M/s. CEC Soma CICI Joint Venture, Bengaluru V. The Assistant Commissioner Of Income Tax, Circle- 1(2)(1), Bangalore

MA 135/BANG/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2565 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 22-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 26-10-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYADARSHI MISHRA J
• Assessee Lawyers: V SRINIVASAN
• Section: 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI. B.R BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER MP NO.135/BANG/2020 (IN ITA 2501/BANG/2019) ASSESSMENT YEAR : 2013-14 M/S CEC SOMA CIC JOINT VENTURE OPP. GATE NO.20, NEAR CHINNASWAMY STADIUM, M.G.ROAD, BENGALURU-560 001. PAN AAAAC8081E VS. THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-1(12)(1), BENGALURU. APPELLANT RESPONDENT A SSESSEE BY : SHRI V. SRINIVASAN, ADVOCATE RE VENUE BY : SHRI PRIYADARSHI MISHRA, JCIT(DR) DATE OF HEARING : 27 - 11 - 202 0 DATE OF PRONOUNCEMENT : 22 - 06 - 202 1 ORDER PER BEENA PILLAI, JUDICIAL MEMBER PRESENT MISCELLANEOUS PETITION HAS BEEN FILED BY AS SESSEE SEEKING ALLEGED MISTAKE APPARENT ON RECORD IN AN OR DER PASSED BY THIS TRIBUNAL DATED 09/10/2020. PAGE 2 OF 5 MP NO.135/BANG/2020 2. AT THE OUTSET THE LD.COUNSEL SUBMITTED THAT IT W AS A DEPARTMENTAL APPEAL WHEREIN, THE ORDER DATED 09/10/ 2020 WAS PASSED. SOLITARY ISSUE RAISED BY THE REVENUE WAS IN RESPECT OF PROVISION TOWARDS OUTSTANDING EXPENSES WHICH FELL D UE AND WAS DISCHARGED DURING THE YEAR. LD.CIT(A) GRANTED THE D EDUCTION IN RESPECT OF PROVISION FOR POSSIBLE FUTURE CLAIMS BAS ED ON THE DECISION PASSED BY COORDINATE BENCH OF THIS TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2011-12 AND 2012-13 BY FOLLOWIN G THE DECISION OF HONBLE SUPREME COURT IN CASE OF BEML LTD. REPORTED IN 245 ITR 482. 3. THIS TRIBUNAL WHILE REMANDING THE ISSUE TO THE LD. AO IN PARA 15 RECORDED AS UNDER: 15 WE ALSO AGREE WITH THE LD. CIT DR THAT THE NATURE OF PROVISIONS CONSIDERED BY THIS TRIBUNAL IN PRECEDING YEARS ARE NOT SIMILAR TO FUTURE CLAIMS PROVIDED FOR BY ASSESSEE D URING THE YEAR UNDER CONSIDERATION AMOUNTING TO RS. 7, 85, 14, 570 /-. 4. THE LD.COUNSEL SUBMITTED THAT, THIS OBSERVATION IS NOT TRUE AND CONSTITUTES A MISTAKE APPARENT ON THE FACE OF R ECORDS. WE HAVE PERUSED THE RECORDS PLACED BEFORE US AND TH E IMPUGNED ORDER PASSED BY THIS TRIBUNAL DATED 09/10/2020. 5. WE HAVE ALSO REFERRED TO THE ORDER PASSED BY COO RDINATE BENCH OF THIS TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2011-12 AND 2012-13, WHEREIN THE PROVISIONS CLAIMED AS POSS IBLE FUTURE CLAIMS HAS BEEN IDENTIFIED AND SPECIFICALLY CONSIDE RED BY THIS TRIBUNAL FOR REMANDING. WE NOTE THAT A CATEGORICAL OBSERVAT ION BY THIS TRIBUNAL WAS FOR THE REASON THAT BREAKUP OF EXPENSES PROVID ED TO MEET THE DEFINITE FUTURE OBLIGATION THAT WAS CON SIDERED AS PAGE 3 OF 5 MP NO.135/BANG/2020 PROVISION AS ON THE YEAR-END FOR THE FINANCIAL YEAR UNDER CONSIDERATION WAS NOT MADE OUT BEFORE THIS TRIBUNAL , EXCEPT FOR PLACING RELIANCE ON THE ORDERS PASSED BY COORDINATE BENCH OF THIS TRIBUNAL IN THE PRECEDING ASSESSMENT YEARS. 6. IN OUR VIEW THIS OBSERVATION DOES NOT PREJUDICE THE INTEREST OF ASSESSEE. 7. HOWEVER, IN ORDER TO CARRY OUT INVESTIGATION WIT HOUT CAUSING ANY PREJUDICE, WE SPECIFICALLY DIRECT ASSESSEE TO I DENTIFY THE PROVISIONS THAT HAS BEEN CLAIMED AS POSSIBLE FUTURE CLAIMS BEFORE THE LD.AO. THE LD.AO IS DIRECTED VERIFY SUCH CLAIM IN ACCORDANCE WITH THE TWIN CONDITION THAT NEEDS TO BE SATISFIED AS HAS BEEN HELD BY HONBLE SUPREME COURT IN CASE OF BEML LTD. (SUPRA). IN THE RESULT THE MISCELLANEOUS PETITION FILED BY A SSESSEE STANDS ALLOWED AS INDICATED HEREINABOVE. ORDER PRONOUNCED IN OPEN COURT ON 22 ND JUNE, 2021 SD/- SD/- (B.R BASKARAN) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEM BER BANGALORE, DATED, THE 22 ND JUNE, 2021. /VMS/ PAGE 4 OF 5 MP NO.135/BANG/2020 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE PAGE 5 OF 5 MP NO.135/BANG/2020 DATE INITIAL 1. DRAFT DICTATED ON ON DRAGON SR.PS 2. DRAFT PLACED BEFORE AUTHOR -6-2021 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -6-2021 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -6-2021 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS -6-2021 SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON -6-2021 SR.PS 7. DATE OF UPLOADING THE ORDER ON WEBSITE -6-2021 SR.PS 8. IF NOT UPLOADED, FURNISH THE REASON -- SR.PS 9. FILE SENT TO THE BENCH CLERK -6-2021 SR.PS 10. DATE ON WHICH FILE GOES TO THE AR 11. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 12. DATE OF DISPATCH OF ORDER. 13. DRAFT DICTATION SHEETS ARE ATTACHED NO SR.PS