Forum
Read and express views
× Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India

These are the latest case laws decided by various Income Tax Appellate Tribunals (ITAT) of India on Income Tax which have been published recently. The case laws are open for discussion and we invite expert comments from our members on its applicability and effect on relevant issues.

10-01-2020, The Jute Corporation of India, Section 43B, Tribunal Kolkata

  • amit
  • amit's Avatar Topic Author
  • Offline
  • Administrator
  • Administrator
More
8 months 2 weeks ago #12031 by amit
Section - 43B
Order Date - 10-01-2020
Favouring - Assessee allowed for statistical purpose
Court - Tribunal Kolkata
Appellant - The Jute Corporation of India Ltd.
Respondent - ITO
Justice - P.M. Jagtap, VP (KZ) & Shri A. T. Varkey, JM
Citation - 120Taxpundit95
Appeal No. - I.T.A. No. 2428/Kol/2017
Asstt. Year - 2011-12

Order

PER : A.T.Varkey, JM

This is an appeal preferred by the Assessee against the order of Ld. CIT(A) – 1, Kolkata dated 08.08.2017 for AY 2011-12.

2. The assessee has raised three grounds of appeal which are as under:

“1. That the Ld. CIT(A) has erred and not justified in confirming the disallowance of Rs.1 11,44,319/- ordered by AO towards payment of leave encashment as per actuarial valuation in conformity with the related laws.

2. That Ld. CIT(A) has erred and not justified in confirming the disallowance of Rs.3,48,426/- ordered by AO towards actual loss in respect of quantity loss and quality deterioration claimed by the party.

3. That the Ld. CIT(A) has erred and not justified in confirming an amount of Rs.66,67,569/- as an income ordered by AO towards interest earned on application of fund received from Govt. of India for implementation of the projects.”

3. Ground no. 1 is against the action of Ld. CIT(A) in confirming the disallowance of Rs.1,11,44,319/- claimed by the assessee towards payment of leave encashment as per actuarial valuation.

4. At the outset itself, we note that the similar issue had come up before this Tribunal in M/s. S. R. Batliboi & Co. vs. DCIT, ITA No. 1598/Kol/2011 for AY 2007-08 wherein the Tribunal vide para 4 has held as under:

“4. After hearing rival submissions and going through the facts and circumstances of the case and the order of the Tribunal cited supra, we find that the issue is dealt by the Coordinate bench of this Tribunal as under:

“3. At the outset, ld. senior counsel for the assessee submitted that in all these three appeals, the issue relates to allowability of provision for leave encashment
in terms of sub-section (f) of section 43B of the Income Tax Act. The assessee had advanced its claim relying on the dec sion of the Hon’ble Kolkata High Court in the case of M/s. Exide Industries Ltd reported in 292 ITR 470. However, the Assessing Officer did not accept the assessee’s claim observing that Department has preferred a Special Leave Petition before the Hon’ble Supreme Court and stay of the order of the Hon’ble Kolkata High Court was granted by the Hon’ble Apex Court. Ld. senior counsel submitted that under identical circumstances, Tribunal has restored the matter to the file of Assessing Officer to decide the issue in acc rdance with the decision of the Hon’ble Apex Court in the case of DCIT, Circle-8, Kolkata –vs.- M/s. Ernst & Young Pvt. Ltd. in ITA No. 1787/Kol./2008. He, therefore, submitted that the matter may be restored back to the file of Assessing Officer.

4. Learned Departmental Representative did not raise any objection.

5. We have considered the submissions of both the parties and have perused the records of the case. We find that Tribunal on identical issue in ITA No. 1787/Kol./2008 in the case of M/s. Ernst & Young Pvt. Ltd. has observed at para 12 in page 6 as under :-

“12. Ground No. 5 of the revenue’s appeal is against the relief allowed by the CIT(A.) in respect of provision for leave encashment which was deleted by the CIT(A.) following the decision of the Hon’ble jurisdictional High Court in the case of M/s. Exide Industries Ltd. (supra). It was pointed out by the ld. DR that the Hon’ble Apex Court in”SLP (Civil) 22889 of 2008 has stayed the operation of the decision of the Hon’ble jurisdictional High Court. In view of the above, we set aside the orders of the authorities below on this point and restore the matter back to the file of the AO with the direction that he will readjudicate this issue as per decision of the Hon’ble Apex Court in the case of M/s. Exide Industries Ltd. (supra)”. Respectfully following the same we set aside the orders of authorities below on this point and restore the matter back to the file of Assessing Officer for adjudication as per the decision of the Hon’ble Apex Court in the case of M/s.
Exide Industries Ltd.(supra).

In view of the above and respectfully following the same, we set aside the orders of the authorities below and restore the matter back to the file of Assessing Officer for adjudication as per the decision of Hon’ble Apex Court in the case of M/s. Exide Industries Ltd. (Supra). This ground of appeal of assessee is allowed for statistical purposes.”

5. In view of the aforesaid decision of the coordinate bench on a similar issue, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the AO for adjudication to await the final outcome of the Hon’ble Apex Court in SLP (Civil) 22889 of 2008 in M/s. Exide Industries Ltd. case and decide this issue as per the decision of Hon’ble Apex court in M/s. Exide Industries Ltd., supra. Thus, this ground of appeal of assessee is allowed for statistical purposes.

6. Ground no. 2 is against the action of the Ld. CIT(A) in confirming the disallowance of Rs.3,48,426/- ordered by the AO towards actual loss in respect of quantity loss and quality deterioration claimed by the respective parties.

7. Brief facts of the cas as noted by the AO are that during the previous year, the assessee had made a provision of claims of Rs.5,70,410/- which represents provision made for the year 2010-l1 on account of prospective claims for sale of jute to customers on account of quality and short weight of deliveries of jute. The assessee through a written submission stated that "corporation makes provision on expected claims from mill parties on account of Raw Jute supplied to them during the year due to weight loss and quality loss on supplies. The provision of Rs. 5,70,410/- was made during the year on account of such loss by following uniform practice followed over the years. Details of claim bills pending for settlement from such provisions amount as follows ... ". The AO noted in his order that A/R has submitted before him that claim bills on hand, which are pending aggregated to Rs. 2,22,074/-. After considering the submissions of the assessee according to AO, it is undisputed that not all deliveries are subjected to deterioration, and even where such

Click to view and download Full Free Judgement of The Jute Corporation of India Ltd. vs. ITO

Unable to display Google Map.




Please Log in or Create an account to join the conversation.

Time to create page: 0.512 seconds

If You Appreciate What We Do Here On TaxPundit, You Should Consider:

We are thankful for your never ending support.

Latest Analysis - High Courts

PCIT vs. Nathji Goverdhan Nathji Charitable Trust

PCIT vs. Nathji Goverdhan Nathji Charitable Trust

PCIT vs. Nathji Goverdhan Nathji Charitable Trust Read More
PCIT vs. Eight Roads Investment Advisors Pvt. Ltd.

PCIT vs. Eight Roads Investment Advisors Pvt. Ltd.

PCIT vs. Eight Roads Investment Advisors Pvt. Ltd. Read More
EXPERION DEVELOPERS PVT LTD. vs. ACIT

EXPERION DEVELOPERS PVT LTD. vs. ACIT

EXPERION DEVELOPERS PVT LTD. vs. ACIT Read More
PCIT vs. MLS CBRE SOUTH ASIA PRIVATE LIMITED

PCIT vs. MLS CBRE SOUTH ASIA PRIVATE LIMITED

PCIT vs. MLS CBRE SOUTH ASIA PRIVATE LIMITED Read More
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50

Forum Features

Latest Case Laws
Latest Case Laws are instantly updated in the Forum into their respective section
Latest from CBDT
Latest Circulars, Notifications, Orders etc. from CBDT is updated in the Forum
Ask Experts
You can ask questions to the community
Support
Support queries are either replied via mail or in the Forum so that others can be benefited
Press Releases
Latest Press Notes and Press Releases are updated in the Forum
Connect with Members
You can connect with our community members by replying to their queries

Recommended Articles

 

SITE INFORMATION

All content herein is the copyright of Taxpundit. No images, text, or any other content may be, reproduced or redistributed without the express written consent of Taxpundit.

All Rights Reserved. All Content Copyright.

Newsletter

Subscribe to our newsletter and stay updated on the latest developments and special offers!

Vivad Se Vishwas Scheme announced in Union Budget, 2020. Download Now
Toggle Bar