BARRIER FILMS P. LTD, MUMBAI V. ACIT 8 (OSD), MUMBAI

ITA 596/MUM/2012

• Counselvise Citation: 59619914 RSA 2012
• Duration Of Justice: 3 year(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-01-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 30-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASGHAR JAIN VP
• Keywords: Opportunity of being heard

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, M UMBAI BEFORE S/SHRI B.R.BASKARAN (AM) AND SANJAY GARG, (JM) . . , , ./I.T.A. NO.596/MUM/2012 ( / ASSESSMENT YEAR : 2007-08) M/S BARRIER FILMS PVT LTD, B-31, GROUND FLOOR, NEW EPIRE INDL, ESTATE, KONDIVITA ROAD, ANDHERI, (E), MUMBAI-400059 / VS. ACIT-8(OSD), MUMBAI ( / APPELLANT) .. ( / RESPONDENT) ./ ./PAN/GIR NO. : AAACB3298C ! / ASSESSEE BY SHRI P K PARIDA/ MS.SANJUKTA CHOWDHARY ' ! / REVENUE BY SHRI ASGHAR JAIN V P # $ ' %& / DATE OF HEARING : 15.1.2015 '( ' %& /DATE OF PRONOUNCEMENT : 13. 2.2015 / O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 19.9.2011 PASSED BY THE LD. CIT(A)-16, MUMBAI AND I T RELATES TO ASSESSMENT YEAR 2007-08. 2. THE APPEAL IS BARRED BY 47 DAYS. THE ASSESSEE HA S FILED AN APPLICATION PRAYING FOR CONDONING THE DELAY. WE HE ARD THE PARTIES ON THIS PRELIMINARY ISSUE. HAVING REGARD TO THE SUBMISSIONS MADE IN THE APPLICATION, WE CONDONE THE DELAY AND ADMIT THE APP EAL FOR HEARING. ITA. NO596/MUM/2012 2 3. THE SOLITARY ISSUE URGED BY THE ASSESSEE RELATES TO ADDITION OF RS.10,44,263/- RELATING TO UNUTILIZED MODVAT CREDIT . 4. WE HEARD THE PARTIES AND PERUSED THE RECORD. TH E AO NOTICED THAT THE ASSESSEE HAS SHOWN UNUTILIZED MODVAT CREDIT OF RS.10,40,668/- IN ITS ACCOUNTS, BUT DID NOT OFFER THE SAME AS INCOME. TH E AO TOOK THE VIEW THAT THE SAME IS TO BE ASSESSED AS INCOME UNDER CLA USE (B) OF SECTION 145A OF THE INCOME TAX ACT, 1961 (THE ACT). THOUGH THE ASSESSEE CONTENDED IT HAS BEEN FOLLOWING CONSISTENTLY A PART ICULAR METHOD FOR ACCOUNTING CENVAT CONSISTENTLY, THE AO REJECTED TH E SAME BY FOLLOWING THE DECISION OF THE HONBLE APEX COURT IN THE CASE OF CIT V/S BRITISH PAINTS (INDIA) LTD REPORTED IN 188 ITR 44(SC). THE LD. CI T(A) ALSO CONFIRMED THE SAME. AGGRIEVED, THE ASSESSEE FILED THIS APPEAL BE FORE THE TRIBUNAL. 5. THE LD. COUNSEL FOR THE ASSESSEE PLACED RELIANCE BEFORE US ON THE DECISION OF CO-ORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF HAWKINS COOKERS LTD V/S INCOME TAX OFFICER (2008) 14 DTR ( MUM) (TRIB) 206, WHEREIN IT HAS BEEN HELD THAT THE ASSESSEE HAS TO ENSURE THAT THERE IS NO DOUBLE ADJUSTMENT OF MODVAT CREDIT AND ACCORDINGLY THE TRIBUNAL HAD SET ASIDE THE MATTER TO THE FILE OF THE AO TO VERIFY TH E FACTS OF THE CASE AND DELETE THE IMPUGNED ADDITION IF IT IS GIVEN EFFECT TO THE PROVISIONS OF SECTION 145A OF THE ACT. THE LD. COUNSEL SUBMITTED THAT THE METHOD OF ACCOUNTING FOLLOWED BY THE ASSESSEE WITH REGARD TO CENVAT IS IN ITA. NO596/MUM/2012 3 ACCORDANCE WITH THE PROVISIONS OF SECTION 145A OF T HE ACT. THE LD.COUNSEL SUBMITTED THAT THE ASSESSEE FURNISHED DETAILED WORK ING BEFORE THE TAX AUTHORITIES, HOWEVER, THE SAME WAS NOT EXAMINED BY THEM. ACCORDINGLY, HE PRAYED THAT THE MATTE MAY BE SET ASIDE TO THE FI LE OF THE AO SO THAT THE ASSESSEE COULD SATISFY THE AO THAT THE METHOD OF A CCOUNTING FOLLOWED BY THE ASSESSEE IS IN ACCORDANCE WITH THE PROVISIONS O F SECTION 145A OF THE ACT. 6. THE LD. DR DID NOT OBJECT TO THE PLEA PUT FORT B Y THE LD. AR. 7. HAVING REGARD TO THE SUBMISSIONS OF LD. AR, WE S ET ASIDE THE ORDER OF LD. CIT(A) ON THIS ISSUE AND RESTORE THE SAME TO THE FILE OF THE AO WITH A DIRECTION TO EXAMINE THE WORKING FURNISHED BY THE A SSESSEE SO AS TO SATISFY HIMSELF THAT THE SAME COMPLIES WITH THE PROVISIONS OF SECTION 145A OF THE ACT AND THEREAFTER DECIDE THE ISSUE IN ACCORDANCE W ITH THE LAW, AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO TH E ASSESSEE. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 13TH FEB, 2015 . '( # )* + ,13TH FEB, 2015 ( ' $ 1 SD SD ( /SANJAY GARG) ( . . / B.R. BASKARAN) / JUDICIAL MEMBER / ACCOUNTANT MEMBER ) # $ MUMBAI: 13TH FEB,2015. . . ./ SRL , SR. PS ITA. NO596/MUM/2012 4 !'#$ %$&' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. # 2% ( ) / THE CIT(A)- CONCERNED 4. # 2% / CIT CONCERNED 5. 34 %5 , & 5 , ) # $ / DR, ITAT, MUMBAI CONCERNED 6. 6 7$ / GUARD FILE. 8 # / BY ORDER, TRUE COPY 9 (ASSTT. REGISTRAR) & 5 , ) # $ /ITAT, MUMBAI