Salora International Ltd.,, New Delhi vs Department Of Income Tax

Deputy Commissioner of Vs. M/s Salora International Limited, Income Tax, D-13/04, Okhla Industrial Area, Circle- Circle-7(1), New Delhi - 110 020. New Delhi. PAN : AAACS3041G. (Appellant) (Respondent)

Appellant by : Shri B.R.R. Kumar, Sr.DR. Respondent by : Shri P.N. Mehta, CA.

Date of hearing : 26.02.2015 Date of pronouncement : 04.03.2015

ORDER

PER G.C. GUPTA, GUPTA, VP :

This appeal by the Revenue for the AY 2008-09 is directed against the order of learned CIT(A)-X, New Delhi dated 17th December, 2012.

2. The only ground of appeal of the Revenue is as under:-

"The ld.CIT(A) erred on the facts and in law in deleting the addition of Rs.27,49,000/- made by AO under section 36(1)(ii) of the Act."

3. Learned DR has relied on the order of the Assessing Officer.

2 ITA-1098/Del/2013

4. Learned counsel for the assessee submitted that the issue of addition under Section 36(1)(ii) of the Income-tax Act, 1961 is covered in favour of the assessee with the decision of the Tribunal in assessee's own case for the earlier assessment year 2006-07 in ITA No.4164/Del/2009 dated 23.12.2010 wherein the director's commission was allowed by the Tribunal. The departmental appeal to the Hon'ble Delhi High Court was dismissed in Income Tax Appeal No.966/2011 vide order dated 22.02.2012. He submitted that the issue is covered in favour of the assessee with the decision of Hon'ble Delhi High Court in AMD Metplast P.Ltd. Vs. DCIT - [2012] 341 ITR 563 and CIT Vs. Career Launcher India Ltd. - [2012] 207 ITR 28, wherein commission/bonus paid to working directors for services rendered has been allowed as a deduction.

5. We have considered the rival submissions and perused the order of the Assessing Officer and the CIT(A). We find that the issue of addition under Section 36(1)(ii) of the Act on account of commission paid to the directors is covered in favour of the assessee with the decision of Delhi Tribunal in assessee's own case for the earlier assessment year 2006-07 dated 23.12.2010 (supra) and the order of Hon'ble Delhi High Court dismissing the Revenue's appeal against the order of the Tribunal vide their order dated 22.02.2012 (supra). The issue of allowability of commission paid to the working directors is also covered with the decisions of Hon'ble Delhi High Court cited by the learned CIT(A) in his appellate order. The issue being covered in favour of the assessee and, we being in agreement with the decision of the Coordinate Bench of the Delhi Tribunal in assessee's own case for the earlier AY 2006-07 dated 23.12.2010 (supra), decide the issue in 3 ITA-1098/Del/2013

favour of the assessee and confirm the order of learned CIT(A) on this issue. The ground of appeal of the Revenue is dismissed.

6. In the result, the appeal of the Revenue is dismissed.

Decision pronounced in the open Court on 4th March, 2015.

Sd/- Sd/- (T.S. KAPOOR KAPOOR) OOR) (G.C. (G.C. GUPTA) GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT

VK.

Copy forwarded to: -

1. Appellant : Deputy Commissioner of Income Tax, Circle-

Circle-7(1), New Delhi.

2. Respondent : M/s Salora International Limited, D-13/04, Okhla Industrial Area, New Delhi Delhi - 110 020.

3. CIT

4. CIT(A)

5. DR, ITAT

Assistant Registrar