FOURESS ENGG (I) LTD, MUMBAI v. DCIT RG 5(1), MUMBAI

I.T.A NO.1310/ MUM/2010 FOURESS ENGG(I) LTD 1 IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH MUMBAI. [ CORAM: D.K. AGARWAL JM AND PRAMOD KUMAR AM ] I.T.A NO.1310/ MUM/2010 ASSESSMENT YEAR: 2006-07 FOURESS ENGG(I) LTD. .. APPELLANT 22 BHULABHAI DESAI ROAD MAHALXMI CHAMBER MUMBAI-26. PA NO.AAACF 5897 K VS DCIT 5(1) . RESPONDEN T AAYAKAR BHAVAN M.K. ROAD MUMBAI. APPEARANCES: PARAS S.SAVLA FOR THE APPELLANT L.K.AGARWAL FOR THE RESPONDENT O R D E R PER PRAMOD KUMAR: 1. BY WAY OF THIS APPEAL THE ASSESSEE HAS CALLED INTO QUESTION CORRECTNESS OF CIT(A)S ORDER DATED 16TH DECEMBER 2009 IN THE M ATTER OF ASSESSMENT UNDER SECTION 115WE(3) OF THE INCOME TAX ACT 1961 FOR THE ASSESSMENT YEAR 2006-07 ON THE FOLLOWING GROUNDS: 1. LD CIT (A) ERRED IN NOT ACCEPTING THE CLAM OF A PPELLANT TO TAKE VALUE OF FRINGE BENEFITS AT S.90 71 315 INSTEAD OF ` .92 19 471. APPELLANT PRAYS TO TAKE VALUE OF FRINGE BENEFITS AT ` .90 71 315 AS PER DETAILS SUBMITTED. I.T.A NO.1310/ MUM/2010 FOURESS ENGG(I) LTD 3 5. WE FIND THAT ONLY REASON OF LD CIT (A) DECLINING TO ADJUDICATE THE MATTER ON MERITS IS ON ACCOUNT OF RELIANCE OF THE HONBLE SUP REME COURTS JUDGEMENT IN THE CASE OF GOETZ INDIA PRIVATE LIMITED 284 ITR 323 (S C) WHEREIN IT HAS BEEN OBSERVED THAT A CLAIM FOR A DEDUCTION MADE IN THE RETURN CAN NOT BE ENTERTAINED BY THE AO OTHERWISE THAN FILING A REVISED RETURN. THERE IS N O DISPUTE ABOUT THE FUNDAMENTAL POSITION THAT THE DECISION IN THE CASE OF GOETZ IND IA PRIVATE LIMITED (SUPRA) IS BINDING BY THE TRIBUNAL AS HAS BEEN SPECIFICALLY NO TED IN THE SAID JUDGEMENT BY THE HONBLE SUPREME COURT. WE THEREFORE SET ASIDE THE ORDER OF THE CIT (A) AND REMIT THE MATTER TO THE FILE OF THE AO TO EXAMINE THE MAT TER ON MERITS AND ASSESS THE VALUE OF FRINGE BENEFIT TAX IN ACCORDANCE WITH LAW. THE FACT THAT THE ASSESSEE HIMSELF HAS COMMITTED THE ERRORS IN COMPUTATION OF FRINGE BENEF IT VALUATION WHICH SHOULD NOT BE USED AGAINST THE ASSESSEE. 6. IN THE RESULT THE APPEAL STANDS ALLOWED FOR STA TISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 23 RD FEBRUARY 2011 SD/- (D.K.AGARWAL ) (JUDICIAL MEMBER) SD/- (PRAMOD KUMAR) (ACCOUNTANT MEMBER) MUMBAI DATED 23 RD FEBRUARY 2011 PARIDA COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS) 9 MUMBAI 4. COMMISSIONER OF INCOME TAX 5 MUMBAI 5. DEPARTMENTAL REPRESENTATIVE BENCH F MUMBAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR ITAT MUMBAI