ACIT LTU, MUMBAI V. DEPOSIT INSURANCE & CREDIT GUARANTEE CORPORATION, MUMBAI

ITA 6001/MUM/2009

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 78682 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 17-04-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 12-11-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'D' BENCH, MUMBAI BEFORE SHRI H.L. KARWA, PRESIDENT, AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA NO. 6001/MUM/2009 (ASSESSMENT YEAR:2006-07) ACIT - LTU 29 TH FLOOR, CENTRE-1 WORLD TRADE CENTRE CUFFE PARADE MUMBAI-400 005. VS. M/S. DEPOSIT INSURANCE & CREDIT GUARANTEE CORPORATION RBI BUILDING OPP. MUMBAI CENTRAL RLY. STATION, NEAR MARATHA MANDIR BYCULLA MUMBAI-400 008. (APPELLANT) (RESPONDENT) PERMANENT ACCOU NT NO. : AAACD 2094 E ASSESSEE BY : SHRI SITARAM PAREKH REVENUE BY : MRS. ABHA KALA CHANDA (CIT - DR) DATE OF HEARING : 17/04/2014 DATE OF PRONOUNCEMENT : 17/04/2014 O R D E R PER N.K. BILLAIYA, ACCOUNTANT MEMBER: THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF CIT(A)- LTU, MUMBAI DATED 03/08/2009 PERTAINING TO ASSESSME NT YEAR 2006-07. THE GRIEVANCE OF THE REVENUE IS AS UNDER :- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A), ERRED IN DELETING THE ADDITION S MADE ON ACCOUNT OF PROVISION FOR GRATUITY U/S. 40A(9) OF TH E I.T. ACT. ITA NO.6001/M/09 AY:06-07 2 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A), ERRED IN DELETING THE ADDITION S MADE ON ACCOUNT OF CHARGES PAID TO CLEARING CORPORATION OF INDIA LTD., WITHOUT DEDUCTING TDS U/S.40(A)(IA) OF THE I.T. ACT . 2. AT THE VERY OUTSET THE COUNSEL FOR THE ASSESSEE SUBMITTED THAT BOTH THE GRIEVANCES OF THE REVENUE ARE DECIDED IN F AVOUR OF THE ASSESSEE BY THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 1999-2000, 2000-01 AND 2002-03 AND ALSO IN ASSESSME NT YEAR 2007-08 AND 2008-09. THE LD. DR FAIRLY CONCEDED WITH THE SA ME. 3. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE LOWE R AUTHORITIES AND THE DECISION OF THE TRIBUNAL BROUGHT TO OUR NOTICE BY THE COUNSEL IN ASSESSEES OWN CASE. WE FIND THAT THE CIT(A) HAS DE LETED THE ADDITIONS MADE ON ACCOUNT OF PROVISION FOR GRATUITY U/S. 40A( 9) OF THE ACT FOLLOWING THE FINDING OF HIS PREDECESSORS FOR ASSESSMENT YEAR 2005-06 AND 2003- 04. A SIMILAR ADDITION WAS ALSO MADE IN ASSESSMENT YEAR 2007-08 AND 2008-09 WHERE THE MATTER TRAVELLED UPTO THE TRIBUNA L AND THE TRIBUNAL IN ITA NO.2361 & 2524/MUM/2011 AT PARA-7 OF ITS ORD ER HELD : WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND FIND THAT THE TRIBUNAL HAS CONFIRMED THE DELETION OF DISALLOWANCE ON ACCOUNT OF PROVISIO N FOR GRATUITY IN ASSESSMENT YEAR 1999-2000, 2000-01 AND 2002-03 IN I TA NO.7950 & 7951/MUM/2003 AND ITA NO.1738/MUM/2005. THEREFORE, FOLLOWING THAT ORDER, WE CONFIRM THE ORDER OF LD. CIT(A). 3.1 AS NO DISTINGUISHING FACT HAS BEEN BROUGHT BEFO RE US, RESPECTFULLY, FOLLOWING THE FINDINGS OF THE CO-ORDINATE BENCH (SU PRA), WE CONFIRM THE ORDER OF CIT(A). GROUND NO.1 IS ACCORDINGLY DISMISS ED. 4. THE SECOND GRIEVANCE OF THE REVENUE IS ALSO COVE RED BY THE DECISION OF THE TRIBUNAL IN ASSESSMENT YEAR 2007-08 AND 2008-09 WHEREIN THE TRIBUNAL HAS DECIDED A SIMILAR ISSUE AT PARA-14 ON PAGE-7 OF ITS ORDER IN ITA NO.2361 & 2524/M/11. RESPECTFULLY FOLLOWING THE ITA NO.6001/M/09 AY:06-07 3 FINDINGS OF THE CO-ORDINATE BENCH WE CONFIRM THE OR DER OF THE CIT(A). GROUND NO.2 IS ACCORDINGLY DISMISSED. 5. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH APRIL, 2014. SD/- SD/- (H.L. KARWA) PRESIDENT (N.K. BILLAIYA) ACCOUNTANT MEMBER MUMBAI, DATED: 17/04/2014. JV. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR BENCH TRUE COPY BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.