Appeal details
Counselvise Citation
[2014] 140 COUNSELVISE.COM (IT) 80607 (ITAT-AMRITSAR)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 9 month(s) 8 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
05-09-2014
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
DB
Next Hearing Date
24-09-2013
Assessment Year
2009-2010
Appeal Filed On
27-11-2012
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. A.D. JAIN, JUDICIAL MEMBER AND SH. B.P. JAIN, ACCOUNTANT MEMBER I.T.A. NO. 437(ASR)/2012 ASSESSMENT YEAR: 2009-10 PAN: AAACN6345A NITCO LOGISTICS PVT. LTD., VS. JOINT COMMISSION ER OF TALAB TILLO, JAMMU INCOME TAX, RANGE-2, JAMMU (APPELLANT) (RESPONDENT) APPELLANT BY: SH. P.N. ARORA, ADVOCATE RESPONDENT BY: SH. SAAD KIDWAI, DR DATE OF HEARING: 28.08.2014 DATE OF PRONOUNCEMENT: 05.09.2014 ORDER PER A.D. JAIN, J.M. 1. THIS IS ASSESSEES APPEAL AGAINST THE ORDER DATED 09.10.2012 FOR THE ASSESSMENT YEAR 2009-10 PASSED BY LEARNED CIT(A ), JAMMU. 2. THE FOLLOWING EFFECTIVE GROUNDS HAVE BEEN TAKEN: I. THE LEARNED CIT(A) HAS GROSSLY ERRED IN LAW AND FAC TS OF THE CASE IN CONFIRMING ADDITION OF RS. 15,99,471/- ON ACCOUN T OF DHARMARTH RECEIPTS. II. THE LEARNED CIT(A) HAS ERRED IN LAW AND ON THE FACT S OF THE CASE IN CONFIRMING ADDITION OF RS. 2,09,00,000/- BY INCREAS ING THE PURCHASE COST OF THE ASSESSEE IN RESPECT OF LEASEHO LD GODOWN AT SECTOR 26, TRANSPORT NAGAR. 2 3. APROPOS GROUND NO. 1, THE ASSESSING OFFICER MADE AN ADDITION OF RS. 15,99,471/- ON ACCOUNT OF DHARMARTH RECEIPTS COLLECTED ALONG WITH FREIGHT RECEIPT, NOT REFLECTED BY THE ASSESSEE IN ITS PROFIT AND LOSS ACCOUNT. 4. THE ASSESSING OFFICER OBSERVED THAT THE RECEIPTS WERE DIRECTLY RELATED TO THE BUSINESS OF THE ASSESSEE CO MPANY; THAT THE RECEIPTS WERE RECEIVED NOT BY A TRUST CREATED F OR THE PURPOSES OF CHARITY IN NATURE, BUT BY A COMPANY DOI NG BUSINESS AND TRADING; AND THAT NO EVIDENCE HAD BEEN FILED BY THE ASSESSEE THAT THE RECEIPTS HAD BEEN ACTUALLY SP ENT ON CHARITY. 5. THE LEARNED CIT(A), WHILE UPHOLDING THE ADDITION , OBSERVED THAT THE ASSESSEE HAD REMAINED UNABLE TO E STABLISH THAT THE OBJECT OF THE COMPANY, AS PER ITS MEMORAND UM AND ARTICLES OF ASSOCIATION, WAS ALSO TO CARRY OUT CHAR ITY; THAT ITS OBJECTIVE WAS COMMERCIAL AND THERE WAS NO REASON TO COLLECT DHARMARTH FROM ITS CLIENTS; AND THAT, THEREFORE, TH E ASSESSING OFFICER HAD RIGHTLY TREATED THIS RECEIPT AS A TRADE RECEIPT. 6. BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT SIMILAR RECEIPTS WERE ALLOWED IN EARLIER YEA RS, WHICH ARE AS FOLLOWS: 3 S. NO. ASSTT. YEAR AMOUNT RECD . REMARKS 1. 2001-02 1834047/- ALLOWED IN ASSESSMENT U/S 14 3(3) 2. 2002-03 1846517/- ALLOWED IN ASSESSMENT U/S 14 3(1) 3. 2003-04 1730473/- ALLOWED IN ASSESSMENT U/S 143 (3) 4. 2004-05 1727683/- ALLOWED IN ASSESSMENT U/S 143 (3) 5. 2005-06 1745350/- ALLOWED IN ASSESSMENT U/S 143 (3) 6. 2006-07 1746854/- ALLOWED IN ASSESSMENT U/S 143 (3) 7. 2007-08 1662338/- ALLOWED IN ASSESSMENT U/S 143 (3) 8. 2008-09 1708967/- ALLOWED IN ASSESSMENT U/S 14 3( 3) 7. IT HAS BEEN FURTHER CONTENDED THAT A SUMMARIZED COPY OF THE ACCOUNTS OF THE DHARMARTH RECEIPT WAS FILED. A COPY THEREOF IS AT APB - 8. IT HAS NEXT BEEN SUBMITTED THAT AS PER CBDT CIRC ULAR NO. 77-F (COPY AT APB - 9), DATED 21 ST MARCH, 1979, DHARMARTH RECEIPTS ARE NOT TAXABLE; THAT THIS CIRCULAR IS BINDING ON THE DEPARTMENT AND HAS ILLEGALLY NOT BEEN ABIDED BY; AND THAT WHILE WRONGLY HOLDING THAT THE OBJECTS OF THE ASSESSEE COMPANY WERE NOT CHARITABLE, THE LEARNED CIT(A) HAS FAILED TO TAKE INTO CONSIDERATION CLAUSE NO. 30 OF THE MEMORANDUM AND A RTICLES OF ASSOCIATION OF THE ASSESSEE COMPANY [COPY AT APB 34 , RELEVANT PORTION AT APB 34(D)]. 8. THE LEARNED DR HAS PLACED STRONG RELIANCE ON THE IMPUGNED ORDER, CONTENDING THAT THE OBJECTIVE OF THE ASSESSE E COMPANY IS COMMERCIAL AND THERE WAS NO REASON TO COLLECT DHARM ARTH FROM ITS 4 CLIENTS; AND THAT THE ASSESSEE HAS NOT BEEN ABLE TO ESTABLISH THAT THE OBJECTIVE OF THE ASSESSEE COMPANY WAS TO CARRY OUT CHARITY. 9. IT IS NOT DISPUTED THAT DHARMARTH RECEIPTS ARE N OT TAXABLE. THIS IS AS PER THE CBDT CIRCULAR (SUPRA), AS ALSO THE FO LLOWING DECISIONS: I. CIT VS. BIJLI COTTON MILLS (P) LTD., (1979) 116 IT R 60 (SC) II. CIT VS. GHERU LAL BAL CHAND, (1978) 111 ITR 134 (P& H) III. ADDL. CIT VS. CHANNOO LAL DAMODAR DASS, (1978) 113 ITR 759 (ALL.) IV. ADDL. CIT VS. DALSUKHRAI JAIDAYAL, (1979) 117 ITR 4 66 (ALL.) V. NATHU RAM SHIV NARAIN VS. CIT, (1982) 134 ITR 625 ( P&H) VI. CIT VS. E.H. KATHAWALA & CO., (1982) 135 ITR 384 (B OM.) VII. CHUNNILAL ONKARLAL (HUF) VS. CIT, (1982) 135 ITR 58 0 (MP) VIII. CIT VS. RATILAL POPATLAL SHAH, (1984) 43 CTR 4 (BOM .) 10. THE ONLY DISPUTE BEFORE US IS AS TO WHETHER THE RECEIPTS WERE, IN FACT, DHARMARTH RECEIPTS. THE ASSESSEES STAND IN THIS RE GARD IS THAT IT WAS COLLECTING DHARMARTH IN GRS AND GATE PASSES, AS PAR T OF CHARITY; THAT THIS DHARMARTH COLLECTED EVERY MONTH WAS BEING PASSED ON TO A CHARITABLE TRUST; AND THAT THE RECEIPT WAS NEITHER SHOWN AS IN COME, NOR AS EXPENDITURE. THIS STAND OF THE ASSESSEE IS ENTIRELY IN LINE WITH ITS STAND FOR THE EARLIER YEARS, RIGHT FROM A.Y. 2001-02 TO A.Y. 2008-09. FOR ALL THESE YEARS, IN SCRUTINY ASSESSMENTS FRAMED UNDER SECTION 143(3) OF THE INCOME-TAX ACT, 1961 (FOR SHORT THE ACT), BUT FOR A.Y. 2002-03, FOR WHICH YEAR, SUCH ASSESSMENT WAS FRAMED UNDER SECTIO N 143(1) OF THE ACT, THE DEPARTMENT HAS NEVER DISPUTED SUCH COLLECTION I N GRS AND GATE 5 PASSES AND THE FACT THAT IT WAS BEING PASSED ON TO A CHARITABLE TRUST. THE OBJECTION OF THE AUTHORITIES BELOW IN THIS REGARD, RAISED ONLY FOR THE FIRST TIME, DURING THE YEAR 2009-10, IS THAT THE RECEIPT IS NOT BY A CHARITABLE TRUST, BUT BY THE ASSESSEE COMPANY, WHICH IS DOING BUSINESS AND TRADING. THIS, ACCORDING TO US, IS NOT AT ALL ACCEPTABLE. ON CE THE RECEIPTS ARE ROUTED AS SUCH TO A CHARITABLE TRUST BY THE ASSESSEE COMPA NY AND THE NATURE OF THAT TRUST HAS NOT BEEN QUESTIONED, WE HOLD THAT TH E RECEIPTS ARE DHARMARTH RECEIPTS AND NOTHING ELSE. THE CONSISTENT ACCEPTANCE OF SUCH RECEIPTS BY THE DEPARTMENT ITSELF, FOR AS MANY AS E IGHT EARLIER ASSESSMENT YEARS, MANDATES THE ACCEPTANCE OF SUCH RECEIPTS OF THE ASSESSEE DURING THE YEAR UNDER CONSIDERATION ALSO AS DHARMARTH RECEIPTS , WHEN NO CHANGE IN FACTS HAS BEEN POINTED OUT BY THE AUTHORITIES TO HA VE COME ABOUT DURING THE YEAR UNDER CONSIDERATION. 11. THAT DHARMARTH RECEIPTS ARE NOT TAXABLE, HAS BE EN LAID DOWN AS LAW BY THE HONBLE SUPREME COURT, WAY BACK IN THE Y EAR 1979, IN THE CASE OF CIT VS. BIJLI COTTON MILLS (P) LTD. , (1 979) 116 ITR 60 (SC). CLAUSE NO. 30 OF THE MEMORANDUM AND ARTICLES OF ASS OCIATION OF THE ASSESSEE COMPANY READS AS FOLLOWS: 30. TO DONATE OR SUBSCRIBE MONEY FOR ANY NATIONAL, CHARITABLE, BENEVOLENT OR PUBLIC PURCHASE OR TO INSTITUTIONS AN D FUNDS FOR PUBLIC BENEFIT OR WHICH HAVE ANY MORAL AND OTHER CLAIM ON COMPANY OR ITS 6 MEMBERS, EMPLOYEES OR CUSTOMERS AND TO PROMOTE SUCH INSTITUTIONS AND FUNDS AND TO GIVE CHARITIES AND DONATIONS. 12. THIS CLAUSE OF MEMORANDUM AND ARTICLES OF ASSOC IATION OF THE ASSESSEE COMPANY CLEARLY SHOWS THAT ONE OF THE OBJE CTIVES OF THE ASSESSEE COMPANY IS CHARITY. THE LEARNED CIT(A) HAS REMAINED OBLIVIOUS OF THIS SPECIFIC CLAUSE IN THE MEMORANDUM AND ARTICLES OF A SSOCIATION OF THE ASSESSEE COMPANY, WHILE HOLDING THAT THE APPELLANT COULD NOT ESTABLISH BEFORE ME THAT THE OBJECTIVES OF THE COMPANY AS PER MEMORANDUM AND ARTICLES OF ASSOCIATION WAS ALSO TO CARRY OUT CHARI TY. 13. THEREFORE, FINDING MERIT IN THIS GRIEVANCE RAISE D BY THE ASSESSEE, THE SAME IS HEREBY ACCEPTED. THE IMPUGNED ORDER IN THIS REGARD IS CANCELLED AND THE ADDITION MADE IS DELETED. 14. THE ASSESSING OFFICER MADE ANOTHER ADDITION OF R S. 2,09,00,000/-. THE ASSESSEE HAD ACQUIRED, DURING TH E YEAR, A SHOP-CUM- OFFICE NO. 25, MEASURING 777.77 SQ. METRES IN SECTO R-26, CHANDIGARH. AS PER THE REGISTRATION DEED DATED 04.12.2008 WITH THE SUB-REGISTRAR, CHANDIGARH, THE ASSESSEE COMPANY HAD SHOWN PAYMENT OF RS. 18,00,000/- AS THE PURCHASE PRICE OF THE SAID PROPE RTY. THE ESTATE OFFICER, CHANDIGARH, HOWEVER, VALUED THE PROPERTY AT CIRCLE RATE, BASED ON THE PREVAILING MARKET RATES. THE ASSESSEE PAID STAMP D UTY CHARGES @ 3%, 7 TOTAL AMOUNTING TO RS. 6,81,500/-. THE MINIMUM VALU E OF THE PROPERTY AT THE RATE ADOPTED BY THE REGISTERING AUTHORITY CAME TO RS. 2,27,00,000/-. 15. THE ASSESSING OFFICER OBSERVED THAT ACCEPTING TH E MINIMUM FIXED RATE AND DEPOSITING OF FEES ON THAT RATE MEAN S THAT THE ASSESSEE HAD ACCEPTED THE RATE OF THE PROPERTY ON THE DATE OF IT S TRANSFER AT RS. 2,27,00,000/- ONLY; THAT AS SUCH, IT WAS A CASE OF APPARENT UNDER- VALUATION OF THE PROPERTY BY AN AMOUNT OF RS. 2,09, 00,000/-, SINCE THE ASSESSEE HAD SHOWN PAYMENT OF ONLY RS. 18,00,000/-. THE ASSESSING OFFICER OBSERVED THAT THOUGH THE ASSESSEE HAD CONTE NDED BEFORE HIM, THAT THE ASSESSEE COMPANY WAS A TENANT OF THE PROPERTY I N QUESTION SINCE 1976 AND AS PER THE MEMORANDUM OF UNDERSTANDING EXECUTED ON 18.02.2002 BETWEEN THE SELLER AND THE ASESSEE, AND THAT THE PU RCHASE PRICE WAS SET AT RS. 18,00,000/-, PAYABLE IN INSTALLMENTS, SUCH CONT ENTION WAS NOT ACCEPTABLE, SINCE NO EVIDENCE OF TENANCY RIGHTS HAD BEEN PRODUCED BY THE ASSESSEE. THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAD TRIED TO UNDERVALUE THE PROPERTY IN THE GUISE OF TENANTED PR OPERTY. THE ASSESSING OFFICER FURTHER OBSERVED THAT THE ASSESSEE HAD ALSO SHOWN OTHER PROPERTIES AT LESS VALUE, I.E., PROPERTIES AT BANGALORE, PATHA NKOT AND NEW DELHI. IT WAS ALSO OBSERVED THAT IT WAS UNLIKELY AND ABNORMAL THAT A PURCHASER WOULD TAKE MONTHLY INSTALLMENTS IN LIEU OF SALE OF PROPERTY, STARTING IN 8 2002 AND ENDING IN 2007; AND THAT IN FACT, IT WAS A COLOURABLE DEVICE, WHICH HAD BEEN ADOPTED BY THE ASSESSEE. THE ASSESSI NG OFFICER APPLIED THE PROVISIONS OF SECTION 50C OF THE ACT. 16. THE LEARNED CIT(A) UPHELD THE ADDITION. IT WAS H ELD, INTER ALIA, THAT THE COMMERCIAL PROPERTY, MEASURING 777.8 SQ. M ETRES, SITUATED IN SECTOR- 26, CHANDIGARH, COULD NOT BE PURCHASED FOR A MEAGER AMOUNT OF RS. 18,00,000/-; THAT EVEN A TWO BED ROOM FLAT COUL D NOT BE ACQUIRED FOR SUCH AN AMOUNT; THAT FROM THE REGISTRATION DEED, IT WAS EVIDENT THAT THE PROPERTY WAS FREE FROM ALL ENCUMBRANCES, AND THAT T HE TRANSFEREE HAD BEEN HANDED OVER THE POSSESSION THEREOF; THAT THE P ROPERTY IN QUESTION WAS A LEASE-HOLD PROPERTY AND THE ESTATE OFFICER WA S THE GREATER LESSOR; THAT THE PROPERTY COULD NOT HAVE BEEN TRANSFERRED T O THE ASSESSEE COMPANY WITHOUT THE PERMISSION OF THE GREATER LESSOR, WHO WAS THE OWNER THEREOF; THAT THE PROVISIONS OF SECTION 50C OF THE ACT PRESC RIBES FOR DEEMED ADDITION IN THE CASE OF CAPITAL GAINS, IF THE PROPE RTY IS SOLD AT A VALUE LESSER THAN THE PRESCRIBED CIRCLE RATE; THAT IT WAS TRUE, THAT THIS WAS NOT THE CASE OF A SELLER, BUT WAS THAT OF A BUYER; THAT, HO WEVER, THE INTENTION OF THE LEGISLATURE IN ENACTING SECTION 50C OF THE ACT WAS REQUIRED TO BE CONSIDERED; THAT THE SELLER AND THE BUYER ARE TWO S IDES OF THE SAME COIN AND THEY HAVE TO BE TREATED AT PAR, OTHERWISE, AN A NOMALOUS RESULT WOULD 9 ENSUE; AND THAT AS SUCH, THE CIRCLE RATE OUGHT TO B E APPLIED IN THE CASE OF THE PURCHASER ALSO AND A DEEMED ADDITION UNDER SECT ION 50C OF THE ACT WAS WARRANTED. 17. IN THIS REGARD, THE LEARNED COUNSEL FOR THE ASSE SSEE HAS CONTENDED THAT THE ASSESSEE WAS A TENANT IN THE DEM ISED PREMISES SINCE 1976 AND THE PREMISES WAS BEING USED BY THE ASSESSE E AS A GODOWN FOR DOING BUSINESS OF TRANSPORTATION; THAT THE RENT FOR SUCH PROPERTY WAS PAID BY THE ASSESSEE @ RS. 3,000/- PER MONTH IN 2002; TH AT IT WAS DUE TO THIS ENCUMBRANCE BY THE ASSESSEE OVER THE DEMISED PROPER TY, THAT THE SELLER/OWNER AGREED TO SELL THE SAME TO THE ASSESSE E FOR RS. 18,00,000/- BY A MEMORANDUM OF UNDERSTANDING, DATED 18.02.2002 (AP B-35); THAT IT WAS SPECIFICALLY MENTIONED THEREIN THAT WHERE AS THE FIRST PARTY IS LEASE HOLDER OF PLOT NO. 25, SECTOR 26 TRANSPORT AREA CHA NDIGARH [HEREIN CALLED PROPERTY] AND THE SECOND PARTY IS THE TENANT OF THE SAID PROPERTY. 18. THE LEARNED COUNSEL FOR THE ASSESSEE HAS FURTHER CO NTENDED THAT ONCE THE ASSESSEE, WHO WAS THE TENANT OF THE DEMISE D PROPERTY, WAS ITSELF BUYING THE PROPERTY, OBVIOUSLY, THE PROPERTY, FOR S UCH FACT, WAS FREE FROM ENCUMBRANCE; THAT APROPOS THE CIT(A)S OBJECTION, A S TO HOW THE PROPERTY HAD BEEN TRANSFERRED WITHOUT THE PERMISSIO N OF THE GREATER LESSOR, THIS, IF AT ALL, WAS NEEDED TO BE ENQUIRED OF FROM THE ESTATE OFFICER, 10 CHANDIGARH ADMINISTRATION; THAT SO FAR AS REGARDS T HE OBJECTION THAT THERE WAS NO EVIDENCE OF TENANCY RIGHTS, THE RENT ACCOUNT WAS FILED BEFORE THE ASSESSING OFFICER, AS PER WHICH, DURING THE A.Y. 20 00-01, RENT OF RS. 36,000/- HAD BEEN PAID AND WAS ALLOWED; THAT SUCH RENT WAS PAID UP TO A.Y. 2002-03, WHICH WAS ALSO DULY ALLOWED; THAT THE A.O. HAD WRONGLY STATED THAT THAT ASSESSEE HAD AGREED TO THE STAMP F EE RATE TO BE 3%; THAT NOTHING HAD BEEN BROUGHT ON RECORD TO PROVE THE ST AMP RATE TO BE 3%; THAT THE PROPERTY AT PATHANKOT WAS NOT UNDERVALUED BY THE ASSESSEE, AS WAS ACCEPTED BY THE LEARNED CIT(A); THAT APROPOS TH E PROPERTY AT NEW DELHI, WORKING OF CAPITAL GAIN STOOD SHOWN IN THE R ETURN FILED PRIOR TO THE PASSING OF THE ASSESSMENT ORDER; THAT THE CAPITAL G AIN/LOSS WAS ACCEPTED BY THE DEPARTMENT IN THE ASSESSMENT ORDER FOR A.Y. 2010-11; THAT THE SAID PROPERTY WAS UNDER THE LIEN OF THE BANK AND IT WAS RELEASED IN A.Y. 2010- 11; THAT THE ASSESSEE COMPANY HAD ITSELF SHOWN THE SALE CONSIDERATION AT RS. 5.5 CRORE FOR WORKING OUT CAPITAL GAIN; THAT NO THING HAS BEEN BROUGHT ON RECORD TO PROVE ANY PAYMENT OVER AND ABOVE THE C LAIMED SUM OF RS. 18 LACS, AND THAT THE PROVISIONS OF SECTION 50C ARE NOT APPLICABLE TO THE CASE OF A PURCHASER, I.E., THE ASSESSEE COMPANY IN THE PRESENT CASE. 19. THE BASIC ISSUE INVOLVED HEREIN IS AS TO WHETHER THE PROVISIONS OF SECTION 50C OF THE ACT ARE APPLICABLE TO THE CAS E OF A PURCHASER ALSO. IF 11 IT IS NOT SO, THE ASSESSEE, BEING THE PURCHASER, IM MEDIATELY GOES OUT OF THE KEN OF THE PROVISIONS OF SECTION 50C OF THE ACT AND THE ADDITION MADE WOULD BECOME UNSUSTAINABLE. 20. SECTION 50 C(1) OF THE ACT, READS AS FOLLOWS: 50C(1) - WHERE THE CONSIDERATION RECEIVED OR ACCRUING AS A RESULT OF THE TRANSFER BY AN ASSESSEE OF A CAPITAL ASSET, BEING L AND OR BUILDING OR BOTH, IS LESS THAN THE VALUE ADOPTED OR ASSESSED BY ANY A UTHORITY OF A STATE GOVERNMENT (HEREAFTER IN THIS SECTION REFERRED TO A S THE STAMP VALUATION AUTHORITY) FOR THE PURPOSE OF PAYMENT OF STAMP DUT Y IN RESPECT OF SUCH TRANSFER, THE VALUE SO ADOPTED OR ASSESSED SHALL, F OR THE PURPOSES OF SECTION 48, BE DEEMED TO BE THE FULL VALUE OF THE C ONSIDERATION RECEIVED OR ACCRUING AS A RESULT OF SUCH TRANSFER. 21. A PLAIN READING OF SECTION 50C OF THE ACT SHOWS THAT THE INCOME UNDER THE HEAD CAPITAL GAINS IS APPLICABLE TO THE SALE OF IMMOVABLE PROPERTY, AND NOT TO PURCHASE THEREOF. THEREFORE, THE PROVISIONS OF SECTION 50C(1) OF THE ACT ARE NOT APP LICABLE TO THE CASE OF A PURCHASER. IT IS WELL SETTLED THAT THE LEGISLATURE CHOOSES ITS WORDS WITH UTMOST CARE. WHEN THE WORDS OF A PARTICULAR PROVISI ON ARE EXPLICIT, CLEAR AND UNAMBIGUOUS, THERE IS NO ROOM FOR INTERPRETATIO N THEREOF AND AS SUCH, THE LEGISLATIVE INTENT QUA SUCH A PROVISION IS NOT REQUIRED TO BE GONE INTO, AS HAS BEEN WRONGLY DONE BY THE LEARNED CIT(A) IN T HE PRESENT CASE. THE SECTION TALKS OF CONSIDERATION RECEIVED OR ACCRUIN G. PERIOD. 12 CONSIDERATION PAID CANNOT BE IMPORTED, WHEN THE L EGISLATURE HAS ITSELF NOT DEEMED IT FIT TO INCORPORATE ANYTHING TO SUCH E FFECT IN THE SECTION. 22. IN VIEW OF THE ABOVE DISCUSSION, THIS GRIEVANCE OF THE ASSESSEE IS ALSO FOUND TO BE JUSTIFIED AND ACCEPTED AS SUCH. THEREFORE, THE ADDITION MADE UNDER SECTION 50C OF THE ACT AND SUSTAINED BY THE LEARNED CIT(A) IS HEREBY CANCELLED, AND THE OTHER ARGUMENTS, RENDE RED ACADEMIC, ARE NO LONGER REQUIRED TO BE GONE INTO. 23. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH SEPTEMBER, 2014 SD/- SD/- (B.P. JAIN) (A.D. JAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 5 TH SEPTEMBER, 2014 /RK/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: NITCO LOGISTICS PVT. LTD., TALAB TI LLO, JAMMU 2. JCIT, RANGE-2, JAMMUV 3. THE CIT(A), 4. THE CIT, 5. THE SR DR, I.T.A.T., TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.
