ACIT, CHENNAI V. M/s. PSA Sical Terminals Limited, Tuticorin

ITA 846/CHNY/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4724 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2004-2005
• Appeal Filed On: 06-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIRUDH RAI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCH D : CHENNAI [BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER] I.T.A NO. 846/MDS/2011 ASSESSMENT YEAR : 2004-05 THE ACIT COMPANY CIRCLE V(2) CHENNAI VS M/S PSA SICAL TERMINALS LTD TUTICORIN CONTAINER TERMINAL BUILDING BERH NO.7, HARBOUR ESTATE TUTICORIN 628 001 [PAN AABCP2897G] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANIRUDH RAI, CIT/DR RESPONDENT BY : SRI S.P.CHIDAMBARAM, ADVOCATE O R D E R PER HARI OM MARATHA, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE, FOR ASSESSMENT YEA R 2004-05, IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A), CHENN AI, DATED 3.2.2011. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS REGARD ING DISALLOWANCE OF ` 2.32 LAKHS MADE ON ACCOUNT OF EXPENDITURE CLAIMED AS MARKET SURVEY EXPENSES PAID TO SISTER CONCERN. ON THE CONTRARY, THE LD. CIT(A) HAS DELETED THIS ADDITION BY FOLLOWI NG THE ORDER OF THE ITA 846/11 :- 2 -: TRIBUNAL IN ASSESSEES OWN CASE IN I.T.A.NOS. 2391 & 2392/MDS/2007 FOR ASSESSMENT YEARS 2000-01 AND 2002-03, ORDER DAT ED 11.6.2010. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE FOUND THAT THE ISSUE INVOLVED IN THIS APPEAL STANDS COVERED IN FAVOUR OF THE ASSESSEE BY THE AFOREMENTIONED DECISION OF THE TRIB UNAL. IN THIS REGARD, GROUND NOS.2.2 AND 2.3 ARE BEING EXTRACTED HEREIN BELOW: 2.2. IT IS SUBMITTED THAT THE ASSESSING OFFICER DISALLOWED THE MARKET SURVEY EXPENDITURE SINCE THERE WAS NO RECORD AVAILABLE WITH OR FURNISHED BY THE ASSESSEE TO PRO VE THAT ANY STRATEGIC DECISION WAS TAKEN OUT OF THE DATA SUBMIT TED BY M/S SICAL AND M/S SICAL LOGISTICS. THE LD. CIT(A) OUGH T TO HAVE APPRECIATED THAT THE SAME SET OF DIRECTORS ARE IN THE BOARDS OF THE ASSESSEE -COMPANY, M/S SICAL LOGISTIC S AND M/S SICAL AND THERE WAS NO NEED FOR THE ASSESSEE TO PAY SUCH AN AMOUNT SEPARATELY FOR MAKING ANY STRATEGIC DECISION. 2.3 IT IS ALSO SUBMITTED THAT THE DECISION OF THE TRIBUNAL IN I.T.A.NO. 2391&2392/MDS/2007 FOR THE A Y. 2000-01 & 2002- 03 FOLLOWED BY THE CIT(A) HAS NOT BECOME FINAL AS T HE REVENUE HAS PREFERRED FURTHER APPEAL BEFORE THE HON 'BLE HIGH COURT. 4. THE MERE PERUSAL OF THE ABOVE GROUNDS WILL MAKE I T CLEAR THAT THIS ISSUE STANDS COVERED IN FAVOUR OF THE ASSESSE E. THEREFORE, BY FOLLOWING THE DECISION IN ASSESSEES OWN CASE, THE LD. CIT(A) HAS CORRECTLY DELETED THE IMPUGNED ADDITION. HENCE, WE CANNOT INTERFERE IN HIS FINDING. ITA 846/11 :- 3 -: 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 3.7.2011. SD/- SD/- (DR. O.K. NARAYANAN) VICE-PRESIDENT (HARI OM MARATHA) JUDICIAL MEMBER DATED: 13 TH JULY, 2011 RD COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR