ADP Private Limited , Hyderabad V. Dy. Commissioner of Income Tax , Circle-1(1), Hyderabad

ITA 158/Hyd/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8214 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 13-07-2020
• Assessment Year: 2011-2012
• Appeal Filed On: 06-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence; Scheme of amalgamation
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER I.T.A. NO. 158/HYD/2019 ASSESSMENT YEAR: 2011-12 ADP PRIVATE LIMITED, (REPRESENTING OLD ADP PRIVATE LIMITED BEARING PAN AAACW2655C BY VIRTUE OF HIGH COURT ORDER APPROVING THE SCHEME OF AMALGAMATION, W.E.F. 1 NOVEMBER, 2015) HYDERABAD VS DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI SRIDHAR PUROHIT, AR FOR REVENUE : SMT. M. NARMADA, DR DATE OF HEARING : 13-07-2020 DATE OF PRONOUNCEMENT : 15-07-2020 O R D E R PER SMT. P. MADHAVI DEVI, J.M. : THIS IS ASSESSEES APPEAL FOR THE AY.2011-12, DIREC TED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, GUNTUR, DATED 15-11-2018. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: THAT ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE AND LAW, THE LEARNED DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1 (1) [HEREIN AFTER REFERRED TO AS LD DCIT OR THE AO] HAS ERRED IN NOT ALLOWING DEDUCTION CLAIMED UNDER SECTION 80G OF THE INCOME-TAX ACT 196 1 ('ACT') AMOUNTING TO INR 19,60,179/- AND FURTHER THE LEARNE D COMMISSIONER OF INCOME-TAX (APPEALS)-I, GUNTUR [HEREIN AFTER REF ERRED TO AS LD CIT(A)] HAS FURTHER ERRED: ITA NO. 158/HYD/2019 :- 2 -: - IN TREATING THE COPIES OF DONATION RECEIPTS SUBMITT ED BY THE APPELLANT COMPANY AS ADDITIONAL/NEW EVIDENCE AND ST ATING THAT A FORMAL REQUEST HAS NOT BEEN MADE BY THE APPE LLANT COMPANY IN LINE WITH RULE 46A OF THE INCOME-TAX RUL E 1962; - IN NOT GIVING ANY OPPORTUNITY TO THE APPELLANT COMP ANY, TO SUBSTANTIATE THE FACT THAT THE COPIES OF DONATION R ECEIPTS PRODUCED ARE NOT ADDITIONAL/NEW EVIDENCES SO AS INV OKE RULE 46A OF THE RULES; AND HAS NOT ADJUDICATED MATTER AN D THEREBY HAS RESULTED IN UPHOLDING THE DENIAL MADE BY THE LD AO. 2. WITHOUT PREJUDICE TO ABOVE THE LD CIT(A) HAS ERR ED IN NOT INVOKING THE POWERS VESTED ON HIM UNDER THE PROVISIONS OF TH E ACT TO EXAMINE AND ALLOW ALL SUCH ELIGIBLE CLAIMS MADE BY THE APPE LLANT COMPANY, WHICH WERE NOT VERIFIED AND DENIED BY THE LD AO, DU RING THE COURSE OF ASSESSMENT PROCEEDINGS. 3. AT THE OUTSET, LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT IN THE RETURN OF INCOME FILED BY THE ASSESSEE, THE ASSESSEE HAD CLAIMED DEDUCTION U/S.80G OF THE INCOME TAX ACT [ACT] IN RESPECT OF DONATIONS TO AN ORGANIZATION, WHICH IS REGI STERED U/S.80G OF THE ACT. LD.COUNSEL ALSO SUBMITTED THAT THE ASSESSING OFFICER (AO) DID NOT ALLOW THE ASSESSEES CLAIM U/S.80G OF THE ACT AND AGGRIEVED BY THE SAME, THE ASSES SEE FILED AN APPEAL BEFORE THE CIT(A) ALONG WITH EVIDENC E IN SUPPORT OF THE CLAIM U/S.80G OF THE ACT. THE CIT(A), H OWEVER, DISMISSED THE ASSESSEES APPEAL, STATING THAT THE EVIDE NCE FILED BY THE ASSESSEE IS IN VIOLATION OF RULE 46A OF THE INC OME TAX RULES, 1962. THEREFORE, THE ASSESSEE IS IN SECOND AP PEAL BEFORE US. 4. THE CASE IS TAKEN UP FOR HEARING ON 13-07-2020 TH ROUGH VIDEO CONFERENCING AND BOTH THE PARTIES WERE HEARD, WH O REITERATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW. ITA NO. 158/HYD/2019 :- 3 -: 5. AFTER HEARING BOTH THE PARTIES, WE FIND THAT THE ASSESS EE IN ITS RETURN OF INCOME, HAS MADE THE CLAIM U/S.80G O F THE ACT, WHICH HAS NOT BEEN CONSIDERED BY THE AO AS WELL AS THE CIT(A). THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE MAY PRO VE THE ELIGIBILITY OF THE ASSESSEE TO CLAIM THE DEDUCTION U/S .80G OF THE ACT. IN VIEW OF THE SAME, WE DEEM IT FIT AND PROPER TO ADMIT THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE AND REMI T THE ISSUE TO THE FILE OF AO FOR DENOVO CONSIDERATION OF ASSESSEES CLAIM. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH JULY, 2020 SD/- SD/- ( A. MOHAN ALANKAMONY ) ( P. MADHAVI DEVI ) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 15-07-2020 TNMM ITA NO. 158/HYD/2019 :- 4 -: COPY TO : 1.M/S.ADP PRIVATE LIMITED, 6-3-1091/C/1, FORTUNE-9, RAJ BHAWAN ROAD, HYDERABAD. 2.THE DY.COMMISSIONER OF INCOME TAX, CIRCLE-1(1), HYDERABAD. 3. CIT(APPEALS)-1, GUNTUR. 4. THE PR.CIT-1, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.