M/s IC India Private Limited , Bangalore V. Deputy Commissioner of Income Tax Circle-3(1)(1), Bangalore

ITA 481/BANG/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8779 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 11-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P V PRADEEP KUMAR
• Assessee Lawyers: KARTHIK N
• Keywords: Business expenditure; Additional evidence
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER I TA NO. 481 /BANG/201 9 ASSESSMENT YEAR : 20 1 5 - 1 6 M/S. IC INDIA PRIVATE LIMITED, NO. 565, V SQUARE, 30 TH MAIN ROAD, SY NO. 17, KATTARIGUPPE, BANGALORE 560 085. PAN: AADCI2780H VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 3 (1) (1), BANGALORE. APPELLANT RESPONDENT ASSESSEE BY : SHRI KARTHIK N, CA REVENUE BY : DR. P.V. PRADEEP KUMAR, ADDL. CIT (DR) DATE OF HEARING : 0 3 .0 7 .2019 DATE OF PRONOUNCEMENT : 05 .0 7 .2019 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE ASSESSEE AND THE SAME IS DIRECTED AGAINST THE ORDER OF LD. CIT(A)-3, BANGALORE DATED 16.01.2019 FOR ASSESSMENT YEAR 2015-16. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER. 1. THE ORDER PASSED BY THE LEARNED CIT (A) TO THE EXTENT PREJUDICIAL TO THE APPELLANT IS BAD IN LAW AND LIABLE TO BE QUASHED. 2. THE CIT (A) HAS ERRED IN UPHOLDING THE ORDER OF THE DCIT 3(1)(1) BY DISALLOWING THE DEDUCTION TOWARDS CONTRACTORS' BENEVOLENT FUND (CBF), A STATUTORY BUSINESS EXPENDITURE ON THE GROUND THAT IT IS A CHARITABLE DONATION U/S. 40A. 3. THE LEARNED CIT (A) HAS ERRED IN CONFIRMING THE LEVY OF INTEREST UNDER SECTION 234B OF THE ACT ON THE AMOUNT SO DISALLOWED. 3. IN COURSE OF HEARING, IT WAS SUBMITTED BY LD. AR OF ASSESSEE THAT AS PER PARA NO. 4.3 OF HIS ORDER, IT IS HELD BY LD. CIT(A) THAT ASSESSEE HAS NOT PRODUCED ANY DOCUMENTS TO SHOW THAT 0.1% DEDUCTION TOWARDS CONTRACTOR WELFARE FUND WAS ALSO IN THE NATURE OF CESS OR LEVY IMPOSED BY THE GOVERNMENT. HE ITA NO. 481/BANG/2019 PAGE 2 OF 3 SUBMITTED THAT ON PAGES 266 TO 275 OF THE PAPER BOOK IS THE COPY OF THE PROCEEDINGS OF THE GOVT OF KARNATAKA (PUBLIC WORKS, CAD & ELECTRICITY DEPARTMENT) REQUIRING THE DEPARTMENTS TO DEDUCT AMOUNTS TOWARDS CONTRACTORS BENEFICIARY FUND FROM THE AMOUNTS PAYABLE TO PWD CONTRACTORS. HE SUBMITTED THAT THIS DOCUMENT COULD NOT BE PRODUCED BEFORE LD. CIT(A) AS THE SAME WAS NOT AVAILABLE WITH THE ASSESSEE AT THAT POINT OF TIME. THE ASSESSEE HAS PROCURED THE SAME AFTERWARDS. HE SUBMITTED THAT THIS ADDITIONAL EVIDENCE SHOULD BE ADMITTED BECAUSE IT GOES TO THE ROOT OF THE MATTER AND THE MATTER MAY BE RESTORED BACK TO THE FILE OF CIT(A) FOR A FRESH DECISION IN THE LIGHT OF THIS ADDITIONAL EVIDENCE. THE LD. DR OF REVENUE SUPPORTED THE ORDER OF CIT(A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT AS PER PARA 4.3 OF HIS ORDER, LD. CIT(A) HAS DECIDED THE ISSUE AGAINST THE ASSESSEE ON THIS BASIS THAT THE ASSESSEE HAS NOT PRODUCED ANY DOCUMENT TO SHOW THAT 0.1% DEDUCTION TOWARDS CONTRACTOR WELFARE FUND IS IN THE NATURE OF CESS OR LEVY IMPOSED BY THE GOVERNMENT. NOW THE ASSESSEE HAS PRODUCED ON RECORD THIS ADDITIONAL EVIDENCE AND IT HAS BEEN SUBMITTED BEFORE US THAT PARA 9 OF THIS IS RELEVANT AND APPLICABLE AND IN THE INTEREST OF JUSTICE, WE ADMIT THE ADDITIONAL EVIDENCE AND RESTORE THE MATTER BACK TO THE FILE OF CIT(A) FOR FRESH DECISION IN THE LIGHT OF THIS ADDITIONAL EVIDENCE BROUGHT ON RECORD BY THE ASSESSEE. WE WANT TO MAKE IT CLEAR THAT WE DO NOT MAKE ANY COMMENT ABOUT THE ALLOWABILITY OF DEDUCTION CLAIMED BY THE ASSESSEE AND LD. CIT(A) SHOULD DECIDE THE MATTER AS PER LAW IN THE LIGHT OF THIS ADDITIONAL EVIDENCE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PR ONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- (PAVAN KUMAR GADALE) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 05 TH JULY, 2019. /MS/ ITA NO. 481/BANG/2019 PAGE 3 OF 3 COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.