ACIT, CHENNAI v. M/s. Simulation Technology Services Private Ltd., CHENNAI

ITA 379/CHNY/2011 | 2005-2006
Pronouncement Date: 15-02-2012 | Result: Allowed

Appeal Details

RSA Number 37921714 RSA 2011
Assessee PAN AAGCS7678M
Bench Chennai
Appeal Number ITA 379/CHNY/2011
Duration Of Justice 11 month(s) 14 day(s)
Appellant ACIT, CHENNAI
Respondent M/s. Simulation Technology Services Private Ltd., CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 15-02-2012
Appeal Filed By Department
Order Result Allowed
Bench Allotted C
Tribunal Order Date 15-02-2012
Date Of Final Hearing 15-02-2012
Next Hearing Date 15-02-2012
Assessment Year 2005-2006
Appeal Filed On 02-03-2011
Judgment Text
IN THE INCOME-TAX APPELLATE TRIBUNAL CHENNAI C BENCH CHENNAI. BEFORE SHRI N.S. SAINI ACCOUNTANT MEMBER & SHRI GEORGE MATHAN JUDICIAL MEMBER I.T.A. NO. 379/MDS/2011 ASSESSMENT YEAR: 2005-06 THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE VI(3) AAYAKAR BHAVAN NEW BLOCK CHENNAI 34. VS. M/S. SIMULATION TECHNOLOGY SERVICES PRIVATE LTD. NO. 89 (GROUND FLOOR PORTION) T- BLOCK V MAIN ROAD ANNANAGAR CHENNAI - 40. [PAN: AAGCS7678M] (APPELLANT) (RESPONDENT) C.O. NO. 53/MDS/2011 [IN I.T.A. NO. 379/MDS/2011] ASSESSMENT YEAR: 2005-06 M/S. SIMULATION TECHNOLOGY SERVICES PRIVATE LTD. NO. 89 (GROUND FLOOR PORTION) T-BLOCK V MAIN ROAD ANNANAGAR CHENNAI - 40. VS. THE ASSISTANT COMMISSIONER OF INC OME TAX CIRCLE VI(3) AAYAKAR BHAVAN NEW BLOCK CHENNAI 34. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI K. GOPALAKRISHNA JCIT ASSESSEE BY : SHRI S. JOTHIRAJAN FCA DATE OF HEARING : 15.02.2012 DATE OF PRONOUNCEMENT : 15.02.2012 ORDER PER N.S. SAINI ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE AND THE CRO SS OBJECTION FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) V CHENNAI DATED 13.12.2010 PASSED IN ITA NO. 154/2009-10 FOR THE AS SESSMENT YEAR 2005- 06. SHRI K. GOPALAKRISHNA JCIT REPRESENTED ON BEHA LF OF THE REVENUE AND I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.379 379379 379/ // /M/ M/M/ M/11 1111 11 & & & & C.O. NO. C.O. NO. C.O. NO. C.O. NO. 53 5353 53/M/11 /M/11 /M/11 /M/11 2 SHRI S. JOTHIRAJAN FCA REPRESENTED ON BEHALF OF TH E ASSESSEE. 2. AT THE OUTSET THE LD. DR ARGUED THAT THE REVEN UE HAS TAKEN 4 GROUNDS OF APPEAL AND IN ALL THE GROUNDS OF APPEAL 2 ISSUES ARE INVOLVED AND THE FIRST ISSUE RELATES TO THAT THE LD. CIT(A) ERRE D IN DIRECTING THE ASSESSING OFFICER TO EXCLUDE ` .30 72 851/- FROM THE EXPORT TURNOVER FOR CALCULATI NG DEDUCTION UNDER SECTION 10B BY ADMITTING ADDITIONAL EVIDENCE IN VIOLATION OF RULE 46A OF I.T. RULES 1962 AND THE SECOND ISSUE I NVOLVED IN THE APPEAL IS THAT THE LD. CIT(A) ERRED IN DELETING THE DISALLOWA NCE OF ` .26 17 396/- MADE BY THE ASSESSING OFFICER FOR NON-DEDUCTION OF TDS U NDER SECTION 195 BY ADMITTING ADDITIONAL EVIDENCE IN VIOLATION OF RULE 46A OF THE I.T. RULES. HE SUBMITTED THAT IN RESPECT OF THE FIRST GRIEVANCE OF THE REVENUE IT WILL BE OBSERVED FROM PARA 10(I) OF THE ORDER OF THE LD. CI T(A) AT PAGE 4 THAT THE LD. CIT(A) HAS OBSERVED THAT AS EVIDENCED FROM THE EXTR ACT OF LEDGER ACCOUNT AND THE SUPPORTING DOCUMENTS THE FOREIGN TRAVEL EX PENSES INCURRED BY THE ASSESSEE WERE ACTUALLY REIMBURSED BY THE FOREIGN BU YERS AND THEREFORE HE HELD THAT THE SAID AMOUNT WAS NOT INCLUDABLE IN THE EXPORT TURNOVER. THIS EXTRACT OF THE LEDGER ACCOUNT WAS NOT FILED BEFORE THE ASSESSING OFFICER BUT WAS FILED BEFORE THE LD. CIT(A). HE FURTHER POINTE D THAT AS REGARDS TO SECOND GRIEVANCE OF THE REVENUE IT WILL BE OBSERVED FROM THE ORDER OF THE LD. CIT(A) AT PAGE 4 PARA NO. 8 (IV) THAT IN RESPECT OF ` .26 17 396/- RELATING TO THE PAYMENT OF SOFTWARE COMPONENTS THE ASSESSEE FILED COPY OF THE CHALLAN DATED 31.03.2005 WHICH WAS EVIDENCE FOR PAYMENT OF TDS ON THAT AMOUNT. I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.379 379379 379/ // /M/ M/M/ M/11 1111 11 & & & & C.O. NO. C.O. NO. C.O. NO. C.O. NO. 53 5353 53/M/11 /M/11 /M/11 /M/11 3 THIS EVIDENCE WAS NOT PRODUCED BEFORE THE ASSESSING OFFICER. HE THEREFORE PRAYED THAT THE ORDER OF THE LD. CIT(A) SHOULD BE S ET ASIDE ON BOTH THE ISSUES AND BOTH THE ISSUES BE RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER FOR ADJUDICATION AFRESH AFTER VERIFICATION. 3. THE LD. AR FOR THE ASSESSEE DID NOT OBJECT TO T HE ABOVE SUBMISSIONS MADE BY THE LD. DR. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PER USING THE ORDERS OF AUTHORITIES BELOW AND THE MATERIALS AVAILABLE ON RE CORD WE FIND THAT IN THE INSTANT CASE THE LD. CIT(A) WHILE DECIDING THE IS SUE FOR EXCLUSION OF ` .30 72 851/- FROM THE EXPORT TURNOVER FOR THE PURPO SE OF CALCULATION OF DEDUCTION UNDER SECTION 10B ADMITTED ADDITIONAL EVI DENCE IN THE FORM OF EXTRACT OF THE LEDGER ACCOUNT AND SUPPORTING DOCUME NTS AND FURTHER WHILE DELETING THE DISALLOWANCE OF ` .26 17 396/- MADE FOR NON-DEDUCTION OF TDS UNDER SECTION 195 THE LD. CIT(A) ADMITTED ADDITION AL EVIDENCE IN THE FORM OF COPY OF CHALLAN DATED 31.03.2005 FOR PAYMENT OF TDS OF ` .5 87 030/- IN RESPECT OF EXPENDITURE OF ` .26 17 396/-. BOTH THE PARTIES HAVE ADMITTED BEFORE US THAT THESE DOCUMENTS WERE PRODUCED BEFORE THE LD. CIT(A) AND WERE NOT PRODUCED BEFORE THE ASSESSING OFFICER DURI NG THE COURSE OF ASSESSMENT. WE THEREFORE HOLD THAT THE LD. CIT(A) VIOLATED RULE 46A OF I.T. RULES 1962 BY ADMITTING THE ADDITIONAL EVIDENCES WI THOUT ALLOWING THE ASSESSING OFFICER TO VERIFY THOSE EVIDENCES BEFORE ADMITTING AND RELYING ON THE SAME WHILE ALLOWING THE APPEAL OF THE ASSESSEE. HENCE WE SET ASIDE I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.379 379379 379/ // /M/ M/M/ M/11 1111 11 & & & & C.O. NO. C.O. NO. C.O. NO. C.O. NO. 53 5353 53/M/11 /M/11 /M/11 /M/11 4 THE ORDER OF THE LD. CIT(A) AND REMAND BOTH THE ISS UES BACK TO THE FILE OF THE ASSESSING OFFICER TO READJUDICATE THE SAME AFRESH A FTER VERIFICATION AS PER LAW AND AFTER ALLOWING REASONABLE AND PROPER OPPORT UNITY OF HEARING TO THE ASSESSEE. 5. THE CROSS OBJECTION FILED BY THE ASSESSEE IS IN SUPPORT OF THE ORDER OF THE LD. CIT(A) AND AS NO GROUND HAS BEEN RAISED IN THE CROSS OBJECTION CHALLENGING THE ORDER OF THE LD. CIT(A) THE CO FIL ED BY THE ASSESSEE IS INFRUCTUOUS AND HENCE DISMISSED. 9. AS A RESULT THE APPEAL OF THE REVENUE IS ALLOW ED FOR STATISTICAL PURPOSE AND THE CO OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED AT THE CLOSE OF THE HEARING IN TH E PRESENCE OF THE PARTIES ON 15.02.2012. SD/ - SD/ - (GEORGE MATHAN) JUDICIAL MEMBER (N.S.SAINI) ACCOUNTANT MEMBER CHENNAI DATED THE 15.02.2012 VM/- TO: THE ASSESSEE//A.O./CIT(A)/CIT/D.R.