ACIT, Jaipur V. RAJASTHAN FINANCIAL CORPORATION, Jaipur

ITA 79/JPR/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5249 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 31-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROLLY AGARWAL
• Assessee Lawyers: SATISH AJMERA C A DHK
• Section: 263

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH VH-VKJ-EHUK ] YS[KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI T.R. MEENA, AM VK;DJ VIHY LA-@ ITA NO. 79/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2007-08. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-6, JAIPUR. CUKE VS. M/S. RJASTHAN FINANCIAL CORPORATION, UDYOG BHAWAN, TILAK MARG, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AACCR 2385 J VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SMT. ROLLY AGARWAL (CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI SATISH AJMERA (C.A.) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 01.06.2016. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 7/06/2016. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT (APPEALS)- II, JAIPUR DATED 28.11.2013 PERTAINING TO A.Y. 2007 -08. THE REVENUE HAS RAISED THE FOLLOWING AMENDED GROUNDS OF APPEAL :- (I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE AND IN LAW, THE CIT (A) HAS FAILED TO ADJUDICATE ON THE METHOD OF CALCULATING OF BOOK PROFIT FOR THE PURPOSE OF CHARG ING MAT U/S 115 JB AND ALSO NOT CONSIDERING THE FACT THAT THE I SSUE INVOLVED WAS RE-CALCULATION OF BOOK PROFIT FOR THE PURPOSE O F CHARGING MAT, IN THE ORDER OF THE AO PASSED U/S 143(3)/263 A ND NOT APPLICABILITY OF PROVISIONS OF SECTION 115 JB IN TH E CASE OF THE ASSESSEE. (II) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE AND IN LAW, THE CIT (A) HAS ERRED IN HOLDING THAT THE P ROVISION OF SECTION 115 JB OF THE ACT ARE NOT APPLICABLE IN THE CASE OF THE ASSESSEE. 2 ITA NO. 79/JP/2014 ACIT VS. RAJASTHAN FINANCIAL CORPORATION. 2. THE REVENUE IS AGGRIEVED BY THE ORDER OF LD. CIT (A) HOLDING THAT PROVISIONS OF SECTION 115 JB ARE NOT APPLICABLE TO THE ASSESSEE A ND IT IS NOT SUBJECTED TO MAT. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE POINTED OU T THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER OF T HIS TRIBUNAL IN ASSESSEES OWN CASE IN EARLIER YEARS. RELIANCE IS ALSO PLACED ON THE JUDGMENT OF THE HONBLE KERALA HIGH COURT RENDERED IN THE CASE OF KERALA STATE ELE CTRICITY BOARD VS. DCIT, 329 ITR 91 (KER.). 2.1. THE LD. CIT D/R HAS CONCEDED THE FACT THAT IN EARLIER YEARS THE ISSUE OF APPLICABILITY OF PROVISIONS OF MAT HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE BY THE TRIBUNAL IN ITA NO. 1101/JP/2010 ACIT VS. RAJASTHAN FINANCIAL CORPORATION PERTAINING TO A.Y. 2007-08 AND ITA NO. 1063/JP/2007 DCIT VS. RAJASTHAN FINANCIAL CORPORATION PERTAINING TO A.Y. 2003-04. THE LD. CIT D/R HAS ALSO CONCEDED THE FACT THAT THE ISSUE OF APPLICABILITY OF MAT PROVISION HA S BEEN DECIDED AGAINST THE REVENUE BY THIS TRIBUNAL IN ITA NOS. 1079 & 1080/JP/2007, 2 58 & 841/JP/2008 PERTAINING TO A.Y. 1996-97, 2003-04, 04-05 & 05-06. THE CONTENTIO N OF THE LD. CIT D/R IS THAT LD. CIT (A) HAS FAILED TO ADJUDICATE ON THE MATTER OF C ALCULATION OF BOOK PROFIT FOR CHARGING OF MAT UNDER SECTION 115 JB. 2.2. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO THE RIVAL CONTENTIONS. THERE IS NO DISPUTE WITH REGARD TO THE FACT THAT THE ISSUE O F APPLICABILITY OF SECTION 115 JB HAS BEEN DECIDED AGAINST THE REVENUE. THE COORDINATE B ENCH OF THE TRIBUNAL FOR THE A.Y. 2003-04 IN ITA NO. 1063/JP/2007 HAS OBSERVED A S UNDER :- 3. ON PERUSAL OF THE ORDERS OF LOWER AUTHORITIES A S WELL AS THE SAID ORDER DATED 28.2.2007 OF THE TRIBUNAL, WE FIND SUBS TANCE IN THE ABOVE SUBMISSIONS OF LD. A.R THAT AN IDENTICAL ISSUE HAS BEEN DECIDED BY THE TRIBUNAL IN FAVOUR OF THE ASSESSEE IN THE APPEALS F OR A.YRS. 2000-01 AND 2002-03 VIDE ORDER DATED 28.2.2007 (SUPRA). THE TRIBUNAL IN THAT 3 ITA NO. 79/JP/2014 ACIT VS. RAJASTHAN FINANCIAL CORPORATION. ORDER HAS HELD THAT THE MANDATORY REQUIREMENT OF S. 115 JA OF THE INCOME-TAX ACT IS THAT BOOKS OF ACCOUNT IS WITHDRAW N AS PER THE PROVISIONS OF SCHEDULE VI OF THE COMPANIES ACT, WHI CH PROVIDES THAT THE ACCOUNTS SHOULD BE DRAWN ON MERCANTILE BASIS, W HEREAS THE CORPORATION IS DRAWING ITS ACCOUNTS ON DASH BASIS A S PER THE DIRECTIONS OF RESERVE BANK OF INDIA / IDBI DULY ENDORSED BY TH E CENTRAL BOARD OF DIRECT TAXES. UNDER THESE CIRCUMSTANCES, THE TRIBUN AL CAME TO THE CONCLUSION THAT ASSESSEE CORPORATION CANNOT BE TERM ED AS COMPANY TO ATTRACT THE PROVISIONS LAID DOWN U/S 115 JA(2) OF T HE INCOME-TAX ACT. WE ARE THUS OF THE VIEW THAT THE LD. CIT (A) HAS RI GHTLY DECIDED THE ISSUE THAT PROVISIONS OF MAT ARE NOT APPLICABLE IN THE PRESENT CASE RELYING UPON THE ABOVE DECISION OF THE TRIBUNAL ON THE ISSUE. THE FIRST APPELLATE ORDER IS ACCORDINGLY UPHELD. THE GROUND I S THUS REJECTED. MOREOVER, THE PRESENT APPEAL IS AGAINST THE ASSESSM ENT MADE IN PURSUANCE OF THE ORDER OF LD. CIT PASSED UNDER SECTION 263 OF THE AC T. HOWEVER, THE ORIGINAL ASSESSMENT WAS ALSO SUBJECTED TO APPEAL IN ITA NO. 1101/JP/2010 A.Y. 2007-08 WHEREIN THE COORDINATE BENCH FOLLOWING THE EARLIER ORDER DECIDED THE ISSUE AGAINST THE REVENUE. THE REVENUE HAS NOT POINTED OUT ANY CH ANGE IN THE FACTS AND CIRCUMSTANCES OF THE CASE. THEREFORE, TAKING A CONS ISTENT VIEW OF THE MATTER, THERE IS NO REASON TO INTERFERE WITH THE ORDER OF LD. CIT (A ). THE SAME IS HEREBY AFFIRMED. THE GROUNDS OF APPEAL AS RAISED IN THIS APPEAL ARE REJECTED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 7/06/2016 . SD/- SD/- VH-VKJ-EHUK] ( DQY HKKJR ) ( T.R. MEENA) ( KUL BHART ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 7/06/2016. DAS/ 4 ITA NO. 79/JP/2014 ACIT VS. RAJASTHAN FINANCIAL CORPORATION. VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ACIT, CIRCLE-6, JAIPUR. 2. THE RESPONDENT- M/S. RAJASTHAN FINANCIAL CORPORA TION, JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 79/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR