Standard Fireworks Private Ltd., CHENNAI V. ACIT, Virudhunagar

ITA 764/CHNY/2015

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7734 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-02-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 10-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: S SRIDHAR

Judgement Text

, , [ : ] IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI [ CAMP: MADURAI ) . . . ! , ' # $ %& .()(*, , # - BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER $./ ITA NO.764/MDS/2015 ' * /* / ASSESSMENT YEAR : 2010-11 M/S STANDARD FIREWORKS PVT. LTD., C/O SHRI S. SRIDHAR, ADVOCATE, NEW NO.14, OLD NO.82,FLAT NO.5, 1 ST AVENUE, INDIRA NAGAR, ADYAR, CHENNAI - 600 020. PAN : AACCS 1480 M V. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE I, VIRUDHUNAGAR. (12/ APPELLANT) (3412/ RESPONDENT) 12 5 6 / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE 3412 5 6 / RESPONDENT BY : SHRI SHIVA SRINIVAS, JCIT 5 7, / DATE OF HEARING : 16.02.2017 89/ 5 7, / DATE OF PRONOUNCEMENT : 16.02.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -1, MADURA I, DATED 23.02.2015 AND PERTAINS TO ASSESSMENT YEAR 2010-11. 2 I.T.A. NO.764/MDS/15 2. SHRI S. SRIDHAR, THE LD.COUNSEL FOR THE ASSESSEE , SUBMITTED THAT THE ASSESSEE HAS COLLECTED CHARITY / MAHAMAI A S PART OF BUSINESS CONSIDERATION AND CLAIMED THE SAME AS EXEM PTION. THE ASSESSING OFFICER, HOWEVER, DISALLOWED THE CLAIM OF THE ASSESSEE. PLACING RELIANCE ON THE ORDER OF THIS TRIBUNAL FOR ASSESSMENT YEARS 2009-10 AND 2011-12 IN I.T.A. NO. 2286 & 2287/MDS/2 015 DATED 27.12.2016, THE LD.COUNSEL SUBMITTED THAT ON AN IDE NTICAL CIRCUMSTANCE, THIS TRIBUNAL REMITTED BACK THE MATTE R TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO VERIFY WHETHE R THE BILLS ISSUED BY THE ASSESSEE DISCLOSE THE MAHAMAI / CHARITY IN A SEPARATE COLUMN AND ALSO FIND OUT WHETHER THE ASSESSEE IS MA INTAINING SEPARATE BOOKS OF ACCOUNT IN RESPECT OF CHARITY / M AHAMAI COLLECTED. IT WAS ALSO DIRECTED TO VERIFY WHETHER THE PAYMENTS HAVE BEEN MADE TO THE TRUST. ACCORDING TO THE LD. COUNSEL, A SIMI LAR DIRECTION MAY BE GIVEN FOR THIS YEAR ALSO. 3. ON THE CONTRARY, SHRI SHIVA SRINIVAS, THE LD. DE PARTMENTAL REPRESENTATIVE, SUBMITTED THAT MAHAMAI / CHARITY CO LLECTED BY THE ASSESSEE WAS NOT TAKEN AS PART OF TURNOVER, THEREFO RE, IT CANNOT BE ALLOWED AS CLAIM OF THE ASSESSEE. 3 I.T.A. NO.764/MDS/15 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. ON IDENTICAL CIRCUMSTANCES, FOR THE ASSESSMENT YEARS 2009-10 AND 2011-12, IN THE ASSESSEE'S OWN CASE, THIS TRIBUNAL BY ORDER DAT ED 27.12.2016 IN I.T.A. NOS.2286 & 2287/MDS/2015, DIRECTED AS FOLLOW S:- 8. THIS JUDGMENT OF APEX COURT WAS DISTINGUISHED BY THE CIT(APPEALS) ON THE GROUND THAT THE DIRECTORS O F THE ASSESSEE-COMPANY WERE CONTROLLING THE TRUST. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT MERELY BECAUSE TH E DIRECTORS OF THE ASSESSEE-COMPANY WERE CONTROLLING THE TRUST, WHEN THE AMOUNTS WERE SPECIFICALLY COLLECTED TOWARDS CHARITY AND THE ASSESSEE WAS MAINTAINING SEPARATE B OOKS OF ACCOUNT WITH REGARD TO COLLECTION OF CHARITY AND TH E PAYMENTS MADE TO TRUST, IT CANNOT BE SAID THAT THE JUDGMENT OF APEX COURT IS NOT APPLICABLE TO THE FACTS OF THE CASE. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT WHE N THE ASSESSEE IS MAINTAINING BOOKS OF ACCOUNT IN RESPECT OF THE AMOUNTS COLLECTED TOWARDS MAHAMAI / CHARITY AND CRE DITED THE AMOUNTS COLLECTED TOWARDS CHARITY AND DEBITED T HE AMOUNTS PAID TO THE TRUST IN THE SEPARATE BOOKS OF ACCOUNT, THE ASSESSEE IS NOT LIABLE FOR TAXATION. SINCE THES E ASPECTS WERE NOT EXAMINED BY THE ASSESSING OFFICER AS WELL A S THE CIT(APPEALS), THIS TRIBUNAL IS OF THE CONSIDERED OP INION THAT THE MATTER NEEDS TO BE RE-EXAMINED. ACCORDINGLY, TH E ORDERS OF THE LOWER AUTHORITIES ARE SET ASIDE AND T HE CLAIM OF THE ASSESSEE IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RE- EXAMINE THE MATTER AFRESH AND BRING ON RECORD WHETHER THE B ILLS ISSUED BY THE ASSESSEE DISCLOSE THE MAHAMAI / CHARI TY IN A SEPARATE COLUMN AND ALSO FIND OUT WHETHER THE ASSES SEE IS MAINTAINING SEPARATE BOOKS OF ACCOUNT IN RESPECT OF CHARITY / MAHAMAI COLLECTED AND PAYMENTS MADE TO THE TRUST AND, THEREAFTER DECIDE THE ISSUE AFRESH IN THE LIGHT OF THE 4 I.T.A. NO.764/MDS/15 JUDGMENT OF APEX COURT IN BIJLI COTTON MILLS (P.) LTD . (SUPRA), AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESS EE. 5. SINCE FACTS ARE IDENTICAL TO THAT OF ASSESSMENT YEARS 2009-10 AND 2011-12, THE ASSESSING OFFICER IS DIRECTED TO F OLLOW THE DIRECTION OF THIS TRIBUNAL GIVEN FOR ASSESSMENT YEARS 2009-10 AND 2011-12, FOR THE YEAR UNDER CONSIDERATION ALSO. 6. WITH THE ABOVE DIRECTION, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH FEBRUARY, 2017 AT MADURAI. SD/- SD/- (%& .()(* ) ( . . . ! ) (ABRAHAM P. GEORGE) (N.R.S. GANESAN) , #/ ACCOUNTANT MEMBER ' # /JUDICIAL MEMBER /MADURAI, ;$ /DATED, THE 16 TH FEBRUARY, 2017. KRI. 5 3'7 ! 3'7' /DR 6. !?* @ /GF.