Schnedider Electric IT Business India P Ltd, Bangalore v. Commissioner of Income tax,(LTU), Bangalore

MA 79/BANG/2016 | 2006-2007
Pronouncement Date: 31-10-2016

Appeal Details

RSA Number 7921124 RSA 2016
Assessee PAN AACCA6398Q
Bench Bangalore
Appeal Number MA 79/BANG/2016
Duration Of Justice 3 month(s) 9 day(s)
Appellant Schnedider Electric IT Business India P Ltd, Bangalore
Respondent Commissioner of Income tax,(LTU), Bangalore
Appeal Type Miscellaneous Application
Pronouncement Date 31-10-2016
Appeal Filed By Assessee
Bench Allotted B
Tribunal Order Date 31-10-2016
Assessment Year 2006-2007
Appeal Filed On 22-07-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SMT ASHA VIJAYARAGHAVAN JUDICIAL MEMBER AND SHRI INTURI RAMA RAO ACCOUNTANT MEMBER MP NO.79/BANG/2016 ASSESSMENT YEAR : 2006-07 M/S. SCHNEIDER ELECTRIC IT BUSINESS INDIA PVT. LTD. [FORMERLY KNOWN AS AMERICAN POWER CONVERSION (INDIA) PVT. LTD. ] 187/3 AND 188/3 JIGANI BANGALORE-562106. PAN:AACCA6398 Q VS. COMMISSIONER OF INCOME TAX (LTU) BANGALORE. APPELLANT RESPONDENT ASSESSEE BY : SHRI. K. R. VASUDEVAN ADVOCATE REVENUE BY : SMT. MEERA SRIVASTAVA ADDL. CIT (DR) DATE OF HEARING : 30.09.2016 DATE OF PRONOUNCEMENT : 31 .10.2016 O R D E R PER INTURI RAMA RAO ACCOUNTANT MEMBER THE PRESENT MISCELLANEOUS PETITION WAS FILED BY T HE ASSESSEE COMPANY SEEKING RECTIFICATION OF THE ORDER PASSED B Y THIS TRIBUNAL IN IT(TP)A NO.833/BANG/2013 DATED 11-05-2016 STATING T HAT THE TRIBUNAL WHILE PASSING THE IMPUGNED ORDER HAD WRONGLY NOTED THAT T HE ENHANCED BUSINESS INCOME IS ONLY ON ACCOUNT OF PRIOR PERIOD INCOME A ND NOT DISALLOWANCE OF THE PRIOR PERIOD EXPENDITURE. THUS IT WAS PRAYED T HAT THE IMPUGNED ORDER MP NO.79/BANG/2016 PAGE 2 OF 3 MAY BE RECTIFIED. WE HAVE HEARD THE RIVAL SUBMISSI ONS AND PERUSED THE MATERIAL ON RECORD. WE FOUND MERIT IN THE SUBMISSI ON IN THE PRESENT APPLICATION. THEREFORE WE ARE INCLINED TO RECTIFY THE IMPUGNED ORDER AS FOLLOWS: 2. IN THE PLACE OF THE PARA WE ARE INFORMED AT THE BAR THAT ENHANCED TOTAL INCOME IS ON ACCOUNT OF PRIOR PERIOD INCOME W HICH IS SHOWN AS PRIOR PERIOD INCOME IN THE FINANCIAL STATEMENTS. THE AO HAS NOT APPLIED HIS MIND ON THIS ASPECT. WE RESTORE THIS ISSUE TO THE FILE OF THE AO TO EXAMINE WHETHER THE ADDITIONAL INCOME OFFERED QUALIFY FOR D EDUCTION UNDER THE PROVISIONS OF SEC.10A AND IF IT IS SO FOUND TO ALL OW THE SAME IN ACCORDANCE WITH LAW AFTER AFFORDING DUE TO OPPORTUNITY TO THE ASSESSEE COMPANY THE FOLLOWING PARA SHALL BE SUBSTITUTED: WE ARE INFORMED AT THE BAR THAT THE ENHANCED TOTAL INCOME IS ON ACCOUNT OF DISALLOWANCE OF PRIOR PERIOD EXPENDITURE WHICH R ESULTED IN ENHANCEMENT OF BUSINESS INCOME. THEREFORE IN THE LIGHT OF THE LAW LAID DOWN BY THE HONBLE BOMBAY HIGH COURT CIT VS. GEM PLUS JEWELLERY INDIA LTD. (94 TAXMANN 192) THE ENHANCED INCOME IS ELIGIBLE FOR DEDUCTION UNDE R SECTION 10A. THIS DOES NOT WARRANT ANY ENQUIRY. THEREFORE THE CIT WAS NOT JUSTIFIED IN ASSUMING THE POWER OF REVISIONS UNDER PROVISIONS OF SECTION 263 OF THE ACT. 3. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. MP NO.79/BANG/2016 PAGE 3 OF 3 PRONOUNCED IN THE OPEN COURT ON THIS 31 ST DAY OF OCTOBER 2016. SD/- (ASHA VIJAYARAGHAVAN) SD/- (INTURI RAMA RAO) JUDICIAL MEMBER ACC OUNTANT MEMBER BANGALORE. DATED: 31 ST OCTOBER 2016. /NS/ COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR ITAT BANGALORE.