Haldex India Private Ltd., (formerly: Haldex India Ltd.,), Nashik V. Assistant Commissioner of Income-tax, Nashik

ITA 799/PUN/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9218 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 30-09-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 04-04-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: IS DIRECTED AGAINS T PASSED

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER . / ITA NO.799/PUN/2017 / ASSESSMENT YEAR : 2012-13 HALDEX INDIA PRIVATE LIMITED, (FORMERLY KNOWN AS HALDEX INDIA LIMITED), D-8, MIDC, AMBAD, NASHIK 422 010 PAN : AABCH9044B VS. ACIT, CIRCLE-1, NASHIK (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE O RDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS)-1, NASHIK ON 17-01-2017 IN RELATION TO THE ASSESSMENT YEAR 2012-13. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION OF WARRANTY EXPENSES AMOUNTING TO RS.15,26,750/-. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSE E CLAIMED DEDUCTION FOR WARRANTY EXPENSES AMOUNTING TO APPELLANT BY SHRI R.D. ONKAR RESPONDENT BY SHRI ABHIJIT HALDER DATE OF HEARING 30-09-2019 DATE OF PRONOUNCEMENT 01-10-2019 ITA NO.799/PUN/2017 HALDEX INDIA PRIVATE LIMITED 2 RS.30,79,750/-. THE ASSESSING OFFICER OBSERVED THAT TH ERE WAS EXISTING PROVISION FOR WARRANTY EXPENSES AT RS.15,53,000/- WHICH PRE-EXISTED EVEN BEFORE THE OPENING OF THE YEAR. IT WAS OPINED THAT THE EXPENSES INCURRED DURING THE YEAR OUGHT TO HAVE BEEN FIRST REDUCED FROM THE AMOUNT OF PROVISION. HE, THEREFORE, MA DE ADDITION TO THE EXTENT OF RS.15,26,750/-, BEING, THE DIFFERE NCE BETWEEN THE AMOUNT OF WARRANTY EXPENSES AND AMOUNT OF PROVISION. THE LD. CIT(A) ECHOED THE ASSESSMENT ORDER O N THE POINT. 4. HAVING HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVA NT MATERIAL ON RECORD, IT IS FOUND AS AN ADMITTED POSITION THAT THERE WAS OPENING BALANCE OF PROVISION OF WARRANTY AT RS.15,53 ,000/-. THE LD. AR SUBMITTED THAT FROM THIS YEAR ONWARDS, THE ASSE SSEE DISPENSED WITH THE PRACTICE OF CREATING PROVISION FOR WARRAN TY AND STARTED TAKING EXPENSES DIRECT TO THE PROFIT AND LOSS ACCOUNT. THE ASSESSEE INCURRED EXPENSES DURING THE YEAR AGAINST WARRA NTY AMOUNTING TO RS.30,79,750/- AND CLAIMED DEDUCTION FOR THE ENTIRE AMOUNT WITHOUT ADJUSTING THE OPENING BALANCE OF THE PROVISION FOR WARRANTY. ONCE THERE WAS OPENING BALANCE OF PROVISION FOR WARRANTY, ANY EXPENSES INCURRED IN SATISFACTION OF THE WAR RANTY CLAIMS OUGHT TO HAVE BEEN FIRST REDUCED FROM THE EXISTING ITA NO.799/PUN/2017 HALDEX INDIA PRIVATE LIMITED 3 PROVISION, FOR WHICH DEDUCTION WAS CLAIMED AT THE TIME OF CR EATING THE SAME. AS THE ASSESSEE HAS KEPT THE PROVISION INTACT AND CLAIMED DEDUCTION FOR ACTUAL EXPENSES BY WAY OF DEBIT TO THE PROFIT A ND LOSS ACCOUNT, WE HOLD THAT THE AUTHORITIES BELOW HAVE CORRECTLY DECID ED THIS ISSUE BY DISALLOWING THE AMOUNT PRO TANTO . 5. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 01 ST OCTOBER, 2019. SD/- SD/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VI CE PRESIDENT PUNE; DATED : 01 ST OCTOBER, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A)-1, NASHIK 4. 5. 6. THE PR.CIT-1, NASHIK , , / DR A, ITAT, PUNE; / GUARD FILE. / TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.799/PUN/2017 HALDEX INDIA PRIVATE LIMITED 4 DATE 1. DRAFT DICTATED ON 30-09-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 30-09-2019 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. *