Bharat Earth Movers v. CIT

DCIT 12(2)(1), Mumbai vs. First Flight Couriers P.Ltd, Mumbai

In the result, the appeals for the AY 2011-12 and AY 2012-13 are dismissed

Bench: Shri C.N. Prasad () & Shri N.K. Pradhan () Assessment Year: 2011-12 & Assessment Year: 2012-13 Dy. Commissioner Of M/S First Flight Couriers Pvt. Income Tax-12(2)(1), Room Vs. Ltd. G 1001/02, Lotus No. 223, 2Nd Floor, Aayakar Corporation Park, Off Jay Coach Bhavan, M.K. Road Flyover, Western Exp. Highway, Mumbai-400020. Graham Firth Steel Comp, Goregaon (East), Mumbai-400064. Pan No. Aaacf0841R (Appellant) (Respondent) Revenue By : Ms. Pooja Swaroop, Dr Assessee By : Mr. Brijmohan Pooranmal Agarwal, Ar Date Of Hearing : 05/04/2018 Date Of Pronouncement: 26/04/2018

…enforcing the decree by way of execution for want of consent of the BIFR as required under section 22 of SICA, it would not mean that the liability had not accrued when assessee was following mercantile system of accounting”. (iii) Bharat Earth Movers Vs CIT 162 CTR 325 (2000) 112:- The appellant company has created a fund by making a provision for meeting its liability arising on account of the accumulated earned/vacation leave – In the assessment year 1978-79 an amount of Rs.62,25,483 was set apart in a separate account as provision for encashment of accrued leave and it was claimed as a deduction – In the opi…

JCIT (OSD) 9(1)(2), Mumbai vs. Aptech Ltd, Mumbai

In the result, this appeal filed by the Revenue is partly allowed for statistical purposes

Bench: Shri Shamim Yahya, Am & Shri Ram Lal Negi, Jm आयकर अपील सं./I.T.A. No.3369/Mum/2016 ("नधा"रण वष" / Assessment Year: 2007-08) Dy. Cit-9(1)(2), M/S. Aptech Limited बनाम/ Room No. 260A, 2Nd Floor, A-65, Aptech House, Midc, Aayakar Bhavan, M. K. Road, Andheri (E), Mumbai-400 093 Vs. Mumbai-400 020 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aadca 0602 L (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri Ram Tiwari ""यथ" क" ओर से/Respondent By : Shri Rutuja Pawar सुनवाई क" तार"ख / : 04.01.2018 Date Of Hearing घोषणा क" तार"ख / : 01.03.2018 Date Of Pronouncement आदेश / O R D E R Per Shamim Yahya, A. M.: This Appeal By The Revenue Is Directed Against The Order By The Commissioner Of Income Tax (Appeals) Dated 29.04.2014 & Pertains To The Assessment Year 2007- 08. 2. The Grounds Of Appeal Read As Under: I) “Whether On The Facts & In The Circumstances Of The Case, The Ld. Cit- (A) Erred In Deleting The Penalty On The Issue Of Provision For Rebate Claimed Without Appreciating The Fact That The Same Was A Mere Provision & Was 2 Dy. Cit Vs. M/S. Aptech Limited Patently Not Allowable Which Amounts To Furnishing Inaccurate Particulars In The Return Of Income, Thus Liable For Penalty?" Ii) “'Whether On The Facts & In The Circumstances Of The Case, The Ld. Cit- (A) Erred In Deleting The Penalty On The Issue Of Provision For Leave Encashment Without Appreciating The Fact That The Same Was Not Paid Before The Due Date Of Filing Of Return Of Income As Mandated By Clause (F) Of Section 43B Of The It, Act, Thereby Making A Claim Which Is Patently Inaccurate, Hence Liable For Penalty?" '

…hat in its accounts, the assessee made the provision for leave salary on the basis of the actuarial valuation. In this regard the assessee relied upon the judgment of Hon'ble Supreme Court in Bharat Earth Movers Ltd. V 4 Dy. CIT vs. M/s. Aptech Limited CIT 245 ITR 428 (SC). It was the further contention of the assessee that clause (b) of Section 43B covers only the amount of leave salary due and payable to the employees retired/ resigned during the relevant previous year in respect of leave at the credit of such employees at the time of retirement/ resignation. The Assessing Officer placed reliance on clause…

DCIT Cir. 7(3)(2), Mumbai vs. People Interactive (I) Pvt. Ltd., Mumbai

Bench: Sh. R. C. Sharma, Am & Sh. Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 5132 & 5133/Mum/2016 (निर्धारणवर्ा / Assessment Year: 2010-11 &2011-12)

…the end of the fourth year when the options are exercised by the employees. Now the question arises as to whether the liability at the end of each year can be construed as a contingent one? 9.3.3 The Hon'ble Supreme Court in Bharat Earth Movers v. CIT [2000] 245 ITR 428/112 Taxman 61 dealt with the deductibility or otherwise of provision for liability towards encashment of earned leave. In that case, the company floated beneficial scheme for its employees for encashment of leave. The earned leave could be accumulated up to certain days. The assessee created provision of Rs. 62.25 lakh for encashment of accrued l…

Firstsource Solutions Ltd ( Formerly Known As Icici Onesource Ltd), Mumbai vs. DCIT RG 5(2), Mumbai

In the result, both the appeals of the revenue are dismissed

Bench: S/Shri B.R. Baskaran (Am) & Ramlal Negi (Jm)

…en to income account. He submitted that these provisions were made on account of accounting compulsions under matching principle and hence the same is allowable as deduction. In this regard, the assessee relied on following case law:- (a) Bharat Earth Movers (245 ITR 428)(SC) (b) CIT Vs. United Motors (India) Ltd (181 ITR 347)(Bom) (c) Rotork Controls India (P) Ltd Vs. CIT (180 Taxman 422)(SC) (d) CIT Vs. Nokia Siemens Networks India (14 taxmann.com 84)(Kar) 21. The Ld D.R, on the contrary, submitted that the assessee has not shown that the liability in respect of above said expenses has accrued during the year…

Addl CIT RG 24(1), Mumbai vs. Arun Damji Gada, Mumbai

In the result, appeal filed by the Revenue is dismissed whereas appeal filed by the assessee is allowed in part in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm Shri Arun Damji Gada Vs. Acit 24(1) A-103, God Gift Adarsha Pratyshakar Bhawan Dugdhalaya Lane, Bandra Kurla Complex Adarsh Nagar, Adarsh Dhughala Bandra (E) Lane, Malad (W) Mumbai – 400 050 Mumbai – 400 064 Pan/Gir No.Aabpg3923F Appellant) .. Respondent) Acit 24(1) Vs. Shri Arun Damji Gada C-13 R/Nop, 503 A-103, God Gift Adarsha Pratyshakar Bhawan Dugdhalaya Lane, Bandra Kurla Complex Adarsh Nagar, Adarsh Bandra (E) Dhughala Lane, Malad (W) Mumbai – 400 050 Mumbai – 400 064 Pan/Gir No. Aabpg3923F Appellant) .. Respondent)

…IN THE INCOME TAX APPELLATE TRIBUNAL “A”, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI RAVISH SOOD, JM Shri Arun Damji Gada Vs. ACIT 24(1) A-103, GOD Gift Adarsha Pratyshakar Bhawan Dugdhalaya Lane, Bandra Kurla Complex Adarsh Nagar, Adarsh Dhughala Bandra (E) Lane, Malad (W) Mumbai – 400 050 Mumbai – 400 064 PAN/GIR No.AABPG3923F Appellant) .. Respondent) ACIT 24(1) Vs. Shri Arun Damji Gada C-13 R/NOP, 503 A-103, GOD Gift Adarsha Pratyshakar Bhawan Dugdhalaya Lane, Bandra Kurla Complex Adarsh Nagar, Adarsh Bandra (E) Dhughala Lane, Malad (W) Mumbai – 400 050 Mumbai – 400 064 PAN/GIR No. AABPG3923F Appellant…