Goa State Infrastructure Dve. Corpn. Ltd., Panaji V. Asst. Commissioner of Income tax Cir. 1 (1), Panaji

ITA 22/PAN/2013

• Counselvise Citation: 2224114 RSA 2013
• Duration Of Justice: 1 year(s) 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 27-02-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 08-02-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B BARTHAKUR LD
• Assessee Lawyers: PRANAV NAIK
• Keywords: Business income; Business expenditure; Retrospective amendment; Non-deduction of tax
• Section: 143(3); 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI P.K. BANSAL, HONBLE ACCOUNTANT MEMBER AND SHRI D.T. GARASIA, HONBLE JUDICIAL MEMBER ITA NO. 176/PNJ/2014 : (ASST. YEAR : 2009 - 10) ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 1(1) , PANAJI (APPELLANT) VS. M/S. GOA STATE INFRASTRUCTURE DEVELOPMENT CORPORATION LTD. 7 TH FLOOR, EDC HOUSE, DR. A.B. ROAD, PANAJI, GOA (RESPONDENT) PAN : AA CCG0256F ITA NO. 2 2 /PNJ/2013 : (ASST. YEAR : 200 9 - 1 0) M/S. GOA STATE INFRASTRUCTURE DEVELOPMENT CORPORATION LTD. 7 TH FLOOR, EDC HOUSE, DR. A.B. ROAD, PANAJI, GOA (APPELLANT) PAN : AACCG0256F VS. ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 1(1), PANAJI (RESPONDENT) ASSESSEE BY : JITENDRA JAIN, ADV. & PRANAV NAIK, CA REVENUE BY : B. BARTHAKUR, LD. DR DATE OF HEARING : 0 7 /08/2014 DATE OF PRONOUNCEMENT : 14 /08/2014 O R D E R PER P.K. BANSAL 1. THESE CROSS APPEALS HAVE BEEN FILED AGAINST THE ORDER OF CIT( A) 20.11.2012 WHICH WAS SUBSEQUENTLY RECTIFIED VIDE ORDER DT. 14.2.2014. 2. SINCE THE ASSESSEE WITHDREW ITS APPEAL AND AFTER HEARING THE LD. DR WHO DOES NOT HAVE ANY OBJECTION FOR WITHDRAWING OF THE APPEAL, WE DISMISS THE APPEAL OF THE ASSESSEE AS WITHDRAWN. 2 ITA NOS. 176/PNJ/2014 & 22/PNJ/2013 (ASST. YEAR : 2009 - 10) 3. THE ONLY EFFECTIVE GROUND IN REVENUES APPEAL READS AS UNDER : 2. THE LD. CIT(A) HAS ERRED IN DELETING DISALLOWANCE OF DEDUCTION U/S 40(A)(IA) WHEN THE ASSESSEE, FAILED TO DEPOSIT TAX TO GOVERNMENT ACCOUNT WITHIN DUE DATE ON THE GROUND THAT THE PROVISION IN THIS SECTION ARE AMENDED BY THE FINANCE ACT, 2010 WITH RETROSPECTIVE EFFECT, WHEN IN FACT THE AMENDMENT IS WITH EFFECT FROM 01/04/2010, AND NOT FROM THE DATE OF INSERTION OF THE PROVISION I.E. 01/04/2005 AS HELD IN THE CASE OF VARADH ARAJA THEATRE (P) LTD. 4. THE BRIEF FACTS RELATING TO THIS GROUND ARE THAT IN THE ASSESSMENT FRAMED U/S 143(3) THE AO DISALLOWED U/S 40(A)(IA) A SUM OF RS.3,73,07,240/ - EVEN THOUGH THIS EXPENDITURE WAS MADE BY THE ASSESSEE BEFORE THE DUE DATE OF FILING OF THE RETURN FOR THE IMPUGNED ASSESSMENT YEAR. THE AO DID NOT ACCEPT THE CONTENTION OF THE ASSESSEE THAT THE AMENDMENT MADE U/S 40(A)(IA) OF THE INCOME TAX ACT BY THE FINANCE ACT, 2010 IS CURATIVE IN NATURE AND APPLIES RETR OSPECTIVELY TO THE IMPUGNED ASSESSMENT YEAR. THE ASSESSEE WENT IN APPEAL BEFORE THE CIT(A) ALONGWITH OTHER GROUNDS. THE ASSESSEE HA D TAKEN THE GROUND CHALLENGING THE DISALLOWANCE MADE U/S 40(A)(IA) . CIT(A) DISPOSED OFF THE APPEAL VIDE ORDER DT. 20.11.20 12 BUT CIT(A) DID NOT CONSIDER GROUND NOS. 3 & 4 IN RESPECT OF DISALLOWANCE MADE U/S 40(A)(IA). THE ASSESSEE, THEREFORE, MOVED AN APPLICATION FOR RECTIFICATION WHICH WAS ACCEPTED BY THE CIT(A) AND ACCORDINGLY, THE CIT(A) ON MERIT VIDE ORDER DT. 14.2.2014 DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE DELETING THE DISALLOWANCE MADE U/S 40(A)(IA). 5. WE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY CONSIDERED THE SAME. WE NOTED THAT P RIOR TO THE AMENDMENT, THE SAID PROVISION READ AS UNDER: - SECTION 40(A)(IA) : ANY INTEREST, COMMISSION OR BROKERAGE, RENT, ROYALTY FEES FOR PROFESSIONAL SERVICES OR FEES FOR TECHNICAL SERVICES PAYABLE TO A RESIDENT, OR AMOUNTS PAYABLE TO A CONTRACTOR OR SUB - CONTRACTOR, BEING RESIDENT, FOR CARRYING OUT ANY WORK (INCLUDING SUPPLY OF LABOUR FOR CARRYING OUT ANY WORK), ON WHICH TAX IS DEDUCTIBLE AT SOURCE UNDER CHAPTER XVII - B AND SUCH TAX HAS NOT BEEN DEDUCTED OR, 3 ITA NOS. 176/PNJ/2014 & 22/PNJ/2013 (ASST. YEAR : 2009 - 10) AFTER DEDUCTION, HAS NOT BEEN PAID, ON OR BEFORE THE DUE DATE SPECIFIED IN SUB - SECTION (1) OF SECTION 139: PROVIDED THAT WHERE IN RESPECT OF ANY SUCH SUM, TAX HAS BEEN DEDUCTED IN ANY SUBSEQUENT YEAR, OR HAS BEEN DEDUCTED DURING THE PREVIOUS YEAR BUT PAID AFTER THE DUE DATE SPECIFIED IN SUB - SECTION (1) OF SECTION 139, SUCH SUM SHALL BE ALLOWED AS A DEDUCTION IN COMPUTING THE INCOME OF THE PREVIOUS YEAR IN WHICH SUCH TAX HAS BEEN PAID. PROVIDED FURTHER THAT WHERE AN ASSESSEE FAILS TO DEDUCT THE WHOLE OR ANY PART OF THE TAX IN ACCORDANCE WITH THE PROVISIONS OF CHAPTER XVII - B ON ANY SUCH SUM BUT IS NOT DEEMED TO BE AN ASSESSEE IN DEFAULT UNDER THE FIRST PROVISO TO SUB - SECTION (1) OF SECTION 201, THEN, FOR THE PURPOSE OF THIS SUB - CLAUSE, IT SHALL BE DEEMED THAT THE ASSESSEE HAS DEDUCTED AND PAID THE TAX ON SUCH SUM ON THE DATE OF FURNISHING OF RETURN OF INCOME BY T HE RESIDENT PAYEE REFERRED TO IN THE SAID PROVISO. EXPLANATION: FOR THE PURPOSES OF THIS SUB - CLAUSE, - (I) COMMISSION OR BROKERAGE SHALL HAVE THE SAME MEANING AS IN EXPLANATION 2 TO CLAUSE (I) OF THE EXPLANATION TO SECTION 194H; (II) FEES FOR TECHNICAL SERV ICES SHALL HAVE THE SAME MEANING AS IN EXPLANATION 2 TO CLAUSE (VII) OF SUB - SECTION (1) OF SECTION 9; (III) PROFESSIONAL SERVICES SHALL HAVE THE SAME MEANING AS IN CLAUSE (A) OF THE EXPLANATION TO SECTION 194J; (IV) WORK SHALL HAVE THE SAME MEANING AS IN EXPLANATION III TO SECTION 194C; (V) RENT SHALL HAVE THE SAME MEANING AS IN CLAUSE (I) TO THE EXPLANATION TO SECTION 194 - I; (VI) ROYALTY SHALL HAVE THE SAME MEANING AS IN EXPLANATION 2 TO CLAUSE (VI) OF SUB - SECTION ( 1) OF SECTION 9; BY FINANCE ACT, 2010, THE SAID PROVISION IS SUBSTITUTED BY THE FOLLOWING: SUBSTITUTED BY THE FINANCE ACT, 2010, W.E.F. 01.04.2010. PRIOR TO ITS SUBSTITUTION, PROVISO AS SUBSTITUTED BY THE FINANCE ACT, 2008, W.R.E.F. 01.04.2005, READ AS UNDER: PROVIDED THAT WHERE IN RESPECT OF ANY SUCH SUM, TAX HAS BEEN DEDUCTED IN ANY SUBSEQUENT YEAR, OR HAS BEEN DEDUCTED: - 4 ITA NOS. 176/PNJ/2014 & 22/PNJ/2013 (ASST. YEAR : 2009 - 10) (A) DURING THE LAST MONTH OF THE PREVIOUS YEAR BUT PAID AFTER THE SAID DUE DATE; OR (B) DURING ANY OTHER MONTH OF THE PREV IOUS YEAR BUT PAID AFTER THE END OF THE SAID PREVIOUS YEAR, SUCH SUM SHALL BE ALLOWED AS A DEDUCTION IN COMPUTING THE INCOME OF THE PREVIOUS YEAR IN WHICH SUCH TAX HAS BEEN PAID. 5.1 THE LD. DR VEHEMENTLY CONTENDED THAT SINCE THE AMENDMENT WAS MADE W.E.F. 1.4.2010, THEREFORE, CIT(A) WAS NOT CORRECT IN ALLOWING THE RELIEF TO THE ASSESSEE. WE NOTED THE INTERPRETATION OF THIS PROVISION AS GIVEN BY THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF COMMISSIONER OF INCOME TAX, AHMEDABAD IV VS. OM PRAKASH R CH AUDHARY IN TAX APPEAL NOS.412/2013 AND CONNECTED MATTER, WHICH CAME TO BE DECIDED ON 22.11.2013, AFTER REFERRING TO THE JUDGMENTS OF ALIE D MOTORS (P.) LTD. VS. CIT REPORTED IN AIR 1997 SC 1361 AND CIT VS. ALOM EXTRUSIONS LIMITED REPORTED IN (2009) 319 ITR 306, HAS HELD AS UNDER: 15.4: THUS, CONSIDERING RELEVANT LEGISLATIVE CHANGES MADE BY THE PARLIAMENT FROM TIME TO TIME AND SOME OF THE DECISIONS RELEVANT TO CONSIDER THE QUESTION OF RETROSPECTIVITY RAISED IN THESE PRESENT APPEALS, THE FOCAL QUESTION, THEREFORE, WOULD BE WHETHER THE AMENDMENT BROUGHT ABOUT BY WAY OF FINANCE ACT 2010 IN SECTION 40 [A](IA) WITH EFFECT FROM 1ST APRIL 2010 COULD BE SAID TO BE CLARIFICATORY IN NATURE FOR ATTENDING TO UNIN TENDED CONSEQUENCES, AND THEREFORE, IS HAVING RETROSPECTIVE EFFECT FROM 1ST APRIL 2005. 16: A CLOSER EXAMINATION NEEDS TO BE DONE AS TO WHETHER THE AMENDED PROVISION AIMS TO EXPAND THE PREVAILING POSITION AND WHETHER THE SAME BEING IN THE NATURE OF CURAT IVE, RETROSPECTIVITY OF THE SAME IS PERMISSIBLE AS IS BEING CONTENDED FOR AND ON BEHALF OF THE ASSESSEE. AT THIS STAGE, THEREFORE, THE TRUE EFFECT OF SUCH AMENDMENT NEEDS TO BE DISCERNED. 16.1: IT IS DEMONSTRATED BEFORE US THAT THE TDS PROVISION CAUSED U NINTENDED INEXPLICABLE SITUATION WHEREBY THE ASSESSEE WHO DEDUCTED THE TAX AT SOURCE FROM THE PAYMENTS MADE BY IT FOR AND ON BEHALF OF THE GOVERNMENT AND THEN IF MISSES OUT THE TIME LIMIT OF DEPOSITING THE SAME WITH THE TREASURY WITHIN THE TIME PRESCRIBED, THE AMOUNT SPENT FOR ITS BUSINESS PURPOSES ON ACCOUNT OF THE LATE DEPOSIT OF SUCH TAX WOULD RESULT INTO DISALLOWANCE OF ENTIRE EXPENDITURE UNDER SECTION 40[A](IA). THE SAID PROVISO THEREBY CAUSED IMMENSE HARDSHIP. THE AMENDMENT UNDER CONSIDERATION 5 ITA NOS. 176/PNJ/2014 & 22/PNJ/2013 (ASST. YEAR : 2009 - 10) MADE BY THE FINANCE ACT 2010 RELAXES THE RIGORS OF SUCH PROVISION BY PERMITTING PAYMENT OF TAX TILL THE FILING OF RETURN AS PROVIDED UNDER SUB - SECTION (1) OF SECTION 139 OF THE ACT. 16.2: ONE CAN NOTICE THAT THE OBJECT OF BRINING ABOUT PROVISION OF SECTION 40(A )(IA) IN THE YEAR 2005 06 WAS TO AUGMENT COMPLIANCE OF TDS PROVISION. TDS EITHER NOT DEDUCTED OR DEDUCTED BUT NOT PAID IN RESPECT OF PAYMENT OF INTEREST, COMMISSION OR BROKERAGE ETC., BEFORE THE EXPIRY OF TIME PRESCRIBED UNDER SUB - SECTION (1) OF SECTION 200 AND IN ACCORDANCE WITH THE OTHER PROVISIONS OF CHAPTER XVII, SUCH AMOUNT SHALL NOT BE DEDUCTED IN COMPUTING THE INCOME CHARGEABLE UNDER THE HEAD PROFIT & GAINS OF BUSINESS OR PROFESSION. SUCH PROVISION STARTS WITH NON OBSTANTE CLAUSE WHICH STATES T HAT NOTWITHSTANDING ANYTHING CONTAINED IN SECTION 30 TO 38 OF THE INCOME - TAX ACT, IF THE TAX DEDUCTED AT SOURCE IS NOT PAID WITHIN PRESCRIBED TIME [UNDER SECTION 200 (1)], NO AMOUNT COULD BE DEDUCTED WHILE COMPUTING THE INCOME, UNDER CHAPTER IV OF THE COM PUTATION OF BUSINESS INCOME. 16.3: THEREAFTER, BY WAY OF AMENDMENT OF FINANCE ACT, 2008, FURTHER AMENDMENT WAS MADE WHEREBY TDS DEDUCTIBLE AND DEDUCTED IN THE LAST MONTH OF PREVIOUS YEAR IF WAS NOT PAID TILL THE DUE DATE OF FILING OF RETURN UNDER SUB - SE CTION (1) OF SECTION 139 AND IN ANY OTHER CASE, ON OR BEFORE THE LAST DAY OF THE PREVIOUS YEAR, SECTION 40(A)(IA) PROVIDED FOR THE DISALLOWANCE OF EXPENSES LIKE INTEREST, COMMISSION, BROKERAGE, ETC. 16.4: SINCE, THIS HAD CREATED ANOMALY, WHEREBY TAX DEDU CTED IN THE LAST MONTH WAS PERMITTED PAYMENT TILL FILING OF RETURN AS PER SUB - SECTION (1) OF SECTION 139 WHEREAS FOR THE TDS DEDUCTED DURING THE REST OF THE MONTHS, PERIOD WAS PROVIDED ONLY TILL 31ST MARCH OF THE PREVIOUS YEAR, FINANCE ACT, 2010 WAS BROUGH T. TO BRING PARITY, TO REMEDY UNINTENDED CONSEQUENCES AND TO MAKE THE PROVISION WORKABLE, IT PROPOSED TO AMEND THE SAID PROVISION AND PROVIDED INTER ALIA THAT NO DISALLOWANCE WOULD BE MADE IF AFTER DEDUCTION OF TAX DURING THE PREVIOUS YEAR, THE SAME HAS BE EN PAID ON OR BEFORE THE DUE DATE OF FILING OF RETURN OF INCOME AS SPECIFIED IN SUB - SECTION (1) OF SECTION 139. THIS HAS BEEN GIVEN RETROSPECTIVE EFFECT FROM 1ST APRIL 2010. 16.5: OF COURSE, THE LEGISLATURE HAS GIVEN THE EFFECT FROM A SPECIFIED DATE AND APPLIED THE SAME TO A.Y.2010 - 11 AND SUBSEQUENT YEARS, THIS PROVISION BEING CURATIVE IN NATURE, ITS EFFECT NEEDS TO BE READ RETROSPECTIVELY IN OPERATION. ITS VERY PURPOSE WOULD NOT BE SUB - SERVED, IF THE EFFECT IS LIMITED TO A.Y.2010 - 11 AND SUBSEQUENT YEARS ONLY. STRICT CONSTRUCTION IF LEADS TO A RESULT NOT INTENDED TO BE FULFILLED BY THE OBJECT OF LEGISLATION AND ANOTHER CONSTRUCTION IS POSSIBLE APART FROM LITERAL CONSTRUCTION, THEN THAT CONSTRUCTION NEEDS TO BE PREFERRED AS HELD IN A DECISION IN CASE OF CIT V. ALOM EXTRUSION LIMITED [SUPRA]. 16.6: WE ALSO CANNOT BE OBLIVIOUS OF SUBMISSIONS NOT DENIED BY THE OTHER SIDE THAT VARIOUS REPRESENTATIONS WERE MADE TO THE FINANCE MINISTER TO BRING ABOUT SUITABLE 6 ITA NOS. 176/PNJ/2014 & 22/PNJ/2013 (ASST. YEAR : 2009 - 10) AMENDMENT AS THE ASSESSEE OTHERWISE WAS LOSING GENUIN E DEDUCTION OF EXPENDITURE ON THIS COUNT AS ALSO REFLECTED IN THE SPEECH OF FINANCE MINISTER SO ALSO IN THE MEMORANDUM EXPLAINING THE PROVISION OF THE FINANCE BILL. 16.7: GIVING PLAIN OR NATURAL MEANING TO THE AMENDMENT AS CONTENDED BY THE DEPARTMENT, IF IS LIKELY TO CREATE A SITUATION ENHANCING THE HARDSHIP AND ADVANCE DISCRIMINATION, PURPOSIVE AND REASONABLE INTERPRETATION IS REQUIRED TO BE GIVEN BY THE COURT. WHEN PLAIN INTERPRETATION FRUSTRATES THE VERY LEGISLATIVE INTENT, THE COURT IS EXPECTED TO BEA R IN MIND THE LEGISLATIVE INTENT FROM THE LANGUAGE USED IN THE STATUE WITH THE HELP OF PERMISSIBLE TOOLS OF INTERPRETATION OF STATUTE. 17: THE CORE ISSUE AS TO WHETHER THE AMENDMENT MADE BY THE FINANCE ACT 2010 TO SECTION 40[A](IA) OF THE ACT IS RETROSPE CTIVE FROM THE DATE OF INSERTION OF THE PROVISION I.E., 1ST APRIL 2005 THEREFORE NEEDS TO BE ANSWERED IN AFFIRMATION. IT CAN BE SEEN THAT THE AMENDMENT MADE BY THE FINANCE ACT 2010 ALLOWS ADDITIONAL TIME UPTO THE DUE DATE OF FILING OF THE RETURN IN RESPECT OF EVEN THOSE INSTANCES WHERE TDS HAS BEEN DEDUCTED DURING THE FIRST ELEVEN MONTHS OF THE PREVIOUS YEAR. THE ADDITIONAL TIME TILL THE DUE DATE OF FILING OF THE RETURN, IN CASE OF TDS MADE DURING THE LAST MONTH OF THE PREVIOUS YEAR WAS ALREADY AVAILABLE BY THE AMENDMENT MADE BY FINANCE ACT 2008. THUS, IT IS APPARENT THAT THE RELAXATION MADE BY THE AMENDMENT MADE UNDER THE FINANCE ACT, 2010 BRINGS THE LAW IN PARITY WITH THE AFOREMENTIONED SITUATION AND ACCORDINGLY, FOR THE TDS DEDUCTED ALL THROUGHOUT THE YEA R, TIME IS EXTENDED FROM PAYMENT TILL THE FILING OF RETURN. IT IS THUS APPARENT THAT WHEN THE AMENDMENT INTRODUCED BY THE FINANCE ACT, 2008 OF RELAXING THE TIME FOR DEPOSIT OF TDS WAS MADE RETROSPECTIVE FROM THE YEAR 2005 [1ST APRIL 2005], THE AMENDMENT BY FINANCE ACT 2010 WITH REGARD TO OTHER LIMB OF TIME LIMIT FOR PAYMENT OF TDS HAS TO BE HELD RETROSPECTIVE NOT FROM 1ST APRIL 2010 ONLY. IF WE RECALL AT THIS STAGE THE SPEECH OF FINANCE MINISTER WHILE INTRODUCING THIS PROVISION BY WAY OF FINANCE ACT, 2010, THIS AMENDMENT ESSENTIALLY HAS BEEN BROUGHT FOR RELAXING THE CURRENT PROVISION ON DISALLOWANCE OF EXPENDITURE. THE TAX, IF IS DEDUCTED AT ANY TIME DURING THE FINANCIAL YEAR AND PAID BEFORE THE DATE OF FILING OF THE RETURN, THE LEGISLATURE INTENDED TO ALLOW DEDUCTION ON SUCH EXPENDITURE WITH AN INTENTION TO PERMIT ADDITIONAL TIME FOR MOST DEDUCTORS UPTO SEPTEMBER OF THE NEXT FINANCIAL YEAR. 17.1: WE DRAW FURTHER SUPPORT FROM THE FACT THAT THE RIGOR OF PAYMENT OF INTEREST IS ALSO ENHANCED BY INCREASING THE INTEREST CHARGED ON TAX DEDUCTED, IF ANY DEPOSIT BY THE SPECIFIED DATE I.E., UP TO THE FILING OF THE RETURN IS NOT MADE, FROM 12% TO 18% PE R ANNUM IN THE PROVISION OF SECTION 201 (1A). PRIOR TO THE SAID AMENDMENT OF FINANCE ACT, 2010 UNDER SECTION 201 (1A), ASSESSEE WAS LIABLE TO PAY SIMPLE INTEREST AT ONE PER CENT FOR EVERY MONTH OR PART OF MONTH, IN CASE OF FAILURE TO DEDUCT TAX ON PAYMENT OF DEDUCTED TAX, INCREASE IS MADE CORRESPONDINGLY FROM ONE PER CENT TO ONE AND HALF PER CENT FOR EVERY MONTH OR PART OF MONTH FOR DISCOURAGING DELAY IN DEPOSIT. 7 ITA NOS. 176/PNJ/2014 & 22/PNJ/2013 (ASST. YEAR : 2009 - 10) AS RIGHTLY CONTENDED BY THE RESPONDENTS ARITHMETICAL DISCREPANCY CAN BE WELL JUDGED FROM THE FACT THAT THE RATES OF TDS MAY VARY BETWEEN 1% TO 10%, WHEREAS, LEGITIMATE BUSINESS EXPENDITURE DENIED IS 100% - RESULTING INTO TAXATION OF GROSS RECEIPTS COUPLED WITH LEVY OF INTEREST AND PENALTY, WHICH WOULD MEAN THAT THE POSSIBILITY CANNOT BE RULED OUT OF BUSINESS OF THE TAX PAYER GETTING CLOSED DOWN PERMANENTLY, IF THERE IS ABSENCE OF ANY SCOPE OF CLAIMING ANY EXPENSES IN THE NEXT YEAR. 5.2 SIMILAR VIEW HAS BEEN TAKEN BY THE HON'BLE DELHI HIGH COURT IN THE CASES OF CIT VS. ORACLE SOFTWARE INDIA LIMIT ED REPORTED IN 293 ITR PAGE 253 AND H.S. MOHINDRA TRADERS VS. I.T.O., WARD 39 (2), NEW DELHI AND CALCUTTA HIGH COURT IN THE CA SE OF CIT VS. VIRGIN CREATIONS AND BY THE HON'BLE KARNATAKA HIGH COURT IN ITA NO. 590/2013 C/W ITA NOS. 333/2012, 45 7 /2013, 319/20 09, 242/2012, 334/2012, 12/2013 AND 595/2013 IN THE CASE OF SANTOSH KUMAR SHETTY & ORS. 5.3 NO CONTRARY DECISION WAS BROUGHT TO OUR KNOWLEDGE. RESPECTFULLY FOLLOWING THE AFORESAID DECISION OF THE HON'BLE GUJARAT HIGH COURT, IN OUR OPINION, NO INTERFERENCE IS CALLED FOR IN THE ORDER OF CIT(A). CIT(A) HAS RIGHTLY DELETED THE DISALLOWANCE. WE, ACCORDINGLY, DISMISS THE GROUND TAKEN BY THE REVENUE. 6. IN THE RESULT, BOTH THE AP PEALS FILED BY THE REVENUE A S WELL AS THE ASSESSEE STAND DISMISSED. 7. ORDER PRONOUNCED IN THE OPEN COURT ON 14 /08/2014. SD/ - (D.T.GARASIA) JUDICIAL MEMBER SD/ - (P.K. BANSAL) ACCOUNTANT MEMBER PLACE : PANAJI DATED : 14 /08/ 201 4 *SSL* 8 ITA NOS. 176/PNJ/2014 & 22/PNJ/2013 (ASST. YEAR : 2009 - 10) COPY TO : (1) APPELLANT S (2) RESPONDENT S (3) CIT CONCERNED (4) CIT(A) CONCERNED (5) D.R (6) GUARD FILE TRUE COPY, BY ORDER