DCIT, New Delhi v. M/s. Punjab Stainless Steel Industries, Delhi

ITA 511/DEL/2012 | 2008-2009
Pronouncement Date: 28-11-2014 | Result: Dismissed

Appeal Details

RSA Number 51120114 RSA 2012
Assessee PAN AAAFP4223G
Bench Delhi
Appeal Number ITA 511/DEL/2012
Duration Of Justice 2 year(s) 9 month(s) 26 day(s)
Appellant DCIT, New Delhi
Respondent M/s. Punjab Stainless Steel Industries, Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 28-11-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 28-11-2014
Date Of Final Hearing 11-11-2014
Next Hearing Date 11-11-2014
Assessment Year 2008-2009
Appeal Filed On 01-02-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH F FF F : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.D. AGRAWAL VICE BEFORE SHRI G.D. AGRAWAL VICE BEFORE SHRI G.D. AGRAWAL VICE BEFORE SHRI G.D. AGRAWAL VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI I.C. SUDHIR I.C. SUDHIR I.C. SUDHIR I.C. SUDHIR JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 511/DEL/2012 511/DEL/2012 511/DEL/2012 511/DEL/2012 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2008 2008 2008 2008 - -- - 09 0909 09 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX INCOME TAX INCOME TAX INCOME TAX CIRCLE CIRCLE CIRCLE CIRCLE- -- -19(1) 19(1) 19(1) 19(1) NEW DELHI NEW DELHI NEW DELHI NEW DELHI. .. . VS. VS. VS. VS. M/S PUNJAB STAINLESS STEEL M/S PUNJAB STAINLESS STEEL M/S PUNJAB STAINLESS STEEL M/S PUNJAB STAINLESS STEEL INDUSTRIES INDUSTRIES INDUSTRIES INDUSTRIES B BB B- -- -61 WAZIRPUR INDUSTRIAL AREA 61 WAZIRPUR INDUSTRIAL AREA 61 WAZIRPUR INDUSTRIAL AREA 61 WAZIRPUR INDUSTRIAL AREA DELHI DELHI DELHI DELHI 110 052. 110 052. 110 052. 110 052. PAN : AAAFP4223G. PAN : AAAFP4223G. PAN : AAAFP4223G. PAN : AAAFP4223G. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VIKRAM SAHAY SR.DR. RESPONDENT BY : SHRI HARI MITTER CA. ORDER ORDER ORDER ORDER PER G.D. AGRA PER G.D. AGRA PER G.D. AGRA PER G.D. AGRAWAL VP WAL VP WAL VP WAL VP : :: : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XXII NEW DELHI DATED 14 TH NOVEMBER 2011 FOR THE AY 2008-09. 2. THE ONLY EFFECTIVE GROUND RAISED BY THE REVENUE READS AS UNDER:- WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD.CIT(A) HAS ERRED IN RESTRICTING THE ADDITION TO 15% OUT OF POLISHING CHARGES AS AGAINST RS.25 41 274/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNCONFIRMED CHARGES BY RELYING UPON THE DECISION I N THE EARLIER ASSESSMENT YEARS IN THE CASE OF THE ASSESSEE WITHOUT APPRECIATING THE FACTS THAT THE ASSESSEE FAILED TO GET CONFIRMED THE EXPENSES OF RS.25 41 274/- DURING THE COURSE OF ASSESSMENT PROCEEDINGS. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D PERUSED RELEVANT MATERIAL PLACED BEFORE US. WE FIND THIS I SSUE TO BE COVERED BY THE ORDER OF THE ITAT FOR AY 2002-03 2004-05 AND 2 007-08. IN AY 2002-03 WHEN THIS MATTER CAME UP FOR THE FIRST TIM E BEFORE THE ITAT IN ITA-511/DEL/2012 2 AY 2004-05 VIDE ITA NO.120/DEL/2010 WHEREIN THE ASS ESSING OFFICER HAD DISALLOWED 50% OF THE POLISHING CHARGES. THE I TAT AFTER CONSIDERING ALL THE FACTS DIRECTED TO RESTRICT THE DISALLOWANCE TO THE EXTENT OF 15% OF THE TOTAL EXPENSES INCURRED BY THE ASSESSEE. THE RELEVANT FINDING OF THE ITAT READS AS UNDER:- 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS PERUS ED THE MATERIAL ON RECORD AND HAVE GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. THE TRIBUNAL ORDER IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2005-06 IN I.T.A. NO.2747 & 2004/DEL/2009 DATED 26.11.2009 IS AVAILABLE AT PAGES 80-85 OF THE PAPER BOOK AND AS P ER PARA 9.8 OF THIS TRIBUNAL ORDER THE TRIBUNAL HAS CONFIRMED THE DISALLOWANCE TO THE EXTENT OF `5%. T HE LD. A.R. FOR THE ASSESSEE TRIED TO CONVINCE US REGA RDING DIFFERENCE IN FACTS IN THE PRESENT YEAR AND THE ASSESSMENT YEAR 2005-06 BUT HE COULD NOT SATISFY US REGARDING DIFFERENCE IN FACTS AND HENCE WE FIND NO REASON TO TAKE A CONTRARY VIEW IN THE PRESENT YEAR. RESPECTFULLY FOLLOWING THE TRIBUNAL DECISION IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2005-06 IN THE PRESENT YEAR ALSO WE HOLD THAT DISALLOWANCE OF 15% WILL MEET THE ENDS OF JUSTICE. WE ORDER ACCORD INGLY AND DIRECT THE AO TO MAKE THE DISALLOWANCE TO THE EXTENT OF 15% OF THE TOTAL EXPENSES INCURRED BY THE ASSESSEE UNDER THIS HEAD I.E. POLISHING CHARGES. 4. THE SAME ORDER WAS FOLLOWED BY THE ITAT FOR AY 2 002-03 VIDE ITA NO.1910/DEL/2006 AND ALSO IN AY 2007-08 VIDE ITA NO .5078/DEL/2010. THIS YEAR THE CIT(A) FOLLOWING THE ABOVE DECISION OF THE ITAT IN ASSESSEES OWN CASE RESTRICTED THE DISALLOWANCE TO 15%. 5. AT THE TIME OF HEARING BEFORE US LEARNED DR POI NTED OUT THAT THE FACTS OF THE YEAR UNDER CONSIDERATION ARE DIFFERENT BECAUSE IN THE EARLIER YEAR AD-HOC DISALLOWANCE WAS MADE WHILE IN THIS YEAR THE ASSESSING OFFICER MADE SPECIFIC DISALLOWANCE WHICH WAS IN RESPECT OF THE PERSONS WHO WERE NOT FOUND AT THE ADDRESS GIVEN I.E. THE NOTICE GIVEN UNDER SECTION 133(6) WAS RETURNED UNSERVED. IT WAS POINTED OUT BY THE LEARNED COUNSEL THAT THE POLISHING WORK IS D ONE BY THE WORKERS ITA-511/DEL/2012 3 OR SMALL PARTIES AND IF SOME OF THEM HAVE SHIFTED T HEIR ADDRESS AFTER A LONG GAP (I.E. BETWEEN THE WORK DONE AND THE ASSESS MENT PROCEEDINGS) IT CANNOT BE PRESUMED THAT NO POLISHI NG WORK IS DONE. HE ALSO POINTED OUT FROM THE CHART THAT THE POLISHI NG EXPENSES CLAIMED BY THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION AR E ALMOST SIMILAR TO IMMEDIATELY PRECEDING YEAR I.E. AY 2007-08 AND LESS THAN AY 2004-05. IN BOTH THE YEARS THE ITAT SUSTAINED THE DISALLOWA NCE AT 15% OF THE POLISHING EXPENSES CLAIMED. THE CIT(A) FOLLOWED TH E SAME AND ASSESSEE IS NOT IN APPEAL AGAINST THE ABOVE ORDER O F THE CIT(A). AFTER CONSIDERING THE FACTS OF THE CASE AND THE ARGUMENTS OF BOTH THE SIDES IN OUR OPINION THE DECISION OF THE ITAT IN THE EAR LIER YEARS I.E. AY 2004- 05 AND 2007-08 WOULD BE SQUARELY APPLICABLE TO THE YEAR UNDER CONSIDERATION AND LEARNED CIT(A) RIGHTLY SUSTAINED THE DISALLOWANCE AT 15% FOLLOWING THE DECISION OF THE ITAT. THERE IS N O INFIRMITY IN THE ORDER OF LEARNED CIT(A). THE SAME IS SUSTAINED. 6. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 28 TH NOVEMBER 2014. SD/- SD/- ( (( ( I.C. SUDHIR I.C. SUDHIR I.C. SUDHIR I.C. SUDHIR ) )) ) (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 28.11.2014 VK. COPY FORWARDED TO: - 1. APPELLANT : DEPUTY DEPUTY DEPUTY DEPUTY COMMISSIONER OF INCOME TAX COMMISSIONER OF INCOME TAX COMMISSIONER OF INCOME TAX COMMISSIONER OF INCOME TAX CIRCLE CIRCLE CIRCLE CIRCLE- -- -19(1) NEW DELHI. 19(1) NEW DELHI. 19(1) NEW DELHI. 19(1) NEW DELHI. 2. RESPONDENT : M/S PUNJAB STAINLESS STEEL INDUSTRI ES M/S PUNJAB STAINLESS STEEL INDUSTRIES M/S PUNJAB STAINLESS STEEL INDUSTRIES M/S PUNJAB STAINLESS STEEL INDUSTRIES B BB B- -- -61 WAZIRPUR INDUSTRIAL AREA 61 WAZIRPUR INDUSTRIAL AREA 61 WAZIRPUR INDUSTRIAL AREA 61 WAZIRPUR INDUSTRIAL AREA DELHI DELHI DELHI DELHI 110 052. 110 052. 110 052. 110 052. 3. CIT 4. CIT(A) 5. DR ITAT ASSISTANT REGISTRAR