The ACIT, Circle-8,, Ahmedabad v. Torrent Invest P Ltd, Ahmedabad

MA 336/AHD/2008 | 1996-1997
Pronouncement Date: 30-09-2010 | Result: Dismissed

Appeal Details

RSA Number 33620524 RSA 2008
Bench Ahmedabad
Appeal Number MA 336/AHD/2008
Duration Of Justice 1 year(s) 9 month(s) 4 day(s)
Appellant The ACIT, Circle-8,, Ahmedabad
Respondent Torrent Invest P Ltd, Ahmedabad
Appeal Type Miscellaneous Application
Pronouncement Date 30-09-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 30-09-2010
Assessment Year 1996-1997
Appeal Filed On 26-12-2008
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A BEFORE SHRI MUKUL KR. SHRAWAT JUDICIAL MEMBER AND SHRI D.C. AGRAWAL ACCOUNTANT MEMBER DATE OF HEARING : 24/09/2010 DRAFTED ON: 27 /09/2010 MA NO.336/AHD/2008 ( OUT OF ITA NO.1607/AHD/2002 ) ASSESSMENT YEAR : 1996-97 ACIT CIRCLE-8 AHMEDABAD VS. TORRENT INVESTMENT (P) LTD. TORRENT HOUSE NR.DINESH HALL ASHRAM ROAD AHMEDABAD PAN/GIR NO. : (ORIGINAL APPELLANT) ( APPLLICANT ) .. (ORIGINAL RESPONDENT) ( RESPONDENT ) APPLICANT BY : SHRI SANDIP GARG D.R. RESPONDENT BY: SHRI VARTIK CHOKSI & P.M. MEHTA A.R. O R D E R PER SHRI MUKUL KR. SHRAWAT JUDICIAL MEMBER : FROM THE SIDE OF THE REVENUE THE AFOREMENTIONED MISCELLANEOUS APPLICATION WAS FILED ON 26/12/2008 AND THROUGH THI S PETITION THE MAIN GRIEVANCE OF THE REVENUE IS THAT THE RESPECTED TRIB UNAL HAS RELIED UPON THE EARLIER DECISION IN ASSESSEES OWN CASE FOR ASS ESSMENT YEARS 1994-95 & 1995-96 HOWEVER IN THOSE ASSESSMENT YEARS A MIS CELLANEOUS PETITION HAS ALREADY BEEN BY THE REVENUE THEREFORE IN IDEN TICAL MANNER A RECTIFICATION IS SOUGHT FOR THE YEAR UNDER CONSIDER ATION. FOR READY REFERENCE RELEVANT PORTION REPRODUCED BELOW: - MA NO.336/AHD/2008 ( OUT OF ITA NO.1607/AHD/2002) ACIT VS. TORRENT INVESTMENTS (P) LTD. ASST.YEAR 1996-97 - 2 - THE HON'BLE BENCH HAS DECIDED THE ISSUE BY RELYING UPON THE DECISION OF HON'BLE ITAT IN ASSESSEES OWN CASE FOR THE A.Y. 1995- 96 IN I.T.A. NO.2396/AHD/99 AND I.T.A. NO.2275/AHD/ 99. IN THESE ORDERS THE TRIBUNAL HAS SET ASIDE THE ISSUE TO THE FILE OF A.O. FOR VERIFICATION. 2. FOR A.Y. 1994-95 THE ABOVE GROUND WAS DECIDED VIDE PARAGRAPH 14 OF THE ORDER. FOR THE SAKE OF CLARIT Y THE SAME IS REPRODUCED AS UNDER: WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED TH E RECORD. AS THE FACTS EMERGE THE ASSESSEE HAS OFFE RED SURRENDER VALUE OF THE POLICY ON 25/4/96 WHICH WAS RECEIVED BY THE ASSESSEE COMPANY AND HAS BEEN INCLUDED IN PR OFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31/3/1997. THE PRE MIUM WAS PAID ON 25/4/1996 WHICH WAS PRIOR TO AMENDME NT W.E.D. 1/4/1996 FOR PROVIDING TAXATION OF THE SUM R ECEIVD UNDER KIP BOTH IN THE HANDS OF THE PAYER AND ASSIGN EE THEREFORE THE SAME DOES NOT REMAIN EXPENDITURE INC URRED IN RESPECT OF EXEMPT INCOME. IN VIEW OF THESE FACTS WE SET- ASIDE THE ISSUE BACK TO THE FILE OF AO TO VERIFY T HE ACT OF HAVING INCLUDED THE SURRENDER VALUE OF THIS KIP IN SUBSEQUENT YEAR I.E. YEAR RELEVANT TO 31/3/1997 AND IF IT IS FOUND TO BE OFFERED THEN THE EXPENDITURE SHALL BE ALLOWED TO THE ASSESSEE. IN FINE WE UP0HOLD THE FINDINGS OF THE CIT(A) SUBJECT TO THIS VERIFICATION. 3. 4 5. 6. SINCE THE ISSUE INVOLVED IS EXACTLY THE SAME A ND THE MISCELLANEOUS APPLICATION FOR A.Y. 1994-95 IS UNDE R CONSIDERATION OF THE HON'BLE TRIBUNAL IT IS HUMBLY SUBMITTED AND PRAYED THAT THE MISCELLANEOUS APPLICATION FOR A.Y. 96-97 IN ITA NO.1607/AHD/2002 & 1424/AHD/2002 DT. 16/11/2007 MAY ALSO BE CONSIDERED AND THE NECESSARY ORDER BE PASSED ACCORD INGLY. MA NO.336/AHD/2008 ( OUT OF ITA NO.1607/AHD/2002) ACIT VS. TORRENT INVESTMENTS (P) LTD. ASST.YEAR 1996-97 - 3 - 2. AFTER HEARING BOTH THE SIDES WE HAVE NOTICED TH AT IN THE PAST TWO MISCELLANEOUS APPLICATIONS OF THE REVENUE FOR ASSE SSMENT YEARS 1994- 95 & 1995-96 HAVE BEEN DECIDED AS PER THE FOLLOWING ORDERS:- (I) MA NO.55/AHD/2008 [ARISING OUT OF ITA NO.14/AHD/2000] ASSESSMENT YEAR 1995-96 IN THE CASE OF ITO VS. TORRENT INVESTMENTS (P) LTD. ORDER DATED 01/05/2009 (ITAT AHMEDABAD BENCH B) (II) MA NO.98/AHD/2007 [ARISING OUT OF ITA NO.2275/AHD/1999] ASSESSMENT YEAR 1994-95 IN THE CASE OF ACIT VS. TORRENT INVESTMENTS (P) LTD . ORDER DATED 07/03/2008 (ITAT AHMEDABAD BENCH B) 3. IN THE LATEST PAST I.E. ASSESSMENT YEAR FOR 199 5-96 THE PETITION OF THE REVENUE WAS DISMISSED VIDE ORDER DATED 01/05/20 09 AS REFERRED SUPRA AND THE RELEVANT PARAGRAPH NO.3 IS REPRODUCED BELOW :- 3. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMIS SIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT THE MISCELLANEOUS APPLICATION HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF THIS TRIBUNAL FOR AY 1994-95 AGAINST THE FINDINGS GIVEN UNDER PARAS 5 AND 6 OF THE ORDER WHICH READ AS UNDER: 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISS IONS PERUSED THE MATERIALS ON RECORD AND GONE THROUGH TH E ORDERS OF TAX AUTHORITIES ORDER OF THE TRIBUNAL DA TED 6/10/2005 IN THE CASE OF THE ASSESSEE FOR THE ASSES SMENT YEAR 94-95 IN ITA NO.2396/AHD/99 AND ITAT NO.2275/AHD/99 . WE FIND THAT THIS TRIBUNAL UNDER PARA 14 OF ITS ORD ER HAS HELD AS UNDER IN RESPECT OF PREMIUM PAID ON THE KEY MAN MA NO.336/AHD/2008 ( OUT OF ITA NO.1607/AHD/2002) ACIT VS. TORRENT INVESTMENTS (P) LTD. ASST.YEAR 1996-97 - 4 - INSURANCE POLICIES TAKEN FOR TWO WHOLE TIME DIRECTO R NAMELY SMT. ANITA S.MEHTA AND SMT.SAPNA S.MEHTA: 14. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RECORD. AS THE FACTS EMERGE THE ASSES SEE HAS OFFERED SURRENDER VALUE OF THE POLICY ON 25/4/1996 WHICH WAS RECEIVED BY THE ASSESSEE COMPANY AND HAS BEEN INCLUDED IN PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31/3/97. THE PREMIUM WAS PAID ON 25/4/96 WHICH WAS PRIOR TO AMENDMENT W.E.F. 1/10/1996 FOR PROVIDING TAXATION OF THE SUM RECEIVED UNDER KIP BOTH IN THE HANDS OF THE PAYER A ND ASSIGNEE THEREFORE THE SAME DOES NOT REMAIN EXPENDITURE INCURRED IN RESPECT OF EXEMPT INCOME. IN VIEW OF THESE FACTS WE SET ASIDE THE ISSUE BACK TO THE FILE OF ASSESSING OFFICER TO VERIFY THE FACT OF HAV ING INCLUDED THE SURRENDER VALUE OF THIS KIP IN SUBSEQUENT YEAR I.E. YEAR RELEVANT TO 31/3/97 AND I F IT IS FOUND TO BE OFFERED; THEN THE EXPENDITURE SHALL BE ALLOWED TO THE ASSESSEE. IN FINE WE UPHOLD THE FINDINGS OF THE LEARNED CIT(APPEALS) SUBJECT TO THI S VERIFICATION.- 6. THE LEARNED CIT(APPEALS)HAS ONLY DELETED THE DISALLOWANCE IN RESPECT OF THE PREMIUM PAID ON THE KEYMAN INSURANCE POLICIES OF SMT. ANITA S.MEHTA AND SMT. S APNA S.MEHTA AND THE PREMIUM PAID ON THE KEYMAN INSURANC E POLICY OF SHRI V.A. SHAH HAS ALREADY BEEN DISALLOWE D. THE DECISION OF THE TRIBUNAL RELATES ONLY TO THE PREMIU M PAID ON THE KEYMAN INSURANCE POLICY ON THE LIFE OF SMT. ANI TA S.MEHTA AND SAPNA S.MEHTA. WE THEREFORE RESPECTF ULLY FOLLOWING THE AFORESAID DECISION OF THIS TRIBUNAL SET ASIDE THE ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER TO VERIFY THE FACT OF HAVING INCLUDED THE SURRENDER VALUE OF THE KEYMAN INSURANCE POLICY IN THE ASSESSMENT YEAR 97-98 AND I F IT IS FOUND THAT THE ASSESSEE HAS OFFERED IT FOR TAXATION THEN THE PREMIUM PAID IN RESPECT OF KEYMAN INSURANCE POLICY OF SMT. ANITA S.MEHTA AND SMT. SAPNA S.MEHTA AMOUNTING TO MA NO.336/AHD/2008 ( OUT OF ITA NO.1607/AHD/2002) ACIT VS. TORRENT INVESTMENTS (P) LTD. ASST.YEAR 1996-97 - 5 - RS.8 35 803/- BE ALLOWED TO THE ASSESSEE. THUS WE UPHOLD THE FINDING OF LEARNED CIT(APPEALS) SUBJECT TO THIS VERIFICATION. THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE ON THE ISSUE RELATING TO RECTIFICATION UNDER PARA-14 SINCE STAND S DISMISSED VIDE ORDER DATED 07-03-2008 THEREFORE IN OUR OPINION THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE FOR AY 1995-96 ALSO DOES NOT SURVIVE. WE ACCORDINGLY DISMISS THE SAME. 4. SINCE THE REVENUES PETITION HAVE BEEN DISMISSED ON IDENTICAL FACTS THEREFORE RESPECTFULLY FOLLOWING THE PAST V ERDICT FOR THIS YEAR AS WELL THIS PETITION OF THE REVENUE IS HEREBY DISMISS ED. 5. IN THE RESULT THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE IS DISMISSED. ORDER SIGNED DATED AND PRONOUNCED IN THE COURT ON 30/ 09 /2010. SD/- SD/- ( D.C. AGRAWAL) ( MUKUL KR. SH RAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBE R AHMEDABAD; DATED 30 / 09 /2010 T.C. NAIR SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE ASSESSEE. 2. THE DEPA RTMENT. 3. THE CIT CONCERNED. 4. THE LD. CIT(AP PEALS)-III AHMEDABAD 5. THE DR AHMEDABAD BENCH.6. THE GUARD FILE. BY ORDER //TRUE COPY// (DY./ASSTT.REGISTRAR) ITAT AHMEDABAD MA NO.336/AHD/2008 ( OUT OF ITA NO.1607/AHD/2002) ACIT VS. TORRENT INVESTMENTS (P) LTD. ASST.YEAR 1996-97 - 6 - 1. DATE OF DICTATION..24/09/2010 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 27/09/2010 OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.30/09/10 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 30/09/10 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 9. DATE OF DESPATCH OF THE ORDER