DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, Alwar V. M/S DATA INFOSYS LIMITED, Alwar

ITA 454/JPR/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6390 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 05-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POONAM RAI
• Assessee Lawyers: P C PARWAL CA DHK
• Keywords: Revenue expenditure
• Section: 143(3); 54; 154

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,O JH HKKXPUN] YS[KK LNL; LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI BHAGCHAND, AM VK;DJ VIHY LA-@ ITA NO. 454/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR: 2010-11 THE DCIT CENTRAL CIRCLE ALWAR CUKE VS. M/S. DATA INFOSYS LIMITED 20-21 & 22, OLD INDUSTRIAL AREA ITARANA ROAD, ALWAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AAACD 5376 M VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY:SMT. POONAM RAI, DCIT - DR FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: SHRI P.C. PARWAL, CA LQUOKBZ DH RKJH[K@ DATE OF HEARING : 12/07/2018 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 16 /07/2018 VKNS'K@ ORDER PER BHAGCHAND, AM THE APPEAL FILED BY THE REVENUE EMANATES FROM THE ORDER OF THE LD. CIT(A), ALWAR DATED 01-02-2018 FOR THE ASSESSMEN T YEAR 2010-11 RAISING THEREIN FOLLOWING GROUND OF APPEAL . (I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION OF RS. 4,58,919/- MADE BY THE AO IN THE ORDER U/S 154 ON ACCOUNT OF DIFFERENCE CLAIMED AS DEFERRED REVENUE EXPENDITURE. ITA NO.454/JP/2018 THE DCIT, CENTRAL CIRCLE, ALWAR VS DATA INFOSYS LT D.., ALWAR 2 2.1 APROPOS SOLITARY GROUND OF THE REVENUE, THE FAC TS AS EMERGES FROM THE ORDER OF THE LD. CIT(A) ARE AS UNDER:- 4.3 I HAVE CONSIDERED THE ORDER PASSED BY THE AO AND SUBMISSIONS FILED BY THE APPELLANT. THE ISSUE O F DEFERRED REVENUE EXPENDITURE FOR THE YEAR UNDER CONSIDERATIO N HAS BEEN DECIDED BY MY LD. PREDECESSOR IN HIS APPELLATE ORDER DATED 26-08-2013. SINCE THE CORE ISSUE OF DEFERRED REVENUE EXPENDITURE HAS BEEN ALLOWED IN FAVOUR OF THE ISSUE UNDER THE PROVISION OF SECTION 35D OF THE ACT, I FIND NO JUST IFIED REASON FOR A RELOOK AT THE AMOUNT OF EXPENDITURE TO BE ALLOWED OR DISALLOWED. ACCORDINGLY, THE ADDITION MA DE U/S 154 OF THE ACT IS HELD NOT JUSTIFIED AND ACCORDINGL Y, APPELLANTS GROUND OF APPEAL IS ALLOWED ON THIS IS SUE. 2.2 DURING THE COURSE OF HEARING, THE LD. DR SUBMIT TED THAT THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 4, 58,919/- MADE BY THE AO IN THE ORDER U/S 154 OF THE ACT ON ACCOUNT OF DI FFERENCE CLAIMED AS DEFERRED REVENUE EXPENDITURE. 2.3 ON THE OTHER HAND, THE LD.AR OF THE ASSESSEE SU PPORTED THE ORDER OF THE LD. CIT(A) . 2.4 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN THIS CASE, THE AO MADE THE ADDITION OF RS. 4,58,919/- WHILE PASSING THE ASSESSMENT ORDER U/S 1 54 OF THE ACT. THE RELEVANT OBSERVATION OF THE AO TO THE ISSUE IN QUE STION IS AS UNDER:- THE SUBMISSION OF THE ASSESSEE WAS CAREFULLY CONSIDERED AND NOT FOUND TENABLE. THE ASSESSEE DEBI TED AN AMOUNT OF RS. 7,69,315/- IN THE PROFIT AND LOSS ACC OUNT ON ACCOUNT OF DEFERRED REVENUE EXPENDITURE WRITTEN OFF BUT ITA NO.454/JP/2018 THE DCIT, CENTRAL CIRCLE, ALWAR VS DATA INFOSYS LT D.., ALWAR 3 WHILE PASSING THE ASSESSMENT ORDER U/S 143(3) DISAL LOWANCE OF RS. 3,10,396/- WAS MADE INSTEAD OF RS. 7,69,315/ -. IT IS PERTINENT TO MENTION HERE THAT THE LD. CIT(A) HAS D ELETED THE ADDITION OF RS. 3,10,919/- VIDE APPELLATE ORDER NO. 64/2012- 13 DATED 26-08-2014. HOWEVER, THE DECISION OF THE L D. CIT(A) WAS NOT ACCEPTED BUT NO FURTHER APPEAL WAS F ILED BY THE DEPARTMENT BEFORE HON'BLE ITAT AS THE TAX EFFEC T INVOLVED ON THIS ISSUE WAS BELOW THE MONETARY LIMIT S SPECIFIED IN CBDTS INSTRUCTION NO. 5/2014 (F.NO.27 9/MISC. 142/2007-ITJ)[PT. DATED 10-07-2014. THEREFORE, DISALLOWANCE OF DIFFERENCE AMOUNT OF RS. 4,58,919/- (7,69,315 3,10,919)ON ACCOUNT OF DEFERRED REVENUE EXPENDITURE WRITTEN OFF IS BEING MADE AS THE MISTAK E IS APPARENT FROM RECORD. IN FIRST APPEAL, THE LD. CIT(A) HAS DELETED THE ADD ITION HOLDING THAT THE THIS CORE ISSUE OF DEFERRED REVENUE EXPENDITURE UND ER CONSIDERATION HAS ALREADY BEEN DECIDED BY THE HIS PREDECESSOR LD. CIT VIDE HIS ORDER DATED 26-08-2013. IT IS NOTED THAT INCREASING THE AMOUNT OF DISALLOWANCE BY THE AO VIDE ORDER 28-09-2015 U/S 154 OF THE ACT HAS NO RELEVANCE AS THE CORE ISSUE OF DEFERRED REVENUE EXPENDITURE HAS ALREADY B EEN DECIDED BY LD. CIT(A) VIDE HIS ORDER DATED 26-08-2013 AND THE SAME HAS BEEN FOLLOWED BY THE PRESENT LD. CIT(A) VIDE HIS ORDER 01-02-201 8 HOLDING THAT THE ADDITION MADE U/S 154 OF THE ACT IS NOT JUSTIFIED. TAKING INTO CONSIDERATION THE FACTS AND CIRCUMSTANCES OF THE CA SE, WE DO NOT FIND THE ARGUMENT OF THE DEPARTMENT ON THE CORE ISSUE OF DEF ERRED REVENUE ITA NO.454/JP/2018 THE DCIT, CENTRAL CIRCLE, ALWAR VS DATA INFOSYS LT D.., ALWAR 4 EXPENDITURE JUSTIFIABLE. HENCE, WE FIND NO REASON T O INTERFERE WITH THE ORDER OF THE LD. CIT(A). THUS THE APPEAL OF THE REV ENUE IS DISMISSED. 3.0 IN THE RESULT, THE APPEAL OF THE REVENUE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16-07-2018 . SD/- SD/- FOT; IKY JKO HKKXPUN (VIJAY PAL RAO) ( BHAGCHAND) U;KF;D LNL; / JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 16 /07/ 2018 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE DCIT, CENTRAL CIRCLE , ALWAR 2. IZR;FKHZ@ THE RESPONDENT- M/S. DATA INFOSYS LTD., ALWAR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.454 /JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR