Asst.C.I.T., Bangalore V. M/s ABB India Pvt. Ltd., Bangalore

ITA 501/BANG/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9261 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 18-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR CITIII
• Assessee Lawyers: GANESH
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K, JUDICIAL MEMBER ITA NO.501/BANG/2016 (ASSESSMENT YEAR: 2012-13) REVENUE BY : SHRI. SANJAY KUMAR, CIT-III ASSESSEE BY : SHRI. GANESH S, ADVOCATE DATE OF HEARING : 28.11.2016 DATE OF PRONOUNCEMENT : 06.12 .2016 ORDER PER GEORGE GEORGE K, JM : THIS APPEAL AT THE INSTANCE OF REVENUE IS DIRECTED AGAINST CIT(A)S ORDER DATED 28.12.2015. THE RELEV ANT AY IS 2012-13. ASST. COMMISSIONER OF INCOME TAX, CIRCLE -1(1)(1), BANGALORE. VS. M/S. ABS INDIA PVT. LIMITED, #13, LR MANSION, 2 ND STAGE, OPP. WEST GATE OF LEELA PALACE, HAL MAIN ROAD, BANGALORE 560 008. PAN : AABCA8841P APPELLANT RESPONDENT ITA NO.501/BANG/2016 PAGE 2 OF 8 2. THE GROUNDS RAISED READ AS FOLLOWS: 3. BRIEFLY, THE FACTS OF THE CASE ARE AS FOLLOWS: THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSINESS O F TRADING, SERVICING AND MAINTENANCE OF TELECOMMUNICATION PRODUCTS. FOR THE ASSESSMENT YEA R 2012-13, THE RETURN OF INCOME WAS FILED ON 29.09.2012, DECLARING AN INCOME OF RS.5,24,53,320/- . THE ASSESSMENT UNDER SECTION 143(3) WAS COMPLETED VIDE ORDER DATED 28.11.2014. IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3), THE AO HAD DISALLOWED AN AMOUNT OF RS.46,80,630/- AS EXCESS PROVISION FOR WARRANTY. ITA NO.501/BANG/2016 PAGE 3 OF 8 4. AGGRIEVED BY DISALLOWANCE OF RS.46,80,630/-, THE ASSESSEE PREFERRED AN APPEAL TO THE FIRST APPELLATE AUTHORITY. THE CIT(A), FOLLOWING THE TRIBUNALS ORDER FOR THE ASSESSMENT YEAR 2008-09 IN ASSESSEES OWN CASE, DECIDED THE IS SUE IN FAVOUR OF ASSESSEE. 5. AGGRIEVED, THE REVENUE HAS FILED THE PRESENT A PPEAL BEFORE THE TRIBUNAL. AT THE VERY OUTSET, THE LEARN ED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE IN QUESTI ON IS SQUARELY COVERED BY THE ORDER OF THE TRIBUNAL IN AS SESSEES OWN CASE FOR ASSESSMENT YEAR 2008-09 (IN ITA NO. 224/B/2012 ORDER DATED 19.10.2012). THE LEARNE D COUNSEL FOR THE ASSESSEE FURTHER SUBMITTED THAT THE METHODOLOGY ADOPTED FOR CLAIMING OF PROVISION FOR W ARRANTY IN THE CURRENT ASSESSMENT YEAR IS IDENTICAL TO THE METHODOLOGY ADOPTED FOR ASSESSMENT YEAR 2008-09. T HE LEARNED DR FAIRLY AGREED THE ISSUE IN QUESTION IS C OVERED BY THE EARLIER ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE (SUPRA). 6. WE HEARD THE RIVAL SUBMISSION AND PERUSED THE MATERIAL ON RECORD. WE FIND IDENTICAL ISSUES HAVIN G SIMILAR FACTS, HAVE BEEN ALREADY ADJUDICATED BY THE COORDIN ATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR TH E ASSESSMENT YEAR 2008-09 (SUPRA). THE RELEVANT FIND ING OF THE TRIBUNAL IN ASSESSEES OWN CASE READS AS FOLLOW S: ITA NO.501/BANG/2016 PAGE 4 OF 8 ITA NO.501/BANG/2016 PAGE 5 OF 8 ITA NO.501/BANG/2016 PAGE 6 OF 8 ITA NO.501/BANG/2016 PAGE 7 OF 8 7. SINCE THE FACTS IN THE CURRENT ASSESSMENT YEAR V IZ., 2012-13 IS IDENTICAL TO ASSESSMENT YEAR 2008-09, RESPECTIVELY FOLLOWING THE ORDER OF THE COORDINATE BENCH OF THE TRIBUNAL AS IN ASSESSEES OWN CASE FOR THE ASSE SSMENT YEAR 2008-09, WE HOLD THAT CIT(A) HAS JUSTIFIED IN DELETING THE DISALLOWANCE MADE BY THE AO AS REGARDS THE PROV ISION FOR WARRANTY. 8. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 6 TH DAY OF DECEMBER, 2016. SD/- SD/- (A. K. GARODIA) (GEORGE GEORGE K.) ACCOUNTANT MEMBER JUDICIAL MEMBER PLACE : BANGALORE DATED : 6/12/2016 /NS/ ITA NO.501/BANG/2016 PAGE 8 OF 8 COPY TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A)-II BANGALORE 4. CIT 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT RE GISTRAR INCOME-TAX APPELLATE TRIBUNAL BANGALORE