Vibromech engineers & Services, CHENNAI v. ACIT, CHENNAI

CO 163/CHNY/2011 | 2007-2008
Pronouncement Date: 17-11-2011 | Result: Dismissed

Appeal Details

RSA Number 16321723 RSA 2011
Assessee PAN AAACV2011P
Bench Chennai
Appeal Number CO 163/CHNY/2011
Duration Of Justice 1 day(s)
Appellant Vibromech engineers & Services, CHENNAI
Respondent ACIT, CHENNAI
Appeal Type Cross Objection
Pronouncement Date 17-11-2011
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 17-11-2011
Assessment Year 2007-2008
Appeal Filed On 16-11-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH CHENNAI BEFORE DR. O.K.NARAYANAN VICE-PRESIDENT AND SHRI HARI OM MARATHA JUDICIAL MEMBER ITA NO.1432(MDS)/2011 & CO NO.163(MDS)/2011 ASSESSMENT YEAR: 2007-08 THE ASSISTANT COMMISSIONER OF INCOME-TAX CO.CIRCLE III(4) CHENNAI. VS. M/S. VIBROMECH ENGINEERS & SERVICES PVT. LTD. 115-INDUSTRIAL ESTATE PERUNGUDI THURAIPAKKAM CHENNAI-600 096. PAN AAACV2011P. (APPELLANT) ( RESPONDENT/CROSS OBJECTOR) APPELLANT BY : SHRI A. C.JOSEPH IRS JOINT COMMISSIONER OF INCOME-TAX RESPONDENT BY : SHRI M.ANAN DAKUMAR FCA. DATE OF HEARING : 17 TH NOVEMBER 2011 DATE OF PRONOUNCEMENT : 17 TH NOVEMBER 2011 O R D E R PER DR.O.K.NARAYANAN VICE-PRESIDENT: THIS APPEAL IS FILED BY THE REVENUE AND THE CROSS OBJECTION IS FILED BY THE ASSESSEE. THE RELEVANT A SSESSMENT YEAR IS 2007-08. THE APPEAL AND THE CROSS OBJECTIO N ARE - - ITA1432 & CO163 OF 2011 2 DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME- TAX(APPEALS)-III AT CHENNAI DATED 25-5-2011 AND ARI SE OUT OF THE ASSESSMENT COMPLETED UNDER SECTION 143(3) OF THE IN COME-TAX ACT 1961. 2. THE GRIEVANCE OF THE REVENUE IS THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS ERRED IN RE STRICTING THE DISALLOWANCE OF EXPORT TURNOVER TO THE EXTENT O F ` 81 70 787/- WITHOUT GIVING THE ASSESSING AUTHORITY AN OPPORTUNI TY TO EXAMINE THE SAME. THE MAIN GRIEVANCE OF THE REVENUE IS ON VIOLATION OF RULE 46A OF THE INCOME-TAX RULES 1962. 3. WHILE THE ASSESSEE CLAIMED DEDUCTION UNDER SECTION 10A EVIDENCES SUPPORTING THE REALIZATION O F FOREIGN EXCHANGE WERE NOT AVAILABLE WITH THE ASSESSEE AS T HE NECESSARY CERTIFICATES WERE NOT ISSUED AT THAT POIN T OF TIME BY THE BANKS IN MUMBAI. IN THE COURSE OF FIRST APPEAL TH E ASSESSEE COULD PRODUCE BANK CERTIFICATES TO SUPPORT REALIZAT ION OF TWO SETS OF AMOUNTS. THE COMMISSIONER OF INCOME-TAX(APPEALS ) ASKED FOR A REMAND REPORT FROM THE ASSESSING AUTHORITY RE GARDING THE DEDUCTION IN THE LIGHT OF THE CERTIFICATES PRODUCED BY THE ASSESSEE. IN THE REMAND REPORT THE ASSESSING AUTHO RITY - - ITA1432 & CO163 OF 2011 3 SUGGESTED THAT IN THE LIGHT OF THE EVIDENCES PRODUC ED BY THE ASSESSEE THE SAID TWO SETS OF AMOUNTS BE CONSIDERE D FOR DEDUCTION. THEREAFTER THE ASSESSEE ALSO COULD PROD UCE BANK CERTIFICATES BEFORE THE COMMISSIONER OF INCOME-TAX( APPEALS) IN RESPECT OF FOREIGN EXCHANGE REALIZATION OF ` 90 44 648/-. IN THE LIGHT OF THE EVIDENCE THE COMMISSIONER OF INCOME-T AX(APPEALS) ALLOWED THE SAID AMOUNT ALSO. IT IS BECAUSE OF THE ALLOWANCE OF THE ABOVE STATED THIRD AMOUNT THAT THE REVENUE IS A GGRIEVED THAT THE DISALLOWANCE HAS BEEN REDUCED BY THE COMMISSION ER OF INCOME-TAX(APPEALS). 4. THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS ACCEPTED THE CONTENTION OF THE ASSESSEE IN RESPECT OF THE AMOUNT OF ` 90 44 648/- ON THE BASIS OF THE BANK CERTIFICATES PRODUCED BY THE ASSESSEE. SIMILAR BANK CERTIFICATE S WERE PRODUCED BY THE ASSESSEE IN RESPECT OF THE OTHER AM OUNTS WHICH WERE ACCEPTED BY THE DEPARTMENT. IT IS TO BE FURTHER SEEN THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS DI RECTED THE ASSESSING OFFICER TO VERIFY THE CERTIFICATES PRODUC ED BY THE ASSESSEE AND THEREAFTER TO GIVE CREDIT TO THE EXPOR T TURNOVER. WE - - ITA1432 & CO163 OF 2011 4 DO NOT FIND ANY VIOLATION OF RULE 46A IN THIS MATTE R. THIS APPEAL FILED BY THE REVENUE IS LIABLE TO BE DISMISSED. 5. AS THE APPEAL FILED BY THE REVENUE IS DISMISSED THE SUPPORTING CROSS OBJECTION FILED BY THE ASSESSE E ALSO STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON THURSDAY THE 17 TH OF NOVEMBER 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI DATED THE 17 TH NOVEMBER 2011. V.A.P. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.