TIJARIA INDUSTRIES LTD, Jaipur V. ACIT, BANGLORE

ITA 57/JPR/2014

• Counselvise Citation: 5723114 RSA 2014
• Duration Of Justice: 1 year(s) 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 27-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA JCIT DR DHK
• Section: 154

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 57/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2010-11 M/S. TIJARIA INDUSTRIES LTD. A-130(E), ROAD NO. 9-D VKI AREA, JAIPUR CUKE VS. THE ACIT CPC BANGALORE LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AACCT 7668J VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MANISH AGARWAL, CA JKTLO DH VKSJ LS@ REVENUE BY :SHRI RAJ MEHRA, JCIT-. DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 04/12/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 14/12/2015 VKNS'K@ ORDER PER R.P. TOLANI, JM THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)-II, JAIPUR DATED 13-12-2013 FOR THE ASSES SMENT YEAR 2010-11 CHALLENGING THE REJECTION OF ITS APPLICATION FOR RE CTIFICATION U/S 154 OF THE ACT AND THE LD. CIT(A) HAS ERRED IN NOT APPRECIATIN G THE RETURN FILED BY ASSESSEE WHERE THE IMPUGNED AMOUNT OF DIVIDEND BEIN G DISTRIBUTED FALLING IN SUBSEQUENT FINANCIAL YEAR IS CLEARLY DISCLOSED. THE AMOUNT OF DIVIDEND IN THE RETURN WAS CLEARLY MENTIONED AS PROPOSED DIV IDEND ONLY. THUS THESE OBSERVATIONS AND ADDITION BEING CONTRARY TO F ACTS ON RECORD, THE ITA NO. 57//JP/2014 M/S. TIJARIA INDUSTRIES LTD. VS. ACIT, CPC, B ANGALORE . 2 ASSESSEES APPLICATION U/S 154 OUGHT TO HAVE BEEN A LLOWED. THEREFORE, THE IMPUGNED LIABILITY FOR DIVIDEND DISTRIBUTION TAX DE SERVES TO BE DELETED 2.1 IT IS FURTHER CONTENDED THAT THE ASSESSEE COMPA NY HAD FILED ITS RETURN OF INCOME ON 27-09-2010 DECLARING TOTAL LOSS OF RS. 1,18,207/- ELECTRONICALLY IN FORM NO. ITR-6 PRESCRIBED FOR COM PANIES WHEREIN WHILE FILING SCHEDULE OF DDT I.E. DETAILS OF PAYMENT OF D IVIDEND DISTRIBUTION TAX AT PAGE 20, (COPY ENCLOSED) IN COLUMN NO.1 DATE OF DIVIDEND DECLARED/ DISTRIBUTED WAS CLEARLY MENTIONED AS 17-0 8-2010 AND FURTHER IN COLUMN NO. 3 THE AMOUNT OF DIVIDEND DECLARED DISTRI BUTED OR PAID WAS MENTIONED AS RS. 50,22,000/-. HOWEVER THE CPC, BANG ALORE, WHILE PROCESSING THE RETURN HAD IGNORED THE DATE OF DECLA RATION OF DISTRIBUTION OF DIVIDEND AS 17-08-2010 WHICH IS FALLING IN SUBSEQUE NT FINANCIAL YEAR RELEVANT TO ASSESSMENT YEAR 2011-12 AND BY WRONGLY TREATING IT AS THE DECLARATION / PAYMENT OF DIVIDEND IN THE PREVIOUS Y EAR RELEVANT TO ASSESSMENT YEAR UNDER APPEAL RAISED THE DEMAND OF D IVIDEND DISTRIBUTION TAX. AS THE ASSESSEE HAS CATEGORICALLY MENTIONED TH E DATE OF DECLARATION / PAYMENT OF DIVIDEND AS 17-08-2010 AND AT PAGE 5 OF THE RETURN OF INCOME FORMING PART OF BALANCE SHEET AS AT 31-03-2010 UNDE R THE HEAD PROVISIONS A SUM OF RS. 50,22,000/- IS MENTIONED AS PROPOSED DIVIDEND WHICH FACT IS FURTHER MENTIONED IN THE R ETURN FORM WHILE FILING ITA NO. 57//JP/2014 M/S. TIJARIA INDUSTRIES LTD. VS. ACIT, CPC, B ANGALORE . 3 THE PROFIT AND LOSS ACCOUNT WHERE AT PAGE 7 IN COL UMN 50 THE AMOUNT OF PROPOSED DIVIDEND OF RS. 50,22,000/- IS MENTIONED UNDER THE HEAD APPROPRIATIONS OUT OF THE PROFITS AFTER TAX. THE REFORE, IT IS CLEAR THAT ASSESSEE HAD MADE NO MISTAKE IN FILING THE RETURN F ORM AND CPC, BANAGALORE HAS WRONGLY RAISED THE DEMAND OF DDT WHI CH FACT IS NOT APPRECIATED BY LD. CIT(A) WHO REJECTED THE APPEAL O F THE ASSESSEE BY STATING THAT IT IS NOT A MISTAKE APPARENT ON RECORD . 2.2 THE DIVIDEND PROPOSED IN ASSESSMENT YEAR 2010-1 1 HAS BEEN ACTUALLY DISTRIBUTED IN 2011-12 WHICH HAS NOT BEEN DISPUTED. SINCE THE INTIMATION GIVEN IN RESPECT OF ASSESSMENT YEAR 2010 -11 WAS ONLY A PROPOSAL OF A DIVIDEND TO BE PAID IN SUBSEQUENT YEA R. THERE WAS NO JUSTIFICATION TO MAKE ASSESSMENT U/S 143(1) AND RAI SE DEMAND AS CAUSE OF ACTION U/S 115-O(1A) HAS NOT ARISEN IN THAT YEAR. T HE LD. CIT(A) THOUGH ACCEPTED THIS POSITION BUT BRUSHED ASIDE ISSUE BY H OLDING THAT APPLICATION OF THE ASSESSEE STANDS REJECTED U/S 115-O(1A) BY FO LLOWING OBSERVATIONS. IN THE REGULAR ASSESSMENT, APPELLANT IS FREE TO SUBMIT NECESSARY EVIDENCE THAT DIVIDEND DISTRIBUTIO N DURING THE YEAR WAS ONLY MENTIONED IN RETURN OF INCOME. AS SESSING OFFICER AFTER VERIFICATION THAT NO DIVIDEND WAS DIS TRIBUTED OR PAID DURING THE YEAR CAN ALLOW NECESSARY RELIEF. HO WEVER, THIS APPEAL IS CONCERNED, I DO NOT FIND ANY MISTAKE IN THE ORDER OF CPC, BANGALORE AND ACCORDINGLY THIS GROUND IS DISMISSED. ITA NO. 57//JP/2014 M/S. TIJARIA INDUSTRIES LTD. VS. ACIT, CPC, B ANGALORE . 4 2.3 THE LD. COUNSEL FOR THE ASSESSEE CONTENDS ONCE THE ASSESSMENT IS FRAMED U/S 143(1) AND NOTICE IS NOT ISSUED U/S 143( 2) OF THE ACT. THUS THERE WILL BE NO CHOICE FOR THE ASSESSEE TO GET THE DEMAND DELETED. THE MISTAKE BEING APPARENT FROM RECORD SHOULD HAVE BEEN ALLOWED AS DIVIDEND WAS NOT DISTRIBUTED IN THIS YEAR. 2.4 THE LD. DR IS HEARD 2.5 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. I FIND MERIT IN THE ARGUMENTS OF THE LD. AR. FROM THE RECORD, IT EMERGES THAT THE ASSESSEE HAS NOT DECLAR ED ANY DIVIDEND IN THIS YEAR AS CONTEMPLATED U/S 115-O(1A). CONSEQUENTLY, A NY TAX LIABILITY IN THIS BEHALF DOES NOT ARISE IN THIS YEAR. THE ASSESS EE HAS SHOWN THAT DIVIDEND WAS PAID IN ASSESSMENT YEAR 2011-12 AND RE QUISITE TAX WAS PAID. IN VIEW OF THESE FACTS ON RECORD THE MISTAKE IN QUE STION IS APPARENT FROM RECORD AND SHOULD BE RECTIFIED BY DELETING THE RELE VANT DEMAND. IN VIEW THEREOF, THE ASSESSEES APPLICATION U/S 154 IS ALLO WED AND LD. AO IS DIRECTED TO DELETE THE ADJUSTMENT AND REDUCE THE DE MAND IN THIS BEHALF. THUS THE APPEAL OF THE ASSESSEE IS ALLOWED. ITA NO. 57//JP/2014 M/S. TIJARIA INDUSTRIES LTD. VS. ACIT, CPC, B ANGALORE . 5 3.0 IN THE RESULT, ASSESSEE'S APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 14/12/2 015 SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 14/12/ 2015 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI TIJARIA INDUSTRIES LTD., JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ACIT,CPC, BANGALORE 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 57/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR