The DCITBharuch Circle,, Bharuch v. M/s. Technoforge Ltd.,, Bharuch

ITA 2316/AHD/2009 | 2006-2007
Pronouncement Date: 08-07-2011 | Result: Dismissed

Appeal Details

RSA Number 231620514 RSA 2009
Assessee PAN AAACT7773L
Bench Ahmedabad
Appeal Number ITA 2316/AHD/2009
Duration Of Justice 1 year(s) 11 month(s) 8 day(s)
Appellant The DCITBharuch Circle,, Bharuch
Respondent M/s. Technoforge Ltd.,, Bharuch
Appeal Type Income Tax Appeal
Pronouncement Date 08-07-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 08-07-2011
Date Of Final Hearing 28-06-2011
Next Hearing Date 28-06-2011
Assessment Year 2006-2007
Appeal Filed On 30-07-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL : B BENCH : AHMEDABAD (BEFORE HONBLE SHRI T.K. SHARMA J.M. & HONBL E SHRI A.K.GARODIA A.M.) I.T.A. NO. 2316/AHD./2009 ASSESSMENT YEAR : 2006-2007 DCIT BHARUCH CIRCLE BHARUCH VS- M/S . TECHNO FORGE LTD. ANKLESHWAR (PAN : AAACT 7773L) (APPELLANT) (R ESPONDENT) APPELLANT BY : SHRI SAMIR TEKRIWAL A SR.D.R. RESPONDENT BY : SHRI KAMLESH N BHATT A.R. O R D E R PER SHRI T.K. SHARMA JUDICIAL MEMBER : THIS APPEAL IS FILED BY THE REVENUE AGAINST THE OR DER DATED 04-05-2009 OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-VI BAR ODA FOR THE ASSESSMENT YEAR 2006-07. 2. GROUND NO.1 RAISED BY THE REVENUE READS AS UNDER : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.64 48 356/ - ON ACCOUNT OF LOW GROSS PROFIT DISCLOSED BY THE ASSESSEE. 3. WE HAVE HEARD BOTH THE SIDES. AT THE TIME OF HEA RING SHRI KAMLESH N. BHATT APPEARED ON BEHALF OF THE ASSESSEE AND PRODUCED A C OPY OF THE DECISION DATED 10 TH JULY 2009 OF THE ITAT D BENCH AHMEDABAD IN ASS ESSEES OWN CASE IN ITA NO.3543/AHD/2208 AND CO NO.312/AHD/2008 FOR THE ASS ESSMENT YEAR 2005-06 WHEREIN ALSO ON IDENTICAL FACTS THE G.P. ADDITION OF RS.13 47 626/- MADE BY THE AO WAS DELETED BY THE LD. CIT(A). ON FURTHER APPEAL T HE VIEW TAKEN BY THE LD. CIT(A) WAS UPHELD. THE LD. D.R. COULD NOT CONTROVERT THE CONTENTION OF THE ASSESSEE THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE D ECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2005-06. IN VIEW O F THIS WE FOLLOWING THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE UPHOLD THE VIEW TAKEN BY THE LD. CIT(A) ITA NO.2316/AHD/2009 2 DELETING THE ADDITION OF RS.64 48 356/- ON ACCOUNT OF LOW GROSS PROFIT ALLEGED TO BE DECLARED BY THE ASSESSEE IN THE ASSESSMENT YEAR UND ER APPEAL. THIS GROUND OF APPEAL IS ACCORDINGLY REJECTED. 4. GROUND NO.2 OF THE REVENUES APPEAL IS AS UNDER: 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.80 795/- DISAL LOWANCE U/S.36(I)(VA) R.W.S. 2(24)(X) OF THE ACT. 5. WE HAVE HEARD BOTH THE SIDES. IN THE IMPUGNED OR DER THE LD. CIT(A) HAS DELETED THIS DISALLOWANCE FOLLOWING VARIOUS DECISI ONS ON THE ISSUE RELYING ON THE LOGIC OF CIT VS SABRI ENTERPRISE 213 CTR 269 (KARNATAKA) AND CIT VS. P.M. ELECTRONICS LTD. 220 CTR 635 (DEL.) AND ALSO THE DECISION OF HO NBLE APEX COURT IN THE CASE OF VINAY CEMENT LTD. 213 CTR 268 (SC) WHEREIN IT HAS BEEN HELD THAT THE EMPLOYEES CONTRIBUTION TOWARDS P.F. BEING MADE WITHIN DUE DAT E OF FILING OF RETURN IS TO BE ALLOWED IN TERMS OF SECTION 43B. AT THE TIME OF HEA RING BEFORE US THE COUNSEL OF THE ASSESSEE POINTED OUT THAT THE VIEW TAKEN BY THE LD. CIT(A) BE UPHELD KEEPING IN VIEW THE JUDGEMENT OF THE HONBLE SUPREME COURT IN THE C ASE OF CIT-VS- ALOM EXTRUSIONS LTD. REPORTED IN 319 ITR 306 (SC) WHEREIN IT WAS HE LD THAT OMISSION OF THE SECOND PROVISO TO SECTION 43B OF THE INCOME-TAX ACT 1961 BY THE FINANCE ACT 2003 OPERATED RETROSPECTIVELY WITH EFFECT FROM APRIL 1 1988 AND NOT PROSPECTIVELY FROM APRIL 1 2004. WE THEREFORE FOLLOWING THE DECISIO N OF THE HONBLE SUPREME COURT IN THE CASE OF ALOM EXTRUSIONS LTD. ( SUPRA ) UPHOLD THE VIEW TAKEN BY THE LD. CIT(A) DELETING THE DISALLOWANCE OF RS.80 795/-. THUS THI S GROUND OF THE APPEAL OF THE REVENUE IS ALSO REJECTED. 6. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S DISMISSED. THE ORDER PRONOUNCED IN THE CO URT ON 08.07.2011 SD/- SD/- (A.K.GARODIA) (T.K. SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 08/07/2011 ITA NO.2316/AHD/2009 3 COPY OF THE ORDER IS FORWARDED TO:- (1) THE ASSESSEE (2) THE DEPARTMENT. (3) CIT (A.) CONCERNED. (4) CIT CONCERNED. (5) D.R. ITAT AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT AH MEDABAD. TALUKDAR/ SR. P.S.