Asst. Commissioner of Income Tax, Circle-15(1)., Hyderabad. V. A.P. Dairy Development Co-operative Federation Limited., Hyderabad.

ITA 1113/Hyd/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3529 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 10 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 14-07-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 30-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R DIPAK
• Assessee Lawyers: B SAI PRASAD
• Section: 43B; 143(3); 201; 13; 6; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 1113 & 1841 /HYD/201 7 (ASSESSMENT YEAR S : 201 3 - 14 & 2014 - 15 ) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 15(1), HYDERABAD. V VS. A.P. DAIRY DEVELOPMENT CO - OPERATIVE FEDERATION LIMITED, B - 2, LALAPET, HYDERABAD. PAN AABCA 7370H APPELLANT RESPONDENT APPELLANT BY : SHRI R. DIPAK ( D.R.) RESPONDENT BY : SHRI B. SAI PRASAD. DATE OF HEARING : 29.04.2021 . DATE OF PRONOUNCEMENT : 28 .05. 2021. O R D E R PER SHRI S.S. GODARA, J.M. : TH ESE REVENUE S APPEAL S FOR ASST. YEAR S 2013 - 14 & 2014 - 15 ARISE FROM THE COMMISSIONER OF INCOME TAX (APPEALS) - 7 , HYDERABAD S SEPARATE ORDER S DT.15.02.2017 & DT.30.06.2017 PASSED IN CASE NO S . 014/CIT(A) - 7/2016 - 17 & 0552/CIT(A) - 7/2016 - 2 ITA NO S . 1113 & 1841/HYD/2017 17; RESPECTIVELY IN PROCEEDINGS UNDER SECTION 143(3) OF INCOME TAX ACT, 1961 (THE ACT). HEARD BOTH THE PARTIES . C ASE FILE S PERUSED. 2. THE R EVENUES IDENTICAL FORMER SUBSTANTIVE GROUND PLEADED IN THE INSTANT TWIN APPEALS SEEKS TO REVERSE THE CIT(APPEALS)S ACTION DELETING THE INTEREST INCOME ADDITION(S) OF RS.1 3,99,55,553 AND RS.37,97,57,758; RESPECTIVELY. ITS CASE IS THAT THE ASSESSING OFFICER HAD RIGHTLY TREATED THE SAID RECEIPTS AS REVENUE IN NATURE AND THEREFORE LIABLE TO BE TREATED AS TAXABLE INCOME. LEARNED CIT, DR NEXT INVITED OUR ATTENTION TO THE CIT(A PPEALS) IDENTICAL DISCUSSION TREATING AS UNDER : 4. THE GROUND NOS.1 AND 5 ARE GENERAL IN NATURE WHICH DO NOT REQUIRE SPECIFIC ADJUDICATION. THE GROUND NO.2 IS AGAINST THE ADDITION OF RS.13,99,56,653/ - ON ACCOUNT OF TREATING THE GRANTS RECEIVED FORM THE GOVERNMENT AS REVENUE RECEIPTS. 3 ITA NO S . 1113 & 1841/HYD/2017 4 ITA NO S . 1113 & 1841/HYD/2017 5 ITA NO S . 1113 & 1841/HYD/2017 6 ITA NO S . 1113 & 1841/HYD/2017 IT IS THEREFORE CLEAR THAT THE CIT(APPEALS) HAS GONE BY HIS FINDINGS IN A.Y. 20122 - 13 HOLDING THEREIN THAT THE ASSESSING OFFICER HAD ERRED IN LAW AND ON FACTS IN TREATING THE ASSESSEE'S GRANTS GIVING RAISE UNDER THE RKVY I.E. RASHTRIYA KRISHI VIGNAN YOJANA AS TAXABLE INCOME. WE SOUGHT TO KNOW AB O UT THE FINAL OUTCOME OF THE CIT(APPEALS) CORRESPONDING DECISION. IT EMERGES THAT THE SAME HAS ATTAINED FINALITY ON ACCOUNT OF THE ALLEGED FAILURE IN FILING APPEAL BEFORE THE TRIBUNAL. 3. LEARNED CIT - DR AT THIS STAGE SOUGHT TO PIN POINT THE FACT THAT THE ASSESSING OFFICER S ASSESSMENT FINDINGS HOLDING THE IMPUGNED GROUND AS TAXABLE INCOME ARE VERY MUCH CRYPTIC AS WELL SINCE NOT DISCUSSING THE ENTIRE BACKDROP OF FACTS IN LIGHT OF THE RELEVANT STATUTORY PROVISIONS AS WELL AS THE PROOF OF THE GRANT IN AID AND THE JUDICIAL PRECEDEN TS ON THE ISSU E T HEREFORE, THE ISSUE DESERVES TO BE RESTORED BACK. WE FIND NO MERIT IN THE R EVENUES INSTANT 7 ITA NO S . 1113 & 1841/HYD/2017 ARGUMEN T SINCE IT HAS COME ON RECORD THAT THERE IS NO DISTRIBU TION ON FACTS OR LAW REGARDING TREATMENT OF ASSESSEE'S RLVY GRANT AS GIVING RAISE TO TAXABLE INCOME. THERE IS NO REVENUE ELEMENT PIN POINTED IN THE CORRESPONDING GRANT S DETAILS AND THE PRE - CONDITIO NS IN CORPORATED THE NATURE OF PLANNED EXPENDITURE TO BE UTILIZED AS PER THE APPROVED GUIDELINES REGARDING STRENGTHENING INFRASTRUCTURE FOR QUALITY AND CLEAN MILK PRODUCTION. THE ASSESSEE HAS DULY PLACED ON RECORD THE SAID OPERATIONAL GUIDELINES AS WELL AS THE DETAILS THEREOF IN PAGES 8 TO 30 OF ITS PAPER BOOK. THE SAME NOWHERE CONTAINS ANY REVENUE ELEMENT. LEARNED CIT DRS ARGUMENT THAT THE ASSESSING OFFICER OUGHT NOT TO HAVE PASSED HI S CRYPTIC ORDER ALSO DOES NOT CARRY ANY MERIT AS PER MAHINDRA & MAHI NDRA LIMITED VS. DCIT (2010) 122 ITD 216 (MUM) (SB) THAT A DEPARTMENTAL REPRESENTATIVE CARRIES NO JURISDICTION TO GO BEYOND THE ASSESSMENT FINDINGS. WE THEREFORE DECLINE R EVENUES INSTANT IDENTICAL FORMER SUBSTANTIVE GRIEVANCE IN BOTH THE APPEALS. T HE CI T(A) S ORDER S UNDER CHALLENGE ARE UPHELD THEREFORE . 8 ITA NO S . 1113 & 1841/HYD/2017 4. NEXT COMES THE R EVENUES SECOND SUBSTANTIVE GROUND THAT THE CIT(APPEALS) HAS ERRED IN LAW AND ON FACTS IN DELETING SECTION 43B INTEREST DISALLOWANCE OF RS.2,25,00,000 EACH; RESPECTIVELY IN THE SE TWIN A SSESSMENT YEARS. SUFFICE TO SAY, WE FIND AT THE OUTSET THAT THIS TRIBUNAL CO - ORDINATE BENCH S ORDER (S) IN ASSESSEE'S CASES FOR THE ASSESSMENT YEARS 2004 - 05 & 2005 - 06 AND 2009 - 10 TO 2012 - 13 DT.2.6.2017 HAS ALREADY HELD THAT THE ABOVE INTEREST PERTAINS TO PUBLIC FINANCIAL INSTITUTION / SCHEDULED BANKS NOT COVERED U/S. 43B OF THE ACT. THERE IS NO DISTINCTION COMING FROM THE R EVENUES SIDE DURING THE COURSE OF HEARING BEFORE US. WE THUS ADOPT JUDICIAL CONSISTENCY TO UPHOLD THE CIT(APPEALS)S ACTION DELETING THE IMPUGNED SECTION 43B DISALLOWANCE. 5. THE SE REVENUE S APPEALS ARE DISMISSED. A C OPY OF COMMON ORDER PL A CED IN THE RESPECTIVE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 2 8TH MAY, 2021. SD/ - SD/ - (LAXMI PRASAD SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 28 .05 .2021. * REDDY GP 9 ITA NO S . 1113 & 1841/HYD/2017 COPY TO : 1. A.P. DAIRY DEVELOPMENT CO - OPERATIVE FEDERATION LIMITED, B - 2, LALAPET, HYDERABAD. 2. ACIT, CIRCLE 15(1), HYDERABAD. 3. PR. C I T - 7 , HYDERABAD. 4. CIT(APPEALS) - 7, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.