ACIT, ALWAR vs. ASHIANA ISPAT LIMITED, ALWAR

PER SHRI KUL BHARAT, JM.

These two appeals by the by the revenue are filed against the separate

orders of ld. CIT (A), Alwar dated 23.05.2017 and 24.03.2017 pertaining to

assessment years 2013-14 and 2014-15. Since identical grounds have been raised,

both the appeals are taken up together and are being decided by way of a

consolidated order. First, we take up revenue’s appeal in ITA No. 607/JP/2017

pertaining to Assessment Year 2013-14. The revenue has raised the following

ground of appeal :-

“ On the facts and in the circumstances of the case, ld. CIT (A) erred in deleting without giving any specific findings, the addition of Rs. 1,08,90,067/- made by the Assessing Officer on account of

2 ITA Nos. 607 & 410/JP/2017 M/s. Ashiana Ispat Ltd., Alwar.

disallowance of Commission on purchase and sales, since the assessee has failed to discharge its onus to establish that the services were actually rendered by the brokers.”

made on account of disallowance of commission on purchase and sales.

2.1. The ld. D/R supported the order of Assessing Officer and submitted that the

ld. CIT (A) was not justified in deleting the addition.

2.2. On the contrary, the ld. Counsel for the assessee submitted that the

disallowance is similar as in earlier year. The matter travelled upto the Jurisdictional

High Court and the issue has been decided in favour of the assessee. There is no

change into the facts and circumstances in the present case. Therefore, he

submitted that in view of the judgment of the Hon’ble Jurisdictional High Court the

ground raised in the present appeal deserves to be rejected.

2.3. We have heard rival contentions, perused the material on record and gone

through the orders of the authorities below. We find that ld. CIT (A) has given

finding of fact in para 5.3 to 5.3.2 of his order as under :

“ 5.3. I have gone through the assessment order as well as submissions made by the appellant. Following facts have emerged ;

3 ITA Nos. 607 & 410/JP/2017 M/s. Ashiana Ispat Ltd., Alwar.

5.3.2. I have considered the above mentioned facts. I have also taken into consideration the Hon’ble ITAT Jaipur order in the appellant’s own case for preceding year. Hon’ble ITAT has observed as under :-

3.4. We have heard rival contentions, perused the material available on record and gone through orders of the authorities below. The facts of the case are identical to A.Y. 2010-11. The assessee had filed the copy of agreement, confirmations and it is a fact that the assessee had deducted TDS, the recipient had PAN numbers and assessee has established that they have rendered services to provide the customer for selling the TMT Bar & M.S. ingots. The ld. CIT (A) allowed the claim of the assessee by placing reliance on the order of the Tribunal in

4 ITA Nos. 607 & 410/JP/2017 M/s. Ashiana Ispat Ltd., Alwar.

the assessee’s own case for the assessment years 2003-04 to 2009-10. We find support from the order of the Hon’ble Coordinate Bench of ITAT Jaipur in ITA No. 535/JP/2015 dated 30.10.2015 wherein the Hon’ble Coordinate Bench by following the earlier order of the Tribunal in ITA No. 191/JP/2014 & 472 to 477/JP/2012 for the A.Y. 2003-04 to 2009-10 allowed the appeal of the assessee. Therefore, respectfully following the Coordinate Bench decision in assessee’s own case on identical facts and circumstances, we uphold the order of ld. CIT (A). Accordingly, revenue’s appeals are dismissed.

Hon’ble Rajasthan High Court in its order dated 29/11/2016 has dismissed the revenue’s appeal on this issue. The relevant part of high court order is as under :

Therefore, I have taken into consideration Hon’ble ITAT Jaipur Bench order in appellant’s own case in preceding years and confirmed by the Hon’ble Rajasthan High Court as stated above. In the present appeal the facts and circumstances of the case is identical to preceding years where the Court has already allowed the appeal of the appellant. Therefore, the addition on similar grounds amounting to Rs. 1,08,90,067/- is deleted. Appellant’s ground of appeal on the issue is allowed.”

The Hon’ble Jurisdictional High Court in DB Income Tax Appeal No. 92/2015 has

held as under :-

5 ITA Nos. 607 & 410/JP/2017 M/s. Ashiana Ispat Ltd., Alwar.

“ 3. At the outset, learned counsel for the appellant submitted that the issue is squarely covered by the Division Bench judgment of this Court in D.B. Income Tax Appeal No. 95/2015 (Principal Commissioner of Income Tax (Central), Jaipur vs. M/s. Ashiana Ispat Ltd.) decided on 29.11.2016 wherein it has been held as under :-

“ Taking into consideration the details which were furnished regarding copy of agreement, confirmations and deductions of TDS, the recipient had PAN numbers and assessee has established they have rendered services to provide the customers and payment was made by cheque, in our view, the view taken by the Tribunal is just and proper. No substantial question of law arises in these appeal. The appeals are devoid of merit and deserve to be dismissed. The same are dismissed.”

There is no change into the facts and circumstances in the present case under

consideration. The revenue has not brought any material to demonstrate that there

is change in the facts and circumstances. Therefore, we do not see any reason to

interfere into the findings of the ld. CIT (A), the same is hereby affirmed. Appeal of

the revenue is dismissed.

pertaining to assessment year 2014-15. The ground raised by the revenue is as

under :-

“ On the facts and in the circumstances of the case, ld. CIT (A) has erred in deleting without giving any specific findings, the addition of Rs. 77,44,145/- made by the Assessing Officer on account of disallowance of Commission on purchase and sales, since the assessee has failed to discharge its onus to establish that the services were actually rendered by the brokers.”

6 ITA Nos. 607 & 410/JP/2017 M/s. Ashiana Ispat Ltd., Alwar.

herein above in ITA No. 607/JP/2017 pertaining to A.Y. 2013-14. The decision

arrived therein is applicable to the present case under consideration. Therefore,

taking a consistent view of the matter, we reject the ground of the revenue. The

appeal of the revenue is dismissed.

Order is pronounced in the open court on 13.10.2017.

Sd/- Sd/- ( HkkxpUn ½ ( dqy Hkkjr) ( BHAGCHAND) ( KUL BHARAT ) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Jaipur Dated:- 13/10/2017. Das/

आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू

सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत

7 ITA Nos. 607 & 410/JP/2017 M/s. Ashiana Ispat Ltd., Alwar.