TVS Srichakra Limited, Madurai V. DCIT, Madurai

ITA 477/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7980 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 11-11-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 03-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAL
• Assessee Lawyers: S A BALASUBRMANYAN
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . , ' # . $ , & ' BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICI AL MEMBER ./ I.T.A.NO.477/MDS/2016 ( / ASSESSMENT YEAR: 2011-12) M/S.TVS SRICHAKRA LTD. 10, JAWAHAR ROAD, MADURAI-625 002. VS THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE-2, MADURAI-625 002. PAN: AAACT5557G ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. S.A.BALASUBRMANYAN, C.A. /RESPONDENT BY : MR. SUPRIYO PAL, JCIT /DATE OF HEARING : 11 TH NOVEMBER, 2016 /DATE OF PRONOUNCEMENT : 25 TH NOVEMBER, 2016 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THIS APPEAL IS FILED BY THE ASSESSEE AGGRIEVED BY T HE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS)- I, MADURAI DATED 22.12.2015 IN ITA NO.0216/2014-15 PASSED UNDER SECTION 143(3) R.W.S. 250(6) OF THE ACT. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN ITS A PPEAL, HOWEVER, THE CRUX OF THE ISSUE IS AS FOLLOWS:- THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN SUSTAINING THE ORDER OF THE LEARNED ASSESSING OFFICER WHO HAD DISALLOWED THE DEDUCTION OF ` 7,86,47,675/- CLAIMED UNDER SECTION 35(2AB) BEING THE WEIGHTED DEDUCTION IN THE ABSENCE OF APPROVAL FROM THE PRESCRIBED AUTHORITY. 2 ITA NO.477/MDS/2016 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CO MPANY IS ENGAGED IN THE BUSINESS OF MANUFACTURING & TRADI NG OF AUTOMOBILE TYRES, TUBES AND PHENOLIC MOULDED PRODUC TS FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2011-1 2 ON 27.09.2011 ADMITTING INCOME OF ` 42,22,27,334/-. THEREAFTER THE CASE WAS TAKEN UP FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) WAS ISSUED TO THE ASSESSEE ON 31.07.2012. SUBSEQUENTLY, THE LEARNED ASSESSING OFFICER HAS COM PLETED THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT ON 28.03.2014 WHEREIN AMONGST CERTAIN OTHER DISALLOWA NCES, HE ALSO DENIED THE WEIGHTED DEDUCTION CLAIMED BY THE ASSESSEE AMOUNTING TO ` 7,86,47,675/- UNDER SECTION 35(2AB) OF THE ACT FOR NOT FURNISHING THE APPROVAL IN FORM 3CM SIGNED BY THE PRESCRIBED AUTHORITY. 4. ON APPEAL, THE LEARNED COMMISSIONER OF INCOME TA X (APPEALS) SUSTAINED THE ORDER OF THE LEARNED ASSESS ING OFFICER AGREEING WITH HIS VIEW. 5. AT THE OUTSET, THE LEARNED AUTHORIZED REPRESENTA TIVE SUBMITTED BEFORE US THAT THE ASSESSEE IS IN POSSESS ION OF THE 3 ITA NO.477/MDS/2016 APPROVAL FROM THE PRESCRIBED AUTHORITY VIZ. SECRETA RY, DSIR AND THEREFORE THE MATTER MAY BE REMITTED BACK TO TH E FILE OF THE LEARNED ASSESSING OFFICER THEREBY PROVIDING THE ASSESSEE WITH ONE MORE OPPORTUNITY FOR COMPLYING WITH THE PR OVISIONS OF THE ACT. THE LD.D.R STRONGLY OBJECTED TO THE SUB MISSION OF THE LD.A.R AND REQUESTED FOR CONFIRMING THE ORDERS OF THE REVENUE. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSED THE MATERIALS ON RECORD. THOUGH WE DO NOT APPRECIATE THE LETHARGIC ATTITUDE OF THE ASSESSEE F OR NOT FURNISHING THE PRESCRIBED CERTIFICATE FROM THE APPR OPRIATE AUTHORITY BEFORE THE REVENUE AUTHORITIES ON THE EAR LIER OCCASIONS, IN THE INTEREST OF JUSTICE, WE HEREBY RE MIT BACK THE MATTER TO THE FILE OF THE LEARNED ASSESSING OFFICER FOR DE NOVO CONSIDERATION. WE ALSO HEREBY DIRECT THE ASSESSEE A ND ITS LD.A.R TO PROMPTLY FURNISH THE REQUISITE PRESCRIBED FORMS SIGNED BY THE PRESCRIBED AUTHORITY BEFORE THE LD.A. O FAILING WHICH THE LD.A.O SHALL BE AT LIBERTY TO PASS APPROP RIATE ORDER AS PER MERIT AND LAW. 4 ITA NO.477/MDS/2016 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 25 TH NOVEMBER , 2016 SD/- SD/- ( ' # . $ ) ( . ) ( DUVVURU RL REDDY ) ( A. MOHAN ALANKAMONY ) # % / JUDICIAL MEMBER % / ACCOUNTANT MEMBER # /CHENNAI, ( /DATED 25 TH NOVEMBER, 2016 SOMU *+ ,+ /COPY TO: 1. APPELLANT 2. RESPONDENT 3. - () /CIT(A) 4. - /CIT 5. + 1 /DR 6. /GF