Page Industries Ltd, Bangalore V. ACIT, Bangalore

ITA 564/BANG/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 2011 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 07-12-2009
• Assessment Year: 2004-2005
• Appeal Filed On: 03-06-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JASON P BOAZ
• Assessee Lawyers: H N KHINCHA

Judgement Text

ITA.564/B/09 PAGE - 1 IN THE INCOME-TAX APPELLATE TRIBUNAL BANGALORE BENCH 'A' BEFORE SHRI. K. P. T. THANGAL, VICE PRESIDENT AND SHRI. N. L. KALRA, ACCOUNTANT MEMBER I.T.A.NO.564/BANG/2009 (ASSESSMENT YEAR : 2004-05 ) M/S. PAGE INDUSTRIES LTD., 6/2 & 6/4, HONGASANDRA, JOCKEY CAMPUS, BEGUR HOBLI, BANGALORE 560 068 .. APPELLANT V. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE -12 (3), BANGALORE .. RESPONDENT APPELLANT BY : SHRI. H. N. KHINCHA RESPONDENT BY : SHRI. JASON P. BOAZ O R D E R PER K. P. T. THANGAL, VICE PRESIDENT : THIS APPEAL BY THE ASSESSEE IS FOR THE ASSESSMENT Y EAR 2006- 07, AGAINST THE ORDER PASSED U/S.263 BY THE COMMISS IONER OF INCOME- TAX, BANGALORE -III, BANGALORE. 2. FACTS LEADING TO THE DISPUTE IS AS UNDER. DURIN G THE ASSESSMENT YEAR UNDER CONSIDERATION, THE COMMISSIONER OF INCOM E-TAX NOTICED HAD PAID ADDITIONAL WAGES OF RS.60,30,143/-. HE FU RTHER NOTED AS PER SECTION 80JJAA OF THE INCOME TAX ACT, 1961, ASSESSE E WAS ELIGIBLE FOR ITA.564/B/09 PAGE - 2 DEDUCTION AT 30% OF THE SAME WHICH WORKED OUT TO RS .18,09,043/-. HE FURTHER NOTED DEDUCTION WAS ALLOWED IN EXCESS WH ICH AMOUNTED TO RS.32,46,618/-. HE DIRECTED THE ASSESSING OFFICER TO DISALLOW THE EXCESS DEDUCTION TO THE TUNE OF RS.14,37,575/- AND HE HELD IN THE LIGHT OF THE ABOVE FACTS, THE ORDER PASSED BY THE ASSESSI NG OFFICER WAS ERRONEOUS AND PREJUDICIAL TO THE INTERESTS OF REVEN UE. 3. IN THE WRITTEN SUBMISSION, HOWEVER, THE ASSESSEE SUBMITTED THE ASSESSEE WAS ENTITLED TO THE CLAIM OF 30% AND IT HA D CLAIMED ONLY 30% AND HENCE THERE WAS NO EXCESS DEDUCTION ALLOWED . THE ASSESSEE CLAIMED RS.18,09,043/- FOR ASSESSMENT YEAR 2004-05, RS.10,96,916/- FOR THE ASSESSMENT YEAR 2002-03 AND RS.3,40,614/- F OR THE ASSESSMENT YEAR 2001-02. THE ASSESSEE FURTHER CONT ENDED THAT AS PER SUB-SECTION (1) OF SECTION 80JJAA, THE ASSESSEE WAS ENTITLED TO A DEDUCTION EQUAL TO 30% OF ADDITIONAL WAGES PAID TO REGULAR WORKERS EMPLOYED BY THE ASSESSEE IN THE PREVIOUS YEAR. THE DEDUCTION TO THE EXTENT OF RS.18,09,043/- IS 30% OF ADDITIONAL WAGES PAID IN ASSESSMENT YEAR 2004-05, REMAINING RS.14,37,575/- I S 30% OF THE ADDITIONAL WAGES PAID FOR THE EARLIER TWO ASSESSMEN T YEARS. BUT THE COMMISSIONER OF INCOME-TAX HELD THE LAST TWO ITEMS ARE NOT ALLOWABLE. AGGRIEVED BY THE ABOVE ORDER, ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. ITA.564/B/09 PAGE - 3 4. WHEN THE MATTER WAS TAKEN UP FOR HEARING, AN ORD ER OF THE TRIBUNAL IN ITA NOS.273 & 274/BANG/2005, DT.21.12.0 6, FOR THE ASSESSMENT YEARS 2001-02 AND 2002-03 IN ACIT V. M/S . TEXAS INSTRUMENTS (INDIA) P. LTD., WAS PRODUCED BEFORE US IN WHICH THE TRIBUNAL ON EXACTLY IDENTICAL ISSUE HAD DECIDED IN ASSESSEE'S FAVOUR. FOLLOWING THE SAME, WE ALLOW THE APPEAL BY THE ASSE SSEE. 4. IN THE RESULT, APPEAL BY THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN OPEN COURT ON 11TH DAY OF DECEMBER, 2 009. SD/- SD/- (N. L. KALRA) (K. P. T. THANGAL) ACCOUNTANT MEMBER VICE PRESIDENT BANGALORE DATED : 11TH DECEMBER, 2009 MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, NEW DELHI 7. GF, ITAT, BANGALORE