Telekonnectors Ltd., CHENNAI v. ACIT, CHENNAI

MA 35/CHNY/2014 | 2008-2009
Pronouncement Date: 11-04-2014 | Result: Allowed

Appeal Details

RSA Number 3521724 RSA 2014
Assessee PAN AAACT9254A
Bench Chennai
Appeal Number MA 35/CHNY/2014
Duration Of Justice 1 month(s) 12 day(s)
Appellant Telekonnectors Ltd., CHENNAI
Respondent ACIT, CHENNAI
Appeal Type Miscellaneous Application
Pronouncement Date 11-04-2014
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted D
Tribunal Order Date 11-04-2014
Assessment Year 2008-2009
Appeal Filed On 28-02-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH CHENNAI BEFORE DR. O.K.NARAYANAN VICE-PRESIDENTAND SHRI VIKAS AWASTHY JUDICIAL MEMBER M.P. NO. 35/MDS/2014 (IN ITA NO. 1480/MDS2012) ASSESSMENT YEAR : 2008-09 M/S TELEKONNECTORS LTD. 161 THIRUVALLUVAR SALAI THIRUVANMIYUR CHENNAI - 600 041. PAN : AAACT 9254 A V. THE ASSISTANT COMMISSIONER OF INCOME TAX COMPANY CIRCLE III(1) CHENNAI - 600 034. ( PETITIONER) (RESPONDENT) PETITIONER BY : SHRI M. VISWANATHAN CA RESPONDENT BY : SHRI T.N. BETGERI IRS JCIT DATE OF HEARING : 11 TH APRIL 2014 DATE OF PRONOUNCEMENT : 11 TH APRIL 2014 O R D E R PER DR.O.K.NARAYANAN VICE-PRESIDENT THIS MISCELLANEOUS PETITION IS FILED BY THE ASSE SSEE. THE PETITION IS FILED IN THE CONTEXT OF THE ORDER PASSE D BY THE TRIBUNAL IN THE APPEAL FILED BY THE ASSESSEE IN I.T.A. NO. 1480 /MDS/2012 WHICH HAS BEEN DISPOSED OF BY THE TRIBUNAL THROUGH THEIR ORDER DATED 5 TH FEBRUARY 2014. 2 M.P. NO. 35/MDS/14 2. THE TEXT OF THE MISCELLANEOUS PETITION FILED BEF ORE US READ AS FOLLOWS:- DEDUCTION UNDER SECTION 35(2)(IA) ` 83 28 550/- (RELEVANT PAGE 5 & 6 PARA 5 & 6) THE APPELLANT HAS CLAIMED A DEDUCTION UNDER SECTI ON 35(2)(IA) WHILE FILING THE RETURN OF INCOME. THE APPELLANT HAS PURCHASED A SOFTWARE FROM DIM DIM A COMPANY FROM USA AND PUT INTO USE BEFORE 31 ST MARCH 2008. THE PAYMENT HAS BEEN MADE TO THE EXTENT OF ` 4 35 066/-. SUBSEQUENT PAYMENTS WERE NOT MADE BECAUSE THERE WAS A DISPUTE BETWEEN THE APPELLANT AND THE SUPPLIER. THE APPELLANT HAS SUBMITTED ALL THE DOCUMENTS DURI NG THE COURSE OF THE HEARING. THE HONBLE TRIBUNAL HA S ALLOWED THE DEDUCTION TO THE EXTENT OF ` 4 35 066/- AS BUSINESS LOSS UNDER SECTION 37. THE APPELLANT HAS WRITTEN BACK THE OUTSTANDING AMOUNT PAYABLE TO DIM DIM AND OFFERED A SUM OF ` 43 83 143/- (WHICH IS THE VALUE OF THE ASSET PURCHA SED LESS DEPRECIATION CLAIMED) AS INCOME FOR THE ASSESSMENT YEAR 2011-12. THE HONBLE TRIBUNAL HAS OMITTED TO GIVE A DIRECTI ON TO THE ASSESSING OFFICER TO ALLOW THE CLAIM OF OUR REV ERSAL OF INCOME OFFERED TO A TUNE OF ` 43 83 143/- FOR THE ASSESSMENT YEAR 2011-12 AS THE AMOUNT HAS ALREADY BEEN TAXED IN THE ASSESSMENT YEAR 2008-09 UNDER TH E REFERRED ORDER. 3. AS RIGHTLY PUT IN BY THE CHARTERED ACCOUNTANT AP PEARING FOR THE ASSESSEE THE TRIBUNAL HAS NOT GRANTED THE DEDU CTION CLAIMED BY THE ASSESSEE UNDER SECTION 35(2)(IA). THE CLAIM OF THE ASSESSEE 3 M.P. NO. 35/MDS/14 HAS BEEN DENIED BY THE TRIBUNAL ON THE GROUND THAT THE ASSESSEE- COMPANY NEVER BECAME A LAWFUL OWNER OF THE SOFTWARE . 4. BUT AT THE SAME TIME THE ASSESSEE HAD OFFERED ` 43 83 147/- AS INCOME FOR THE ASSESSMENT YEAR 2011- 12 ON THE GROUND THAT THE SAID AMOUNT BEING THE BALANCE PAYAB LE TO THE SUPPLIER OF THE SOFTWARE WAS NO MORE LIABLE TO BE P AID. THEREFORE THE ASSESSEE OFFERED THE SAID CREDIT BALANCE AS INC OME UNDER SECTION 41(1). THE TRIBUNAL HAS DENIED THE ENTIRE DEDUCTION. THEREFORE THERE IS NO NECESSITY FOR THE ASSESSEE T O OFFER THIS AMOUNT FOR ASSESSMENT. THE PICTURE HAS BECOME CLEA R ONLY AFTER THE TRIBUNAL HAS PRONOUNCED THE ORDER. IF THE AMOU NT OF ` 43 83 147/- OFFERED BY THE ASSESSEE AS INCOME FOR T HE ASSESSMENT YEAR 2011-12 IS PERMITTED TO SURVIVE THEN IT AMOUN TS TO DOUBLE JEOPARDY TO THE ASSESSEE. ONCE THE DEDUCTION CLAIM ED BY THE ASSESSEE IS DISALLOWED THE ENTIRE AMOUNT HAS ALREA DY BEEN BROUGHT TO TAX AND NOTHING REMAINS THEREAFTER EITHER TO BE CLAIMED AS DEDUCTION OR TO BE OFFERED AS INCOME UNDER SECTION 41(1). 5. IN THE FACTS AND CIRCUMSTANCES OF THE CASE WE D IRECT THE ASSESSING OFFICER TO EXCLUDE THE AMOUNT OF ` 43 83 147/- FROM THE TAXABLE INCOME OF THE ASSESSEE ASSESSED FOR THE ASS ESSMENT YEAR 2011-12. THE APPEAL HEARD AND DISPOSED BY THE TRIB UNAL RELATED TO 4 M.P. NO. 35/MDS/14 THE ASSESSMENT YEAR 2008-09. BUT THIS DIRECTION P ERTAINS TO ASSESSMENT YEAR 2011-12. THE TRIBUNAL DOES HAVE TH E JURISDICTION TO GIVE SUCH A DIRECTION FOR THE ASSESSMENT YEAR 20 11-12 AS IT IS VERY MUCH CONSEQUENTIAL TO THE ORDER PASSED FOR THE ASSESSMENT YEAR 2008-09. THE ASSESSING AUTHORITY IS THEREFORE DIRECTED TO REVISE THE ASSESSMENT COMPLETED FOR THE ASSESSMENT YEAR 2011-12 BY REDUCING THE TAXABLE INCOME OR ENHANCING THE LOS S WHATEVER IT IS TO THE EXTENT OF ` 43 83 147/-. 6. IN RESULT THIS MISCELLANEOUS PETITION FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON FRIDAY THE 11 TH OF APRIL 2014 AT CHENNAI. SD/- SD/- (VIKAS AWASTHY) (DR. O.K. NARAYANAN) JUDICIAL MEMBER VICE-PRESIDEN T CHENNAI DATED THE 11 TH APRIL 2014. KRI. COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR 6. GF.