ISHA STEEL TREATMENT PVT. LTD., MUMBAI V. DCIT , CIRCLE 10(3), MUMBAI

ITA 4730/MUM/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3633 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Next Hearing Date: 01-03-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 11-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHAWAR SINGH
• Assessee Lawyers: S M KAPOOR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH I , MUMBAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH , JUDICIAL MEMBER ITA NO. 4730/MUM/2014 : (A.Y : 20 10 - 11 ) M/S. ISHA STEEL TREATMENT PVT. LTD., 100, HARIYALI VILLAGE, L.B.S MARG, VIKHROLI (W), MUMBAI 400 083. PAN : AAACI2583F (APPELLANT) VS. DCIT, CIRCLE - 10(3), MUMBAI (RESPONDENT) ASSESSEE BY : SHRI S.M. KAPOOR REVENUE BY : SHRI BHAWAR SINGH (DR) DATE OF HEARING : 01/03/2016 DATE OF PRONOUNCEMENT : 09 /03/2016 O R D E R PER G.S. PANNU , A M : THE CAPTIONED APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A) - 22, MUMBAI DATED 12.05.2014, PERTAINING TO THE ASSESSMENT YEAR 2010 - 11, WHICH IN TURN HAS ARISEN FROM THE ORDER PASSED BY THE ASSESSING OFFICER DATED 31.12.2012 UNDER SECTION 143(3)(II) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. IN THIS APPEAL, THE SHORT POINT INVOLVED IS AGAINST THE DISALLOWANCE OF RS.2,25,000/ - MADE BY THE INCOME - TAX AUTHORITIES ON THE GROUND THAT SUCH SUM WAS MERELY A PROVISION FOR LIC SUPERANNUATION SCHEME AND NOT AN ASCERTAINED LIABILITY. 3. BEFORE US, THE LEARNED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT UNDER IDENTICAL CIRCUMSTANCES, ASSESSEES CONTRIBUTION TOWARDS LIC 2 M/S. ISHA STEEL TREATMENTS PVT. LTD. ITA NO. 4730/MUM/2014 GRATUITY SCHEME WAS DISALLOWED BY THE ASSESSING OFFICER, WHICH HAS BEEN ALLOWED BY THE CIT(A) FOLLOWING THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2007 - 08 VIDE ORDER DATED 8.1.2014 IN ITA NO. 1671/MUM/2011. THE SUM AND SUBSTANCE OF THE PLEA SET UP BY THE LEARNED REPRESENTATIVE IS THAT ON A SIMILAR PARITY OF REASONING, THE CIT(A) OUGHT TO HAVE DELETED THE SAID ADDITION, WHICH WAS CONTRIBUTION TOWARDS LIC SUPERANNUATION SCHEME FOR THE EMPLOYEES OF THE ASSESSEE - COMPANY. 4. ON THE OTHER HAND, THE LEARNED DEPARTMENTAL REPRESENTATIVE (IN SHORT THE DR) POINTED OUT THAT THE DECISION OF THE TRIBUNAL APPLIED BY THE CIT(A) PERTAINED TO CONTRIBUTION TOWARDS THE GRATUITY SCHEME AND NOT LIC SUPERANNUATION SCHEME, AND IN THIS MANNER THE ORDER OF CIT(A) WAS SOUGHT TO BE DEFENDE D. 5. HAVING CONSIDERED THE RIVAL STANDS, WE FIND THAT APART FROM A BALD ASSERTION IN THE ASSESSMENT ORDER , THERE IS NO MATERIAL TO ESTABLISH THAT THE AFORESAID SUM REPRESENTED A PROVISION IN THE NATURE OF AN UNASCERTAINED LIABILITY. THEREFORE, WE ARE UNABLE TO AFFIRM THE ORDER OF THE AUTHORITIES BELOW ON THIS ASPECT. ACCORDINGLY, THE ORDER OF THE CIT(A) IS SET - ASIDE AND THE ASSESSING OFFICER IS DIRECTED TO DELETE THE ADDITION OF RS.2,25,000/ - . 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED AS AB OVE. ORDER PRONOUNCED IN THE OPEN COURT ON 9 T H MARCH, 2016. SD/ - SD/ - ( AMARJIT SINGH ) JUDICIAL MEMBER (G.S. PANNU) ACCOUNTANT MEMBER MUMBAI, DATE : 9 T H MARCH, 2016 3 M/S. ISHA STEEL TREATMENTS PVT. LTD. ITA NO. 4730/MUM/2014 COPY TO : 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) CONCERNED 4) THE CIT CONCERNED 5) THE D.R, I BENCH, MUMBAI 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR *SSL* I.T.A.T, MUMBAI