ACIT, Trichur V. M/s.Steel & Industrial Forgings Ltd, Trichur

MA 29/COCH/2015

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 3994 (ITAT-COCHIN)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-02-2016
• Appeal Filed By: Department
• Bench Allotted: DB
• Next Hearing Date: 05-02-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 31-07-2015
• Court: TRIBUNAL
• Department Lawyers: K P GOPAKUMAR
• Assessee Lawyers: M RAMDAS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH C OCHIN BEFORE S/SHRI B.P. JAIN, AM AND GEORGE GEOR GE K., JM M.P. NO. 29/COCH/2015 (ARSG. OUT OF I.T.A. NO.208/ COCH/2010) ASSESSMENT YEAR : 2006-07 THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-1(1), TRICHUR. VS. M/S. STEEL & INDUSTRIAL FORGINGS LTD., ATHANI POST, THRISSUR-680 771. [PAN: AADCS 4852J] (REVENUE -APPELLANT) (ASSESSEE RESPONDENT) REVENUE BY SHRI K.P. GOPAKUMAR, SR. DR ASSESSEE BY SHRI M. RAMDAS, CA DATE OF HEARING 05/02/2016 DATE OF PRONOUNCEMENT 05/02/2016 O R D E R PER B.P. JAIN, AM: THIS MISCELLANEOUS APPLICATION AT THE INSTANCE OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE TRIBUNAL IN I.T.A. NO. 208 /COCH/2010 DATED 08/06/2012. THE RELEVANT ASSESSMENT YEAR IS 2006-07. 2. THE GRIEVANCE OF THE REVENUE IS THAT THE TRIBUNA L IN ITS ORDER IN I.T.A. NO. 208/COCH/2010 DIRECTED THE ASSESSING OFFICER TO RE- EXAMINE THE ISSUE BY FOLLOWING THE ORDER OF THE SPECIAL BENCH OF THE ITA T IN THE CASE OF MERILYN SHIPPING & TRANSPORTS REPORTED IN 146 TTJ 1 (VIZAG SPECIAL BENCH). THE DICTUM LAID DOWN BY THE SPECIAL BENCH OF THE ITAT IS THAT PROVISIONS OF SECTION 40(A)(IA) M.P. NO. 29/COCH/2015 2 WILL HAVE APPLICATION ONLY TO THOSE AMOUNTS WHICH A RE OUTSTANDING AS AT THE END OF THE FINANCIAL YEAR AND WILL NOT HAVE APPLICATION TO THE AMOUNTS WHICH HAVE ALREADY BEEN PAID DURING THE FINANCIAL YEAR. THE R EVENUE HAS FURTHER CONTENDED THAT IN THE SUBSEQUENT YEAR IN ASSESSEES OWN CASE IN I.T.A. NO. 467/COCH/2013 DATED 06/11/2013, THE TRIBUNAL HAD NOT FOLLOWED THE ORDER OF THE SPECIAL BENCH IN THE CASE OF MERILYN SHIPPING & TRANSPORTS VS. AC IT (SUPRA), FOR THE REASON THAT THE SAID ORDER OF THE TRIBUNAL WAS NOT FOLLOWE D BY THE HONBLE CALCUTTA HIGH COURT IN THE CASE OF CIT VS. CRESCENT EXPORT SYNDICA TE (2013) 85 CCH PAGE 56 (CAL) AND THE HONBLE GUJARAT HIGH COURT IN THE CAS E OF CIT VS. SIKANDARKHAN N. TUNVAR (2013) 87 DTR 137 (GUJ). THEREFORE, IT WAS SUBMITTED THAT THE ORDER OF THE TRIBUNAL IN I.T.A. NO. 208/COCH/2010 REQUIRES M ODIFICATION IN THE LIGHT OF THE DECISION IN ASSESSEES OWN CASE FOR THE SUBSEQUENT YEAR (SUPRA). 3 . WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. THE ORDER OF THE SPECIAL BENCH OF THE ITAT, VIZAG BENCH IN THE CASE OF MERILYN SHIPPING & TRANSPORTS VS. ACIT (SUPRA) HAS NOT BEEN APPROVED BY THE HONBLE CALCUTTA HIGH COURT IN THE CASE OF CIT VS. CRESCENT EXPORT SYNDICATE (SUPRA) AND THE HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT V S. SIKANDARKHAN N. TUNVAR (SUPRA). THE HONBLE KERALA HIGH COURT IN THE CAS E OF CIT VS. THOMAS GEORGE MUTHOOT IN I.T.A. NO. 278 OF 2014 DATED 03/07/2015 HAS HELD THAT THE PROVISIONS OF SECTION 40(A)(IA) WILL BE APPLICABLE TO THE AMOU NTS WHICH ARE BOTH PAID AND WHICH ARE OUTSTANDING DURING THE FINANCIAL YEAR. T HEREFORE, THE ORDER OF THE M.P. NO. 29/COCH/2015 3 TRIBUNAL IN I.T.A. NO.208/COCH/2010 IS CONTRARY TO THE LAW LAID DOWN BY THE JUDICIAL PRONOUNCEMENTS (SUPRA). THEREFORE, WE REC ALL THE ORDER OF THE TRIBUNAL IN I.T.A. NO. 208/COCH/2010 DATED 08/06/2012 AND PO ST THE CASE FOR HEARING ON 11-08-2016 (AT THE REQUEST OF THE ASSESSEES COUNSE L). SINCE THE DATE OF HEARING IS ANNOUNCED IN THE OPEN COURT IN THE PRESENCE OF B OTH THE PARTIES, THE REGISTRY NEED NOT SEND SEPARATE NOTICE OF HEARING TO THEM, I .E., THE PRESENT ORDER SHALL ALSO BE CONSTRUED AS NOTICE OF HEARING, WHICH MAY B E TAKEN NOTE OF BY BOTH THE PARTIES. WE ALSO DIRECT THE ASSESSEE TO APPEAR BEFO RE THE TRIBUNAL ON THE DATE OF HEARING AND NOT TO SEEK ADJOURNMENT WITHOUT REASONA BLE CAUSE. 4. IN THE RESULT, THE MISCELLANEOUS APPLICATION FIL ED BY THE REVENUE IS ALLOWED. PRONOUNCED IN THE OPEN CO URT ON 05/02/2016. SD/- SD/- (GEORGE GEORGE K.) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: KOCHI DATED: 05 TH FEBRUARY, 2016 GJ COPY TO: 1. M/S. STEEL & INDUSTRIAL FORGINGS LTD., ATHANI PO ST, THRISSUR-680 771. 2.THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE- 1(1),TRICHUR. 3. THE COMMISSIONER OF INCOME-TAX(APPEALS)-V, KOCHI . 4. THE COMMISSIONER OF INCOME-TAX, TRICHUR. 5. D.R., I.T.A.T.,COCHIN. 6. GUARD FILE. BY ORDER (ASSISTANT REGISTRAR) I.T.A.T., COCHIN M.P. NO. 29/COCH/2015 4