ACIT, Ludhiana V. M/s Kudu Industries, Ludhiana

ITA 926/CHANDI/2013

• Counselvise Citation: 92621514 RSA 2013
• Duration Of Justice: 2 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 29-09-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 24-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK NANGIA
• Assessee Lawyers: ASHWANI KUMAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.ANNAPURNA MEHROTRA, ACCOUNTANT MEMBER ITA NO. 926/CHD/2013 ASSESSMENT YEAR: 2010-11 THE ACIT, VS M/S KUDU INDUSTRIES, CIRCLE 1, A-15, PHASE VII, LUDHIANA. FOCAL POINT, LUDHIANA. PAN: AAHFK9436B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VIVEK NANGIA RESPONDENT BY : SHRI ASHWANI KUMAR DATE OF HEARING : 29.09.2015 DATE OF PRONOUNCEMENT : 29.09.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDE R OF LD. CIT(APPEALS)-I LUDHIANA DATED 31.07.2013 FOR ASSESSMENT YEAR 2010-11 CHALLENGING THE DELETION OF ADDITION OF RS. 18 LACS MADE BY ASSESSING OFFICER U NDER SECTION 40A(2)(B) OF THE INCOME TAX ACT ON ACCOUNT OF EXCESS SALARY PAID TO SHRI R.S.SALUJA, WHO IS FATHE R OF ONE OF THE PARTNERS. 2. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET S UBMITTED THAT THE IDENTICAL ISSUE HAS ALREADY BEEN DECIDED I N EARLIER YEARS BY THE TRIBUNAL AND RECENTLY THE DEPARTMENTAL APPEAL HAS BEEN DISMISSED IN ITA 199/2015 FOR ASSESSMENT Y EAR 2 2011-12 IN THE CASE OF THE SAME ASSESSEE AND DEPART MENTAL APPEAL HAS BEEN DISMISSED VIDE ORDER DATED 16.09.20 15. THE ORDER IS REPRODUCED AS UNDER : THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORD ER OF LD. CIT(APPEALS) LUDHIANA DATED 02.12.2014 FOR ASSESSMENT YEAR 2011-12 CHALLENGING THE DELETION OF ADDITION MADE BY ASSESSING OFFICER UNDER SECTION 40A(2)(B) ON ACCOUNT OF EXCESS SALARY PAID TO SHRI R.S.SALUJA, FATHER OF ONE OF THE PARTNERS. 2. IT WAS SUBMITTED BEFORE LD. CIT(APPEALS) THAT SIMILAR ADDITION HAS BEEN DELETED BY LD. CIT(APPEAL S) FOR ASSESSMENT YEAR 2010-11 AND IN ASSESSMENT YEAR 2009-10 ALSO, SIMILAR ADDITION WAS DELETED WHICH WA S CHALLENGED BY THE REVENUE BY FILING APPEAL BEFORE I TAT, CHANDIGARH BENCH AND CHANDIGARH BENCH VIDE ORDER DATED 23.12.2013 DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE. THE LD. CIT(APPEALS), FOLLOWING THE EARL IER ORDER AND PARTICULARLY ORDER PASSED BY THE TRIBUNAL FOR ASSESSMENT YEAR 2009-10, DELETED THE ADDITION. 3. THE LD. COUNSEL FOR THE ASSESSEE, AT THE OUTSET SUBMITTED THAT ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY ORDER OF ITAT CHANDIGARH BENCH IN THE CASE OF THE SAME ASSESSEE FOR ASSESSMENT YEAR 2009- 10- IN ITA 1252/2012 FOR ASSESSMENT YEAR 2009-10 IN WHICH ON IDENTICAL GROUND, DEPARTMENTAL APPEAL HAS BEEN DISMISSED VIDE ORDER DATED 23.12.2013, COPY OF THE ORDER IS PRODUCED ON RECORD. HE HAS, THEREFORE , SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF TH E ASSESSEE, WHICH IS NOT DISPUTED BY THE LD. DR. 4. ON CONSIDERATION OF THE ABOVE FACTS, WE FIND THA T THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY O RDER OF ITAT CHANDIGARH BENCH DATED 23.12.2013 IN WHICH ON IDENTICAL GROUND, DEPARTMENTAL APPEAL HAS BEEN DISMISSED VIDE ORDER DATED 23.12.2013. THE LD. 3 CIT(APPEALS), THEREFORE, RIGHTLY FOLLOWED THE ORDER OF THE TRIBUNAL IN ALLOWING APPEAL OF THE ASSESSEE. T HERE IS NO ERROR IN THE ORDER OF THE LD. CIT(APPEALS). DEPARTMENTAL APPEAL, THEREFORE, STANDS DISMISSED. 5. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED . 3. CONSIDERING THE ABOVE, WE FIND THAT ISSUE IS COV ERED IN FAVOUR OF THE ASSESSEE BECAUSE ON IDENTICAL ISSUE, THE DEPARTMENTAL APPEAL AGAINST THE SAME HAS ALREADY BE EN DISMISSED VIDE ORDER DATED 16.09.2015 (SUPRA). 4. THE DEPARTMENTAL APPEAL IS, THEREFORE, DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA MEHROTRA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 29 TH SEPT., 2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT,DR ASSISTANT REGISTRAR ITAT CHANDIGARH