THE DCIT, Hyderabad V. M/s Suryalatha Spinning Mills (P) Ltd, Secunderabad

ITA 618/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9952 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 27-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V MADHUVANI
• Assessee Lawyers: C N PRASAD

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER I.T.A. NO. 618/HYD/2010 (ASSESSMENT YEAR 2006-07) THE DY. COMMISSIONER OF INCOME-TAX, CIRCLE 3(2), RANGE-3, HYDERABAD VS. M/S. SURYALAHA SPINNING MILLS (P) LTD. SECUNDERABAD PAN: AADCS 0823 M APPELLANT RESPONDENT APPELLANT BY: SMT. V. MADHUVANI RESPONDENT BY: SHRI C.N. PRASAD O R D E R PER G.C. GUPTA, VP : THIS APPEAL BY THE REVENUE FOR ASSESSMENT YEAR 200 6- 07 IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-IV, HYDERABAD DATED 12.1.2010. 2. THE GROUNDS OF THE APPEAL ARE AS UNDER: '1. THE ORDER OF THE CIT(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE CIT(A) ERRED IN NOT APPRECIATING THE LEGISLATIVE INTENTION IN INSERTING THE PROVISIONS OF SECTION 145A. THE LEARNED CIT(A) SHOULD HAVE SUSTAINED THE ADDITION ON ACCOUNT OF EXCISE DUTY ON CLOSING STOCK AS THE PROVISION CREATED TOWARDS EXCISE DUTY PAYABLE ON CLOSING STOCK OF FINISHED GOODS IS ONLY A CONTINGENT LIABILITY AND NOT AN ASCERTAINED LIABILITY AS ON 31ST MARCH OF THE ACCOUNTING YEAR.' 3. THE LEARNED COUNSEL FOR THE ASSESSEE, AT THE OUT SET, SUBMITTED THAT THE ISSUE IN THIS APPEAL OF THE REVE NUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION O F THE TRIBUNAL I.T.A. NO. 618/HYD/2010 M/S. SURYALATHA SPINNING MILLS (P) LTD. =========================== 2 IN ASSESSEE'S OWN CASE FOR A.Y. 2004-05 IN I.T.A. N OS. 624 & 625/HYD/2009 DATED 14TH AUGUST, 2009. 4. THE LEARNED DR COULD NOT CONTROVERT THE SUBMISSI ONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FI ND THE ISSUE IN THE GROUNDS OF APPEAL OF THE REVENUE REGAR DING THE ADDITION ON ACCOUNT OF EXCISE DUTY ON CLOSING STOCK IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HYD ERABAD TRIBUNAL IN ASSESSEE'S OWN CASE FOR A.Y. 2004-05 (S UPRA). WE FIND IT WAS HELD THAT THE EXCISE DUTY PAYABLE SHOUL D NOT BE ADDED TO THE CLOSING STOCK IN VIEW OF THE JUDGEMENT OF THE HON'BLE MADHYA PRADESH HIGH COURT IN ACIT VS. D & H SECHERON ELECTRODES (P) LTD. (2008) 173 TAXMAN 188 WHEREIN THE ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE. W E BEING IN AGREEMENT WITH THE DECISION OF THE CO-ORDINATE BENC H OF THE TRIBUNAL IN ASSESSEE'S OWN CASE FOR A.Y. 2004-05 (S UPRA), DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE AND THE GROUNDS OF APPEAL OF THE REVENUE ARE DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 7TH JANUARY, 2011. SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER SD/- (G.C. GUPTA) VICE PRESIDENT HYDERABAD, DATED 7TH JANUARY, 2011 TPRAO I.T.A. NO. 618/HYD/2010 M/S. SURYALATHA SPINNING MILLS (P) LTD. =========================== 3 COPY FORWARDED TO: 1. THE DY. COMMISSIONER OF INCOME-TAX, CIRCLE 3(2), ROOM NO. 723, 7TH FLOOR, I.T. TOWERS, A.C. GUARDS, HYDER ABAD- 500 004. 2. M/S. SURYALATHA SPINNING MILLS (P) LTD., 105, 1S T FLOOR, SURYA TOWERS, S.P. ROAD, SECUNDERABAD. 3. THE CIT(A)-IV, HYDERABAD. 4. THE CIT-III, HYDERABAD 5. THE DR A BENCH, ITAT, HYDERABAD