THE DCIT, 1(1), Bhopal V. M/S. MAKSON NUTRITION FOOD INDIA PVT. LTD., Raisen

ITA 60/IND/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5769 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 25-07-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 23-01-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Assessee Lawyers: S S DESH
• Keywords: Opportunity of being heard

Judgement Text

DCIT VS. M/S MAKSON NUTRITION ITA NO. 60/IND/2015 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JM & SHRI O.P. MEENA, AM ITA NO.60/IND/2015 A.Y.2003-04 DCIT 1(1) BHOPAL ::: APPELLANT VS M/S MAKSON NUTRITION FOOD INDIA PVT. LTD. MANDIDEEP PAN AACCM 4797K ::: RESPONDENT APPELLANT BY SHRI MOHD. JAVED RESPONDENT BY SHRI S.S. DESHPANDE DATE OF HEARING 25.7.2016 DATE OF PRONOUNCEMENT 25.7.2016 O R D E R PER SHRI D.T. GARASIA,JM THIS IS AN APPEAL PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED CIT(A), BILASPUR, CAMP AT BHOPAL DATED 17.10.2014. DCIT VS. M/S MAKSON NUTRITION ITA NO. 60/IND/2015 2 2. THE ONLY GROUND TAKEN BY THE REVENUE IS THAT THE LEARNED CIT(A) WAS NOT JUSTIFIED IN DELETING THE ADDIT ION MADE DUE TO DISALLOWANCE OF THE CLAIM OF THE PROVISIONS OF RS.70,62,647/- U/S 43 MADE BY THE ASSESSING OFFICER . 3. WE HAVE HEARD BOTH THE SIDES. ON PERUSAL OF RECORD THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS CREATED PROVISIONS OF RS.70,62,647/- FOR CENTVAT PAY ABLE. SINCE THE LIABILITY WAS NOT PAID ON OR BEFORE THE FILI NG OF THE RETURN, THE EXPENSES ARE INADMISSIBLE U/S 43B. THE ASSESSEE SUBMITTED THAT CENTAT HAS NEITHER BEEN ROUTE D THROUGH P&L ACCOUNT NOR IT HAS BEEN DEBITED TO ANY EXPENSE ACCOUNT AND AS SUCH NO DISALLOWANCE IS CALLED FOR . HOWEVER, THE ASSESSING OFFICER DID NOT AGREE AND MADE THE ADDITION OF RS.70,62,647/- TO THE TOTAL INCOME OF THE ASSESSEE. ON APPEAL, THE LEARNED CIT(A) DELETED THE ADDITION MADE BY THE ASSESSING OFFICER ON THE GROUND THAT NO PART OF THE LIABILITY IS FOUND TO HAVE BEEN CHARGED TO DCIT VS. M/S MAKSON NUTRITION ITA NO. 60/IND/2015 3 PROFIT AND LOSS ACCOUNT AND AS SUCH THE ASSESSING OFFIC ER WAS NOT JUSTIFIED IN MAKING THE ADDITION. AGAINST THIS THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 4. BEFORE US, THE LEARNED DR RELIED UPON THE ORDER OF THE ASSESSING OFFICER WHEREAS THE LEARNED COUNSEL FOR TH E ASSESSEE RELIED UPON THE ORDER OF THE LEARNED CIT(A) . WE FIND THAT THE ASSESSING OFFICER HAS MADE THE ADDITION B Y REJECTING THE CLAIM OF THE ASSESSEE THAT CENTAT HAS BEE N DEBITED TO EXCISE DUTY RECOVERABLE FROM HINDUSTAN LEV ER LTD. WITH CORRESPONDING CREDIT TO CENTAT PAYABLE ACCO UNT WITHOUT VERIFYING THE SAME. WE, THEREFORE, IN THE IN TEREST OF JUSTICE AND FAIR PLAY, FINDING IT APPROPRIATE TO SET ASI DE THE ORDERS OF THE AUTHORITIES BELOW AND RESTORE THIS ISS UE TO THE FILE OF THE ASSESSING OFFICER TO VERIFY THE CLAIM OF THE ASSESSEE IN THE LIGHT OF THE SUBMISSIONS OF THE ASSES SEE AND IF THE CLAIM OF THE ASSESSEE IS FOUND JUSTIFIABLE, ALL OW THE SAME. NEEDLESS TO SAY THAT BEFORE DECIDING THE ISSUE THE DCIT VS. M/S MAKSON NUTRITION ITA NO. 60/IND/2015 4 ASSESSING OFFICER SHALL AFFORD REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS ALLO WED FOR STATISTICAL PURPOSES. PRONOUNCED IN OPEN COURT ON 25 TH JULY, 2016 SD SD (O.P. MEENA) (D.T. G ARASIA) ACCOUNTANTMEMBER JUDICIAL MEMB ER 8 TH SEPT., 2016 DN/- DCIT VS. M/S MAKSON NUTRITION ITA NO. 60/IND/2015 5