M/s Praga Tools Ltd., Hyderabad v. DCIT, Circle 16(3), Hyderabad

MA 188/HYD/2010 | misc
Pronouncement Date: 31-01-2011 | Result: Dismissed

Appeal Details

RSA Number 18822524 RSA 2010
Assessee PAN AABCP2301F
Bench Hyderabad
Appeal Number MA 188/HYD/2010
Duration Of Justice 5 month(s) 5 day(s)
Appellant M/s Praga Tools Ltd., Hyderabad
Respondent DCIT, Circle 16(3), Hyderabad
Appeal Type Miscellaneous Application
Pronouncement Date 31-01-2011
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 31-01-2011
Assessment Year misc
Appeal Filed On 25-08-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SHRI N.R.S. GANESAN JUDICIAL MEMBER AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER MA NO.188 & 68/H/2010 ARISING OUT OF ITA NO.1283/H/2008 M/S PRAGA TOOLS LTD. HYDERABAD (PAN AABCP 2301 F) VS THE DCIT CIRCLE 16(3) HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P. MURALI MOHAN RAO RESPONDENT BY : SMT. VASUNDHARA SINHA O R D E R PER CHANDRA POOJARI ACCOUNTANT MEMBER: THESE TWO MISCELLANEOUS APPLICATIONS ARE FILED ON E BY THE ASSESSEE AND THE OTHER BY THE DEPARTMENT UNDER PROV ISO TO RULE 24 OF THE INCOME TAX APPELLATE TRIBUNAL RULES 1963 TO RECALL THE ORDER OF THIS TRIBUNAL DATED 30.9.2009. 2. THE LEARNED AUTHORISED REPRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS RAISED TWO GROUNDS IN ITS APPEAL WITH REGARD TO DISALLOWANCE OF PAYMENT MADE TO VRS EMPLO YEES AND DISALLOWANCE OF PROVISIONS CREATED FOR GRATUITY AND LEAVE ENCASHMENT. ACCORDING TO THE LEARNED AUTHORISED REPRESENTATIVE THE TRIBUNAL HAS SET ASIDE THE ISSUE RELATING TO THE VRS PAYMENT TO THE FILE OF ASSESSING OFFICER FOR RECONSIDERATION HOWEVER NOT GIVEN FINDINGS RE LATING TO PROVISION MADE FOR GRATUITY PAYMENT AND LEAVE ENCASHMENT. THE CON TENTION OF THE DEPARTMENT IS THAT THE TRIBUNAL TOTALLY MISUNDERSTO OD THE ISSUE AND GIVEN A DIRECTION TO EXAMINE THE VRS SCHEME AS APPROVED B Y THE COMPETENT AUTHORITY AND TO CONSIDER ONLY THOSE PAYMENTS FOR D ISALLOWANCE U/S 35DDA OF THE ACT WHICH ARE PAID IN ACCORDANCE WITH THE VRS SCHEME. SHE SUBMITTED THAT THE ASSESSING OFFICER DISALLOWED THE PROVISIONS CREATED FOR GRATUITY AND LEAVE ENCASHMENT U/S 40A(7)(A) OF THE IT ACT. HOWEVER MA NOS.68 & 188/H/2010 M/S PRAGA TOOLS LTD. HYDERABAD 2 2 TRIBUNAL HAD CONSIDERED IT TO BE DISALLOWED U/S 35D DA OF THE ACT AND THIS MISTAKE NEEDS TO BE RECTIFIED. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED T HE MATERIALS AVAILABLE ON THIS ISSUE. THE TRIBUNAL IN ITS ORDE R SET ASIDE THE ISSUE RELATING TO THE VRS PAYMENT AS WELL AS PROVISIONS F OR PAYMENT OF GRATUITY AND LEAVE ENCASHMENT TO THE FILE OF ASSESSING OFFIC ER FOR FRESH CONSIDERATION. IT WAS ALSO HELD THAT THE NORMAL PRO VISIONS OF THE ACT WILL APPLY TO THE ISSUE RELATING TO PROVISION FOR GRATUI TY AND LEAVE ENCASHMENT BY PLACING RELIANCE ON THE ORDER OF THE DATED 30.9 .2009 IN ITA NO.1283/H/2008 IN ASSESSEES OWN CASE FOR THE ASSES SMENT YEAR 2004-05. BEING SO THE TRIBUNAL HAS DIRECTED THE ASSESSING O FFICER TO CONSIDER THE ISSUE AFRESH IN ACCORDANCE WITH LAW. HENCE IN OUR OPINION THERE IS NO MISTAKE APPARENT ON RECORD WHICH REQUIRES RECTIFICA TION OF THE ORDER OF THE TRIBUNAL. 5. IN THE RESULT BOTH THE MISCELLANEOUS APPLICA TIONS FILED BY THE ASSESSEE AS WELL AS THE DEPARTMENT ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT 31.1.2011 SD/- SD/- N.R.S. GANESAN CHANDRA POOJARI JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 31ST JANUARY 2011 COPY FORWARDED TO: 1. M/S PRAGA TOOLS LTD. C/O P. MURALI & CO. CA 6- 3-655/2/3 LST FLOOR SOMAJIGUDA HYDERABAD. 2. THE DCIT CIRCLE 16(3) HYDERABAD 3. CIT(A)-V HYDERABAD. 4. CIT HYDERABAD 5. THE D.R. ITAT HYDERABAD. NP