Silicon Graphics Systems (India) Pvt. Ltd., New Delhi v. ACIT, New Delhi

ITA 4116/DEL/2013 | 2008-2009
Pronouncement Date: 30-04-2015 | Result: Allowed

Appeal Details

RSA Number 411620114 RSA 2013
Assessee PAN AAACS4194N
Bench Delhi
Appeal Number ITA 4116/DEL/2013
Duration Of Justice 1 year(s) 9 month(s) 26 day(s)
Appellant Silicon Graphics Systems (India) Pvt. Ltd., New Delhi
Respondent ACIT, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 30-04-2015
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted G
Tribunal Order Date 30-04-2015
Date Of Final Hearing 13-04-2015
Next Hearing Date 13-04-2015
Assessment Year 2008-2009
Appeal Filed On 04-07-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G : NEW DELHI BEFORE SHRI I. C. SUDHIR JUDICIAL MEMBER AND SHRI INTURI RAMA RAO AC COUNTANT MEMBER ITA NO. 4116/DEL/2013 ASSESSMENT YEAR: 2008-09 M/S. SILICON GRAPHICS SYSTEMS (INDIA) PVT. LTD. VS. ACIT REGUS BUSINESS CENTRE LEVEL CIRCLE-23(1) 15 EROS CORPORATE TOWERS NEW DELHI. NEHRU PLACE 110 019. (PAN AAACS4194N) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PIYUSH KAUSHIK ADVOCATE RESPONDENT BY : SHR I B.R.R. KUMAR SR. DR ORDER PER I.C. SUDHIR JUDICIAL MEMBER THE ASSESSEE HAS QUESTIONED FIRST APPELLA TE ORDER SOLELY ON THE GROUND THAT LD. CIT(A) HAS ERRED IN DIRECTING THE AO TO AD D THE DISALLOWANCE SUSTAINED UNDER THE NORMAL PROVISIONS OF THE ACT IN THE COMPU TATION OF BOOK PROFIT U/S 115JB WITHOUT APPRECIATING THAT TAXATION U/S 115JB BEING A SELF CONTAINED CODE WHEREIN ADJUSTMENTS TO BOOK PROFIT CAN ONLY BE MADE WITH RESPECT TO ITEMS SPECIFIED UNDER EXPLANATION TO SECTION 115JB. 2. LD. AR POINTED OUT THAT THE PRESENT APPE AL HAS BEEN PREFERRED AGAINST THE FIRST APPELLATE ORDER WHEREBY THE LD. CIT(A) HA S DISPOSED OF THE APPLICATION ITA NO. 4116/DEL/2013 2 OF THE ASSESSEE U/S 154 OF THE I.T. ACT WITHOUT PA SSING A SPEAKING ORDER. HE POINTED OUT FURTHER THAT AFTER FILING THE PRESENT A PPEAL BEFORE THE TRIBUNAL ON 4.7.2013 THE TRIBUNAL VIDE ITS ORDER DATED 12.11.20 14 IN ITA NO. 2977/DEL/2013 (ASSTT. YEAR 2008-09) HAS HELD THE DISALLOWANCE OF RS. 55 92 254/- SUSTAINED BY THE LD. CIT(A) ON ACCOUNT OF INTEREST ON CUSTOM DUT Y IS NOT HIT BY EXPLANATION BELOW SECTION 37(1) OF THE ACT AND SUCH EXPENSE IS ALLOWABLE UNDER THE PROVISION OF THE ACT. HE SUBMITTED FURTHER THAT THE OTHER DIS ALLOWANCE OF RS. 81 49 561/- MADE BY THE AO ON ACCOUNT OF REIMBURSEMENT OF REPAI R CHARGES PAYMENT TO PARENT ENTITY WAS ALREADY DELETED BY THE LD. CIT(A) AGAINST WHICH THE REVENUE HAD NOT PREFERRED ANY APPEAL . LD. AR SUBMITTED FUR THER THAT NO APPEAL EFFECT HAS SO FAR BEEN GIVEN BY THE AO TO THE IMPUGNED ORD ER DATED 26.4.2013 OF THE LD. CIT(A). 3. LD. DR ON THE OTHER HAND SUBMITTED THAT BOT H THE DISALLOWANCES MADE ON ACCOUNT OF PAYMENT OF INTEREST ON CUSTOM DUTY AND R EIMBURSEMENT OF REPAIR CHARGES PAYMENT TO PARENT ENTITY MADE BY THE AO HAV E BEEN DELETED. HENCE THE PRESENT APPEAL HAS BECOME INFRUCTUOUS. 4. LD. AR REJOINED WITH THIS SUBMISSION THAT NON PASSING OF SPEAKING ORDER BY THE LD. CIT(A) WHILE DISPOSING OF THE APPLICATIO N OF THE ASSESSEE FILED U/S 154 OF THE ACT WILL UNNECESSARILY CREATE A CONFUSION IN THE MIND OF THE AO WHILE GIVING EFFECT TO THE FIRST APPELLATE ORDER IN QUEST ION. ITA NO. 4116/DEL/2013 3 5. CONSIDERING THE ABOVE SUBMISSIONS WE FIND SU BSTANCE IN THE ABOVE APPREHENSION OF THE LD. AR AND ACCORDINGLY SET ASID E THE MATTER TO THE FILE OF THE LD. CIT(A) TO PASS A SPEAKING ORDER WHILE DISPOSING OF THE APPLICATION OF THE ASSESSEE PREFERRED U/S 154 OF THE ACT KEEPING IN MI ND THE SUBSEQUENT DEVELOPMENT BY WHICH THE TRIBUNAL VIDE ITS ORDER DA TED 12.11.2014 (SUPRA) HAS HELD THAT THE PAYMENT OF INTEREST ON CUSTOM DUTY IS NOT HIT BY EXPLANATION BELOW 37(1) OF THE ACT AND THESE EXPENSES ARE ALLOWABLE U NDER THE PROVISION OF THE ACT. IT IS NEEDLESS TO MENTION OVER HERE THAT WHILE DISP OSING OF THE APPLICATION U/S 154 OF THE ACT AFRESH THE LD. CIT(A) WILL AFFORD O PPORTUNITY OF BEING HEARD TO THE ASSESSEE. GROUND IS ACCORDINGLY ALLOWED FOR STATIST ICAL PURPOSES. 6. IN THE RESULT APPEAL IS ALLOWED FOR STATIS TICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH APRIL 2015. SD/- SD/- (INTURI RAMA RAO) ( I.C. S UDHIR ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE 30 TH APRIL 2015 *VEENA COPY OF ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR BY ORDER ASSISTANT REGISTRAR ITAT