Madhurai Tuticorin Expressways Limited , Hyderabad V. Income Tax Officer, Ward-16(2), Hyderabad

ITA 2332/Hyd/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 8599 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2014-2015
• Appeal Filed On: 18-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHANA RAO

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI L .P. SAHU, ACCOUNTANT MEMBER I.T.A. NO. 2332/HYD/2018 ASSESSMENT YEAR: 2014 - 15 MADHURAI TUTIKORIN EXPRESSWAYS LIMITED H YDERABAD PAN: A AECM7403L VS DY.CIT CIRCLE 16(2) H YDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI P.MURALI MOHANA RAO, ADV. FOR REVENUE : SHRI ROHIT MUJUMDAR, DR DATE OF HEARING : 0 6 - 01 - 2021 DATE OF PRONOUNCEMENT : 11 - 01 - 2021 O R D E R PER BENCH : THIS ASSESSEES APPEAL FOR AY.20 14 - 15 ARISES FROM THE ORDER OF C OMMISSIONER OF INCOME TAX (APPEALS) - 4 [CIT(A) FOR SHORT] HYDERABAD DATED 16.08.2018 . 2. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 3 . THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE PLEADED IN THE INSTANT APPEAL CHALLENG ES PRIOR PERIOD/PRE - OPERATIVE EXPENDITURE ITA NO. 2332/HYD/2018 MADHURAI TUTICORIN EXPRESSWAYS LTD. HYD. AY 2014 - 15 - 2 - DISALLOW ANCE AMOUNTING TO RS.12,91,765/ - MADE IN BOTH THE LOWER AUTHORITIES RESPECTIVE ORDERS. MR.MUJUMDAR, LEARNED DEPARTMENTAL REPRESENTATIVE VE HEMENTLY CONTENDED DURING THE COURSE OF HEARING, THAT BOTH THE LOWER AUTHORITIES HAVE RIGHTLY MADE THE IMPUGNED DISALLOWANCE OF PRIOR PERIOD EXPENSES SINCE IT DOES NOT PERTAIN TO RELEVANT P REVIOUS YEAR BEFORE US. MORE SO WHEN THE ASSESSEE ALSO FOLLOWS THE MERCANTILE SYSTEM OF ACCOUNTING. WE FIND NO MERIT IN REVENUES CONTENTIONS . THE FACT REMAINS THAT THE DEPARTMENT ITSELF HAS NOT ALLOWED THE IMPUGNED EXPENSES IN THE YEAR IT ACCRUED AND ALSO FOLLO W S THE SAME COURSE OF ACTION IN THE YEAR OF CRYSTALLISATION FOLLOWED BY PAYMENT AS WELL. 3.1. HONBLE GUJARAT H IGH C OURTS DECISION IN PCIT VS. ADANI ENTERPRISES LTD. I N INCOME TAX APPEAL NO.566/2016 HOLDS THAT SUCH A DISALLOWANCE IS A REVENUE NEUTRAL INSTANCE SINCE THE ASSESSEE IS BEING ASSESSED AT MAXI MUM MARGINAL RATE IN BOTH THE YEAR OF ACCRUAL AND CRYSTALLISATION OF THE PRIOR PERIOD EXPENSES IS ISSUE. THE FACTUAL POSITION IS N O DIFFERENT IN THIS CASE AS WELL. WE FOLLOW THE VERY SA ME REASONING HEREIN AS WELL AND DIRECT THE ASSESSING OFFICER TO DELETE THE IMPUGNED DISALLOWANCE. 4. THIS ASSESSEES APPEAL IS ALLOWED. PRONOUNCED ON 11 TH JANUARY, 2021. SD/ - SD/ - ( L . P . SAHU ) ( S.S. GODARA ) AC COUNTANT MEMBER JUDICIAL MEMBER DATED: THE 11 TH JANUARY, 2021. *GMV ITA NO. 2332/HYD/2018 MADHURAI TUTICORIN EXPRESSWAYS LTD. HYD. AY 2014 - 15 - 3 - COPY OF THE ORDER FORWARDED TO: 1. MADHURAI TUTICORIN EXPRESSWAYS LIMITED, PLOT NO.1129/A MADHUCON HOUSE, ROAD NO.36 JUBILEE HILLS, HYDERABAD 500 033 2. DY.CIT, CIRCLE 16(2), HYDERABAD. 3. ACIT, RANGE 16, HYDERABAD. 4. CIT(A) - 4, HYDERABAD. 5. PR.CIT - 4, HYDERABAD. 6. DR ITAT, HYDERABAD. 7. GUARD FILE.