ITO (Exemptions), Cuttack V. M/s. Orissa State Financial Corporation Employees Provident Fund, Cuttack

ITA 216/CTK/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0531 (ITAT-CUTTACK)
• Duration Of Justice: 2 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 13-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K BANDYOPADHYAY
• Keywords: Additional evidence
• Section: 201; 10

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI C.M. GARG, JM & SHRI L.P. SAHU, AM . / ITA NO S . 215 & 216 /CTK/20 18 ( / ASSESSMENT YEAR S : 20 1 0 - 201 1 & 2011 - 2012 ) ITO(EXEMPTI ONS), CUTTACK VS. ORISSA STATE FINANCIAL CORPORATION EMPLOYEE PROVIDENT FUND, AT: OMP SQUARE, COLLEGE SQUARE, CUTTACK - 753003 PAN NO. : A AATO 0382 K ( / APPELLANT ) .. ( / RESPONDENT ) /REVENUE BY : SHRI S.K.BANDYOPADHY AY, DR /ASSESSEE BY : NONE / DATE OF HEARING : 17 / 0 6 /20 20 / DATE OF PRONOUNCEMENT : 17 / 06 /20 20 / O R D E R PER L.P.SAHU , A M : TH ESE TWO APPEALS HAVE BEEN FILED BY THE REVENUE AGAINST THE ORD ER DATED 26.02.2018 & 22.02.2018 PASSED BY THE CIT(A), CUTTACK FOR THE ASSESSMENT YEAR 2010 - 2011 & 2011 - 2012. 2. THE COMMON ISSUE TAKEN BY THE REVENUE IN BOTH THE APPEALS IS WITH REGARD TO ALLOWING THE EXPENDITURE CLAIMED BY THE ASSESSEE ACCEPTING THE ADDI TIONAL EVIDENCE RELATING TO THE DETAILS OF EXPENDITURE, THEREBY VIOLATING THE RULE 46A OF I.T.RULES, 1962 3. NONE APPEARED ON BEHALF OF THE ASSESSEE EVEN BOTH THE CASE S W ERE CALLED FOR HEARING ON SECOND ROUND. THEREFORE, THE BENCH ITA NO. 215 &216 /CTK/20 18 2 PROCEEDED TO DISPOSE OF F BOTH THE APPEAL S OF THE ASSESSEE AFTER CONSIDERING THE SUBMISSIONS OF LD. DR AND THE MATERIAL EVIDENCE AVAILABLE ON RECORD. 4 . LD. DR RELIED ON THE ORDER OF AO AND SUBMITTED THAT THE CIT(A) HAS PASSED ORDER AFTER CONSIDERING THE ADDITIONAL EVIDENCE FILED B Y THE ASSESSEE IN VIOLATION OF THE RULE 46A OF I.T.RULES, 1962 AND THE SAME IS NOT PERMITTED AT THIS STAGE. HENCE, THE APPEAL OF THE REVENUE DESERVES TO BE ALLOWED . 5 . AFTER CONSIDERING THE SUBMISSIONS OF LD. DR AND PERUS ING THE RELEVANT MATERIAL PLACED IN THE RECORD OF THE TRIBUNAL , WE FIND THAT DURING THE COURSE OF APPELLATE PROCEEDINGS, THE ASSESSEE PRODUCED A LIST OF 298 EMPLOYEES WHO SE ACCOUNTS HAVE BEEN CREDITED WITH INTEREST IN A.Y.2010 - 2011 , ON WHICH BASIS , THE CIT(A) ALLOWED THE APPEAL OF THE ASSESSEE CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND DELETED THE ADDITION MADE BY THE AO AND REINSTATED THE EXCESS OF EXPENDITURE OVER INCOME AS SHOWN IN THE AUDITED ACCOUNTS OF THE ASSESSEE. HOWEVER, THE GROUND RAISED BY THE REVENUE BEFORE US THAT THE CIT(A) HAS VIOLATED THE RULES 46A OF I.T.RULES, 1962 IN ACCEPTING THE DETAILS OF EXPENDITURE IN THE FORM OF ADDITIONAL EVIDENCE IS NOT ACCEPTED BECAUSE THE PRINCIPAL EXPENSES OF THE ASSESSEE ARE INTEREST PAYMENT TO ITS MEMBERS AND MISCELLANEOUS ADMINISTRATIVE EXPENSES , WHICH ARE PARTS OF THE RECORD. FURTHER, WE FOUND THAT BOTH APPEALS OF THE REVENUE ARE LESS THAN THE ITA NO. 215 &216 /CTK/20 18 3 TAX LIMIT PRESCRIBED BY THE CBDT VIDE ITS CIRCULAR NO.17/2019, DATED 8 TH AUGUST, 2019 . THEREFORE, ON CAREFUL PERUSAL OF THE FINDINGS RECORDED BY THE CIT(A) ON MERIT AS WELL AS THE FACTUAL ASPECT OF THE MATTER, THE CONTENTION OF THE REVENUE POINTING TOWARDS THE EXCEPTIONAL CLAUSE PROVIDED BY THE AFORESAID CBDT CIRCULAR, DOES NOT SURVIVE. 6 . IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE, WE DISMISS BOTH THE APPEALS OF THE REVENUE HOLDING THE SAME AS BELOW THE TAX LIMIT PRESCRIBED BY THE CBDT CIRCULAR NO.17/2019, DATED 8 TH AUGUST, 2019. 7 . IN THE RESULT, THE BOTH APPEAL S OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 / 06 / 20 20 . SD/ - ( C.M.GARG ) SD/ - (L.P.SAHU) / JUDICIAL MEMBER / ACCOUNTANT MEMBER CUTTACK ; DATED 17 /06 /20 20 PRAKASH KUMAR MISHRA, SR.P.S. / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) , /ITAT, CUTTACK 1. / THE APPELLANT - ITO(EXEMPTIONS), CUTTACK 2. / THE RESPONDENT - ORISSA STATE FINANCIAL CORPORATION EMPLOYEE PROVIDENT FUND, AT: OMP SQUARE, COLLEGE SQUARE, CUTTACK - 753003 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//