M/s. Som Distilleries & Breweries Ltd., Bhopal v. The ACIT, Bhopal

CO 59/IND/2009 | 2005-2006
Pronouncement Date: 09-12-2010 | Result: Dismissed

Appeal Details

RSA Number 5922723 RSA 2009
Assessee PAN AABCS3374B
Bench Indore
Appeal Number CO 59/IND/2009
Duration Of Justice 1 year(s) 4 month(s) 10 day(s)
Appellant M/s. Som Distilleries & Breweries Ltd., Bhopal
Respondent The ACIT, Bhopal
Appeal Type Cross Objection
Pronouncement Date 09-12-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 09-12-2010
Date Of Final Hearing 09-12-2010
Next Hearing Date 09-12-2010
Assessment Year 2005-2006
Appeal Filed On 30-07-2009
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH INDORE BEFORE SHRI JOGINDER SINGH JUDICIAL MEMBER AND SHRI R.C. SHARMA ACCOUNTANT MEMBER ITA NOS.296 & 297/IND/2009 A.YS. 2005-06 & 2006-07 ACIT-1(2) BHOPAL APPELLANT VS M/S. SOM DISTILLERIES & BREWERIES LTD. BHOPAL PAN AABCS 3374 B RESPONDENT AND CO NO.59/IND/2009 (ARISING OUT OF ITA NO.296/IND/2009) A.Y. 2005-06 M/S. SOM DISTILLERIES & BREWERIES LTD. BHOPAL PAN AABCS 3374 B APPELLANT VS ACIT-1(2) BHOPAL RESPONDENT DEPARTMENT BY : SH. P.K. MITRA SR. DR ASSESSEE BY : SH. R.N. GUPTA CA O R D E R PER JOGINDER SINGH JUDICIAL MEMBER 2 BOTH THESE APPEALS BY THE REVENUE AND CROSS-OBJECTI ON BY ASSESSEE ARE AGAINST THE ORDER OF THE LEARNED CIT(A )-I BHOPAL DATED 31.3.2009. AT THE OUTSET OF HEARING THE CROSS-OBJE CTION FILED BY ASSESSEE WAS NOT PRESSED BY THE LD. COUNSEL FOR THE ASSESSEE THEREFORE SAME IS DISMISSED BEING NOT PRESSED. NOW WE SHALL TAKE THE APPEALS OF THE DEPARTMENT WHEREIN COMMON GROUNDS HA VE BEEN RAISED WHICH READ AS UNDER: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN: - 1. DELETING THE ADDITIONS OF RS.12 48 132/- & RS.19 36 312/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DISALLOWANCE OF SELLING EXPENSES FOR THE AYS 2005-06 & 2006-07 RESPECTIVELY. 2. DELETING THE ADDITIONS OF RS.6 93 210/- & RS.3 93 208/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DISALLOWANCE OF EMPLOYEES/EMPLOYERS CONTRIBUTION U/S 43B OF THE I.T. ACT FOR THE AYS 2005-06 & 2006-07 RESPECTIVELY. 3. DIRECTING THE ASSESSING OFFICER TO ALLOW CREDIT FOR TDS OF RS.30 139/- & RS.46 247/- WITHOUT ALLOWING ANY OPPORTUNITY TO ASSESSING OFFICER MADE NECESSARY VE4RIFICATION FOR THE AYS 2005-06 & 2006-07 RESPECTIVELY. 2. DURING HEARING OF THESE APPEALS WE HAVE HEARD S HRI P.K.MITRA LEARNED SR. DR AND SHRI R.N. GUPTA LD. COUNSEL FOR THE ASSESSEE. AT THE OUTSET THE LD. COUNSEL FOR THE AS SESSEE ASSERTED THAT THE IMPUGNED ISSUES NO.1 & 2 ARE COVERED BY THE DEC ISION OF THE TRIBUNAL IN THE ASSESSEES OWN CASE (ITA NO. 478/IN D/2005 & CO NO.89/IND/2005) ORDER DATED 15.5.2009 (COPY OF THE ORDER IS FILED BEFORE 3 US). THIS FACTUAL MATRIX WAS NOT CONTROVERTED BY T HE REVENUE. WITH REGARD TO ISSUE NO.3 THE LD. COUNSEL FOR THE ASSES SEE SUBMITTED THAT ALONG WITH THE RETURNS OF INCOME THE ASSESSEE ENCL OSED THE CERTIFICATES FOR TAX DEDUCTED AT SOURCE AMOUNTING TO RS.30 139/- & RS.46 247/-. THE TDS WAS DEDUCTED ON THE INTEREST INCOME CREDITED TO THE P & L A/C AND OFFERED IN THE RETURN OF INCOME AND THE ASSESSING O FFICER WITHOUT MENTIONING ANY REASON DISALLOWED THE ASSESSEES CLA IM. THE LD. CIT(A) AGREEING WITH THE SUBMISSION OF THE ASSESSEE DELET ED THE ADDITION. ON THE OTHER HAND THE LD. SR. DR PLACED RELIANCE UPON THE ORDER OF THE ASSESSING OFFICER. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS OF LD. REPRESENTATIVES OF BOTH SIDES AND PERUSED THE MATER IAL AVAILABLE ON RECORD. AS FAR AS ISSUE NO.1 IS CONCERNED IT IS NO TED THAT THE ASSESSEE HAD INCURRED EXPENDITURE ON ADVERTISEMENT AT RS.15 60 165/- & RS.24 20 390/- RESPECTIVELY. THE ASSESSING OFFICER ALLOWED ONLY 1/5 TH OF THE TOTAL EXPENDITURE AND DISALLOWED THE REST OF TH E AMOUNTS I.E. RS.12 48 132/- & RS.19 36 312/- RESPECTIVELY. WE FIND THAT SIMILAR TYPE OF DISALLOWANCES WERE ALSO MADE IN EARLIER YEARS AN D IN THOSE YEARS THE FIRST APPELLATE AUTHORITY DELETED THE ADDITIONS AND THE DECISION OF THE LD. CIT(A) WAS CONFIRMED BY THIS TRIBUNAL VIDE ORDER DA TED 15.5.2009 (SUPRA) WHEREIN VIDE PARA 3 (PAGES 2 TO 5) OF THE O RDER DELIBERATED UPON THE ISSUE AND HAS ALSO CONSIDERED IDENTICAL CLAIMS IN ASSESSMENT YEARS 4 1995-96 1999-00 AND 2000-01 WHEREIN NO DISALLOWANC E WAS MADE BY THE ASSESSING OFFICER. IN VIEW OF THE FACTUAL FINDI NG CONTAINED IN THE IMPUGNED ORDER AND THE ORDER FROM THE TRIBUNAL (SU PRA) WE FIND NO INFIRMITY IN THE ORDER OF THE LD. FIRST APPELLATE A UTHORITY THEREFORE THIS ISSUE OF THE REVENUE IS HAVING NO MERIT CONSEQUENT LY GROUND NO.1 IN BOTH THE APPEALS OF THE DEPARTMENT IS DISMISSED. 4. AS FAR AS THE NEXT GROUND DELETING THE ADDITION S OF RS.6 93 210/- & RS.3 93 208/- MADE ON ACCOUNT OF DI SALLOWANCE OF EMPLOYEES/EMPLOYERS CONTRIBUTION U/S 43B OF THE A CT IS CONCERNED THE LD. SR. DR RELIED UPON THE ASSESSMENT ORDER WHEREAS THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THIS ISSUE ALSO HAS BEE N DECIDED IN FAVOUR OF THE ASSESSEE VIDE ORDER DATED 15.5.2009 (SUPRA). AFTER HEARING THE RIVAL SUBMISSIONS AND TOTALITY O F FACTS WE FIND THAT THE TRIBUNAL HAS ALREADY CONSIDERED THE PROVISO ADD ED TO SEC. 43B BY THE FINANCE ACT 2003 W.E.F. 1.4.2004 AND THE AMOUN TS AND DATES OF DEPOSIT DURING THE RELEVANT MONTHS. THE DECISION FO R ASSESSMENT YEARS 2001-02 TO 2003-04 HAS ALSO BEEN CONSIDERED WHEREIN THE ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE. THERE IS UNCONTR OVERTED FINDING IN THE IMPUGNED ORDER THAT THE AMOUNTS WERE ACTUALLY PAID BY THE ASSESSEE ON OR BEFORE THE DUE DATE APPLICABLE IN BOTH THE APPE ALS AND THE EVIDENCES OF SUCH PAYMENTS WERE FURNISHED ALONG WITH THE RETU RNS. THE DECISIONS LIKE HITECH (INDIA) (P) LTD. VS. UNION OF INDIA 22 7 ITR 446 (AP) THE 5 KERLA STATE FINANCIAL ENTERPRISES LTD. VS. CIT 225 ITR 999 CIT VS. SOUTH INDIA CORPORATION LTD. 242 ITR 114 AND CIT V S. MADRAS RADIATOR & PRESSINGS LTD. 264 ITR 620 (MAD) FURTHER SUPPORT S THE CASE OF THE ASSESSEE. THESE PRONOUNCEMENTS HAVE ALREADY BEEN DE ALT WITH IN THE IMPUGNED ORDER. IN VIEW OF THESE FACTS THE STAND O F THE LD. CIT(A) IS AFFIRMED AND GROUND NO.2 IN BOTH THE APPEALS OF REV ENUE IS DISMISSED. 5. THE LAST GROUND PERTAINS TO ALLOW CREDIT FOR TD S OF RS.46 247/- AND RS.30 139/-. THE STAND OF THE REVEN UE IS THAT NO OPPORTUNITY WAS PROVIDED TO THE ASSESSING OFFICER T O MAKE VERIFICATION. THE LD. SR. DR ADVANCED HIS ARGUMENTS WHICH ARE IDE NTICAL TO GROUND RAISED WHEREAS THROUGH LD. COUNSEL FOR THE ASSESSEE DEFENDED THE IMPUGNED ORDER. AFTER HEARING THE RIVAL CONTENTIONS THERE IS A FA CTUAL FINDING IN THE IMPUGNED ORDER THAT THE NECESSARY DETAILS WERE FURN ISHED BY THE ASSESSEE ALONG WITH RETURNS ENCLOSING THE CERTIFICA TES OF SUCH DEDUCTION AT SOURCE. THE TDS WAS DEDUCTED ON THE INTEREST INC OME CREDITED TO P & L A/C AND OFFERED IN THE RETURN OF INCOME. THIS FAC TUAL FINDING WAS NOT CONTROVERTED BY THE REVENUE. IN VIEW OF THESE FACTS THERE IS NO INFIRMITY IN THE IMPUGNED ORDER THEREFORE THIS GROUND OF TH E REVENUE IS ALSO HAVING NO MERIT. SAME IS DISMISSED IN BOTH THE APPE ALS OF REVENUE. 6 FINALLY BOTH THE APPEALS OF THE REVENUE ARE DISMI SSED AND THE CROSS-OBJECTION OF THE ASSESSEE IS DISMISSED AS NOT PRESSED. ORDER PRONOUNCED IN OPEN COURT IN THE PRESENCE OF L EARNED COUNSEL OF BOTH SIDES AT THE CONCLUSION OF HEARING ON 9 TH DECEMBER 2010. (R.C.SHARMA) (JOGINDER SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 09.12.2010 COPY TO: APPELLANT RESPONDENT CIT CIT(A) DR G UARD FILE !VYAS!