Shri Laxmanbhai Thobhanbhai Patel, Ahmedabad V. The Dy.CIT.,Circle-11, Ahmedabad

ITA 1703/AHD/2011

• Counselvise Citation: 170320514 RSA 2011
• Duration Of Justice: 4 year(s) 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 21-10-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 24-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K MADHUSUDAN SRDR
• Assessee Lawyers: P M MEHTA
• Section: 43B; 234B; 2

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD .. , ( .) , BEFORE SHRI G.D. AGARWAL,VICE PRESIDENT (AZ) AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ I.T.A. NO.1703/AHD/2011 ( / ASSESSMENT YEAR : 2008-09) LAXMANBHAI THOBHANBHAI PATEL C-23, MARUTI SHAKTI SOCIETY INDIA COLONY ROAD BAPUNAGAR, AHMEDABAD / VS. THE DCIT CIR-11 AHMEDABAD % & ./ ./ PAN/GIR NO. : ACTPP 1370 M ( %( / APPELLANT ) .. ( )*%( / RESPONDENT ) %( + / APPELLANT BY : SHRI P.M. MEHTA, AR )*%( , + / RESPONDENT BY : SHRI K.MADHUSUDAN, SR.DR -. , /& / DATE OF HEARING 21/10/2015 0123 , /& / DATE OF PRONOUNCEMENT 30/11/2015 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-XVI, AHMEDAB AD [CIT(A) IN SHORT] DATED 28/04/2011 PERTAINING TO ASSESSMEN T YEAR (AY) 2008-09. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF A PPEAL:- 1. IN LAW AND IN THE FACTS AND CIRCUMSTANCES OF THE A PPELLANTS CASE, THE LEARNED CIT(A) HAS GROSSLY ERRED IN UPHOLDING T HE ADDITION ITA NO.1703/AHD /2011 LAXMANBHAI THOBHANBHAI PATEL VS. DCIT ASST.YEAR 2008-09 - 2 - U/S.43B OF RS.99,40,392/- MADE BY THE ASSESSING OFF ICER. HE OUGHT TO HAVE DELETED THE IMPUGNED ADDITION MADE BY THE A SSESSING OFFICER. 2. IN THE LAW AND IN THE FACTS AND CIRCUMSTANCES OF TH E CASE, THE APPELLANT DENIES HIS LIABILITY TO PAY INTEREST U/S. 234B ETC. 3. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND /OR WITHDRAW ANY GROUND OR GROUNDS OF APPEAL EITHER BEFORE OR DU RING THE COURSE OF HEARING OF THE APPEAL. 2. BRIEFLY STATED FACTS ARE THAT THE CASE OF THE AS SESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S.143( 3) OF THE INCOME TAX ACT,1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VIDE ORDER DATED 28/09/2010, THEREBY THE ASSESSING OFFICER (AO IN SHORT) MADE VARIOUS DISALLOWANCES INCLUDING DISALLOWANCE U/S.43 B OF THE ACT OF RS.99,40,392/-. THE ASSESSEE BEING AGGRIEVED BY TH E ASSESSMENT ORDER, PREFERRED AN APPEAL BEFORE THE LD.CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE PARTLY ALLOWED THE APPE AL. WHILE PARTLY ALLOWING THE APPEAL, THE LD.CIT(A) CONFIRMED THE DI SALLOWANCE MADE U/S.43B OF THE ACT OF RS.99,40,392/-. AGGRIEVED BY THE ORDER OF THE LD.CIT(A), THE ASSESSEE IS NOW IN APPEAL BEFORE US. 3. THE LD.COUNSEL FOR THE ASSESSEE REITERATED THE S UBMISSIONS AS WERE MADE IN THE STATEMENT OF FACTS-CUM-SYNOPSIS. ALTER NATIVELY, THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE AO B E DIRECTED TO ALLOW THE CLAIM OF EXPENDITURE AS ACTUALLY PAID DURING THE A Y 2010-11. ITA NO.1703/AHD /2011 LAXMANBHAI THOBHANBHAI PATEL VS. DCIT ASST.YEAR 2008-09 - 3 - 3.1. ON THE CONTRARY, LD.SR.DR OPPOSED THE SUBMISSI ON OF THE LD.COUNSEL FOR THE ASSESSEE AND SUPPORTED THE ORDER S OF THE AUTHORITIES BELOW ON THIS ISSUE. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. IN THE INSTANT CASE, THE UNDISPUTED FACTS ARE THAT THE ASSESSEE MADE PAYMENT TO THE AUDA AS BETTERMENT CHARGES. AS PE R THE AO, THIS PAYMENT FELL WITHIN THE PURVIEW OF SECTION 43B(A) O F THE ACT. HOWEVER, AS PER THE ASSESSEE, THIS PAYMENT COULD NOT FALL WI THIN THE PURVIEW OF SECTION 43B(A) OF THE ACT. DURING THE COURSE OF HE ARING, THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT ACTUAL PAYMENT OF B ETTERMENT CHARGES WAS MADE DURING THE AY 2010-11 AMOUNTING TO RS.82,22,90 7/- AND BALANCE AMOUNT OF RS.17,17,485/- WAS OFFERED TO TAX AS PER P&L ACCOUNT. THEREFORE, HE SUBMITTED THAT THIS PAYMENT OF RS.82, 22,907/- MADE VIDE PAY ORDER DATED 07/01/2010 MAY PLEASE BE ALLOWED AS DEDUCTION IN THE AY 2010-11. AS PER SECTION 43B OF THE ACT, THE D EDUCTION IS ALLOWABLE IN RESPECT OF THE ITEMS REFERRED INTO SECTION 43B(A ) OF THE ACT IN THE PREVIOUS YEAR IN WHICH SUCH SUM IS ACTUALLY PAID. SINCE THE PAYMENT IN THE INSTANT CASE HAS BEEN MADE DURING FINANCIAL YEA R 2009-10, THEREFORE, THIS AMOUNT IS ALLOWABLE AS DEDUCTION U/S.43B OF TH E ACT IN THE AY 2010- 11. ACCORDINGLY, WE HEREBY DIRECT THE AO TO ALLOW DEDUCTION OF RS.82,22,907/- PAID BY THE ASSESSEE TO AUDA ON 07/0 1/2010 VIDE PAY ITA NO.1703/AHD /2011 LAXMANBHAI THOBHANBHAI PATEL VS. DCIT ASST.YEAR 2008-09 - 4 - ORDER DATED 07/01/2010, DRAWN ON UNION BANK OF INDI A BAPUNAGAR BRANCH, AHMEDABAD IN AY 2010-11. THUS, THIS GROUND OF ASSESSEES APPEAL IS DISPOSED OF IN THE TERMS INDICATED HEREIN ABOVE. 5. GROUND NO.2 IS CONSEQUENTIAL IN NATURE, HELD ACC ORDINGLY. 6. GROUND NO.3 IS GENERAL IN NATURE WHICH REQUIRES NO INDEPENDENT ADJUDICATION. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS POSED OF IN THE TERMS INDICATED HEREINABOVE. ORDER PRONOUNCED IN THE COURT ON MONDAY, THE 30 TH DAY OF NOVEMBER, 2015 AT AHMEDABAD. SD/- SD/- ( .. ) ( ) ( . ) ( G.D. AGARWAL ) ( KUL BHARAT ) VICE PRESIDENT (AZ) JUDICIAL MEMBER AHMEDABAD; DATED / 11 /2015 6/..-, .-../ T.C. NAIR, SR. PS !'#$%&' &$ / COPY OF THE ORDER FORWARDED TO : 1. %( / THE APPELLANT 2. )*%( / THE RESPONDENT. 3. 789 : / CONCERNED CIT 4. : ( ) / THE CIT(A)-XVI, AHMEDABAD 5. ;< )-89 , / 893 , 7 / DR, ITAT, AHMEDABAD 6. <= >. / GUARD FILE. ! / BY ORDER, *; ) //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD ITA NO.1703/AHD /2011 LAXMANBHAI THOBHANBHAI PATEL VS. DCIT ASST.YEAR 2008-09 - 5 - 1. DATE OF DICTATION .. 21.X.15 (DICTATION-PAD 6- PAGES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ..29.X.15 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 30.11.15 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 30.11.15 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER