Itta/34/2002 Of Commr Of Income Tax Ap-Ii Hyd v. S.narasimha Reddy

HON'BLE SRI JUSTICE G.CHANDRAIAH&HON’BLE SRI JUSTICE CHALLA KODANDA RAMI.T.T.A. No. 34 of 2002 JUDGMENT:- (per Hon’ble Sri Justice Challa Kodanda Ram) This Appeal arising out of the order dated21.09.1999 of the Income Tax Appellate Tribunal, Bench“ A ” , Hyderabad in I.T.A.No. 1688/Hyd/1993 for theassessment year 1991-92, is at the instance of theRevenue. The following questions of law are raised forthe opinion of this Court. i)Whether on the facts and in the circumstances of thecase, the Income-tax Appellate Tribunal was correct in lawin holding that the disallowance of 40% of the incentivebonus claimed by the assessee as a debatable issue till08.03.1995 and cannot be disallowed as a prima facieadjustment under Section 143(1)(a)? ii)Whether on the facts and in the circumstances of the case,the Tribunal was correct in allowing the assessee’srectification petition by changing its opinion? When the matter is taken up for hearing, the learnedcounsel for both the parties have fairly submitted that theissue is squarely covered by the order dated 20.12.2011passed in R.C.No. 21 of 2000 wherein this Court, whileanswering the reference in favour of the assessees andagainst the Revenue took into consideration the decisionof the Supreme Court in Kvaverner John Brown Engg.(India) P.Ltd. v Assistant Commissioner of Income Tax[[1]]. We are of the opinion that the same result in R.C.No. 21 of 2000 would follow in the present I.T.T.Aalso. Hence, the questions of law raised in the presentappeal are answered in the affirmative in favour of theassessee and against the Revenue. Accordingly, this Appeal is disposed of. No order asto costs. A copy of the order dated 20.12.2011 passed by thisCourt in R.C.No. 21 of 2000 be tagged on with this order. As a sequel to the disposal of the Appeal,Miscellaneous Petitions, if any pending, shall standdisposed of as infructuous. _________________ G. CHANDRAIAH, J 11.02.2014 bcj ______________________ CHALLA KODANDA RAM,J [1][2008] 305 ITR 103(SC)