DCIT, CHENNAI v. M/s. KCP Sugar and Industries Corporation Ltd., CHENNAI

ITA 1926/CHNY/2010 | 2002-2003
Pronouncement Date: 13-01-2011 | Result: Dismissed

Appeal Details

RSA Number 192621714 RSA 2010
Assessee PAN AAACK2325F
Bench Chennai
Appeal Number ITA 1926/CHNY/2010
Duration Of Justice 2 month(s)
Appellant DCIT, CHENNAI
Respondent M/s. KCP Sugar and Industries Corporation Ltd., CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 13-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 13-01-2011
Assessment Year 2002-2003
Appeal Filed On 12-11-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCH D : CHENNAI [BEFORE DR. O.K. NARAYANAN VICE-PRESIDENT AND SHRI HARI OM MARATHA JUDICIAL MEMBER] I.T.A NO.1926/MDS/2010 ASSESSMENT YEAR : 2002-03 THE DEPUTY COMMISSIONER OF INCOME-TAX COMPANY CIRCLE II(4) CHENNAI VS M/S KCP SUGAR AND INDUSTRIES CORPORATION LTD RAMAKRISHNA BUILDING 239 ANNA SALAI CHENNAI 600 006 [PAN AAACK2325F] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.E.B RENGARAJAN JR. STANDING COUNSEL RESPONDENT BY : SHRI K.R. ADIVARAHAN O R D E R PER DR. O.K.NARAYANAN VICE-PRESIDENT: THIS APPEAL FILED BY THE REVENUE RELATES TO TH E ASSESSMENT YEAR 2002-03 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER(APPEALS)-III AT CHENNAI DATED 31.08. 2010. THE APPEAL ARISES OUT OF THE ASSESSMENT COMPLETED U/S 143(3) R EAD WITH SECTION 147 OF THE INCOME-TAX ACT 1961. 2. IN COMPLETING THE ASSESSMENT THE PROVISION MAD E BY THE ASSESSEE TOWARDS THE LIABILITY OF LEAVE ENCASHMENT WAS DISALLOWED BY ITA 1926/10 :- 2 -: THE ASSESSING AUTHORITY AND ADDED TOWARDS THE INCOM E OF THE ASSESSEE. IN FIRST APPEAL THE COMMISSIONER(APPEAL S) DELETED THE SAID DISALLOWANCE IN THE LIGHT OF THE DECISION OF ITAT CHENNAI RENDERED IN ASSESSEES OWN CASE THROUGH THEIR COMMON ORDER DAT ED 12.5.2006 PASSED IN I.T.A.NO.755/MDS/2003 AND OTHERS RELATING TO THE EARLIER ASSESSMENT YEARS 1999-2000 AND 2000-01. THE TRIBUN AL HAS TAKEN THE SAID DECISION RELYING ON THE JUDGMENT OF THE HO N'BLE SUPREME COURT IN THE CASE OF BHARAT EARTH MOVERS VS CIT 245 ITR 428. 3. NOW THE CONTENTION OF THE REVENUE IS THAT THE EARL IER ORDER OF THE TRIBUNAL IN ASSESSEES CASE HAS NOT BEEN ACCEPT ED BY THE REVENUE AND THE MATTER IS NOW PURSUED BEFORE THE HON'BLE HI GH COURT IN APPEAL FILED U/S 260A AND THEREFORE THE ORDER OF THE COMM ISSIONER(APPEALS) IS NOT SUSTAINABLE. 4. THE REVENUE IS FULLY JUSTIFIED IN KEEPING ALIVE THE CONTENTIOUS ISSUES BY FILING APPEAL BEFORE THE COURT OF LAW IF IT IS NOT SATISFIED IN THE DECISION DELIVERED BY THE APPELLATE TRIBUNAL. BUT AS ON DATE THE HON'BLE HIGH COURT HAS NOT PASSED ANY ORDER REVERSI NG THE COMMON ORDER PASSED BY THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE EARLIER ASSESSMENT YEARS. AS OF NOW THE ORDER OF THE TRIB UNAL IS BINDING ON THE COMMISSIONER(APPEALS) AND IS BINDING ON THIS CO -ORDINATE BENCH TOO. ITA 1926/10 :- 3 -: 5. IN THE FACTS AND CIRCUMSTANCES OF THE CASE WE FIND THAT THIS APPEAL FILED BY THE REVENUE IS LIABLE TO BE DISMISS ED. 6. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON THURSDAY THE 13 TH OF JANUARY 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) JUDICIAL MEMBER (DR. O.K. NARAYANAN) VICE-PRESIDENT DATED: 13 TH JANUARY 2011 RD COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR