DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 14, PUNE vs. M/S. KENERSYS INDIA PVT.LTD, PUNE

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ITA 423/PUN/2019Status: DisposedITAT Pune07 July 2022AY 2013-144 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the order of the CIT(A) by following its own precedent in the assessee's own case for earlier assessment years, as the facts and circumstances were similar.

What were the facts?

The assessee claimed a deduction for provision of warranty amounting to Rs. 6,22,78,543/-. The Assessing Officer disallowed this claim, but the CIT(A) overturned the assessment order.

What were the issues?

Whether the provision for warranty claimed by the assessee is allowable as a deduction.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH, ‘A’ PUNE

Before: SHRI R.S. SYAL & SHRI S.S. VISWANETHRA RAVI

For Appellant: Shri Nikhil S. Pathak
For Respondent: Shri Kalika Singh

आदेश / ORDER

PER R.S. SYAL, VP : This appeal by the Revenue is directed against the order dated 25-01-2019 passed by the CIT(A)-4, Pune in relation to the assessment year 2013-14. 2. The Revenue is aggrieved by the deletion of disallowance of provision for warranty amounting to Rs.6,22,78,543/-.

M/s. Kenersys India Pvt. Ltd.,

3.

Briefly stated, the facts of the case are that the assessee is engaged in the business of supply of erection, installation, operations and maintenance of wind turbine generators and other related activities. The assessee claimed deduction of Rs.6,22,78,543/- towards provision of warranty which was disallowed by the Assessing Officer (AO). The ld. CIT(A), following his own view for preceding years, overturned the assessment order on this score. Aggrieved thereby, the Revenue has come up in appeal before the Tribunal.

4.

Having heard both the sides and gone through the relevant material on record, it is seen as an admitted position that the disallowance of warranty provision for the year under consideration is based on the view taken by the AO and the ld. CIT(A) respectively for the earlier years. The appeal of the assessee for the A.Y. 2011-12 came up for consideration before the Tribunal. Vide order dated 11-11-2021, The Tribunal following the decision in the assessee’s own case for the A.Y. 2010-11 countenanced the view of the ld. CIT(A).

1.

As the facts and circumstances are admittedly similar, following the precedent, we uphold the impugned order.

M/s. Kenersys India Pvt. Ltd.,

5.

In the appeal, the appeal is dismissed.

Order pronounced in the Open Court on 07th July, 2022.

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