DCIT, CHENNAI v. M/s. Arvind Remedies Ltd., CHENNAI

ITA 1939/CHNY/2010 | 2006-2007
Pronouncement Date: 27-07-2011 | Result: Allowed

Appeal Details

RSA Number 193921714 RSA 2010
Assessee PAN AACCA7407Q
Bench Chennai
Appeal Number ITA 1939/CHNY/2010
Duration Of Justice 8 month(s) 11 day(s)
Appellant DCIT, CHENNAI
Respondent M/s. Arvind Remedies Ltd., CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 27-07-2011
Appeal Filed By Department
Order Result Allowed
Bench Allotted A
Tribunal Order Date 29-07-2011
Date Of Final Hearing 27-07-2011
Next Hearing Date 27-07-2011
Assessment Year 2006-2007
Appeal Filed On 15-11-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BENCH A CHENNAI BEFORE SHRI U.B. BEDI J.M. AND SHRI N.S. SAINI AM .. I.T.A. NO. 1939/MDS/2010 [ASSESSMENT YEAR : 2007-08] THE DEPUTY COMMISSIONER OF INCOME TAX COMPANY CIRCLE I(I) CHENNAI. VS M/S ARVIND REMEDIES LTD 190 POONAMALLEE HIGH ROAD CHENNAI 600 084. (PAN NO. AACCA 7407 Q) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI TILAK CHAND DEPARTMENT BY : SHRI K.E.B. RENGARAJAN JR. STANDING COUNSEL O R D E R PER N.S. SAINI A.M :- THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER PASSED BY THE LD. CIT(A)-III CHENNAI DATED 26.08.2 010. PAGE 2 OF 6 I.T.A. NO. 1939/MDS/2010 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT T HE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS. 65 01 595/- MADE BY THE ASSESSING OFFICER AS OTHER INCOME. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE MA DE AN APPLICATION TO THE SETTLEMENT COMMISSION ON 15.12.2 008 U/S 245C OF THE INCOME-TAX ACT 1961 [IN SHORT THE ACT] WHI CH WAS ALLOWED TO BE PROCEEDED U/S 245D(1) OF THE ACT VIDE ORDER O F THE SETTLEMENT COMMISSION ON 30.12.2008. HOWEVER VIDE ORDER DATE D 20.2.2009 THE SETTLEMENT COMMISSION DECLARED THE APPLICATION FILED BY THE ASSESSEE AS INVALID ON THE GROUND THAT THE ASSESSEE COMPANY HAD NOT PAID THE TAX DUE ON THE ADDITIONAL INCOME OFFER ED IN THE APPLICATION SUBJECT TO MINIMUM ALTERNATE TAX BEFORE THE DATE OF MAKING APPLICATION. THEREAFTER THE MATTER CAME BE FORE THE ASSESSING OFFICER FOR MAKING ASSESSMENT. THEREAFTE R THE ASSESSING OFFICER GOT THE ACCOUNTS OF THE ASSESSEE AUDITED U/ S 142(2A) OF THE ACT. THE ASSESSING OFFICER HAS OBSERVED THAT IN TH E APPLICATION BEFORE THE SETTLEMENT COMMISSION ASSESSEE HAS ADMI TTED OTHER INCOME AT RS. 1 08 312/- WHEREAS THE PUBLISHED ACCO UNT OF THE ASSESSEE HAD SHOWN OTHER INCOME AT RS. 66 09 907/-. THE SPECIAL PAGE 3 OF 6 I.T.A. NO. 1939/MDS/2010 AUDITOR HAS ALSO TAKEN THE OTHER INCOME AS PER PUBL ISHED ACCOUNT AT RS. 66 09 907/-. IN THIS BACKGROUND OF THE CASE T HE ASSESSING OFFICER MADE ADDITION OF RS. 66 09 907/- TO THE INC OME OF THE ASSESSEE IN THE IMPUGNED ASSESSMENT ORDER. 4. THE CONTENTION OF THE LD. A.R. OF THE ASSESSEE I S THAT THE ADDITION OF RS. 66 09 907/- BY THE ASSESSING OFFICE R IN THE ASSESSMENT FRAMED TANTAMOUNTS TO DOUBLE ADDITION BE CAUSE IT WILL BE SEEN THAT THE INTEREST ON DEPOSIT FROM BANK HAS BEEN SHOWN AT NET FIGURE AFTER DEDUCTING THE INTEREST PAID TO THE BANK. THUS THE FIGURE OF RS. 66 09 907/- WAS SHOWN AS RS. 1 08 3 12/- IN THE INCOME DECLARED BEFORE THE SETTLEMENT COMMISSION. IF THAT IS TAKEN INTO CONSIDERATION THEN THERE IS NO DIFFEREN CE IN THE FIGURE OF OTHER INCOME AS SHOWN IN THE PUBLISHED ACCOUNT AND AS DECLARED BEFORE THE SETTLEMENT COMMISSION. 5. THE LD. D.R. SUBMITTED THAT THE ASSESSEE FILED T HE RECONCILIATION OF OTHER INCOME TOGETHER WITH LEDGER ACCOUNT AND OTHER DOCUMENTS TO EXPLAIN THE DIFFERENCE BETWEEN T HE FIGURES SHOWN THE PUBLISHED ACCOUNT AT RS. 66 09 907/- AND FIGURE SHOWN PAGE 4 OF 6 I.T.A. NO. 1939/MDS/2010 IN THE APPLICATION BEFORE THE SETTLEMENT COMMISSION AT RS. 1 08 312/-. THE LD. CIT(A) HAS NOT CALLED FOR THE REMAND REPORT FROM THE ASSESSING OFFICER BEFORE ACCEPTING THE SAI D DOCUMENTS AND GRANTING RELIEF TO THE ASSESSEE. 6. AT THIS JUNCTURE THE LD. A.R. SUBMITTED THAT HE HAS NO OBJECTION IF THE MATER IS RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER TO VERIFY THE DETAILS OF OTHER INCOME AND I F HE FINDS THAT THE FIGURE OF RS. 1 08 312/- SHOWN AS OTHER INCOME IN THE APPLICATION OF THE SETTLEMENT COMMISSION IS AFTER NETTING OFF O F INTEREST PAID TO THE BANK THEN NOT TO MAKE ADDITION TO THE INCOME OF THE ASSESSEE FOR RS. 66 09 907/-. 7. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE MATERIAL ON RECORD WE FIND THAT THE ADDITION OF R S. 66 09 907/- WAS MADE BY THE ASSESSING OFFICER ON THE BASIS OF P UBLISHED ACCOUNT AND THE AUDIT REPORT OF THE SPECIAL AUDITOR TO THE INCOME OF THE ASSESSEE. THE CONTENTION OF THE LD. A.R. IS THAT I NCOME OF RS. 1 08 312/- SHOWN IN THE APPLICATION TO THE SETTLEME NT COMMISSION WAS AFTER NETTING OFF OF INTEREST PAID TO THE BANK. THEREFORE THE PAGE 5 OF 6 I.T.A. NO. 1939/MDS/2010 ADDITION OF RS. 66 09 907/- MADE BY THE ASSESSING O FFICER TANTAMOUNTS TO DOUBLE ADDITION. BOTH THE PARTIES H AVE NO OBJECTION IF THE MATTER IS RESTORED TO THE FILE OF THE ASSESS ING OFFICER FOR VERIFICATION OF THE DETAILS OF OTHER INCOME SHOWN B Y THE ASSESSEE IN THE PUBLISHED ACCOUNT AND ALSO THE RECONCILIATION O F OTHER INCOME SHOWN IN THE APPLICATION BEFORE THE SETTLEMENT COMM ISSION AT RS. 1 08 312/- WITH THE FIGURE OF OTHER INCOME SHOWN IN THE PUBLISHED ACCOUNT. WE THEREFORE SET ASIDE THE ORDER OF THE LD. CIT(A) AND REMAND THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER TO VERIFY THE FIGURE OF OTHER INCOME AND IF HE FINDS THAT THE FIGURE OF OTHER INCOME AT RS. 1 08 312/- ARRIVED IN THE APPLICATION BEFORE THE SETTLEMENT COMMISSION IS AFTER SET OFF OF INTEREST EXPENDITURE PAID TO THE BANK FROM THE FIGURE OF OTHER INCOME SHOWN I N THE PUBLISHED ACCOUNT AT RS. 66 09 907/- THEN HE SHOULD NOT MAK E ANY FURTHER ADDITION TO THE INCOME OF THE ASSESSEE. HE SHALL ALLOW REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE BEFORE ADJUD ICATING THE ISSUE AFRESH. PAGE 6 OF 6 I.T.A. NO. 1939/MDS/2010 8. IN THE RESULT APPEAL FILED BY THE REVENUE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT 29-07-2011. SD/- SD/- (U.B.S BEDI ) (N.S. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI DATED THE 29 TH JULY 2011. VL COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE