Suryachakra Power Corporation Limited, Hyderabad V. Dy. Commissioner of Income Tax , Circle-3(2), Hyderabad

ITA 147/Hyd/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5943 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 23-03-2021
• Assessment Year: 2010-2011
• Appeal Filed On: 19-01-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 147/HYD/2018 ASSESSMENT YEAR: 2010-11 SURYACHAKRA POWER CORPORATION LIMITED, HYDERABAD [PAN: AACCS8126J] VS DY.COMMISSIONER OF INCOME TAX, CIRCLE-3(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : NONE FOR REVENUE : SHRI SUNIL KUMAR PANDEY, DR DATE OF HEARING : 23-02-2021 DATE OF PRONOUNCEMENT : 26-04-2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL FOR AY.2010-11 ARISES FROM TH E CIT(A)-3, HYDERABADS ORDER DATED 17-11-2017 PASSED IN CASE NO.0250 / DCIT-3(2) / HYD / CIT(A)-3 / 2016-17 IN PROCEEDINGS U/S.143(3) R.W.S. 263 OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. CASE CALLED TWICE. NONE APPEARED AT ASSESSEES BEHES T. HE IS ACCORDINGLY PROCEEDED EX-PARTE. 2. WE HAVE HEARD LEARNED DEPARTMENTAL REPRESENTATIVE A ND PERUSED THE CASE FILE. THE ASSESSEES SOLE SUBSTANTIV E GRIEVANCE IN THE INSTANT APPEAL SEEKS TO REVERSE BOTH THE LEARNED L OWER AUTHORITIES ACTION DISALLOWING SECTION 35D DEDUCTION OF ITA NO. 147/HYD/2018 :- 2 -: RS.65,37,790/- IN THE COURSE OF ASSESSMENT AS UPHELD IN THE CIT(A)S ORDER. THE ASSESSMENT FINDINGS TO THIS EFFECT READ AS UNDER: 5. FOR THE A.Y: 2008-09, THE ASSESSEE COMPANY INCU RRED AN AMOUNT OF RS.7,17,72,480/- FOR 'PUBLIC ISSUE EXPENSES' AND THE ELIGIBLE DEDUCTION WAS CONSIDERED BY THE ASSESSEE AT RS.5,22 ,19,980/- BEING 5% OF RS.104,43,99,605/-, CLAIMING TO BE THE TOTAL CAPITAL EMPLOYED. HOWEVER, IT WAS NOTICED FROM THE BALANCE SHEET THAT THE ASSESSEE RAISED SHARE CAPITAL OF RS.34,00,00,000/- ONLY AND RAISED LONG TERM BORROWING FROM SYNDICATE BANK FOR RS.5,06,20,636/- AND THEREBY THE TOTAL INCREASED VALUE OF CAPITAL EMPLOYED WORKS OUT TO RS. 39,06,20,636/- AS AGAINST THE CLAIM OF THE ASSESSEE AT RS. 104,43,99,605/-. THUS THE ELIGIBLE DEDUCTION WAS DE TERMINED AT RS.1,95,31,032/- BEING 5% OF THE CAPITAL EMPLOYED O F RS.39,06,20,636/-. ACCORDINGLY, THE DEDUCTION U/S.3 5D WAS ALLOWED AT RS.39,06,206/- BEING 1/5 TH OF THE ELIGIBLE DEDUCTION OF RS.1,95,31,032/-. 6. AS THE ABOVE ISSUE HAS GOT A CASCADING EFFECT FO R THE YEAR UNDER CONSIDERATION, THE ELIGIBLE DEDUCTION U/S.35D NEEDS TO BE RESTRICTED TO RS.39,06,206/- AS AGAINST THE CLAIM OF RS.1,04,43,9 96/-. 2.1. IT IS SUFFICIENTLY CLEAR THAT WE ARE DEALING WITH I NSTANCE OF AMORTIZATION RELIEF THEREIN THE INITIAL AY.2008-09 HAS ALREADY ADOPTED THE SUM IN ISSUE AS RS.39,06,20,636/- AS AGAI NST THAT CLAIMED OF RS.104,43,99,605/- AND BOTH THE LEARNED LO WER AUTHORITIES HAVE THEMSELVES GRANTED 5% RELIEF U/S.35D QUA THE SAID CORRECT FIGURE ONLY. THE SAME HAS GONE UN-REBUT TED THROUGHOUT. WE FIND NO REASON TO INTERFERE WITH THE IM PUGNED DISALLOWANCE THEREFORE. THE ASSESSEE FAILS IN THIS SO LE SUBSTANTIVE GRIEVANCE. 3. THIS ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH APRIL, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.GO DARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 26-04-2021 TNMM ITA NO. 147/HYD/2018 :- 3 -: COPY TO : 1.SURYACHAKRA POWER CORPORATION LIMITED, C/O.SAMUEL NAGADESI, CHARTERED ACCOUNTANT, 408, SRI RAMAKRISHN A TOWERS, BESIDE IMAGE HOSPITALS, AMEER PET, HYDERABA D. 2.THE DY.COMMISSIONER OF INCOME TAX, CIRCLE-3(2), HYDERABAD. 3.CIT(APPEALS)-3, HYDERABAD. 4.PR.CIT-3, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.