DCIT, CHENNAI V. Mohd. Idris Brothers Pvt Ltd., CHENNAI

ITA 908/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8333 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 15-09-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 07-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAL
• Assessee Lawyers: M RAZZACK
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . , ' # . $ , & ' BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICI AL MEMBER ./ I.T.A.NO.908/MDS/2016 & C.O.NO.69/MDS/2016 ( / ASSESSMENT YEAR: 2011-12) THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE-4(1), CHENNAI. VS M/S.MOHD.IDRIS BROTHERS PVT.LTD., 5, ARMENIAN STREET, MANNADY, CHENNAI-600 001. PAN: AAACM5231G ( /APPELLANT) ( /RESPONDENT/CROSS OBJECTOR) / APPELLANT BY : MR.SUPRIYO PAL, JCIT /RESPONDENT BY : MR. M.RAZZACK /DATE OF HEARING : 15 TH SEPTEMBER, 2016 /DATE OF PRONOUNCEMENT : 7 TH OCTOBER, 2016 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THE APPEAL AND THE CROSS OBJECTION ARE FILED BY THE REVENUE AND THE ASSESSEE RESPECTIVELY AGGRIEVED BY THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS)- 8, CHENNAI DATED 29.01.2016 IN ITA NO.47/2014-15 PA SSED UNDER SECTION 143(3) R.W.S. 250(6) OF THE ACT. ITA NO.908/MDS/2016 (A.Y. 2011-12): 2. THE REVENUE HAS RAISED SEVERAL GROUNDS IN ITS AP PEAL, HOWEVER THE CRUX OF THE ISSUE IS AS FOLLOWS:- THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN DELETING THE DISALLOWANCE OF RS.2,07,30,876/- MADE BY THE LEARNED ASSESSING OFFICER FOR MAKING PAYMENT TO SISTER CONCERNS IN CASH EXCEEDING RS.20,000/- BY 2 ITA NO.908 /MDS/2016 & C.O.NO.69/MDS/2016 INVOKING THE PROVISIONS OF SECTION 40A(3A) OF THE ACT. CROSS OBJECTION NO.69/MDS/2016: 3. THE CROSS OBJECTION FILED BY THE ASSESSEE IS IN SUP PORT OF THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS). 4. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PRIVATE LIMITED COMPANY ENGAGED IN MANUFACTURE, PURCHASE AN D SALE OF YARN AND TEXTILE GOODS FILED ITS RETURN OF INCO ME FOR THE ASSESSMENT YEAR 2011-12 ON 24.10.2011 ADMITTING INC OME OF RS.59,48,363/-. THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) WAS ISSUED TO THE ASSES SEE ON 10.09.2012. SUBSEQUENTLY THE ASSESSMENT WAS COMPLET ED ON 27.03.2014, WHEREIN THE LEARNED ASSESSING OFFICER M ADE ADDITION OF RS.2,07,30,876/- INVOKING THE PROVISION S OF SECTION 40A(3A) OF THE ACT BECAUSE THE ASSESSEE HAD MADE PA YMENT IN CASH EXCEEDING RS.20,000/- TO ITS SISTER CONCERN S. 3 ITA NO.908 /MDS/2016 & C.O.NO.69/MDS/2016 5. ON APPEAL, THE LEARNED COMMISSIONER OF INCOME TA X (APPEALS) FOLLOWING THE DECISION OF THE CHENNAI BEN CH OF THE TRIBUNAL IN THE ASSESSEES OWN CASE AND ON THE SAME FACTS HELD THE ISSUE IN FAVOUR OF THE ASSESSEE BY OBSERVI NG AS UNDER:- THERE IS NO CHANGE IN THE FACTS OF THE CASE IN THE CURRENT ASSESSMENT YEAR. IN VIEW OF THE ABOVE AND RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE ITAT IN THE APPELLANTS OWN CASE THE DISALLOWANCE F RS.2,07,30,876/- U/S.40A(3) MADE BY THE ASSESSING OFFICER IS DELETED. THE APPELLANT SUCCEEDS ON THIS GROUND. 6. THE LD.D.R VEHEMENTLY ARGUED IS SUPPORT OF THE ORDER OF THE LD.A.O AND FURTHER RELIED ON THE ORDER OF TH E HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE CIT V/S KRI SHAN CHAND MAHESWARI DASS REPORTED IN 121 ITR 232, HOWEV ER COULD NOT REBUT TO THE FACT THAT THE IDENTICAL ISSU E IN THE ASSESSEES OWN CASE FOR THE PRECEDING ASSESSMENT YE AR WAS DECIDED IN FAVOUR OF THE ASSESSEE BY THE CHENNAI BE NCH OF THE TRIBUNAL. THE A.R ON THE OTHER HAND RELIED ON T HE ORDER OF THE LD.CIT(A). 4 ITA NO.908 /MDS/2016 & C.O.NO.69/MDS/2016 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSED THE MATERIALS AVAILABLE ON RECORD. SINCE TH E LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ONLY FOLLO WED THE DECISION OF THE TRIBUNAL IN THE ASSESSEES OWN CASE IN THE PRECEDING ASSESSMENT YEAR 2010-11 IN ITA NO.104/MDS /2014 ON SIMILAR AND IDENTICAL FACTS, WE DO NOT FIND IT N ECESSARY TO INTERFERE WITH THE ORDER OF THE LEARNED COMMISSIONE R OF INCOME TAX (APPEALS). ACCORDINGLY, THE APPEAL IS H ELD IN FAVOUR OF THE ASSESSEE. WE FURTHER FIND THAT THE C ROSS OBJECTION OF THE ASSESSEE IS ONLY IN SUPPORT OF THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ACCORDINGLY THE SAME IS ALSO ALLOWED. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED AND THE CROSS OBJECTION FILED BY THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 7 TH OCTOBER, 2016 SD/- SD/- ( ' # . $ ) ( . ) ( DUVVURU RL REDDY ) ( A. MOHAN ALANKAMONY ) # % / JUDICIAL MEMBER % / ACCOUNTANT MEMBER # /CHENNAI, ( /DATED 7 TH OCTOBER, 2016 SOMU 5 ITA NO.908 /MDS/2016 & C.O.NO.69/MDS/2016 *+ ,+ /COPY TO: 1. APPELLANT 2. RESPONDENT 3. - () /CIT(A) 4. - /CIT 5. + 1 /DR 6. /GF