Dakshin Gujarat Vij Co.Ltd.,, Baroda v. The Income tax Officer,Ward-1(2),, Baroda

ITA 2414/AHD/2010 | 2006-2007
Pronouncement Date: 25-10-2013 | Result: Dismissed

Appeal Details

RSA Number 241420514 RSA 2010
Assessee PAN AABCD8912C
Bench Ahmedabad
Appeal Number ITA 2414/AHD/2010
Duration Of Justice 3 year(s) 2 month(s) 28 day(s)
Appellant Dakshin Gujarat Vij Co.Ltd.,, Baroda
Respondent The Income tax Officer,Ward-1(2),, Baroda
Appeal Type Income Tax Appeal
Pronouncement Date 25-10-2013
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 25-10-2013
Date Of Final Hearing 10-10-2013
Next Hearing Date 10-10-2013
Assessment Year 2006-2007
Appeal Filed On 28-07-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: SRI D.K TYAGI JUDICIAL MEMBER AND SHRI T.R. MEENA ACCOUNTANT MEM BER DAKSHIN GUJARAT VIJ CO. LTD SARDAR PATEL VIDYUT BHAVAN RACE COURSE CIRCLE BARODA PAN: AABCD8912C (APPELLANT) VS INCOME TAX OFFICER WARD 1(2) BARODA (RESPONDENT) ASSESSEE BY: SRI M.J. SHAH A.R. REVENUE BY: SRI O.P. BATHEJA SR.D.R DATE OF HEARING : 10-10-2013 DATE OF PRONOUNCEMENT : 25-10-20 13 / ORDER PER : D.K. TYAGI JUDICIAL MEMBER:- THIS IS THE ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT(A)-I BARODA DATED 28-04-2010. 2. THE ONLY GROUND TAKEN BY THE ASSESSEE READS AS U NDER:- ITA NO. 2414/AHD/2010 ASSESSMENT YEAR 2006-07 I.T.A NO. 2414/AHD/2010 A.Y. 2006-07 PAGE NO DAKSHIN GUJRAT VIJ CO. LTD VS. ITO 2 1. THE LD. CIT(A) HAS ERRED IN LAW AND FACTS IN CO NFIRMING THE TOTAL VALUE OF FRINGE BENEFITS AT RS. 1 07 82 559/- ASSESSED BY THE ASSESSING OFFICER AS AGAINST THE RETURNED FRINGE BE NEFITS OF RS. NIL OFFERED BY THE APPELLANT. 3. BRIEF FACTS OF THE CASE ARE THAT DURING ASSESSME NT PROCEEDINGS AO OBSERVED THAT UNDER CHAPTER XXII-H OF THE ACT ASSE SSEE HAD RETURNED THE VALUE OF FRINGE BENEFITS AT NIL. HOWEVER IN THE AU DIT REPORT U/S. 44AB THE AUDITORS HAD QUANTIFIED THE VALUE OF FRINGE BENEFIT S AT RS. 1 7 82 559/-. ON BEING CALLED UPON TO SHOW CAUSE WHY THE VALUE OF FR INGE BENEFITS NOT BE TAKEN AT THE VALUE MENTIONED IN THE AUDIT REPORT IN STEAD OF NIL AS RETURNED THE ASSESSEE SOUGHT SHELTER BEHIND THE ORDER OF THE GUJARAT HIGH COURT IN SPECIAL CIVIL APPLICATION NO. 21124 OF 2005 IN THE CASE OF GUJARAT CHAMBER OF COMMERCE AND INDUSTRY VS. UNION OF INDIA AND OTH ERS. IT WAS CONTENDED BY THE ASSESSEE THAT THE HIGH COURT HAD CLASSIFIED THE ASSESSEE INTO THREE CATEGORIES I.E. (I) THOSE WHO WERE FULLY COVERED BY THE PROVISION OF FBT (II) THOSE WHO WERE PARTIALLY COVERED AND (III) THOSE WH O WERE NOT AT ALL COVERED. THE COURT DIRECTED ASSESSEE FALLING UNDER CATEGORY (I) TO DEPOSIT THE TAX. IN RESPECT OF ASSESSEES FALLING IN CATEGORY (II) AND (III) THE HONBLE COURT DIRECTED THEM TO DEPOSIT THE TAX PAYABLE IN AN EXCR OW ACCOUNT WITH A SCHEDULE BANK TILL THE FINAL DISPOSAL OF THE CASE. CLAIMING TO FALL UNDER CATEGORY (II)/(III) THE ASSESSEE DISCLOSED NIL VAL UE OF TAXABLE FRINGE BENEFITS IN ITS INCOME. HOWEVER IT MADE PAYMENT OF FBT AS P ER VALUATION OF ITS AUDITORS U/S. 44AB. THE AO HELD THAT SINCE THE ASS ESSEES OWN AUDITORS HAD QUANTIFIED THE VALUE OF TAXABLE FRINGE BENEFIT AND NO CASE HAD BEEN MADE OUT TO SHOW THAT THE ASSESSEE FELL UNDER THE CATEGORY ( II) OR (III) OF GUJARAT HIGH COURTS JUDGMENT IT WAS LIABLE TO PAY FBT. ACCORD INGLY THE VALUE OF THE FRINGE BENEFIT WAS TAKEN AT RS. 1 07 82 559/- AS PE R TAX AUDIT REPORT AND FBT WAS CHARGED THEREON. THIS ACTION OF THE AO WAS CON FIRMED BY LD. CIT(A). I.T.A NO. 2414/AHD/2010 A.Y. 2006-07 PAGE NO DAKSHIN GUJRAT VIJ CO. LTD VS. ITO 3 4. AT THE TIME OF HEARING BEFORE US LEARNED COUNSEL CONCEDED THAT THE ISSUE IS NOW COVERED AGAINST THE ASSESSEE AND IN FA VOUR OF REVENUE BY THE DECISION OF THE TRIBUNAL IN THE CASE OF GUJARAT ENE RGY TRANSMISSION VS. ACIT VIDE ITA NO. 2264 & 2402/AHD/2010 DATED 13/09/ 2013 WHEREIN ON IDENTICAL FACTS THE APPEAL FILED BY THE ASSESSEE WA S DISMISSED BY THE TRIBUNAL. SINCE THE ISSUE HAS BEEN DECIDED AGAINST THE ASSESSEE AND IN FAVOUR OF REVENUE ON IDENTICAL FACTS IN ITA NO. ITA NO. 2264 & 2402/AHD/2010 DATED 13/09/2013 THE APPEAL FILED BY THE ASSESSEE IS HEREBY DISMISSED. 5. IN THE RESULT ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (T.R. MEENA) ( D.K. TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 25/10/2013 AK / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR ITAT AHMEDABAD 6. GUARD FILE. BY ORDER/ /