Rajdeep Infrastructure, Ahmednagar V. Income-tax Officer, Ward - 2, Ahmedangar

ITA 557/PUN/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3155 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-10-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 22-10-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 27-03-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: PASSED; ARISE OUT OF SEPARA TE S DATED
• Section: 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH, A PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S.VISWANETHRA RAVI, JUDICIAL MEMBER . / ITA NOS.557 & 558/PUN/2018 / ASSESSMENT YEARS : 2013-14 & 2014-15 M/S.RAJDEEP INFRASTRUCTURE, RAJDEEP HOUSE, NEAR BHIDE HOSPITAL, SAVEDI, AHMEDNAGAR 414 003 PAN : AAHFR2945Q VS. ITO, WARD-2, AHMEDNAGAR/ ACIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR APPELLANT RESPONDENT / ORDER PER R.S.SYAL, VP : THESE TWO APPEALS BY THE ASSESSEE ARISE OUT OF THE SEPAR ATE ORDERS DATED 14-11-2017 & 20-11-2017 PASSED BY THE CI T(A)-2, PUNE IN RELATION TO THE ASSESSMENT YEARS 2013-14 AND 2014- 15 RESPECTIVELY. SINCE SOME OF THE ISSUES RAISED IN THESE APPEA LS ARE COMMON, WE ARE, THEREFORE, PROCEEDING TO DISPOSE THEM O FF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. A.Y.2013-14 : 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE DENIA L OF DEDUCTION U/S.80IA(4) OF THE INCOME-TAX ACT, 1961 (HEREIN AFTER ALSO CALLED THE ACT) AMOUNTING TO RS.2,08,79,508/-. ASSESSEE BY NONE (WRITTEN SUBMISSIONS) REVENUE BY SHRI S.P. WALIMBE DATE OF HEARING 22-10-2021 DATE OF PRONOUNCEMENT 22-10-2021 ITA NOS.557 & 558/PUN/2018 M/S. RAJDEEP INFRASTRUCTURE 2 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSE E CLAIMED TO BE ENGAGED IN THE BUSINESS OF DEVELOPING, MAINTA INING AND OPERATING AN INFRASTRUCTURE FACILITY ON BOT BASIS FOR IND ORE MUNICIPAL CORPORATION, UNDER WHICH IT CONSTRUCTED FOOT-OVER BRIDGES AND ROAD SIGNAGES IN THE IMC AREA. DEDUCTION U/S. 80IA(4) OF THE ACT WAS CLAIMED. ON PERUSAL OF AGREEMENT BETWEEN THE ASSESSEE AND INDORE MUNICIPAL CORPORATION, THE ASSESSING OFFICER NOTED THAT THE ASSESSEE WAS BASICALLY REQUIRED TO INSTALL THE SIG NAGES AND MAINTAIN THEM. HE REFUSED TO ACCEPT THE ACTIVITIES DONE BY THE ASSESSEE AS FALLING WITHIN THE DOMAIN OF `INFRASTRUCTURE FACILITY AND ACCORDINGLY DENIED THE CLAIM. THE LD. CIT(A) ECHOED THE AS SESSMENT ORDER. 4. WE HAVE HEARD THE LD. DR AND GONE THROUGH THE RELEVA NT MATERIAL ON RECORD. THE ASSESSEE HAS FILED WRITTEN SUBMISS IONS AND REQUESTED FOR DISPOSAL OF THE APPEALS ACCORDINGLY. WE HAV E TAKEN INTO CONSIDERATION THE WRITTEN SUBMISSIONS. IT HAS BEEN CATEGOR ICALLY ADMITTED IN THE WRITTEN SUBMISSIONS THAT SIMILAR ISSUE CAME UP FOR CONSIDERATION BEFORE THE TRIBUNAL FOR EARLIER YEARS, NAMELY , A.Y. 2010-11 TO 2012-13 AND THE TRIBUNAL DECIDED IT AGAINST THE ASSESSEE. REFERENCE HAS BEEN MADE TO RELEVANT PAGES OF THE TRIBUNAL ORDER IN THIS REGARD. IT HAS FURTHER BEEN MENTIONE D THAT ITA NOS.557 & 558/PUN/2018 M/S. RAJDEEP INFRASTRUCTURE 3 APPEALS AGAINST THE TRIBUNAL ORDER FOR THE TWO YEARS ARE PE NDING FOR ADMISSION BEFORE THE HONBLE BOMBAY HIGH COURT. IN VIEW O F THE FOREGOING WRITTEN SUBMISSIONS, IT IS CLEAR THAT THE INSTANT ISSUE HA S BEEN DECIDED BY THE TRIBUNAL IN EARLIER YEARS AGAINST THE ASS ESSEE. RESPECTFULLY FOLLOWING THE PRECEDENT, WE UPHOLD THE IMPUGNED ORDER. A.Y. 2014-15 : 5. THE FIRST ISSUE RAISED IN THIS APPEAL IS SIMILAR TO THAT OF THE PRECEDING YEAR BY WHICH THE CLAIM OF DEDUCTION U/S.80IA TO THE TUNE OF RS.1,65,77,965/- WAS DENIED. THE ASSESSEE HAS FILE D WRITTEN SUBMISSIONS FOR THIS YEAR AS WELL BY CLEARLY ADMITTING THAT THE TRIBUNAL HAS DECIDED SUCH ISSUE AGAINST THE ASSESSEE IN THE EARLIER YEARS. IN VIEW OF THE ABOVE POSITION, WE UPHOLD THE IMP UGNED ORDER ON THIS SCORE AND DISMISS THIS GROUND OF APPEAL. 6. THE ONLY OTHER ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF DISALLOWANCE U/S.43B AMOUNTING TO RS.12,48,16 8/-. THE AO OBSERVED THAT INTEREST ON ADVERTISEMENT TAX OF RS.12,48,168/- WAS OUTSTANDING AS ON 31-03-2014 WHICH W AS NOT PAID BEFORE THE DUE DATE OF FILING THE RETURN. INVOKING TH E PROVISIONS OF SECTION 43B, HE MADE THE DISALLOWANCE, WHICH CAME TO BE AFFIRMED IN THE FIRST APPEAL. ITA NOS.557 & 558/PUN/2018 M/S. RAJDEEP INFRASTRUCTURE 4 7. HAVING HEARD THE LD. DR AND GONE THROUGH THE WRITTEN SUBMISSIONS FILED ON BEHALF OF THE ASSESSEE, IT IS SEEN THAT TH E AO DISALLOWED ADVERTISEMENT TAX U/S.43B FOR THE A.Y. 2012-13. HOWEVER, THE TRIBUNAL ACCEPTED THE ASSESSEES CLAIM AND D ELETED THE DISALLOWANCE VIDE ITS ORDER DATED 07-01-2020 IN ITA NO.1176/PUN/2017. THE LD. DR WAS FAIR ENOUGH TO ADMIT THA T THE DISALLOWANCE MADE IN THIS YEAR ON ACCOUNT OF INTEREST ON ADVERTISEMENT TAX WOULD MAKE NO DIFFERENCE TO THE LEGAL POSITION AS AGAINST THE DISALLOWANCE MADE IN THE PRECEDING YEAR TOWARDS ADVERTISEMENT TAX ONLY. IN VIEW OF THE SUBMISSION AND RESP ECTFULLY FOLLOWING THE PRECEDENT, WE OVERTURN THE IMPUGNED ORDER ON THIS SCORE AND DELETE THE DISALLOWANCE MADE U/S.43B OF THE ACT. 8. IN THE RESULT, THE APPEAL FOR THE A.Y. 2013-14 IS DISMISS ED AND THAT FOR THE A.Y. 2014-15 IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND OCTOBER, 2021. SD/- SD/- ( S.S. VISWANETHRA RAVI ) (R.S.SYAL) JUDICIAL MEMBER VIC E PRESIDENT PUNE; DATED : 22 ND OCTOBER, 2021 ITA NOS.557 & 558/PUN/2018 M/S. RAJDEEP INFRASTRUCTURE 5 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A)-2, PUNE 4. 5. 6. THE PCIT-2, PUNE DR, ITAT, A BENCH, PUNE / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR P RIVATE SECRETARY , / ITAT, PUNE DATE 1. DRAFT DICTATED ON 22-10-2021 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 22-10-2021 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *