M/s. Acides Solutions Pvt. Ltd., Noida V. ITO, New Delhi

MA 203/DEL/2011

• Counselvise Citation: [2012] 123 COUNSELVISE.COM (IT) 7739 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 16-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 01-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S NEGI
• Assessee Lawyers: O P SAPRA
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH A DELHI) BEFORE SHRI G.D. AGRAWAL, HONBLE VICE PRESIDENT AND SHRI A.D. JAIN, JUDICIAL MEMBER MISC. APPLI. NO. 203(DEL)2011 (IN ITA NO. 3133(DEL)2010) ASSESSMENT YEAR: 2007-08 M/S. ACIDAES SOLUTIONS PVT. LTD. INCOME TA X OFFICER, C-5, SECTOR 39, NOIDA, U.P. V. WARD 1( 2), NEW DELHI. (APPLICANT) (RESPONDENT) APPLICANT BY: SHRI O.P. SAPRA, ADVOCATE RESPONDENT BY: SHRI R.S . NEGI, DR ORDER PER A.D. JAIN, J.M . VIDE OUR ORDER DATED 6.5.2011, THE ASSESSEES APPEA L WAS ALLOWED FOR STATISTICAL PURPOSES, REMITTING THE ISSUE OF DISALL OWANCE U/S 14A OF THE I.T. ACT TO THE FILE OF THE AO, TO BE CONSIDERED AFRESH. 2. IN THE PRESENT APPLICATION, THE ASSESSEE HAS CON TENDED THAT GROUND NOS. 1&2 RAISED BY THE ASSESSEE IN ITS APPEAL HAVE REMAINED UNADJUDICATED UPON IN OUR AFORESAID ORDER. 3. THE CONTENTION OF THE ASSESSEE IS FOUND TO BE CO RRECT. THE ASSESSEE HAD RAISED THE FOLLOWING GROUNDS IN ITS APPEAL:- MA 203(DEL)2011 2 1. GROUND NO. 1&2 IS AGAINST THE DISALLOWANCE OF B ONUS ` 4,50,000/- PAID BY THE ASSESSEE COMPANY TO ITS WHOLE TIME DIRE CTOR AS PER THE TERMS OF EMPLOYMENT BY INVOKING SECTION 36(1)(II) O F THE I.T. ACT. 2. AO HAS DISCUSSED THIS ISSUE VIDE PARA 5 BY HOLD ING THAT THE BONUS PAID TO THE DIRECTOR SHRI NISHANT SINGH CANNOT BE A LLOWED IN VIEW OF SECTION 36(1)(II) OF THE I.T. ACT. 3. THE LD. CIT(A) HAS CONFIRMED THE DISALLOWANCE M ADE BY HE AO BY MERELY SAYING THAT THE INCOME TAX ACT IS CLEAR ON T HE ISSUE AS OBSERVED BY THE AO. 4. A PERUSAL OF OUR ORDER DATED 6.5.2011 (SUPRA) SH OWS THAT WHEREAS GROUND NO. 3 REGARDING DISALLOWANCE U/S 14A OF THE I.T. ACT HAS BEEN DISPOSED OF, GROUND NOS. 1&2 CONCERNING DISALLOWANC E OF AMOUNT PAID TO THE ASSESSEES WHOLE TIME DIRECTOR BY INVOKING SECT ION 36(1)(II) OF THE I.T. ACT, HAVE NOWHERE BEEN EVEN TOUCHED UPON. 5. THEREFORE, AN INADVERTENT MISTAKE APPARENT FROM RECORD HAS CREPT IN INTO OUR ORDER DATED 6.5.2011. NON-CONSIDERATION OF GROUND NOS. 1&2 RAISED BY THE ASSESSEE IN ITS GROUNDS OF APPEAL HAS VISITED THE ASSESSEE WITH PREJUDICE. ACCORDINGLY, OUR ORDER DATED 6.5.2011 IS RECALLED TO THE EFFECT THAT THE PARTIES WILL NOW ADDRESS US ON GROUND NOS. 1&2 ON 18.7.2012, THE DATE ANNOUNCED IN THE OPEN COURT, WHEREAFTER THESE GROUNDS WILL BE ADJUDICATED UPON. THE DECISION PERTAINING TO GROUN D NO.3, I.E., THE DISALLOWANCE U/S 14A, AS RENDERED IN OUR ORDER DATE D 6.5.2011, HOWEVER, WILL REMAIN THE SAME. MA 203(DEL)2011 3 6. IN THE RESULT, THE APPLICATION FILED BY THE ASSE SSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 16.03.2012. SD/- SD/- (G.D. AGRAWAL) (A.D. JAIN) VICE PRESIDENT JUDICIAL MEMBER DATED: 16.03.2012 *RM COPY FORWARDED TO: 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR TRUE COPY BY ORDER ASSISTANT REGISTRAR