Dy. Commissioner of Income Tax , Circle-1(1), Hyderabad V. Andhra Pradesh Beverages Corporation Limited , Hyderabad

ITA 317/Hyd/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7380 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 01-06-2021
• Assessment Year: 2015-2016
• Appeal Filed On: 08-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK KARDAM
• Keywords: Tax effect
• Section: 80G; 195; 201; 22; 20

Judgement Text

ITA NO. 317/HYD/2019 AY 2015 - 16 M/S ANDHRA PRADESH BEVERAGES CORPORATION LTD., HYD. 1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH A HYDERABAD (THROUGH VIDEO CONFERENCE ) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. NO. 317 /HYD./201 9 A .Y : 20 15 - 16 DY.CIT, CIRCLE 1( 1 ) VS. M/S ANDHRA PRADESH BEVERAGES CORPORATION HYDERABAD LIMITED HYDERABAD [PAN: AABC A7385A ] (APPELLANT) (RESPONDENT) FOR REVENUE: SHRI ASHOK KARDAM, D.R. FOR ASSESSEE: SHRI Y. RATNAKAR, ADV. DATE OF HEARING : 01/06/ 2021 DATE OF PRONOUNCEMENT : 17 /0 8 /2021 O R D E R PER S.S. GODARA, J.M. TH IS REVENUES APPEAL FOR A.Y. 20 15 - 16 A RISE S AGAINST THE CIT(A) - 1, HYDERABADS ORDER DATED 31.09.2019 PASSED IN CASE NO. 0 195 /2017 - 18, INVOLVING PROCEEDINGS U/S 143 ( 3 ) OF THE INCOME TAX ACT, 1961 [ IN SHORT THE ACT ]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE REVENUE HAS RAISED FOLLOWING SUBSTANTIVE GROUNDS IN THE INSTANT APPEAL. ITA NO. 317/HYD/2019 AY 2015 - 16 M/S ANDHRA PRADESH BEVERAGES CORPORATION LTD., HYD. 2 1. CIT (APPEALS) ERRED IN DIRECTING THE AO TO ALLOW THE CONTRIBUTION OF RS. 2,75,64,15,487/ - MADE BY ASSESSEE TO CHIEF MINISTER RELIEF FUND AS DEDUCTION U/S 80G OF I.T. ACT IGNORING THE FACT THAT THE CONTRIBUTION WAS MADE IN PURSUANCE TO DIRECTIONS OF AP GOVERNMENT VIDE GO MS 614 DATED 06 - 05 - 2005 AND THEREFORE SUCH CONTRIBUTIONS BEING NOT VOLUNTA RY IN NATURE ARE NOT 'DONATIONS' AS ENVISAGED IN SEC. 80G OF THE I.T. ACT. 2. CIT (APPEALS) ERRED IN PASSING CRYPTIC ORDER ON THE ISSUE, WITHOUT DISCUSSING THE ALLOWABILITY OF SUCH CLAIM BY THE ASSESSEE FOR DEDUCTION U/S 80G. 3. CIT (APPEALS) ERRED IN IGNORING THE FACT THAT ON IDENTICAL ISSUE IN ASSESSEE'S OWN CASE REVENUE'S APPEAL IS PENDING ADJUDICATION BY THE HON'BLE HIGH COURT. 4. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. TOTAL TAX EFFECT : R S .93,69,05,624/ - 2.1. BOTH THE LEARNED REPRESENTATIVES NEXT TOOK US TO CIT(A)S DETAILED DISCUSSION REGARDING ASSESSEES CONTRIBUTION MADE TO THE CHIEF MINISTERS RELIEF FUND TO THE TUNE OF RS. 275,64,15,487/ - AS UNDER: 5.5. WITH REGARD T O THE ABOVE GROUND, THE APPELLANT SUBMITTED THAT THESE AMOUNTS HAVE BEEN PAID TO THE STATE GOVERNMENT, WHO IS THE OWNER OF THE CORPORATION, BY THE APPELLANT AS PER THE LIQUOR SALE. THE APPELLANT SUBMITTED THAT THIS PAYMENT WAS MADE IN ACCORDANCE WITH GOVE RNMENT ORDER. THIS ITSELF CONTRADICTS THE APPELLANT'S SUBMISSION MADE EARLIER BEFORE ME. THE ISSUE HAS BEEN DEALT WITH THE HON'BLE ITAT IN PARA 22 OF ITS ORDER IN ITA NO.303 - 303 & 545/HYD/2013 FOR THE AYS. 2006 - 07, 2008 - 09 & 2009 - 10 AS UNDER: '22..... F URTHERMORE, AS HAS BEEN RIGHTLY POINTED OUT BY THE ASSESSING OFFICER THE ASSESSEE HAS TREATED THE AMOUNT REPRESENTING PAYMENT TO CHIEF MINISTER'S RELIEF FUND AS ITS INCOME AND THEREAFTER HAS CLAIMED DEDUCTION U/S. BOG OF THE ACT. THIS ITSELF FALSIFIES THE ASSESSEE'S CLAIM THAT THE ENTIRE SALE PROCEED FROM IMFL IS THE INCOME OF THE GOVERNMENT. ' ITA NO. 317/HYD/2019 AY 2015 - 16 M/S ANDHRA PRADESH BEVERAGES CORPORATION LTD., HYD. 3 HENCE, I FOLLOW THE HON'BLE ITAT, STAND TAKEN IN EARLIER YEAR. IT IS AN INCOME TO BE TAXED IN THE HANDS OF CORPORATION. THE APPELLANT HAS BEEN CLAIMING THAT THE EN TIRE SALE RECEIPTS ARE THE RECEIPTS IN THE HANDS OF THE GOVERNMENT OF ANDHRA PRADESH AND AN AMENDMENT BY WAY OF AMENDMENT ACT, 2012 WAS ALSO MADE STATING THAT THE ENTIRE INCOME OF THE CORPORATION IS THE INCOME OF THE GOVERNMENT OF ANDHRA PRADESH. IF THAT I S THE CASE, THE INCOME OF THE STATE BEING EXEMPT, THERE IS NO NECESSITY TO CLAIM 80G DEDUCTION. NEVERTHELESS, SINCE THE STAND OF THE INCOME TAX DEPARTMENT, HAS ALWAYS BEEN THAT THE SALE PROCEEDS ARE TO BE TAXED IN THE HANDS OF THE CORPORATION. SINCE THE SU BMISSION BEFORE ME. HAS BEEN THAT THE INCOME OF THE CORPORATION IS GIVEN BY THE STATE GOVERNMENT TO RUN THE CORPORATION, HENCE TAKING BACK SOME FUNDS BY THE STATE GOVERNMENTS AFTER FUNDS HAVE BEEN DISPATCHED, CONTRADICTS THE STAND OF THE APPELLANT THIS WA Y THE APPELLANT HAS NO GROUND. THEREFORE, RESPECTFULLY FOLLOWING THE HONBLE ITAT, HYDERABAD BENCH AND CIT(A) ORDER IN THE APPELLANTS OWN CASE FOR THE AY 2014 - 15, THE SUBMISSIONS OF THE APPELLANT IS NOT ACCEPTED. I DIRECT THE AO TO ALLOW THE DEDUCTION ONLY IF THE WHOLESALE PROCEEDS ARE TREATED AS INCOME OF THE APPELLANT. 2.2. IT IS SUFFICIENTLY CLEAR FROM A PERUSAL OF THE FOREGOING FACTUAL POSITION THAT THIS TRIBUNAL HAS ALREADY DECIDED THE VERY ISSUE IN PRECEDING AY 201 4 - 15 AND THE CIT(A) HAS FOLLOWED THE SAME, THERE IS NO DISTINCTION PIN - POINTED AT ITS BEHEST IN TH ESE TWIN AYS. WE, THEREFORE, ADOPT JUDICIAL CONSISTENCY TO REJECT THE R EVENUES INSTANT SOLE SUBSTANTIVE GRIEVANCE. THIS REVENUES APPEAL IS DISMISSED. PRONOUNCED IN OPEN COURT ON 17 TH AUGUST, 2021 . SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUN TANT MEMBER JUDICIAL MEMBER DATED: THE 17 TH AUGUST, 2021. * GMV ITA NO. 317/HYD/2019 AY 2015 - 16 M/S ANDHRA PRADESH BEVERAGES CORPORATION LTD., HYD. 4 COPY OF THE ORDER FORWARDED TO: 1. DCIT, CIRCLE 1( 1 ), HYDERABAD 2. M/S ANDHRA PRADESH BEVERAGES CORPORATION LIMITED, 9 & 10, EASTERN MJ ROAD, NAMPALLY, HYDERABAD 500 004, TELANGANA 3. ACIT, RANGE 1, HYDERABAD. 4. CIT(A) - 1 , HYDERABAD 5. PR . CIT - 1 , HYDERABAD 6. DR, ITAT, HYDERABAD. 7. GUARD FILE.