Vestas Wind Technology India Private Limited, CHENNAI V. ACIT, CHENNAI

MA 42/CHNY/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 7041 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 22 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 24-08-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 02-02-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SHANMUGA PRIYA
• Assessee Lawyers: N V BALAJI

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI ... , . !'# ! , $ !% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER && / M.P. NO.42/CHNY/2018 (IN I.T.A. NO.1408/MDS/2017) ' (' / ASSESSMENT YEAR : 2011-12 M/S VESTAS WIND TECHNOLOGY INDIA PRIVATE LIMITED, NO.298, OLD MAHABALIPURAM ROAD, SHOLINGANALLUR, CHENNAI - 600 119. PAN : AAACA 9274 F V. THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 3(2), CHENNAI - 600 034. (*+' /PETITIONER) (*,+-/ RESPONDENT) *+' / 0 /PETITIONER BY : SHRI N.V. BALAJI, ADVOCATE *,+- / 0 / RESPONDENT BY : MS. SHANMUGAPRIYA, JCIT 1 / 2$ / DATE OF HEARING : 24.08.2018 3'( / 2$ / DATE OF PRONOUNCEMENT : 24.08.2018 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THE ASSESSEE HAS FILED THE PRESENT MISCELLANEOUS PETITION ON THE GROUND THAT THERE IS AN ERROR IN THE ORDER O F THIS TRIBUNAL DATED 18.01.2018. 2. SHRI N.V. BALAJI, THE LD.COUNSEL FOR THE ASSESSE E SUBMITTED THAT THE ASSESSEE HAD CHANGED ITS ACCOUNTING POLICY FROM TIME 2 M.P. NO.42/CHNY/18 PROPORTIONATE BASIS TO PERCENTAGE COMPLETION BASIS. ACCORDING TO THE LD. COUNSEL, PERCENTAGE COMPLETION METHOD IS AL SO ONE OF THE ACKNOWLEDGED ACCOUNTING METHODS FOR RECOGNIZING REV ENUE FROM SERVICE CONTRACTS. THIS FACT WAS REFERRED IN THE T RIBUNAL ORDER. IN FACT, ACCORDING TO THE LD. COUNSEL, THE CLAIM OF TH E ASSESSEE WAS THAT DUE TO CHANGE OF METHOD OF ACCOUNTING, THERE M AY BE SOME BENEFIT IN THE FIRST YEAR, IN THE YEAR IN WHICH THE ACCOUNTING METHOD WAS CHANGED. HOWEVER, IN THE SUBSEQUENT YEAR, THER E WILL BE REVENUE NEUTRAL. THEREFORE, ACCORDING TO THE LD. C OUNSEL, THE TRIBUNAL OUGHT TO HAVE ALLOWED THE APPEAL OF THE AS SESSEE. HOWEVER, THE APPEAL WAS DISMISSED. THEREFORE, ACCO RDING TO THE LD. COUNSEL, THERE IS AN ERROR IN THE ORDER OF THIS TRIBUNAL WHICH NEEDS TO BE RECTIFIED. 3. WE HEARD MS. SHANMUGAPRIYA, THE LD. DEPARTMENTAL REPRESENTATIVE ALSO. THE CASE OF THE ASSESSEE IS T HAT THE ASSESSEE HAS CHANGED THE METHOD OF ACCOUNTING AND THERE MAY BE SOME BENEFIT IN THE FIRST YEAR IN WHICH THE ACCOUNTING S YSTEM WAS CHANGED. HOWEVER, IN THE SUBSEQUENT YEAR, THERE WI LL BE REVENUE NEUTRAL. THIS CONTENTION OF THE ASSESSEE WAS NOT C ONSIDERED BY THE ASSESSING OFFICER AT ALL. THE TRIBUNAL SPECIFICALL Y FOUND THAT EVEN THOUGH THERE WAS A CLAIM BY THE ASSESSEE WITH REGAR D TO CHANGE OF 3 M.P. NO.42/CHNY/18 METHOD OF ACCOUNTING, THE ASSESSING OFFICER HAS NOT CONSIDERED THE SAME. THEREFORE, THE ADMINISTRATIVE COMMISSIONER F OUND THAT THE ORDER OF THE ASSESSING OFFICER IS ERRONEOUS AND PRE JUDICIAL TO THE INTERESTS OF REVENUE. 4. THE ASSESSING OFFICER, BEING THE ORIGINAL AUTHOR ITY, WAS EXPECTED TO PASS A SPEAKING ORDER BRINGING ALL THE MATERIAL FACTS ON RECORD. SINCE THE ASSESSING OFFICER FAILED TO DO S O, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE ADMINISTRATIVE C OMMISSIONER HAS RIGHTLY FOUND THAT THERE IS AN ERROR IN THE ORDER O F THE ASSESSING OFFICER WHICH IS PREJUDICIAL TO THE INTERESTS OF RE VENUE. THEREFORE, THIS TRIBUNAL DO NOT FIND ANY MERIT IN THE MISCELLA NEOUS PETITION FILED BY THE ASSESSEE. ACCORDINGLY, THE SAME IS DISMISSE D. 5. WITH THE ABOVE OBSERVATION, THE MISCELLANEOUS PE TITION FILED BY THE ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 24TH AUGUST, 2018 AT CHENNAI. SD/- SD/- (. !'# ! ) ( ... ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 24 TH AUGUST, 2018. 4 M.P. NO.42/CHNY/18 KRI. / *26& 7&(2 /COPY TO: 1. *+' / PETITIONER 2. *,+- /RESPONDENT 3. 1 82 () /CIT(A) 4. 1 82 /CIT 5. &9 *2 /DR 6. :' ; /GF.