCOME-TAX(A)-V, KOCHI 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH