HUF India Private Limited, Pune V. Assistant Commissioner of Income-tax, Circle - 9, Pune

ITA 2674/PUN/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3374 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 29-08-2019
• Assessment Year: 2011-2012
• Appeal Filed On: 17-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED
• Keywords: Rule of consistency; Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . ., . / ITA NO. 2674/PUN/2017 / ASSESSMENT YEAR : 2011-12 M/S. HUF INDIA PVT. LTD., GAT NO.304, NANEKARWADI, CHAKAN, TAL. KHED, PUNE 410501 MAHARASHTRA PAN : AABCH9173K VS. ACIT, CIRCLE-9, PUNE (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSE D BY THE COMMISSIONER OF INCOME-TAX (APPEALS)-6, PUNE ON 03-07-2017 IN RELATION TO THE ASSESSMENT YEAR 2011-12. 2. THE ONLY ASSAIL HEREIN IS TO THE CONFIRMATION OF ADDITION OF RS.9.00 LAKH MADE BY THE ASSESSING OFFICER (AO) U/S.35D OF APPELLANT BY SMT. DEEPA KHARE RESPONDENT BY SHRI PRASHANT MAHAJAN DATE OF HEARING 14-11-2019 DATE OF PRONOUNCEMENT 15-11-2019 ITA NO.2674/PUN/2017 M/S. HUF INDIA PVT. LTD., 2 THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CALLED `THE ACT) BY TREATING THE AMOUNT AS PRE-OPERATIVE EXPENSES. 3. SUCCINCTLY, THE FACTS OF THE CASE ARE THAT THE ASSESSEE CLAIMED DEDUCTION OF RS.9.00 LAKH TOWARDS PRE-OPERATIVE EXPENSES U/S.35D OF THE ACT. THE AO NOTICED THAT THE ASSES SEE HAD INCURRED EXPENDITURE OF RS.98,11,558/- AS PRE-OPER ATIVE EXPENSES DURING THE FINANCIAL YEAR RELEVANT TO THE ASSESSME NT YEAR 2009-10, OUT OF WHICH A SUM OF RS.45.00 LAKH WAS TREATED AS QUALIFYING AMOUNT. 1/5 TH OF SUCH QUALIFYING AMOUNT, NAMELY, RS.9.00 LAKH WAS CLAIMED AS DEDUCTION U/S.35D OF THE ACT FOR AND FROM THE A.Y. 2009-10 INCLUDING THE YEAR UNDER CONSIDERATION. ON EXAMINATION OF THE DETAILS OF SUCH AMOUNT OF RS.98.00 LAKH, THE AO CAME TO HOLD THAT THE SUM OF RS.9.00 LAKH WAS LIABLE TO BE ADDED. HE, THEREFORE, MADE THE DISALLOWANCE, WHICH CAME TO BE SUSTAINED IN THE FIRST APPEAL. THE ASSESSEE IS AGGRIEVED BY SUCH CONFIRMATION OF THE AD DITION. 4. I HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE RELEV ANT MATERIAL ON RECORD. IN THE COURSE OF AN EARLIER HEARING OF THIS APPEAL, THE LD. DR WAS REQUIRED TO SUBMIT A REPORT ON THE GRANTING OR OTHERWISE OF DEDUCTION OF SUCH EXPENSES OF RS .9.00 ITA NO.2674/PUN/2017 M/S. HUF INDIA PVT. LTD., 3 LAKH IN THE EARLIER YEARS. A COPY OF THE REPORT FROM THE AO HAS BEEN PLACED ON RECORD BY THE LD. DR. AS PER THIS REPORT, A DEDUCTION OF RS.9.00 LAKH WAS CLAIMED FOR THE FIRST TIME IN THE RETURN FOR THE A.Y. 2009-10 WHICH WAS NOT GRANTED, BUT TH E LD. CIT(A) ACCEPTED THE ASSESSEES CLAIM AND THE REVENUES APPEAL HAS BEEN DISMISSED, ALBEIT ON LOW TAX EFFECT. NO ASSESS MENT WAS TAKEN UP U/S. 143(3) OF THE ACT FOR THE A.Y. 2010-1 1, MEANING THEREBY THAT THE DEDUCTION GOT ALLOWED. FROM THE ABOVE REPORT OF THE AO, IT IS OSTENSIBLE THAT THE ASSESSEE HAS BEEN CONSISTENTLY ALLOWED DEDUCTION OF RS.9.00 LAKH IN THE ASSESSMENTS FOR THE A.YS 2009-10 AND 2010-11. THE ASSESSMENT YEAR 2011-12, UNDER CONSIDERATION, IS A CONSE CUTIVE 3 RD YEAR IN LINE. IN VIEW OF THE FACT THAT THE DEDUCTION FOR SIMILAR AMOUNTS HAS BEEN ALLOWED IN THE IMMEDIATELY TWO PRECEDING ASSESSMENT YEARS, FOLLOWING THE PRINCIPLE OF CONSISTENCY, I HOLD THE ASSESSEE TO BE ENTITLED TO DEDUCTION O F RS.9.00 LAKH IN THE YEAR UNDER CONSIDERATION AS WELL. THE IMPUGNED ORDER IS OVERTURNED ON THIS SCORE AND THE DEDUC TION OF RS.9.00 LAKH IS GRANTED. ITA NO.2674/PUN/2017 M/S. HUF INDIA PVT. LTD., 4 5. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH NOVEMBER, 2019. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 15 TH NOVEMBER, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-6, PUNE 4. THE PR.CIT- 5, PUNE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.2674/PUN/2017 M/S. HUF INDIA PVT. LTD., 5 DATE 1. DRAFT DICTATED ON 14-11-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 14-11-2019 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -- JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -- JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *