SAMBHAR SALTS LTD, Jaipur V. ACIT, Jaipur

ITA 793/JPR/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2095 (ITAT-JAIPUR)
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 27-03-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 01-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA CIT DHK
• Assessee Lawyers: N S VYAS
• Keywords: Wrong claim; Revised return

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 HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D L NL; DS LE{K BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM VK;DJ VIHY LA- @ ITA NO. 793/JP/2016 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2011-12 SAMBHAR SALTS LTD. , G-239, SITAPURA INDUSTRIAL AREA, JAIPUR CUKE VS. ASSTT. COMMISSIONER OF INCOME TAX CIRCLE-06 JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AACCS4869C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS @ ASSESSEE BY : SHRI N. S. VYAS (CA) JKTLO DH VKSJ LS @ REVENUE BY : SHRI R. A. VERMA (ADDL.CIT) LQUOKBZ DH RKJH[K @ DATE OF HEARING : 15/05/2017 ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 25/05/2017 VKNS'K@ ORDER PER: SHRI KUL BHARAT, J.M . THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT (A)- 02, JAIPUR DATED 24.06.2016 PERTAINING TO ASSESSMEN T YEAR 2011-12. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. THAT THE AUTHORITIES BELOW ERRED IN NOT ACCEPT ING THE FACTS THAT THE CORRECT PROVISION OF BONUS IS RS. 11,91,00 0/- WHEREAS AS PER COMPUTATION SUBMITTED, THE PETITION HAS WRONGLY OFFERED THE PROVISION FOR BONUS AMOUNTING T O RS. 31,32,000/- AND NOT CONSIDERING THE SUBMISSION MADE . 2. THAT THE ORDER SO PASSED BY THE LD. AUTHORITIES BELOW IS BAD IN LAW AS WELL AS ON FACTS. 3. THAT THE PETITIONER CRAVES TO ADD, ALTER OR AMEN D ALL OR ANY OF THE GROUNDS OF APPEAL ON OR BEFORE THE DATE OF H EARING. 2 ITA NO. 79 3/JP/2016 HINDUSTAN SALTS LTD. AND SAMBHAR SALTS LTD., JAIPUR VS. ACIT, JAIPUR 2. THESE ONLY THE EFFECTIVE GROUNDS IN THIS APPEAL IS AGAINST REJECTING THE CLAIM OF THE ASSESSEE. IN FACT, CORRECT PROVISION O F BONUS. 3. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE AS SESSEES CASE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S 1 43(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ) WAS FRAMED VIDE ORDER DATED 28 TH FEB, 2014. WHILE FRAMING THE ASSESSMENT, THE ASSES SING OFFICER MADE DISALLOWANCE ON ACCOUNT OF PRIOR PERIOD EXPENS ES AMOUNTING TO RS. 5,82,278/, WRONG CLAIM OF PROVISION FOR BAD AND DOU BTFUL DEBTS OF RS. 3,89,000/- AND ALSO REJECTED THE CLAIM FOR PROVISIO N FOR BONUS DURING THE ASSESSMENT PROCEEDINGS. 4. AGGRIEVED BY THE ORDER OF THE A.O., THE ASSESSEE PREFERRED AN APPEAL BEFORE LD. CIT(A), WHO AFTER CONSIDERING THE SUBMIS SIONS, DELETED THE DISALLOWANCE. HOWEVER, HE DID NOT ALLOW THE CLAIM O F THE ASSESSEE WITH REGARD TO PROVISION FOR BONUS. 5. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNA L. 6. ON THE CONTRARY, THE LD. COUNSEL FOR ASSESSEE SU BMITTED THAT 30 DAYS BELOW OR NOT JUSTIFIED IN REJECTING THE CLAIM OF PR OVISION FOR BONUS OF RS. 11,91,000/- AS AGAINST RS. 31,32,000/-. HE SUBMITTE D THAT THERE WAS INADVERTENTLY MISTAKE IN COMPUTATION. AN AFFIDAVIT BY THE ACCOUNTANT AND COMPANY WHO HAD PREPARED INCOME TAX RETURN IS FILED . IT IS STATED IN THE AFFIDAVIT THAT IN THE INCOME TAX RETURN FOR THE YEA R UNDER CONSIDERATION PROVISION FOR BONUS WAS CLAIMED AT RS. 31,32,000/-, WHEREAS THE CORRECT 3 ITA NO. 79 3/JP/2016 HINDUSTAN SALTS LTD. AND SAMBHAR SALTS LTD., JAIPUR VS. ACIT, JAIPUR PROVISION FOR BONUS WAS RS. 11,91,000/. IT IS STATE D THAT THIS FIGURE WAS INADVERTENTLY TAKEN FROM THE HOLDING COMPANY HINDUS TAN SALTS LTD. AND SAMBHAR SALTS LTD. WHERE THE PROVISION OF RS. 31,32 ,000/- FOR LEAVE ENCASHMENT IS MADE. 7. ON THE OTHER HAND, THE LD. DR SUPPORTED THE ORDE RS OF THE AUTHORITIES BELOW AND SUBMITTED THAT AUTHORITIES HAVE RIGHTLY R EJECTED THE CLAIM IN VIEW OF THE JUDGMENT OF THE HONBLE SUPREME COURT IN THE CASE OF M/S GOETZE (INDIA) LTD. VS. CIT (2006) 157 TAXMAN 1 (SC) IN RE JOINDER. 8. THE LD. COUNSE FOR THE ASSESSEE SUBMITTED THAT T HE JUDGMENT OF THE HONBLE SUPREME COURT AS RELIED BY THE ASSESSING OF FICER IS NOT APPLICABLE IN THE CASE OF THE APPELLATE AUTHORITY. 9. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND ALSO GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE CASE OF THE ASSESSEE THAT TH E PROVISION FOR BONUS WAS WRONGLY DECLARED AS RS. 31,32,000/- WHICH WAS IN FA CT A FIGURE RELATED TO PROVISION FOR LEAVE ENCASHMENT IN THE CASE OF HINDU STAN SALTS LTD. AND SAMBHAR SALTS LTD. THE HOLDING COMPANY WHERE THE FI GURE OF RS. 31,32,000/- IN RESPECT OF LEAVE ENCASHMENT. SINCE THE RETURN WA S PREPARED BY THE SAME PROFESSIONAL. THE FIGURE WAS WRONGLY REFLECTED IN T HE RETURN OF THE ASSESSMENT COMPANY AS PROVISION FOR BONUS. IN FACT, THE CORRECT FIGURE PROVISION FOR BONUS WAS RS. 11,91,000/-. 4 ITA NO. 79 3/JP/2016 HINDUSTAN SALTS LTD. AND SAMBHAR SALTS LTD., JAIPUR VS. ACIT, JAIPUR 10. WE HAVE HEARD THE RIVAL CONTENTIONS. THE AO AND LD.CIT(A) REJECTED THE CLAIM OF THE ASSESSEE ON THE BASIS THAT THE ASSESSE E COULD HAVE FILED REVISED RETURN. THE AO RELIED ON THE JUDGMENT OF THE HONBL E SUPREME COURT RENDERED IN THE CASE OF M/S GOETZE (INDIA) LTD. VS. CIT (2006) 157 TAXMAN 1 (SC). HOWEVER, THE JUDGMENT OF THE HONBLE APEX C OURT IN THE CASE OF M/S GOETZE (INDIA) LTD. IS NOT APPLICABLE ON THE ORDERS OF THE APPELLATE AUTHORITY. THEREFORE, IN OUR CONSIDERED VIEW, IF THE CLAIM IS LEGALLY ADMISSIBLE, THE APPELLATE AUTHORITY CAN ADJUDICATE UPON SUCH CLAIM. WE THEREFORE, RESTORE THIS ISSUE TO FILE OF LD. CIT(A) FOR DECISION AFRES H. LD. CIT(A) WOULD CALL REMAND REPORT FROM THE AO SEEKING VERIFICATION OF V ERACITY OF THE CLAIM OF THE ASSESSEE AND DECIDE THE ISSUE AFRESH. 11. THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATI STICAL PURPOSES. 12. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 25/05/2017 SD/- SD/- ( HKKXPUN ( DQY HKKJR ) (BHAG CHAND) (KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 25/05/2017 GANESH KUMAR VKNS'K DH IZFRFYFI VXZSF'KR @ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- SAMBHAR SALTS LTD., JAIPUR 2. THE RESPONDENT ASSTT. COMMISSIONER OF INCOME T AX, JAIPUR 3. THE CIT(A). 4. THE CIT, 5 ITA NO. 79 3/JP/2016 HINDUSTAN SALTS LTD. AND SAMBHAR SALTS LTD., JAIPUR VS. ACIT, JAIPUR 5. THE DR, ITAT, JAIPUR 6. GUARD FILE ( ITA NO. 793/JP/2016 ) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR