M/s. Bhoruka Aluminum Ltd , Mysore V. Assistant Commissioner of Income Tax, Circle-1 (1), Mysore

SA 163/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5976 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 29 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 02-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR SANDEEP GOEL
• Assessee Lawyers: RAMASUBRAMANYAM
• Keywords: Set aside
• Section: 143(3); 115JB; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, B ENGALURU BEFORE S HRI N.V.VASUDEVAN , JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER SP NO. 163 /BANG/20 18 (IN I TA NO. 1392 / BANG/2 0 18 ) (ASSESSMENT YEAR: 20 14 - 15) AND ITA NO.1392/BANG/2018 (ASSESSM ENT YEAR: 2014 - 15) M/S.BHORUKA ALUMINIUM LTD., NO.427 - E, 2 ND FLOOR, HEBBAL INDUSTRIAL AREA, MYSORE - 570016 PAN:AAACB 8073 D VS. ... PETITIONER/APPELLANT ASST.COMMISSIONER OF INCOME - TAX CIRCLE 1(1), MYSORE. RESPONDENT ASSE SSEE BY : SHRI RAMASUBRAMANYAM, CA. RESPONDENT BY : DR.SANDEEP GOEL, ADDL.CIT(DR) DATE OF HEARING : 25 /0 5 /2018 DATE OF PRONOUNCEMENT : 08 / 0 6 /201 8 O R D E R PER I NTURI RAMA RAO, AM : ITA NO.1392/BANG/2018: THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS),[ CIT(A) ] MYSORE, DATED 28/03/2018 FOR THE ASSESSMENT YEAR 2014 - 15. DURING THE COURSE OF HEARING OF STAY PETITION NO.163/BANG/2018 FILED BY THE ASSESSEE, WE FEL T T HAT THIS APPEAL CAN BE DISPOSED OF. HENCE, WE TOOK UP THE APPEAL FOR HEARING. 2. BRIEFLY FACTS OF THE CASE ARE THAT THE APPELLANT IS A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIESACT,1956. IT IS SP NO . 163 & ITA 1392 /BANG/201 8 PAGE 2 OF 3 ENGAGED IN THE BUSINESS OF MANUFACTURIN G OF ALUMI NIUM INGOTS AND ALUMINIUM EXTRUSIONS. THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2014 - 15 WAS FILED BY THE ASSESSEE ON 31/3/2015 ADMITTING INCOME OF RS.18,72,20,030/ - . AGAINST THE SAID RETURN OF INCOME, THE ASSESSMENT WAS COMPLETED BY THE ASST . COMMISSIONER INCOME, [AO] CIRCLE 1(1), MYSORE, VIDE ORDER DATED 30/12/2016 PASSED U/S 143(3) OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT.] AT TOTAL INCOME OF RS.28,72,20,030/ - AND THE TAX LIABILITY WAS COMPUTED U/S 115JB A T BOOK PROFITS OF RS.17,79,80,149/ - , SINCE TAX LIABILITY U/S 115JB IS HIGHER THAN THE LIABILITY UNDER THE NORMAL PROVISIONS, THE ASSESSEE WAS ASSESSED U/S 115JB OF THE ACT. WHILE DOING SO, THE ASSESSING OFFICER MADE ADDITION ON ACCOUNT OF SLUMP SALE OF BU SINESS UNIT. 3. BEING AGGRIEVED, AN APPEAL WAS PREFERRED BEFORE THE LD.CIT(A) WHO, VIDE IMPUGNED ORDER, DISMISSED THE APPEAL IN LIMINE ON ACCOUNT OF FAILURE OF THE APPELLANT TO PAY THE ADMITTED TAX ON THE RETURNED INCOME UNDER CLAUSE (A) OF SUB - SECT ION (4) OF SECTION 249 OF THE ACT. 4. BEING AGGRIEVED, THE APPELLANT HA D COME UP IN APPEAL BEFORE US. DURING THE COURSE OF HEARING OF THE APPEAL L EARNED AR OF THE ASSESSEE SUBMITTED THAT THE APPELLANT HAS NOW PAID THE TAX DUE ON THE RETURNED INCOME. IN SUPPORT OF THIS, HE HAD FILED THE ORDER PASSED BY THE AO U/S 154 DATED 9/2/2018 AND COPIES OF CHALLANS OF TAX PAID TO THE EXTENT OF RS.6 CRORES (I) RS.5 CRORES ON 28/11/2017 (II) RS.80 LAKHS ON 27/3/2017 (III) AND RS.20 LAKHS ON 7/7/2015. LEARNED A R OF THE ASSESSEE SUBMITTED THAT SINCE TAX DUE ON THE RETURNED INCOME HAD BEEN PAID, THE MATTER MAY BE SET ASIDE TO THE FILE OF THE LD.CIT(A) FOR ADJUDICATION OF THE ISSUE ON MERITS. IN SUPPORT OF THIS CONTENTION, HE HAS RELIED UPON THE DECISION OF THE CO - ORDINATE BENCH OF TRIBUNAL ITA 1257/BANG/2013 DATED 27/08/2015 IN THE CASE OF M/S.FIZA DEVELOPERS & INTER TRADE P.LTD. VS. DY.CIT WHEREIN THE CO - ORDINATE BENCH OF TRIBUNAL, PLACING RELIANCE ON THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. K.SATISH KUMAR SINGH ( 209 TAXMAN 512 ) , HAD SET ASIDE THE ISSUE IN APPEAL TO LD. CIT(A) FOR ADJUDICATION ON MERITS. . SP NO . 163 & ITA 1392 /BANG/201 8 PAGE 3 OF 3 THE LEARNED DR HAD NOT CONTROVERTED THE SUBMISSIONS MADE ON BEHALF OF THE APPELLANT THAT TAX DUE ON THE RETURNED INCOME WAS PAID. 5. WE HEARD RIVAL SUBMISSIONS AND PERUSED MATERIAL ON RECORD. THE DECISION OF THE CO - ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF M/S.FIZA DEVELOPERS & INTER TRADE P.LTD ( SUPRA) FOLLOWING THE DECISION OF THE HON BLE JURISDICTIONAL HIGH COURT IN THE CASE OF K.SATISH KUMAR SINGH (SUPRA). RESPECTFULLY FOLLOWING THE DECISION OF THE CO - ORDINATE BENCH OF TRIBUNAL, WE RESTORE THE ISSUE TO FILE OF THE LD.CIT(A) FOR ADJUDICATION OF THE ISSUE ON MERITS. 6. IN THE RESULT, THE APPEAL FILED BY THE APPELLANT IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. S . P . NO. 163/BANG/2018: 7. SINCE THE APPEAL BEARING ITA NO .1392/BANG/2018 ITSELF H AS BEEN DISPOSED OF, THE STAY PETITION (ARISING OUT OF ITA NO.1392/BANG/2018), HAS BECOME INFRUCTUOUS AND IS ACCORDINGLY DIS MISSED AS SUCH. 8. IN THE RESULT, THE STAY PETITION IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 08 TH JUNE , 2018 SD/ - SD/ - ( N.V. VASUDEVAN ) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : BENGALURU. D A T E D : 08 / 0 6 /201 8 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME - TAX APPELLATE TRIBUNAL BANGALORE