M/s. Airport Authority of India, New Delhi V. Addl. CIT, New Delhi

ITA 3295/DEL/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7191 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 25-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL GULATI
• Assessee Lawyers: DHARMENDRA KUMAR
• Keywords: Additional evidence; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DLEHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ITA NO. 3295/DEL/2017 ASSESSMENT YEAR: 2013-14 AIRPORT AUTHORITY OF INDIA, VS. ADDL. CIT, RANGE-2 , BLOCK-A, RAJIV GANDHI BHAWAN, NEW DELHI SUFDARJUNG AIRPORT, NEW DELHI. PAN : AAACA 6412D (APPELLANT) (RESPONDENT) APPELLANT BY : SH. SATISH AGARWAL, CA & SH. DHARMENDRA KUMAR, CA RESPONDENT BY: SH. SATPAL GULATI, CIT/DR DATE OF HEARING: 01.09.2021 DATE OF ORDER : 01.09.2021 ORDER PER MAHAVIR PRASAD, J.M. THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAI NST THE ORDER OF THE LD. CIT(A) NO. 252/16-17 DATED 28.03.2017, A RISING OUT OF THE ASSESSMENT ORDER DATED 31.03.2015. APPELLANT HAS TA KEN FOLLOWING GROUNDS OF APPEAL : 1. THAT THE ORDER PASSED BY THE LEARNED CIT(APPEAL S)-I, NEW DELHI IS ARBITRARY, BIASED AND BAD IN LAW AND FACTS OF THE C ASE TO THE EXTENT IT CONFIRMS THE ADDITION MADE BY THE ASSESSING OFFI CER. 2 2. THAT THE LEARNED CIT(APPEALS) HAS GROSSLY ERRED IN CONFIRMING THE ADDITION OF RS.23,47,78,000/- MADE BY THE LEARNED A SSESSING OFFICER BY DISALLOWING THE AMOUNT PROVIDED FOR CORP ORATE SOCIAL RESPONSIBILITY(CSR) 3. THAT THE LEARNED CIT(APPEALS) HAS GROSSLY ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN DISALLOWING THE CLAIM OF CSR PROVISION IGNORING THAT THE AMENDMENT MADE IN THE I NCOME TAX ACT Y INSERTION OF EXPLANATION 2 TO SECTION 37(I) W AS EFFECTIVE FROM ASSESSMENT YEAR 2015-16. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS A 100% GOVERNMENT OWNED AUTHORITY AND IS ENGAGED IN THE BU SINESS OF MAINTENANCE AND OPERATION OF AIR TRAFFIC AND AIRPOR TS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE SUBM ITTED ITS AUDITED ACCOUNTS WHICH WERE SUBJECTED TO AUDIT BY COMPTROLL ER AND AUDITOR GENERAL (CAG) OF INDIA AND IN ITS AUDIT REPORT AS P ER FORM 3CA, THE CAG OF INDIA SUBMITTED THAT THE ASSESSEE COMPANY HA D CREATED A FUND FOR EXPENDITURE ON CSR TO THE TUNE OF RS.13.16 CROR ES, WHICH REMAINED UNSPENT AS ON 31.03.2013. ANY PROVISION CR EATED FOR ANY EXPENDITURE BEING IN THE NATURE OF CONTINGENT LIABI LITY IS NOT ALLOWED. THEREFORE, THE ASSESSEE WAS ISSUED A NOTICE AND IN ITS REPLY, THE ASSESSEE STATED THAT THE OBSERVATION OF THE CAG IS CORRECT AND CSR LIABILITIES CREATED DURING THE YEAR NEED TO BE ADDE D IN TAXABLE INCOME, HOWEVER, THE SAME HAS NOT BEEN DONE SO DUE TO OVERS IGHT ONLY. LEARNED ASSESSING OFFICER OBSERVED THAT CAG IN ITS REPORT DATED 21.11.2013 HAD POINTED OUT THE ISSUE AND ASSESSEE H AD AMPLE TIME TO REVISE ITS RETURN OF INCOME AND FILE REVISED COMPUT ATION OF INCOME, WHICH HE FAILED TO DO SO AND IN SUCH CIRCUMSTANCES, AN ADDITION OF 3 RS.23,47,78,000/- WAS MADE. THEREAFTER, AGAINST THE SAID ORDER, ASSESSEE PREFERRED FIRST STATUTORY APPEAL BEFORE TH E LD. CIT(A), WHO CONFIRMED THE ACTION OF THE ASSESSING OFFICER. NOW, THE APPELLANT HAS COME BEFORE US AND FILED SECOND STATUTORY APPEAL. 3. WE HAVE GONE THROUGH THE IMPUGNED ORDER AND RELE VANT RECORD. BEFORE US, THREE VOLUMINOUS PAPER BOOKS HAV E BEEN FILED AND THE LD. AR ARGUED THAT THESE ARE ALL ADDITIONAL EVI DENCES, FILED FIRST TIME BEFORE US AND HE REFERRED TO CERTAIN PAGES OF THE PAPER BOOK SUCH AS PAGE NO. 776, 777 AND 782 AND SO ON. SINCE THESE EVIDENCES HAVE BEEN FILED FOR THE FIRST TIME BEFORE US, THERE FORE, IN THE INTEREST OF JUSTICE, WE SET ASIDE THIS MATTER TO THE FILE OF LD. CIT(A) WHO WILL GO THROUGH ALL THESE ADDITIONAL EVIDENCES FILED BEFORE US AND THEREAFTER PASS AN ORDER AS PER LAW. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 1 ST DAY OF SEPTEMBER, 2021. SD/- SD/- (R.K. PANDA) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 1 ST SEPT., 2021 AKS