ACIT CIR 4(2), MUMBAI V. GRASIM BHIWANI TEXTILES LTD, MUMBAI

ITA 636/MUM/2014

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0800 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2010-2011
• Appeal Filed On: 27-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PAVAN KUMAR BEER LA
• Assessee Lawyers: J D GATTANI

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI . . , , , BEFORE SHRI A.D. JAIN , JUDICIAL MEMBER AND SHRI N.K . BILLAIYA, A CCOUNTANT M EMBER / I .T.A. NO . 636/MUM/2014 ( / ASSESSMENT YEAR : 2010 - 11 THE ACIT, CIR 4(2), AAYAKAR BHAVAN, MUMBAI - 400 020 / VS. M/S. GRASIM BHIWANI TEXTILES LTD., 409, COTTON EXCHANGE BLDG., KALBADEVI ROAD, MUMBAI - 400 002 ./ ./ PAN/GIR NO. : AACCG 9347F ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY: SHRI PAVAN KUMAR BEERLA / RESPONDENT BY : SHRI J.D. GATTANI / DATE OF HEARING : 06 . 0 7 .2015 / DATE OF PRONOUNCEMENT : 06 .0 7 .2015 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE LD. CIT(A) - 8 , MUMBAI DT. 1.11.2013 PERTAINING TO ASSESSMENT YEAR 20 1 0 - 1 1 . ITA. NO. 636/M/2014 2 2. THE SOLE GRIEVANCE OF THE REVENUE IS THAT THE LD. CIT(A) ERRED IN ALLOWING THE SHORT PROVISION OF RS. 71,17,377/ - TREATED BY THE AO AS PRIOR PERIOD EXPENSES. 3. AT THE VERY OUTSET, REPRESENTATIVE OF THE ASSESSEE STATED THAT AN IDENTICAL ISSUE HAS BEEN DECIDED BY THE TRIBUNAL IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE IN A.Y. 2009 - 10 IN ITA NO. 2538/M/2013. 4. THE LD. DEPARTMENTAL REP RESENTATIVE COULD NOT BRING ANY DISTINGUISHING DECISION IN FAVOUR OF THE REVENUE. 5. WE FIND FORCE IN THE CONTENTION OF THE AUTHORIZED REPRESENTATIVE. THE TRIBUNAL IN ITA NO. 2538/M/2013 AT PARA - 7 HAS HELD AS UNDER: WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE ORDERS OF THE REVENUE AUTHORITIES AS WELL AS RELEVANT MATERIAL PLACED BEFORE US. ON PERUSAL OF THE SAID ORDER OF THE CIT(A), WE FIND, WHILE ALLOWING THE APPEAL OF THE ASSESSEE ON THE ISSUE OF DISALLOWANCE OF RS. 17,52,428/ - , CIT(A) HAS DISCU SSED THE ISSUE AT LENGTH VIDE PARAS 2 TO 2.3 OF HIS ORDER. FOR THE SAKE OF COMPLETENESS OF THIS ORDER, WE FIND IT RELEVANT TO REPRODUCE PARA 2.3 OF THE CIT(A)S ORDER AND THE SAME READS AS UNDER: 2.3. I HAVE CAREFULLY CONSIDERED THE CONTENTION OF THE APPELLANT AS WELL AS THAT OF THE AO. IN THIS REGARD, A REMAND REPORT WAS CALLED FROM THE AO ON THIS ISSUE. THE AO IN THE REMAND REPORT DT. 8.10.2012 HAS ACCEPTED THE CONTENTION OF THE APPELLANT THAT THE AMOUNT OF RS. 17,52,428/ - ARE NOT PRIOR PERIOD EXPE NSES BUT ARE SHORT PROVISION ON ACCOUNT OF VARIOUS EXPENSES. THE AO ACCEPTED THE PROVISION MADE BY THE APPELLANT. IN VIEW OF THIS FACT, THIS GROUND OF APPEAL IS NOT SUSTAINABLE AND HENCE ALLOWED. CONSIDERING THE ABOVE, WE FIND, THE DECISION TAKEN BY T HE CIT(A) IS FAIR AND REASONABLE AND IT DOES NOT CALL FOR ANY INTERFERENCE. ACCORDINGLY, GROUNDS RAISED BY THE REVENUE ARE DISMISSED. ITA. NO. 636/M/2014 3 RESPECTFULLY FOLLOWING THE DECISION OF THE CO - ORDINATE BENCH, WE DISMISS REVENUES APPEAL. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. OR DER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON 6 TH JU LY , 2015 SD/ - SD/ - ( A.D. JAIN ) (N.K. BILLAIYA) /JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED : 6 TH JULY , 2015 . . ./ RJ , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI