DCIT, CHENNAI v. BS & B Safety Systems (India) Ltd., CHENNAI

ITA 359/CHNY/2015 | 2007-2008
Pronouncement Date: 31-07-2015 | Result: Dismissed

Appeal Details

RSA Number 35921714 RSA 2015
Assessee PAN AAACB1438Q
Bench Chennai
Appeal Number ITA 359/CHNY/2015
Duration Of Justice 5 month(s) 16 day(s)
Appellant DCIT, CHENNAI
Respondent BS & B Safety Systems (India) Ltd., CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 31-07-2015
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 31-07-2015
Date Of Final Hearing 21-07-2015
Next Hearing Date 21-07-2015
Assessment Year 2007-2008
Appeal Filed On 13-02-2015
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH CHENNAI ... ! ' $ %& BEFORE SHRI N.R.S. GANESAN JUDICIAL MEMBER AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ./ ITA NO.359/MDS/2015 ( )( / ASSESSMENT YEAR : 2007-08 THE DEPUTY COMMISSIONER OF INCOME TAX CORPORATE CIRCLE 1(2) CHENNAI - 600 034. V. M/S BS & B SAFETY SYSTEMS (INDIA) LTD. 9 CATHEDRAL ROAD CHENNAI - 600 086. PAN : AAACB 1438 Q (+ / APPELLANT) (-.+ / RESPONDENT) + / 0 / APPELLANT BY : SHRI A.V. SREEKANTH JCIT -.+ / 0 / RESPONDENT BY : SHRI R. DHIRAJ ADVOCATE 1 / 2$ / DATE OF HEARING : 21.07.2015 34) / 2$ / DATE OF PRONOUNCEMENT : 31.07.2015 / O R D E R PER N.R.S. GANESAN JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE CIT(APPEALS)-I CHENNAI DATED 15.10.2014 AND P ERTAINS TO ASSESSMENT YEAR 2007-08. 2 I.T.A. NO.359/MDS/15 2. SHRI A.V. SREEKANTH THE LD. DEPARTMENTAL REPRES ENTATIVE SUBMITTED THAT THE ASSESSING OFFICER DISALLOWED THE PROVISION FOR GRATUITY UNDER SECTION 40(A)(7) OF THE INCOME-TAX A CT 1961 (IN SHORT 'THE ACT'). HOWEVER ON APPEAL BY THE ASSESS EE THE CIT(APPEALS) BY FOLLOWING HIS OWN ORDER FOR THE AS SESSMENT YEAR 2005-06 ALLOWED THE CLAIM OF THE ASSESSEE. REFERR ING TO SECTION 40A(7)(A) OF THE ACT THE LD. D.R. SUBMITTED THAT N O PROVISION SHALL BE ALLOWED IN RESPECT OF PAYMENT OF GRATUITY. THE LD. D.R. SUBMITTED THAT THE GRATUITY FUND WAS APPROVED BY TH E COMMISSIONER. THE LD. D.R. FURTHER SUBMITTED THAT IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEARS 2005-06 AN D 2008-09 THIS TRIBUNAL ALLOWED SIMILAR CLAIM OF THE ASSESSEE . 3. WE HEARD SHRI R. DHIRAJ THE LD.COUNSEL FOR THE ASSESSEE. ACCORDING TO THE LD. COUNSEL FOR THE ASSESSMENT YE ARS 2005-06 AND 2008-09 THIS TRIBUNAL ALLOWED THE CLAIM OF THE ASSESSEE UNDER SECTION 40A(7)(B) OF THE ACT CONFIRMING THE IDENTIC AL ORDER PASSED BY THE CIT(APPEALS) FOR THE ASSESSMENT YEARS 2005-0 6 AND 2008- 09. THE CIT(APPEALS) HAS FOLLOWED HIS OWN ORDER FO R THE ASSESSMENT YEAR 2005-06 WHICH WAS IN FACT CONFIRME D BY THE TRIBUNAL BY AN ORDER DATED 03.07.2015 IN I.T.A. NOS .2443 & 2444/MDS/2014. 3 I.T.A. NO.359/MDS/15 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS NOT IN DISPUTE THAT THE GRATUITY FUND IS AN APPROVED ONE. THE ASSESSEE ALS O MADE PROVISION FOR PAYMENT OF GRATUITY. THEREFORE THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT SECTION 40A(7)(A) MAY NOT B E APPLICABLE TO THE FACTS OF THE CASE. IN FACT SECTION 40A(7)(B) OF THE ACT WOULD BE APPLICABLE. BY REFERRING TO SECTION 40A(7)(B) OF T HE ACT THIS TRIBUNAL ON IDENTICAL SET OF FACTS ALLOWED THE CL AIM OF THE ASSESSEE FOR ASSESSMENT YEARS 2005-06 AND 2008-09 BY CONFIRM ING AN IDENTICAL ORDER OF THE CIT(APPEALS). THEREFORE TH IS TRIBUNAL DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(APPEALS) AND ACCORDINGLY THE SAME IS CONFIRMED. 5. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED ON 31 ST JULY 2015 AT CHENNAI. SD/- SD/- ( ! ' ) ( ... ) (CHANDRA POOJARI) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI 6 /DATED THE 31 ST JULY 2015. KRI. 4 I.T.A. NO.359/MDS/15 / -278 98)2 /COPY TO: 1. + /APPELLANT 2. -.+ /RESPONDENT 3. 1 :2 () /CIT(A)-I CHENNAI 4. 1 :2 /CIT CHENNAI-I CHENNAI 5. 8; -2 /DR 6. <( = /GF.