M/s. Sical Logistics Limited, CHENNAI V. DCIT, CHENNAI

MA 22/CHNY/2011

• Counselvise Citation: [2011] 123 COUNSELVISE.COM (IT) 6549 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 16 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 17-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 17-06-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 02-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S SATHIYANAR AYANAN

Judgement Text

I N THE INCOME TAX APPELLATE TRIBUNAL BENCH A CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AN D SHRI GEORGE MATHAN, JUDICIAL MEMBER .. M. A. NO. 22/MDS/2011 (IN ITA NO. 1599/MDS/2009) ASSESSMENT YEAR :2005-06 M/S. SICAL LOGISTICS LTD., 73, ARMENIAN STREET, CHENNAI-600 001. V. THE DEPUTY COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE-V(1), CHENNAI. (PAN: AAACS3789B) (APPLICANT) (RESPONDENT) APPLICANT BY : SHRI S. SATHIYANARAYANAN RESPONDENT BY : SHRI SHAJI P. JACOB O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS A MISCELLANEOUS APPLICATION FILED BY THE A SSESSEE AGAINST THE ORDER OF THIS TRIBUNAL IN ITA NO. 1599/MDS/2009 AND CO NO. 1 8/MDS/2009 DATED 14-10- 2010 FOR THE ASSESSMENT YEAR 2005-06. 2. SHRI S. SATHIYANARAYANAN, CA REPRESENTED ON BEHA LF OF THE ASSESSEE AND SHRI SHAJI P. JACOB, LEARNED SR. DR REPRESENTED ON BEHAL F OF THE REVENUE. M.A. NO.22/MDS/2011 2 3. IT WAS SUBMITTED BY THE LEARNED AUTHORISED REPRE SENTATIVE THAT THE TRIBUNAL HAD TAKEN INTO CONSIDERATION THE DECISION OF THE HO N'BLE BOMBAY HIGH COURT IN THE CASE OF GODREJ BOYCE REPORTED IN 234 CTR 7 BUT HAD RESTORED THE ISSUE TO THE FILE OF THE ASSESSING OFFICER TO RE-COMPUTE THE QUANTUM OF EXPENSES WHICH SHOULD NOT BE AVAILABLE FOR DEDUCTION AFTER TAKING INTO CONSIDERA TION THE PROVISIONS OF RULE 8D. IT WAS THE SUBMISSION THAT THE ASSESSMENT YEAR INVOLVE D WAS 2005-06 AND RULE 8D CAME INTO EFFECT ONLY W.E.F. 01-04-2007. IT WAS TH E SUBMISSION THAT THE TRIBUNAL HAVING FOLLOWED THE DECISION OF THE BOMBAY HIGH COU RT, THE TRIBUNAL OUGHT NOT TO HAVE RESTORED THE ISSUE TO THE FILE OF THE ASSESSIN G OFFICER FOR RE-ADJUDICATION. IT WAS THE SUBMISSION THAT THE FINDING OF THE TRIBUNAL IS LIABLE TO BE DELETED, MORE SPECIFICALLY IN THE LAST TWO SENTENCES OF PARA 10, WHICH READS AS FOLLOWS : IN THE LIGHT OF THE ABOVE, THE ISSUE IS RESTORED TO THE FILE OF THE ASSESSING OFFICER TO CONSIDER THE ALLOWABILI TY OR EXTENT OF ALLOWABILITY OF NOTIONAL EXPENSES WHEN TH E LD. CIT(APPEALS)S DIRECTION IS TO RECOMPUTE THE QUANTU M OF EXPENSES WHICH SHOULD NOT BE AVAILABLE FOR DEDUCTIO N BUT IN CONFORMITY WITH THE PROVISIONS OF RULE 8D. WE ACKNOWLEDGE THE DECISION OF LD. CIT(APPEALS) ON THI S ISSUE AS HE HAS GIVEN APPROPRIATE DIRECTION TO THE ASSESS ING OFFICER. 4. IN REPLY, THE LEARNED DR VEHEMENTLY SUPPORTED TH E ORDER OF THE TRIBUNAL M.A. NO.22/MDS/2011 3 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IT IS NOTICED THAT THE ASSESSMENT YEAR INVOLVED IS 2005-06 AND RULE 8D CAME INTO EFFE CT W.E.F. 01-04-2007. IT IS NOTICED THAT THE TRIBUNAL HAS CONSIDERED AND FOLLOW ED THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF GODREJ BOYCE, REFE RRED TO SUPRA. AS POINTED OUT THE BY THE ASSESSEE THERE IS A MISTAKE APPARENT FRO M RECORD AND CONSEQUENTLY THE SAME IS RECTIFIED AND THE FOLLOWING LINES IN THE OR DER OF THE TRIBUNAL IN CO NO. 189/MDS/2009 DATED 14-10-2010 STANDS EXPUNGED : IN THE LIGHT OF THE ABOVE, THE ISSUE IS RESTORED TO THE FILE OF THE ASSESSING OFFICER TO CONSIDER THE ALLOWABILI TY OR EXTENT OF ALLOWABILITY OF NOTIONAL EXPENSES WHEN TH E LD. CIT(APPEALS)S DIRECTION IS TO RECOMPUTE THE QUANTU M OF EXPENSES WHICH SHOULD NOT BE AVAILABLE FOR DEDUCTIO N BUT IN CONFORMITY WITH THE PROVISIONS OF RULE 8D. WE ACKNOWLEDGE THE DECISION OF LD. CIT(APPEALS) ON THI S ISSUE AS HE HAS GIVEN APPROPRIATE DIRECTION TO THE ASSESS ING OFFICER. IN THE CIRCUMSTANCES, THE MISCELLANEOUS APPLICATI ON FILED BY THE ASSESSEE STANDS ALLOWED. 6. THE ORDER WAS PRONOUNCED IN THE COURT ON 24/06/2 011. SD/- SD/- (ABRAHAM P. GEORGE) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 24 TH JUNE, 2011. H. COPY TO: APPLICANT/AO/CIT (A)/CIT/D.R./GUARD FILE