M/S RAMKRISHNA CARE MEDICAL SCIENCES PRIVATE LIMITED, RAIPUR (CG) V. THE INCOME TAX OFFICER 2(1), RAIPUR (CG)

ITA 145/BIL/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5482 (ITAT-RAIPUR)
• Duration Of Justice: 2 year(s) 10 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 16-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R B DOSHI
• Keywords: Business expenditure; Charitable institution; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER AND DR. MITHA LAL MEENA, ACCOUNTANT MEMBER . / ITA NO. 145 /RPR/20 16 / ASSESSMENT YEAR : 2010 - 11 RAMKRISHNA CARE MEDICAL SCIENCES PRIVATE LIMITED. 1, BUDHAPARA, NEAR SANGEET MAHAVIDYALAYA, RAIPUR (C.G.) PAN : AACCR9276J ....... / APPELLANT / V/S. THE INCOME TAX OFFICER, WARD - 2(1), RAIPUR (C.G.) / RESPONDENT A SSESSEE BY : SHRI R.B. DOSHI REVENUE BY : SHRI SANJAY KUMAR, / DATE OF HEARING : 1 5 .05 .2019 / DATE OF PRONOUNCEMENT : 15 .05 .2019 / ORDER PER PARTHA SARATHI CHAUDHU RY, JM : THIS APPEAL PREFERRED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LD. CIT(APPEALS) - II, RAIPUR (C.G.) DATED 23.03.2016 FOR THE ASSESSMENT YEAR 2010 - 11 ON THE SOLE GROUND THAT RS.1,66,406/ - BEING DISALLOWED WHICH WAS CLAIMED AS DONATION UNDER THE HEAD OTH ER 2 ITA NO. 145 / RPR /20 16 A.Y. 2010 - 11 EXPENSES AND WHETHER SUCH EXPENSES RELATES TO THE BUSINESS OF THE ASSESSEE COMPANY. 2. AT THE TIME OF HEARING, THE LD. AR OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS D OING BUSINESS OF MULTI - SPECIALTY HOSPITAL. THE ASSESSEE HAS INCURRED THESE EXPENSES WHICH ARE IN DISPUTE FOR THE PURPOSE OF PROMOTION OF BUSINESS OF THE ASSESSEE. THE REVENUE HAS POINTED OUT THAT THESE DONATIONS ARE CHARITABLE DONATIONS MADE TO VAR IOUS CHARITABLE ORGANIZATIONS AND T HESE EXPENSES ARE NOT CONNECTED WITH THE BUSINES S OF THE ASSESSEE. TO THIS ARGUMENT OF THE REVENUE, THE LD. AR OF THE ASSESSEE SUBMITTE D THAT IN ALL THESE PLACES, WHE RE EVER DONATIONS HAVE BEEN MADE BY THE ASSESSEE BECAUSE OF SUCH DONATION S , HOARDING OF THE ASSESSEES HOSPITAL ARE PLACED IN THOSE VEN UE S . THAT ULTIMATELY CATCHES ATTRACTION OF THE VARIOUS PEOPLE AND A NUMBER OF PUBLIC AS ADVERTISEMENT AND PROMOTION FOR THE ASSESSEES COMPANY. THESE EXPENSES ARE THEREFORE, NOTHING BUT BUSINESS EXPENDITURE AND SHOULD BE ALLOWED U/S.37 OF THE INCOME TAX AC T, 1961 (HEREINAFTER REFERRED TO AS THE ACT) . MOREOVER, AT PAGE 8 OF THE PAPER BOOK, ENTIRE DETAILS OF THE EXPENSES HAVE BEEN PLACED ON RECORD. 3. PER CONTRA, THE LD. DR HAS PLACED RELIANCE ON THE ORDERS OF THE SUB - ORDINATE AUTHORITIES. 3 ITA NO. 145 / RPR /20 16 A.Y. 2010 - 11 4. WE HAVE PERUSED THE CASE RECORDS AND HEARD THE RIVAL CONTENTIONS AND GIVEN CONSIDERABLE THOUGHT TO THE FINDINGS OF THE BOTH, THE ASSESSING OFFICER AS WELL AS THE LD. CIT(APPEALS). THE ASSESSEE IS OPERATING SUPER SPECIALITY HOSPITAL AND THAT MONEY IS USED FOR PROMO TION OF BUSINESS AND PROFESSION. BOTH THE ASSESSING OFFICER AND THE LD. CIT(APPEALS) HAS DENIED THESE EXPENDITURE AS BUSINESS EXPENSES ON THE GROUND THAT THEY ARE DONATION TO CHARITABLE INSTITUTIONS. BUT REVENUE AUTHORITIES HAVE NOT ANALYZED AS TO WHY SUCH EXPENDITURE WAS INCURRED BY THE ASSESSEE. THEY STATED THAT SUCH DONATION AND EXPENSES WERE MADE BY THE ASSESSEE TO VARIOUS CHARITABLE INSTITUTIONS BUT THE BUSINESS REASONS FOR SUCH DONATIONS HAS NOT BEEN ANALYSED IN ANY OF THE ORDERS. THE LD. CIT(APPEALS) HAS NOT GIVEN INDEPENDENT FINDINGS AND MERELY HAS SUPPORTED THE FINDINGS OF THE ASSESSING OFFICER. ON THE CONTRARY, THE LD. AR OF THE ASSESSEE HAS EXPLAINED IN DETAILS THAT THESE EXPENSES ARE NOT DONATION TO CHARITABLE INSTITUTIONS BUT THE SAID EXPENSES ARE INCURRED BY THE ASSESSE SO THAT THEIR HOARDING S ARE PLACED IN THESE VENUES AND IN TURN IT IS THE WAY OF BUSINESS PROMOTION OF THE ASSESSEE. THESE FACTS HAVE NOT BEEN CONTROVERTED BY THE LD. DR BEFORE US. 5. IN VIEW OF THE MATTER, WE SET ASIDE THE ORD ER OF THE LD. CIT(APPEALS) AND DIRECT THE ASSESSING OFFICER TO ALLOW THESE EXPENSES AS BUSINESS EXPENSES OF THE ASSESSEE. 4 ITA NO. 145 / RPR /20 16 A.Y. 2010 - 11 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRO NOUNCED ON 15 TH DAY OF MAY , 201 9 . SD/ - SD/ - MITHA LAL MEENA PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER / RAIPUR ; / DATED : 15 TH MAY, 2019. SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS) - 2, RAIPUR (C.G.) 4. THE PR. CIT - II, RAIPUR. 5. , , , / DR, ITAT, RAIPUR BENCH, RAIPUR. 6. / GUARD FILE. / / TRUE COPY // / BY ORDER, / PRIVATE SECRETARY , / ITAT, RAIPUR. 5 ITA NO. 145 / RPR /20 16 A.Y. 2010 - 11