ADDL CIT RG 9(3), MUMBAI V. TOYOTA LAKOZY AUTO P.LTD, MUMBAI

ITA 5895/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 78839 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 15-05-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 27-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MORYA PRATAP
• Assessee Lawyers: HEENA MEHTA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUM BAI , , BEFORE SHRI SANJAY ARORA, AM AND SHRI AMIT SHUKLA, JM ./ I.T.A. NO. 5895/MUM/2012 ( / ASSESSMENT YEAR: 2009-10) DY. CIT-9(3), 2 ND FLOOR, ROOM NO.229, AAYAKAR BHAVAN, M. K. ROAD, MUMBAI-400 020 / VS. TOYOTA LAKOZY AUTO PVT. LTD. 504, LINK ROAD, CHINCHOLI, MALAD (W), MUMBAI-400 064 ' ./# ./PAN/GIR NO. AAACT 8979 N ( '$ /APPELLANT ) : ( %&'$ / RESPONDENT ) '$ ' ( / APPELLANT BY : SHRI MORYA PRATAP %&'$ ' ( / RESPONDENT BY : MS. HEENA MEHTA )* + ' , / DATE OF HEARING : 19.05.2014 -./ ' , / DATE OF PRONOUNCEMENT : 19.05.2014 / O R D E R PER SANJAY ARORA, A. M.: THIS IS AN APPEAL BY THE REVENUE DIRECTED AGAINST T HE ORDER BY THE COMMISSIONER OF INCOME TAX (APPEALS)-20, MUMBAI (CIT(A) FOR SH ORT) DATED 25.07.2012, ALLOWING THE ASSESSEES APPEAL CONTESTING ITS ASSESSMENT U/S .143(3) OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER) FOR THE ASSESSMENT YEAR (A. Y.) 2009-10 VIDE ORDER DATED 16.12.2011. 2 ITA NO. 5895/MUM/2012 (A.Y. 2009-10) DY. CIT VS. TOYOTA LAKOZY AUTO PVT. LTD. 2. THE ONLY ISSUE ARISING IN THE INSTANT APPEAL IS THE ALLOWABILITY OF DEDUCTION QUA SERVICE-TAX AND SALES-TAX, PAID IN THE SUM OF RS.7, 49,874/- AND RS.3,63,263/- RESPECTIVELY DURING THE CURRENT YEAR. THE SAME STOOD DENIED BY T HE ASSESSING OFFICER (A.O.) FOR THE REASON THAT THE SAME PERTAINS ADMITTEDLY TO THE PRE CEDING YEARS, BEING FOR THE PERIOD JULY, 2004 TO MARCH, 2007 FOR SERVICE-TAX AND FOR FINANCI AL YEARS 2005-06 AND 2006-07 FOR SALES-TAX. THE ASSESSEE FOUND FAVOUR IN APPEAL WITH THE LD. CIT(A) ON THE BASIS THAT BOTH THE SUMS WERE COVERED U/S.43B OF THE ACT, SO THAT T HE DEDUCTION QUA THE SAME COULD NOT BE DENIED BY APPLYING THE CONCEPT OF PRIOR PERIOD E XPENSES. 3. AGGRIEVED, THE REVENUE IS IN APPEAL, RAISING SEP ARATE GROUNDS, IDENTICAL WORDED, EXCEPT THE QUANTUM OF THE TWO SUMS UNDER REFERENCE (I.E., GROUND NOS. 1 & 2). IT IS STATED THAT THE AMOUNT IN EITHER CASE STOOD PAID PRIOR TO THE FILING OF THE RETURN FOR A.Y. 2008-09, SO THAT THE CLAIM IN ITS RESPECT COULD NOT BE ALLOW ED AS DEDUCTION FOR A.Y. 2009-10. WE FIND NO SUBSTANCE IN THE REVENUES CASE. THE EXTEND ED PERIOD FOR PAYING ANY SUM COVERED U/S.43B, VIDE PROVISO TO THE SECTION, IS ONLY IN RESPECT OF THE SUMS FOR WHICH THE LIABILITY ARISES DURING THE RELEVANT PREVIOUS YEAR, SO THAT EVEN IF NOT PAID DURING THE SAID YEAR BUT BY THE DATE OF FURNISHING THE RETURN FOR T HAT YEAR, DEDUCTION IN ITS RESPECT, NOTWITHSTANDING THE PRESCRIPTION OF SECTION 43B, I. E., ACTUAL PAYMENT, WOULD HOLD. AS SUCH, THE SAME WOULD APPLY ONLY TO THE SUMS PERTAIN ING TO THE FINANCIAL YEAR (F,Y.) 2007- 08, THE PREVIOUS YEAR RELEVANT TO A.Y. 2008-09. HOW EVER, THE ENTIRE LIABILITY UNDER REFERENCE, AS WOULD BE READILY SEEN, RELATES TO A P ERIOD/S PRIOR TO F.Y. 2007-08. ACCORDINGLY, THE SAME WOULD BE ALLOWED ONLY IN THE YEAR OF PAYMENT, AND WHICH HAPPENS TO BE THE PREVIOUS YEAR RELEVANT TO THE CURRENT ASS ESSMENT YEAR. WE OBSERVE NO DISPUTE WITH REGARD TO THE PAYMENT OF THE IMPUGNED SUMS DUR ING THE CURRENT YEAR, WHICH STOOD IN FACT CONFIRMED BY THE LD. AR AS ON 23.04.2008 & 19. 09.2008 (FOR SALES-TAX) AND 31.08.2008 (FOR SERVICE-TAX). WE, ACCORDINGLY, FIND NO MERIT IN THE REVENUES CASE AND, FURTHER, OBSERVING NO INFIRMITY IN THE IMPUGNED ORD ER, UPHOLD THE SAME. WE DECIDE ACCORDINGLY. 3 ITA NO. 5895/MUM/2012 (A.Y. 2009-10) DY. CIT VS. TOYOTA LAKOZY AUTO PVT. LTD. 4. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED . 0/ 1 * ' 0 ' 23 ORDER PRONOUNCED IN THE OPEN COURT ON MAY 19, 2014 SD/- SD/- (AMIT SHUKLA) (SANJAY ARORA) / JUDICIAL MEMBER / ACCOUNTANT MEMBER 4+ MUMBAI; 5) DATED : 19.05.2014 *.)../ ROSHANI , SR. PS ! ' #$%& ' &$ / COPY OF THE ORDER FORWARDED TO : 1. '$ / THE APPELLANT 2. %&'$ / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. 8*9 : %);< , , ; ? + / GUARD FILE ! ( / BY ORDER, )/(* + (DY./ASSTT. REGISTRAR) , 4+ / ITAT, MUMBAI