M/s United Breweries Ltd., V. CIT,

ITA 664/BANG/2013

• Counselvise Citation: 66421114 RSA 2013
• Duration Of Justice: 1 year(s) 9 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 12-02-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 09-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C H SUNDAR RAO CITIDR
• Section: 143(3); 14A; 115JB; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER ITA NO.664/BANG/2013 ASSESSMENT YEAR : 2006-07 M/S. UNITED BREWERIES LTD., UB TOWER, UB CITY, NO.24, VITTAL MALLYA ROAD, BANGALORE 560 024. PAN : AAACU 6053C VS. THE COMMISSIONER OF INCOME TAX, BANGALORE-III, BANGALORE. APPELLANT RESPONDENT APPELLANT BY : SMT. SHEETAL BORKAR, ADVOCATE RESPONDENT BY : SHRI C.H. SUNDAR RAO, CIT-I(DR) DATE OF HEARING : 12.02.2015 DATE OF PRONOUNCEMENT : 20.02.2015 O R D E R PER N.V. VASUDEVAN, JUDICIAL MEMBER THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER DATED 28.2.2011 OF THE COMMISSIONER OF INCOME-TAX, BANGALORE-III PASSE D U/S. 263 OF THE ACT IN RELATION TO ASSESSMENT YEAR 2006-07. 2. THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSINES S OF MANUFACTURE AND SALE OF BEER. THE AO COMPLETED THE ASSESSMENT U/S. ITA NO.664/BANG/2013 PAGE 2 OF 4 143(3) OF THE ACT DETERMINING TOTAL INCOME UNDER TH E PROVISIONS OF SECTION 115JB OF THE ACT AS THE TAX PAYABLE ON THE BOOK PRO FITS U/S. 115JB OF THE ACT WAS HIGHER THAN THE TOTAL INCOME AND TAX PAYABL E THEREON UNDER THE NORMAL PROVISIONS OF THE ACT. 3. BY THE IMPUGNED ORDER THE CIT WAS OF THE VIEW TH AT WHILE COMPUTING BOOK PROFITS U/S. 115JB OF THE ACT, THE AO FAILED T O ADD TO THE BOOK PROFITS A SUM OF RS.4,26,75,114 WHICH WAS THE SUM DISALLOWED BY INVOKING PROVISIONS OF SECTION 14A OF THE ACT, WHILE COMPUTI NG TOTAL INCOME OF THE ASSESSEE UNDER THE NORMAL PROVISIONS OF THE ACT BY THE AO. ACCORDING TO THE CIT, THE AFORESAID SUM DISALLOWED U/S. 14A WAS REQUIRED TO BE ADDED TO THE PROFIT AS PER PROFIT & LOSS ACCOUNT IN VIEW OF EXPLANATION 1(F) TO SECTION 115JB OF THE ACT TO ARRIVE AT THE BOOK PROFITS. 4. AGGRIEVED BY THE AFORESAID ORDER OF CIT, THE AS SESSEE HAS FILED THE PRESENT APPEAL BEFORE THE TRIBUNAL. 5. AT THE TIME OF HEARING OF APPEAL, IT WAS BROUGH T TO OUR NOTICE THAT CONSEQUENT TO THE PASSING OF IMPUGNED ORDER BY THE CIT U/S. 263 OF THE ACT, THE AO PASSED AN ORDER OF ASSESSMENT DATED 21. 1.2013 GIVING EFFECT TO THE DIRECTIONS OF CIT. IN THE SAID ORDER, THE A O ADDED TO THE PROFIT AS PER PROFIT & LOSS ACCOUNT THE AMOUNT DISALLOWED U/S. 14 A OF THE ACT FOR THE PURPOSE OF COMPUTING BOOK PROFITS U/S. 115JB OF THE ACT. THE ASSESSEE FILED AN APPEAL AGAINST THE SAID ORDER AND CIT(APPE ALS) BY ORDER DATED 9.10.2013 DELETED THE ADDITION MADE BY THE AO AGAIN ST WHICH REVENUE FILED ITA NO.664/BANG/2013 PAGE 3 OF 4 AN APPEAL IN ITA NO.85/BANG/2014 BEFORE THE TRIBUNA L. AGAINST THE ORIGINAL ORDER OF ASSESSMENT DATED 29.12.2008, AN A PPEAL WAS FILED BY THE ASSESSEE BEFORE CIT(A), WHO BY AN ORDER DATED 7.10. 2013 DELETED THE ADDITION MADE BY THE AO U/S. 14A OF THE ACT. THE R EVENUE FILED AN APPEAL BEFORE THE TRIBUNAL IN ITA NO.84/BANG/2014. BOTH THE APPEALS WERE HEARD BY THIS TRIBUNAL TOGETHER AND BY AN ORDER DATED 24. 11.2014, THE TRIBUNAL SET ASIDE THE ISSUE TO THE AO FOR CONSIDERATION AFR ESH IN THE LIGHT OF OBSERVATIONS MADE IN THE SAID ORDER. 6. THE LD. COUNSEL FOR THE ASSESSEE THEREFORE SUBM ITTED THAT THE PRESENT APPEAL BY THE ASSESSEE HAS BECOME INFRUCTUO US. 7. THE SUBMISSION MADE WAS CONSIDERED AND ACCEPTED. ACCORDINGLY, THE APPEAL BY THE ASSESSEE IS DISMISSED AS INFRUCTU OUS. PRONOUNCED IN THE OPEN COURT ON THIS 20 TH DAY OF FEBRUARY, 2015. SD/- SD/- ( ABRAHAM P. GEORGE ) ( N.V. VASU DEVAN ) ACCOUNTANT MEMBER JUDICIAL M EMBER BANGALORE, DATED, THE 20 TH FEBRUARY, 2015. /D S/ ITA NO.664/BANG/2013 PAGE 4 OF 4 COPY TO: 1. APPELLANT 2. RESPONDENTS 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR / SENIOR PRIVATE SECRETARY ITAT, BANGALORE.