DCIT, V. M/s Jharkhand Tourism Dev. Corpn. Ltd.,

ITA 259/RAN/2014

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9564 (ITAT-RANCHI)
• Duration Of Justice: 4 year(s) 8 month(s) 6 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 05-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 30-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAUDHARY ORAON
• Assessee Lawyers: D SANNIGRAHI
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL: CIRCUIT BENCH : RANCHI [BEFORE HONBLE S/SHRI N. S. SAINI, AM AND GEORGE M ATHAN, JM] ITA NO.259, 279 & 284/RAN/2014 ASSESSMENT YEAR: 2007-08, 2008-09 AND 2010-11 THE DY. COMMISSIONER OF INCOME TAX, CIRCLE -1, RANCHI VS M/S. JHARKHAND TOURISM DEVELOPMENT CORPORATION LTD., MAIN ROAD, RANCHI 834 001 PAN: AABCJ4014D (APPELLANT) (RESPONDENT) APPELLANT BY SHRI CHAUDHARY ORAON, DR RESPONDENT BY SHRI D. SANNIGRAHI, CA DATE OF HEARING: 04-11-2015 DATE OF PRONOUNCEMENT: 04-11-2015 O R D E R PER GEORGE MATHAN, JM: ITA NO.259/RAN/2014 IS AN APPEAL FILED BY THE REV ENUE AGAINST THE ORDER OF THE LEARNED CIT (A) IN APPEAL NO.173/R AN/OTH/09-10 DATED 28-04-2014, FOR THE ASSESSMENT YEAR 2007-08, ITA NO.279/RAN/2014 IS AN APPEAL FILED BY THE REVENUE A GAINST THE ORDER OF THE LEARNED CIT (A) IN APPEAL NO.158/RAN/OTH/10- 11 DATED 26-06- 2014, FOR THE ASSESSMENT YEAR 2008-09 AND ITA NO.28 4/RAN/2014 IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED CIT(A) IN APPEAL NO.61/RAN/CO/12-13 DATED 28-07-2014, FOR THE AY 2010-11. 2. SHRI CHAUDHARY ORAON, LEARNED DR REPRESENTED ON BEHALF OF THE REVENUE AND SHRI D. SANNIGRAHI, LEARNED AR REPRESEN TED ON BEHALF OF THE ASSESSEE. ITA NO. 259, 279 & 284/R/2014 (AY: 2007-08, 2008-09 & 2010-11) 2 3. IT WAS SUBMITTED BY THE LEARNED DR THAT THE ASSE SSEE IS A STATE GOVERNMENT UNDERTAKING ENGAGED IN THE BUSINESS OF H OTEL AND TOUR OPERATOR. IT WAS A SUBMISSION THAT IN THE COURSE OF ASSESSMENT, AS ALL THE DETAILS HAD NOT BEEN PRODUCED IN RESPECT OF THE VARIOUS EXPENSES AND THE RECEIPT OF INTEREST INCOME, THE AO HAD PASS ED THE ASSESSMENT ORDER U/S 144 OF THE ACT. IT WAS A SUBMISSION THAT ON APPEAL, THE LEARNED CIT (A) HAD DELETED THE ADDITION AGAINST WH ICH THE REVENUE IS IN APPEAL. IT WAS A SUBMISSION THAT THE ORDER OF TH E LEARNED CIT (A) IS LIABLE TO BE REVERSED. 4. IN REPLY, THE LEARNED AR PLACED BEFORE US THE CO PIES OF THE REMAND REPORTS OF THE AOS FILED BEFORE THE LEARNED CIT (A). IT WAS A SUBMISSION THAT THE LEARNED CIT (A) HAD DELETED THE ADDITIONS AFTER TAKING INTO CONSIDERATION THE REMAND REPORT OF THE AO WHEREIN THE AO HAD DONE VERIFICATION AND HAD SPECIFICALLY STATED T HAT THE BILLS AND VOUCHERS ARE MAINTAINED IN RESPECT OF THE EXPENDITU RE AND THE AO HAD ALSO RECORDED THAT THE EXPENSES WERE INCURRED AS PE R THE RULES AND VERIFIED BY THE OTHER INDEPENDENT ORGANIZATION I.E. THE ASSESSEES ACCOUNTANT GENERAL. THE LEARNED AR DREW OUR ATTENTI ON TO PARA 5.3, 6.4, 7.4 OF THE ORDER OF THE LEARNED CIT (A) FOR AS SESSMENT YEAR 2007- 08 AS ALSO PARA 4.3 OF THE ORDER OF THE LEARNED CIT (A) FOR ASSESSMENT YEAR 2008-09 AND PARA 4.3 OF THE ORDER OF THE LEARN ED CIT (A) FOR ASSESSMENT YEAR 2010-11. IT WAS A SUBMISSION THAT A S THE ADDITIONS HAVE BEEN DELETED BY THE LEARNED CIT (A) ON THE BAS IS OF THE REMAND REPORTS SUBMITTED BY THE AO BEFORE THE LEARNED CIT (A), THE ORDER OF THE LEARNED CIT (A) WAS LIABLE TO BE UPHELD AND NO APPEAL ITSELF SHOULD HAVE BEEN FILED AGAINST THE ORDER OF THE LEARNED CI T (A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PERU SAL OF THE ORDER OF THE LEARNED CIT (A) CLEARLY SHOWS THAT FOR THE A SSESSMENT YEAR ITA NO. 259, 279 & 284/R/2014 (AY: 2007-08, 2008-09 & 2010-11) 3 2007-08, HE HAS DELETED THE ADDITION CLEARLY ON THE BASIS OF THE STAND TAKEN BY THE AO IN THE REMAND REPORTS. IN RESPECT O F THE ASSESSMENT YEARS 2008-09 AND 2010-11, IT IS NOTICED THAT THE L EARNED CIT (A) HAS DELETED THE ADDITIONS CLEARLY ON THE BASIS OF DIREC TION OF THE GOVERNMENT OF INDIA AS ALSO THE GUIDELINES ISSUED T O TREAT THE INTEREST INCOME IN RESPECT OF THE UNUTILIZED FUNDS GRANTED B Y THE CENTRAL GOVERNMENT TRANSFERRED TO THE APPELLANT FOR MAKING PAYMENT FOR THE APPROVED PROJECTS AS THE INCOME OF THE GOVERNMENT A ND NOT OF THE ASSESSEE. THIS BEING SO, WE FIND NO REASON TO INTER FERE IN THE ORDERS OF THE LEARNED CIT (A) FOR ANY OF THE THREE ASSESSMENT YEARS. 6. IN THE RESULT, ALL THE APPEALS FILED BY THE REVE NUE IN ITA NOS. 259, 279 AND 284/RAN/2014 STAND DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT AT THE CLOSE OF HEARING ON 04-11-2015. SD/- SD/- (N.S. SAINI) ACCOUNTANT MEMBER (GEORGE MATHAN) JUDICIAL MEMBER DATE : 04-11-2015 L LL LK DEKA/SR.PS K DEKA/SR.PS K DEKA/SR.PS K DEKA/SR.PS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) - 5. THE DR, ITAT, RANCHI 6. GUARD FILE BY ORDER ITA NO. 259, 279 & 284/R/2014 (AY: 2007-08, 2008-09 & 2010-11) 4 DATE INITIAL ORIGINAL DICTATION PAD & DRAFT S ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 04.11.15 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 04.11.15 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 04.11.15 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 04.11. 15 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 04.11.15 S R.PS 6. DATE OF PRONOUNCEMENT 04.11.15 SR.PS 7. FILE SENT TO THE BENCH CLERK ` 04 .11.15 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER