Addl. CIT, New Delhi V. Krishna Maruti Ltd, New Delhi

MA 53/DEL/2011

• Counselvise Citation: [2011] 123 COUNSELVISE.COM (IT) 6921 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2005-2006
• Appeal Filed On: 23-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATIMA KAUSHIK
• Assessee Lawyers: V K AGGARWAL
• Keywords: Revenue expenditure
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH I DELHI BEFORE SHRI RAJPAL YADAV AND SHRI K.G. BANSAL M.A. NO. 53(DEL)/2011 (ARISING OUT OF ITA NO. 1695(DEL)/2009) ASSESSMENT YEAR: 2005-06 ASSISTANT COMMISSIONER OF M/S KRISHNA MARUTI LTD., INCOME-TAX, CIRCLE 5(1), VS. B-5, CHIRAG ENCLAVE, NEW DELHI. NEW DELHI. (APPLICANT) (RESPONDENT) APPLICANT BY : MS. PRATIMA KAUSHIK, DR RESPONDENT BY: SHRI V.K.AGGARWAL, A.R. ORDER PER K.G. BANSAL : AM IN THIS CASE, THE TRIBUNAL HAD PASSED ORDER ON TH E APPEAL OF THE ASSESSEE-COMPANY ON 17.08.2009, IN WHICH THE APPEA L WAS PARTLY ALLOWED AS DISCUSSED IN THE ORDER. THE REVENUE FILED A MISCELLANEOUS APPLICATION ON 23.02.2011 REQUESTING FOR RECALLING THE ORDER ON THE GROUND THAT THE APPEAL OF THE REVENUE WAS NOT TAKEN UP ALONG WIT H THE APPEAL OF THE ASSESSEE. THIS SHOULD HAVE BEEN DONE IN VIEW OF THE PRINCIPLE LAID DOWN BY HONBLE SUPREME COURT OF INDIA IN THE CASE O F CIT VS. VIJAY INTERNATIONAL UDYOG LTD., 152 ITR 111. 2. IN THE COURSE OF HEARING BEFORE US, THE LD. D R FILED THE PAPERS REGARDING THE APPEAL OF THE REVENUE AND REQUESTE D THAT IN VIEW OF THE MA NO. 53(DEL)/2011 2 AFORESAID DECISION, BOTH THE APPEALS SHOULD H AVE BEEN HEARD TOGETHER. ACCORDINGLY, IT WAS REQUESTED THAT THE ORDER MA Y BE RECALLED AND BOTH THE APPEALS MAY BE HEARD TOGETHER. 3. IN REPLY, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ONLY COMMON GROUND IN THE TWO APPEALS IS REGARDING DI SALLOWANCE TO BE MADE U/S 14A. IN THE APPEAL OF THE ASSESSEE, THIS GR OUND HAS BEEN RESTORED TO THE FILE OF THE AO FOR FRESH DECISION AS PER LAW. ACCORDINGLY, THE APPLICATION IS OPPOSED. 4. WE HAVE CONSIDERED THE FACTS OF THE CASE, THE SUBMISSIONS MADE BEFORE US AND THE GROUNDS TAKEN BY THE REVENUE I N ITS APPEAL. IT IS FOUND THAT THERE ARE TWO COMMON GROUNDS IN THE APPEAL REGARDING CAPITAL AND REVENUE EXPENDITURE ON SCIENTIFIC RESEARCH AND D EVELOPMENT, AND DISALLOWANCE TO BE MADE U/S 14A. THE LD. COUNSEL FOR THE ASSESSEE HAD NOT PRESSED THE GROUND REGARDING DISALLOWANCE FROM CAP ITAL EXPENDITURE ON RESEARCH AND DEVELOPMENT AND, THUS, THESE GROUNDS WERE DISMISSED. THE GROUND REGARDING DISALLOWANCE TO BE MADE U/S 14A WAS RESTORED TO THE FILE OF THE AO WITH THE FOLLOWING REMARKS:- THEREFORE, WE THINK IT FIT TO RESTORE THIS G ROUND TO THE FILE OF THE AO WITH A VIEW TO RECORD EXPLICITLY HI S SATISFACTION MA NO. 53(DEL)/2011 3 ABOUT THE CORRECTNESS OR OTHERWISE OF THE CLAIM OF THE ASSESSEE HAVING REGARD TO THE ACCOUNTS MAINTA INED BY IT. IN CASE THE CLAIM IS NOT FOUND TO BE CORRECT, HE MAY PROCEED TO DECIDE THE QUANTUM OF DISALLOWANCE AS PER LAW AFTER GRANTING A REASONABLE OPPORTUNITY OF BEING HEAR D TO THE ASSESSEE. THUS, THIS GROUND IS TREATED AS ALL OWED FOR STATISTICAL PURPOSES. 4.1 THEREFORE, NO PREJUDICE IS CAUSED TO THE REVEN UE FROM THE DISPOSAL OF ITS APPEAL. AT THE SAME TIME, IT IS SEEN FROM T HE RECORD OF THE PROCEEDINGS THAT THE PENDENCY OF REVENUES APPEAL WAS NOT B ROUGHT TO THE NOTICE OF THE TRIBUNAL AT THE TIME OF HEARING OF THE ASSESSEE S APPEAL. IF THE SAME WAS DONE, THEN THE TWO APPEALS WOULD HAVE BEEN CONSO LIDATED FOR THE PURPOSE OF DISPOSAL BY WAY OF COMMON ORDER IN THE LIGHT OF THE PRINCIPLE LAID DOWN BY HONBLE SUPREME COURT IN THE CASE OF VI JAY INTERNATIONAL UDYOG LTD. SINCE THE OMISSION OCCURRED ON ACCOUNT OF T HE FAILURE OF THE REVENUE, IT WOULD NOT BE IN THE INTEREST OF JUSTICE TO RE CALL THE IMPUGNED ORDER NOW. 5. IN THE RESULT, THE APPLICATION IS DISMISSED. THE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 5 AUGUST, 2011. SD/- SD/- (RAJPAL YADAV) (K.G. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE OF ORDER: 05.08.2011. SP SATIA MA NO. 53(DEL)/2011 4 COPY OF THE ORDER FORWARDED TO:- M/S KRISHNA MARUTI LTD., NEW DELHI. ACIT, CIRCLE 5(1), NEW DELHI. CIT CIT(APPEALS) THE DR, ITAT, NEW DELHI. ASSISTANT REGISTRAR.