ACIT, CHENNAI v. M/s. Tamil Nadu Warehousing Corporation, CHENNAI

ITA 924/CHNY/2011 | 2006-2007
Pronouncement Date: 22-07-2011 | Result: Dismissed

Appeal Details

RSA Number 92421714 RSA 2011
Assessee PAN AAACT2474Q
Bench Chennai
Appeal Number ITA 924/CHNY/2011
Duration Of Justice 2 month(s) 3 day(s)
Appellant ACIT, CHENNAI
Respondent M/s. Tamil Nadu Warehousing Corporation, CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 22-07-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 22-07-2011
Assessment Year 2006-2007
Appeal Filed On 19-05-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH CHENNAI BEFORE SHRI N. S. SAINI ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN JUDICIAL MEMBER .. I.T.A. NO. 924/MDS/2011 ASSESSMENT YEAR : 2006-07 THE ASSISTANT COMMISSIONER OF INCOME-TAX COMPANY CIRCLE-III(1) CHENNAI. V. M/S. TAMIL NADU WAREHOUSING CORPORATION 82 ANNA SALAI GUINDY CHENNAI-600 032. (PAN : AAACT2474Q) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.E.B. RENGARAJAN JR. STANDING COUNSEL RESPONDENT BY : NONE O R D E R PER GEORGE MATHAN JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED CIT(APPEALS)-III CHENNAI IN ITA NO. 350/08-09/A.II I DATED 22-02-2011 FOR THE ASSESSMENT YEAR 2006-07. 2. SHRI K.E.B. RENGARAJAN JR. STANDING COUNSEL REPR ESENTED ON BEHALF OF THE REVENUE AND NONE REPRESENTED ON BEHALF OF THE ASSES SEE. 3. IN THE REVENUES APPEAL THE REVENUE HAS RAISED THE FOLLOWING GROUNDS : I.T.A. NO.924/MDS/2011 2 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IS CONTRARY TO THE LAW AND FACTS OF THE C ASE. 2. THE LEARNED CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE MADE IN RESPECT OF THE PROVISION OF LE AVE ENCASHMENT DEBITED TO P&L ACCOUNT TO THE TUNE OF ` 34 93 747/-. 2.1 IT IS SUBMITTED THAT AS PER SEC. 43B CLAUSE (F ) OF THE INCOME-TAX ACT WHICH CLEARLY INDICATES THAT PAYMENT OF EARNED LEAVE ENCASHMENT IS ALLOWABLE AS EXPENDITURE ONLY W HEN IT IS ACTUALLY PAID BEFORE THE DUE DATE OF FILING OF THE RETURN OF INCOME. 2.2 IT IS FURTHER SUBMITTED THAT THE DECISION OF T HE HON. ITAT IN THE ASSESSEES OWN CASE IN ITA NO. 689/MDS/ 2008 FOR AY 2005-06 ON THE SAME ISSUE HAS NOT BECOME FINAL A S THE REVENUE HAS PREFERRED FURTHER APPEAL BEFORE THE HON . HIGH COURT. 3. FOR THESE AND OTHER GROUNDS THAT MAY BE ADDUCED AT THE TIME OF HEARING IT IS PRAYED THAT THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) BE SET ASIDE A ND THAT OF THE ASSESSING OFFICER BE RESTORED. 4. IT WAS SUBMITTED BY THE LEARNED DR THAT THE LEAR NED CIT(A) HAS ALLOWED THE ASSESSEES APPEAL BY FOLLOWING THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE IMMEDIA TELY PRECEDING ASSESSMENT YEAR BEING 2005-06. IT IS THE SUBMISSION THAT THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN ITA NO. 689/MDS/2008 IN T HE ASSESSEES OWN CASE HAS NOT BECOME FINAL AND THE REVENUE HAS MOVED FURTHER APPEAL BEFORE THE HON'BLE JURISDICTIONAL HIGH COURT OF MADRAS. HE VEHEMENTLY SUPPORTED THE ORDER OF THE ASSESSING OFFICER. IT WAS FURTHER SUBMITTED THAT T HE PROVISION OF LEAVE I.T.A. NO.924/MDS/2011 3 ENCASHMENT DEBITED TO THE PROFIT & LOSS ACCOUNT AS DISALLOWED BY THE ASSESSING OFFICER WAS LIABLE TO BE RESTORED. 5. WE HAVE CONSIDERED THE SUBMISSIONS. A PERUSAL O F THE ORDER OF THE LEARNED CIT(A) CLEARLY SHOWS THAT THE LEARNED CIT(A) HAS FO LLOWED THE DECISION OF THE CO- ORDINATE BENCH OF THIS TRIBUNAL IN THE ASSESSEES O WN CASE FOR THE IMMEDIATELY PRECEDING YEAR. THE FACTS AS AVAILABLE FOR THE ASS ESSMENT YEAR 2005-06 WHEN THE CO-ORDINATE BENCH OF THIS TRIBUNAL DECIDED THE ISSU E ARE IDENTICAL TO THE FACTS AS ARE AVAILABLE IN THE PRESENT APPEAL. IN THE CIRCUM STANCES AS IT IS NOTICED THAT THE ISSUE HAS ALREADY BEEN DECIDED BY THE CO-ORDINATE B ENCH OF THIS TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2005-06 RESPECTFULLY FOLLOWING THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE ASSESSEES OWN CASE REFERRED TO SUPRA THE FINDING OF THE LEARNED CIT(A ) STANDS CONFIRMED AND THE APPEAL OF THE REVENUE STANDS DISMISSED. 6. THE ORDER WAS PRONOUNCED IN THE COURT ON 22/7/20 11. SD/- SD/- (N. S. SAINI) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI DATED THE 22 ND JULY 2011. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE