M/s. Camiceria Apparels India Pvt. Ltd., CHENNAI V. ACIT, CHENNAI

ITA 93/CHNY/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1064 (ITAT-CHENNAI)
• Duration Of Justice: 4 year(s) 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 17-07-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 10-01-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Assessee Lawyers: R VIJAYARAGHAVAN
• Section: 10B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , . !' , $ % BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.93/CHNY/2014 ' (' / ASSESSMENT YEAR : 2007-08 M/S CAMICERIA APPARELS INDIA PVT. LTD., (NOW KNOWN AS EVOLV CLOTHING COMPANY PVT. LTD.) C/O M/S SUBBARAYA AIYAR PADMANABHAN & RAMAMANI ADVOCATES, NEW NO.75 (OLD NO.105A), DR. RADHAKRISHNAN SALAI, MYLAPORE, CHENNAI - 600 004. PAN : AAACC 9743 M V. THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE 1(3), CHENNAI - 600 034. (*+/ APPELLANT) (,-*+/ RESPONDENT) *+ . / / APPELLANT BY : SH. R. VIJAYARAGHAVAN, ADVOCATE ,-*+ . / / RESPONDENT BY : SHRI R. CLEMENT RAMESH KUMAR, ADDL.CIT 0 . 1$ / DATE OF HEARING : 13.08.2018 2!( . 1$ / DATE OF PRONOUNCEMENT : 12.09.2018 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) (C) II, DATED 20.11.2013 AND PERTAINS TO ASSESSMENT YEAR 2007-08. 2 I.T.A. NO.93/CHNY/14 2. THE FIRST ISSUE ARISES FOR CONSIDERATION IS DISA LLOWANCE OF 14,75,570/-. 3. WE HEARD SH. R. VIJAYARAGHAVAN, THE LD.COUNSEL F OR THE ASSESSEE AND SHRI R. CLEMENT RAMESH KUMAR, THE LD. DEPARTMENTAL REPRESENTATIVE. ADMITTEDLY, THIS EXPE NDITURE OF 14,75,570/- WAS CLASSIFIED BY THE ASSESSEE ITSELF A S PRE-PAID EXPENSES. AS RIGHTLY OBSERVED BY THE CIT(APPEALS), IT IS A PROVISION FOR EXPENDITURE WHICH IS UNASCERTAINED. THEREFORE, IT CANNOT BE ALLOWED DURING THE YEAR UNDER CONSIDERATION. HENCE , THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SAME IS CONFIRMED. 4. THE NEXT ISSUE ARISES FOR CONSIDERATION IS GRANT OF DEDUCTION UNDER SECTION 10B OF THE ACT. 5. WE HEARD SH. R. VIJAYARAGHAVAN, THE LD.COUNSEL F OR THE ASSESSEE AND SHRI R. CLEMENT RAMESH KUMAR, THE LD. DEPARTMENTAL REPRESENTATIVE. THE CIT(APPEALS) BY P LACING RELIANCE ON THE JUDGMENT OF MADRAS HIGH COURT IN SH RI NAGESH CHUNDUR V. CIT DATED 19.08.2013, FOUND THAT THE PER IOD OF TEN YEARS IS TO BE RECKONED FROM THE YEAR IN WHICH THE UNDERT AKING STARTED 3 I.T.A. NO.93/CHNY/14 MANUFACTURING OF THE PRODUCTS. IN VIEW OF THE ABO VE, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SAME IS CONFIRMED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 12 TH SEPTEMBER, 2018 AT CHENNAI. SD/- SD/- (. !' ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 12 TH SEPTEMBER, 2018. KRI. . ,156 76(1 /COPY TO: 1. *+ /APPELLANT 2. ,-*+ /RESPONDENT 3. 0 81 () /CIT(A)(C) -II, CHENNAI 4. CIT, CHENNAI-I, CHENNAI 5. 69 ,1 /DR 6. :' ; /GF.