ACIT, New Delhi V. M/s. Planman Consulting India (P) Ltd., New Delhi

ITA 5051/DEL/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3931 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 07-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: F R MEENA
• Keywords: Earning of tax free income; Additional evidence
• Section: 43B; 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI G.D. AGRAWAL, HONBLE PRESIDENT AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA NO. 5051/DEL /2015 ASSESSMENT YEAR: 2012-13 ACIT, CIRCLE 20(1), ROOM NO. 219, 2 ND FLOOR, C.R. BUILDING, I.P. ESTATE, NEW DELHI. VS PLANMAN CONSULTING INDIA PVT. LTD. 48, COMMUNITY CENTRE, NARAINA INDL. AREA, PHASE-1, NEW DELHI. (PAN: AAACP9503C) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI F.R. MEENA, SR. DR RESPONDENT BY: SHRI VED JAIN, ADV. DATE OF HEARING : 24.10.2017 DATE OF PRONOUNCEMENT: 19.01.2018 ORDER PER SUDHANSHU SRIVASTAVA, J.M. THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAINST THE ORDER PASSED BY THE LD. CIT(A)-7, NEW D ELHI DATED 19.05.2015. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE RETURN OF INCOME WAS FILED DECLARING INCOME OF RS. 3,77,77,40 4/- ITA NO. 5051/DEL2015 ASSESSMENT YEAR 2012-13 2 AND THE ASSESSMENT WAS COMPLETED U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED 'THE ACT') AFTER MAKING THE FOLLOWING DISALLOWANCES/ADDITIONS:- 1. DISALLOWANCE OF INTEREST PAID ON LATE DEPOSIT OF TDS RS.9,62,493/- 2. EMPLOYEES CONTRIBUTION TOWARDS PF & ESI RS .21,12,580/- 3.DISALLOWANCE OF ADDITION OF SERVICE TAX PAYABLERS .L,86,88,625/- 4. DISALLOWANCE OF U/S 14A RS.10,54,480/- 2.1 AGAINST THE SAID ADDITIONS, THE ASSESSEE PREFER RED AN APPEAL BEFORE THE LD. COMMISSIONER OF INCOME TAX(A) WHO PARTLY ALLOWED THE ASSESSEES APPEAL WHO DELETED AL L THE ADDITIONS AND NOW, THE DEPARTMENT IS IN APPEAL AND HAS CHALLENGED THE ACTION OF THE LD. COMMISSIONER OF IN COME TAX(A) ON THE FOLLOWING GROUNDS:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE ID. CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE O F EMPLOYEES CONTRIBUTION OF PF, ESI & PROFESSIONAL T AX OF RS. 21,12,580/- BY FOLLOWING A DECISION OF THE JURISDICTIONAL HIGH COURT WHICH HAS NOT BEEN ACCEPT ED BY THE DEPARTMENT ON MERITS BUT ON ADMINISTRATIVE COMPULSIONS. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE ID. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS . 1,86,88,625/- WITHOUT GIVING AN OPPORTUNITY TO THE AO TO EXAMINE THE ADDITIONAL EVIDENCE. THE LD. CIT(A) VIO LATED THE PROVISIONS OF RULE 46A(3) OF THE INCOME TAX RUL E, 1962. ITA NO. 5051/DEL2015 ASSESSMENT YEAR 2012-13 3 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, ID CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE OF RS . 10,54,480/- IGNORING THE MANDATORY PROCEDURE PRESCR IBED UNDER RULE 8D OF THE INCOME TAX RULE R.W.S. 14A OF THE INCOME TAX ACT, 1961. 4. THE APPELLANT CRAVES TO BE ALLOWED TO ADD ANY F RESH GROUND(S) OF APPEAL AND/OR DELETE OR AMEND ANY OF T HE GROUND(S) OF APPEAL. 3. LD. DR READ OUT EXTENSIVELY FROM THE ORDER OF ASSESSMENT AND SUBMITTED THAT THE DELETION OF ADDITIONS HAD BEEN W RONGLY MADE BY THE LD. CIT WITHOUT CONSIDERING THE FINDINGS OF THE ASSESSING OFFICER. 3.1 IN RESPONSE, THE LD. AR SUBMITTED THAT AS FAR A S ISSUE OF DISALLOWANCE OF RS. 21,12,580/- ON ACCOUNT OF LATE DEPOSIT OF PF/ESI IS CONCERNED, THE ISSUE IS COVERED IN FAVOUR OF ASSESSEE BY ITAT ORDER OF THE GROUP COMPANY PLANMAN HR PVT. LTD . IN ITA NO. 5028/DEL/2016 DATED 23.01.2017 OF ASSESSMENT YEAR 2 013-14. AS FAR AS ISSUE OF DISALLOWANCE OF RS. 186,88,625/- ON ACCOUNT OF SERVICE TAX UNDER SECTION 43B IS CONCERNED, IT WAS SUBMITTED BY THE LD. AR THAT PAYMENT WAS MADE BEFORE DATE OF FIL ING RETURN AS IS EVIDENT FROM THE AUDIT REPORT. AS FAR AS THE IS SUE OF DISALLOWANCE OF RS. 10,54,480/- UNDER SECTION 14A R EAD WITH RULE 8D IS CONCERNED, THERE WAS NO EXEMPT INCOME DURING THE YEAR AS IS EVIDENT FROM THE PAPER BOOK AND THE ISSUE IS SQU ARELY COVERED ITA NO. 5051/DEL2015 ASSESSMENT YEAR 2012-13 4 BY THE ITAT ORDER IN ASSESSEES OWN CASE FOR ASSESS MENT YEAR 2008-09 AND 2009-10 IN ITA NO. 5752 & 5753/DEL/2013 DATED 6.11.2015 IN WHICH ADDITIONS MADE BY THE ASSESSING OFFICER IN THE ABSENCE OF EXEMPT INCOME WERE DELETED. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSE D THE MATERIAL AVAILABLE ON RECORD. IT IS VERY MUCH EVIDE NT THAT AS FAR AS DISALLOWANCE OF RS. 21,12,580/- ON ACCOUNT OF LATE DEPOSIT OF PF/ESI IS CONCERNED, IT IS COVERED IN FAVOUR OF THE ASSESSEE BY ITA NO. 5028/DEL/2016 DATED 23.01.2017. AS FAR AS ISSUE OF DISALLOWANCE OF RS. 186,88,625/- ON ACCOUNT OF SERV ICE TAX UNDER SECTION 43B IS CONCERNED, THE PAYMENT WAS MADE BEFO RE DATE OF FILING OF RETURN. AS FAR AS THE ISSUE OF DISALLOWA NCE OF RS. 10,54,480/- UNDER SECTION 14A READ WITH RULE 8D IS CONCERNED, THE ISSUE IS SQUARELY COVERED BY THE ITAT ORDER IN ASSESSEES OWN CASE IN ITA NO. 5752 & 5753/DEL/2013 DATED 6.11.201 5 (SUPRA) AS THERE WAS NO EXEMPT INCOME DURING THE YEAR. THE REFORE, WE FIND NO REASON TO INTERFERE WITH THE FINDINGS OF TH E LD. CIT(A) AND DISMISS THE GROUNDS RAISED BY THE DEPARTMENT. 5. IN THE RESULT, THE APPEAL OF THE DEPARTMENT IS DISMISSED. ITA NO. 5051/DEL2015 ASSESSMENT YEAR 2012-13 5 THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 19 TH JANUARY, 2018. SD/- SD/- (G.D. AGRAWAL) (SUDHANSHU SRIVASTAVA) PRESIDENT JUDICIAL MEMBER DATED: 19 TH JANUARY, 2018 GS COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER ASSISTANT REGI STRAR