ACIT 2(3), MUMBAI V. TATA CHEMICALS LTD, MUMBAI

ITA 611/MUM/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93037 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2007-2008
• Appeal Filed On: 24-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEIL PHILIP
• Assessee Lawyers: A T SURAIYA

Judgement Text

, , ,, , IN THE INCOME TAX APPELLATE TRIBUNAL E, BENC H MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI SANJAY GARG, JM ./ ITA NO.611/MUM/2014 ( / ASSESSMENT YEAR :2007-08) ITO WARD-2(2)(1), MUMBAI VS. TATA CHEMICALS LTD., BOMBAY HOUSE, 24 HOMI MODI STREET, FORT, MUMBAI-400001 ! '# ./ $% ./PAN/GIR NO. : AAACT 4059 M ( !& /APPELLANT ) .. ( '(!& / RESPONDENT ) $ ) )) ) * * * * ' '' ' /REVENUE BY : SHRI NEIL PHILIP +, ) )) ) * * * * ' '' ' /ASSESSEE BY : SHRI A.T.SURAIYA ) ,# / DATE OF HEARING : 09/07/2015 -. ) ,# /DATE OF PRONOUNCEMENT 09/07/2015 /'0 /'0 /'0 /'0 / O R D E R PER SANJAY GARG, JUDICIAL MEMBER : THE REVENUE HAS FILED THIS APPEAL AGAINST THE ORDER OF CIT(A)-6, MUMBAI, DATED 17-10-2013 FOR THE ASSESSMENT YEAR 20 07-08 2. IN THIS APPEAL THE REVENUE IS AGGRIEVED BY THE A CTION OF CIT(A) IN DIRECTING THE AO TO REDUCE THE BALANCE AMOUNT OF RS .74,58,403 FOR THE PURPOSE OF COMPUTATION OF TAXABLE FRINGE BENEFITS. 3. INITIALLY THE ORDER WAS PASSED BY THE CIT(A) ON 29-12-2010. DURING THE COURSE OF APPELLATE PROCEEDINGS, THE ASSESSEE H AD RAISED A GROUND REGARDING RECTIFICATION OF FIGURES OF SALES PROMOTI ON EXPENSES, WHEREIN AN AMOUNT OF RS.75,81,122/-, BEING EXPORT FREIGHT (INC LUDED UNDER THE HEAD EXPORT PROMOTION AND DEVELOPMENT EXPENSES) WAS WRON GLY CONSIDERED BY THE AO FOR THE PURPOSES OF FRINGE BENEFIT TAX (F BT). THE CIT(A) HELD THAT FBT CANNOT BE LEVIED IN RESPECT OF EXPORT FREI GHT. AFTER GIVING EFFECT TO ITA NO.611/ 14 2 THE ORDER OF CIT(A), THE AO GAVE PART RELIEF ONLY T O THE EXTENT OF RS.1,22,719/-. AGAINST WHICH THE ASSESSEE PREFERRED APPEAL BEFORE THE CIT(A) AND THE CIT(A) ALLOWED THE CLAIM OF THE ASSE SSEE. NOW, THE REVENUE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD THE RIVAL PARTIES AND CAREFULLY CO NSIDERED THE MATERIAL EVIDENCE AVAILABLE ON RECORD. WE FOUND FRO M THE RECORD THAT THE ASSESSEE HAS SUBMITTED THE LEDGER ACCOUNT OF EXPORT FREIGHT BEFORE THE CIT(A). THE AUDITORS CERTIFICATE WAS ALSO FILED B EFORE BOTH THE AUTHORITIES BELOW, WHEREIN IT IS STATED THAT THE FIGURE OF SALE S PROMOTION EXPENSES STATED IN THE STATEMENT ATTACHED WITH THE RETURN IN CLUDED AN AMOUNT OF RS.75,81,122/- IN RESPECT OF EXPORT FREIGHT UNDER T HE HEAD EXPORT PROMOTION AND DEVELOPMENT EXPENSES. THEREFORE, THE CIT(A) HELD THAT THE BALANCE AMOUNT OF EXPORT FREIGHT OF RS.75,81,12 2/- CANNOT BE INCLUDED FOR THE PURPOSE OF TAXABLE FRINGE BENEFITS(FBT) AND RIGHTLY DIRECTED THE AO TO REDUCE THE SAME. WE FIND NO ERROR IN THE FINDING S OF CIT(A) IN THIS REGARD, AND, THEREFORE, WE UPHOLD THE SAME. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 09/07/20 15. SD/- SD/- R.C.SHARMA SANJAY GARG '# / '# / '# / '# / / ACCOUNTANT MEMBER / / / / / JUDICIAL MEMBER MUMBAI ; 1/ DATED /10/2015 '. .3 /PKM , . / PS /'0 /'0 /'0 /'0 ) )) ) ',38 ',38 ',38 ',38 9'8, 9'8, 9'8, 9'8, / COPY OF THE ORDER FORWARDED TO : 1. !& / THE APPELLANT 2. '(!& / THE RESPONDENT. 3. :, ( ) / THE CIT(A), MUMBAI. ITA NO.611/ 14 3 /'0 /'0 /'0 /'0 / BY ORDER, ; ;; ; / < < < < $ $ $ $ ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 4. :, / CIT 5. 8=> ', , , / DR, ITAT, MUMBAI 6. >? @ / GUARD FILE. (8, ', //TRUE COPY//