M/s. SRBC & Associates LLP, Kolkata V. DCIT, Circle - 22, Kolkata , Kolkata

ITA 595/KOL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 8477 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 04-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DEBABRATA GHOSH

Judgement Text

ITA NOS. 595 & 596/KOL/2018 A.Y. 2013-2014 & 2014-2015 M/S. SRBC & ASSOCIATES LLP 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA D BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ) AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NOS. 595 & 596/KOL/2018 ASSESSMENT YEARS: 2013-2014 & 2014-2015 M/S. SRBC & ASSOCIATES LLP,........................ ................................APPELLANT (A LIMITED LIABILITY PARTNERSHIP WITH LLP IDENTITY NO. AAB-4291) SUCCESSOR TO M/S. SRBC & ASSOCIATES LLP W.E.F. 01.04.2013) 22, CAMAC STREET, KOLKATA-700 016 [PAN: ACHFS 9119 B] -VS.- DEPUTY COMMISSIONER OF INCOME TAX,................. .......................RESPONDENT CIRCLE-22, KOLKATA, 54/1, RAFI AHMED KIDWAI ROAD, 4 TH FLOOR, KOLKATA-700 016 APPEARANCES BY: SHRI DEBABRATA GHOSH, FCA, FOR THE APPELLANT SHRI SANKAR HALDER, JCIT, SR. D.R. , FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : JANUARY 02, 2019 DATE OF PRONOUNCING THE ORDER : JANUARY 02, 2019 O R D E R PER SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ):- THESE TWO APPEALS FILED BY THE ASSESSEE ARE DIRECT ED AGAINST TWO SEPARATE ORDERS PASSED BY THE LD. COMMISSIONER OF I NCOME TAX (APPEALS)- 6, KOLKATA BOTH DATED 15.02.2018 FOR ASSESSMENT YEA RS 2013-14 AND 2014-15 AND SINCE THE ISSUES INVOLVED THEREIN ARE I NTER-LINKED, THE SAME HAVE BEEN HEARD TOGETHER AND ARE BEING DISPOSED OF BY A SINGLE CONSOLIDATED ORDER. 2. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS REGARDS T HE SOLITARY ISSUE INVOLVED IN THE APPEAL OF THE ASSESSEE FOR A.Y. 201 3-14 RELATING TO THE ITA NOS. 595 & 596/KOL/2018 A.Y. 2013-2014 & 2014-2015 M/S. SRBC & ASSOCIATES LLP 2 DISALLOWANCE OF RS.60,87,836/- MADE BY THE ASSESSIN G OFFICER AND CONFIRMED BY THE LD. CIT(APPEALS) ON ACCOUNT OF THE PROVISION MADE FOR LEAVE ENCASHMENT ON THE BASIS OF ACTUARIAL VALUATIO N, THE LD. REPRESENTATIVES OF BOTH THE SIDES HAVE AGREED THAT A SIMILAR ISSUE WAS INVOLVED IN THE CASE OF M/S. S.R. BATLIBOI & ASSOCI ATES LLP VS.- ACIT AND VIDE ITS ORDER DATED 20.09.2017 PASSED IN ITA NO. 4 98/KOL/2015, THE COORDINATE BENCH OF THIS TRIBUNAL RESTORED THE ISSU E TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO AWAIT THE FIN AL DECISION OF HONBLE SUPREME COURT IN THE CASE OF M/S. EXIDE INDUSTRIES LIMITED [SLP (CIVIL) 22889 OF 2008] AND DECIDE THE SAME IN ACCORDANCE WI TH THE SAID DECISION. RESPECTFULLY FOLLOWING THE SAID DECISION OF COORDIN ATE BENCH OF THIS TRIBUNAL IN THE CASE OF M/S. S.R. BATLIBOI & ASSOCI ATES LLP, WE SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) ON THIS ISSUE AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR DEC IDING THE SAME AFRESH AS PER THE SAME DIRECTION AS GIVEN BY THE TRIBUNAL IN THE CASE OF M/S. S.R. BATLIBOI & ASSOCIATES LLP (SUPRA). THE APPEAL OF TH E ASSESSEE FOR A.Y. 2013-14 IS ACCORDINGLY TREATED AS ALLOWED FOR STATI STICAL PURPOSES. 3. AS REGARDS THE APPEAL OF THE ASSESSEE FOR A.Y. 2 014-15, IT IS OBSERVED THAT THE SOLITARY ISSUE INVOLVED THEREIN R ELATING TO THE ADDITION OF RS.10,49,870/- MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD. CIT(APPEALS) ON PROTECTIVE BASIS ON ACCOUNT OF PROV ISION MADE IN A.Y. 2013-14 FOR LEAVE ENCASHMENT AND REVERSED DURING A. Y. 2014-15 IS CONSEQUENTIAL TO THE ISSUE INVOLVED IN THE APPEAL O F THE ASSESSEE FOR A.Y. 2013-14, INASMUCH AS, IF THE ASSESSEE FINALLY GETS A DEDUCTION ON ACCOUNT OF PROVISION FOR LEAVE ENCASHMENT MADE IN A.Y. 2013 -14, THE SAID PROVISION TO THE EXTENT REVERSED DURING A.Y. 2014-1 5 WILL BE LIABLE TO BE TAXED IN A.Y. 2014-15 AND VICE-VERSA. SINCE THE ISS UE INVOLVED IN THE ASSESSEES CASE FOR A.Y. 2013-14 RELATING TO DEDUCT ION ON ACCOUNT OF PROVISION FOR LEAVE ENCASHMENT HAS BEEN RESTORED BY US TO THE FILE OF THE ASSESSING OFFICER, WE ALSO RESTORE THE ISSUE INVOLV ED IN A.Y. 2014-15 RELATING TO THE ADDITION MADE ON ACCOUNT OF REVERSA L OF PROVISION FOR LEAVE ITA NOS. 595 & 596/KOL/2018 A.Y. 2013-2014 & 2014-2015 M/S. SRBC & ASSOCIATES LLP 3 ENCASHMENT ON PROTECTIVE BASIS TO THE FILE OF THE A SSESSING OFFICER FOR DECIDING THE SAME AFRESH DEPENDING ON THE FINAL OUT COME OF THE ISSUE RELATING TO THE DEDUCTION ON ACCOUNT OF PROVISION F OR LEAVE ENCASHMENT AS INVOLVED IN A.Y. 2013-14. THE APPEAL OF THE ASSESSE E FOR A.Y. 2014-15 IS ACCORDINGLY TREATED AS ALLOWED FOR STATISTICAL PURP OSES. 4. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON JANUARY 02, 2019. SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER VICE -PRESIDENT (KZ) KOLKATA, THE 2 ND DAY OF JANUARY, 2019 COPIES TO : (1) M/S. SRBC & ASSOCIATES LLP, (A LIMITED LIABILITY PARTNERSHIP WITH LLP IDENTITY NO. AAB-4291) SUCCESSOR TO M/S. SRBC & ASSOCIATES LLP W.E.F. 01.04.2013) 22, CAMAC STREET, KOLKATA-700 016 (2) DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-22, KOLKATA, 54/1, RAFI AHMED KIDWAI ROAD, 4 TH FLOOR, KOLKATA-700 016 (3) COMMISSIONER OF INCOME TAX (APPEALS)-6, KOLKAT A, (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.