M/s. Vishay Components India Pvt.Ltd, Pune V. Assistant Commissioner of Income-tax, Circle -13, Pune

ITA 726/PUN/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7758 (ITAT-PUNE)
• Duration Of Justice: 8 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 20-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER . / ITA NO.726/PUN/18 / ASSESSMENT YEARS : 2009-10 M/S. VISHAY COMPONENTS INDIA PRIVATE LIMITED, LONI-KALBHOR, NEAR PUNE (C. RLY.), PUNE 412 201 PAN : AAACB9652L VS. ACIT, CIRCLE-13, PUNE (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSE D BY THE CIT(A)-5, PUNE ON 22-12-2017 IN RELATION TO THE ASSESSMENT YEAR 2009-10. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST CONFIRMATION OF DISALLOWANCE OF DEDUCTION CLAIMED BY THE APPELLANT BY SHRI PRAMOD JADHAV RESPONDENT BY SHRI M.K. VERMA DATE OF HEARING 09-01-2019 DATE OF PRONOUNCEMENT 09-01-2019 ITA NO.726/PUN/2018 M/S. VISHAY COMPONENTS INDIA PVT. LTD., 2 ASSESSEE IN RELATION TO OBSOLETE STOCK WRITTEN OFF UNDER DOMESTIC TARIFF AREA (DTA) UNIT. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSE E CLAIMED WRITE OFF OF OBSOLETE STOCK OF RS.20,11,599/- (R AW MATERIAL) AND RS.10,70,217 (FINISHED GOODS). ON BEING C ALLED UPON TO SUBSTANTIATE THE CLAIM OF DEDUCTION, THE ASSESSEE SUBMITTED THAT PROVISION FOR OBSOLETE STOCK WAS MADE WHICH WAS ACTUALLY ADDED BACK AND DEDUCTION WAS CLAIMED ONLY IN RESPECT OF ACTUAL OBSOLETE STOCK WRITTEN OFF. THE AO REQUIR ED THE ASSESSEE TO PRODUCE THE FOLLOWING DOCUMENTS TO JUSTIFY ITS CLAIM : A. CERTIFICATE FROM EXCISE AUTHORITY THAT SUCH STOC K IS NOT USABLE AND HENCE WRITTEN OFF. B. CERTIFICATE FROM CHARTERED ACCOUNTANT THAT HE HA D INSPECTED THE STOCK AND FOUND THAT THE SAME WAS NOT USABLE. C. WHETHER PRODUCT OF SUCH RAW MATERIAL HAS BEEN DI SCONTINUED AND THERE IS NO DEMAND OF SUCH PRODUCT IN THE MARKE T. D. WHETHER SALE/STOCK OF SUCH WRITTEN OFF MATERIAL HAVE BEEN ACCOUNTED IN THE EXCISE REGISTER AND SCRAP FOR THE SAME ARE ENTERED IN THE EXCISE REGISTER. 4. SINCE THE ASSESSEE COULD NOT FURNISH SUCH DETAILS IN ENTIRELY, THE AO MADE DISALLOWANCE OF RS.30,81,816/-. THE LD. CIT(A) SUSTAINED THE SAME. 5. HAVING HEARD BOTH THE SIDES AND PERUSED THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT SIMILAR ISSUE CAME UP FOR ITA NO.726/PUN/2018 M/S. VISHAY COMPONENTS INDIA PVT. LTD., 3 CONSIDERATION BEFORE THE TRIBUNAL IN THE APPEALS OF THE ASS ESSEE FOR EARLIER YEARS. VIDE ORDER DATED 10-02-1017 FOR THE ASSESSMENT YEAR 2007-08, THE TRIBU NAL IN ITA NO.1712/PUN/2011 HAS REMITTED IDENTICAL MATTER TO THE AO FOR FRESH ADJUDICATION. SIMILAR VIEW HAS BEEN TAKEN BY THE TRIBUNAL FOR THE ASSESSMENT YEAR 2006-07, A COPY OF WHIC H HAS BEEN PLACED ON PAGE 188 ONWARDS OF THE PAPER BOOK. I N VIEW OF THE FOREGOING PRECEDENT, WE ARE SATISFIED THAT THE ENDS O F JUSTICE WOULD MEET ADEQUATELY IF THE IMPUGNED ORDER ON THIS ISSUE IS SET-ASIDE AND THE MATTER IS RESTORED TO THE FILE OF AO . WE ORDER ACCORDINGLY AND DIRECT HIM TO DECIDE THIS ISSUE IN THE LIGHT OF THE DIRECTIONS GIVEN BY THE TRIBUNAL IN THE EARLIER ASSESSMENT YEARS AS AFORESTATED. 6. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 09 TH JANUARY, 2019. SD/- SD/- (VIKAS AWASTHY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESID ENT PUNE; DATED : 09 TH JANUARY, 2019 ITA NO.726/PUN/2018 M/S. VISHAY COMPONENTS INDIA PVT. LTD., 4 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-5, PUNE 4. 5. THE PR.CIT-4, PUNE , , SMC / DR SMC, ITAT, PUNE; 6. % / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.726/PUN/2018 M/S. VISHAY COMPONENTS INDIA PVT. LTD., 5 DATE 1. DRAFT DICTATED ON 09-01-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 09-01-2019 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *