T.D. Power Systems Limited, Bangalore V. DCIT, Bangalore

ITA 607/BANG/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7027 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 8 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 18-07-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 28-03-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S NAMBIRAJAN
• Assessee Lawyers: SATYANARAYANA MURTHY
• Keywords: Business income
• Section: 37

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, B E NGAL U R U BEFORE SHRI VIJAY PAL RAO , JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO. 607 / BANG/20 16 (ASSESSMENT YEAR: 20 11 - 12 ) M/S.T D POW E R SYSTEMS LTD. PLOT N OS. 27, 28 & 29, KIADB IN DUSTRIAL AREA, DOBBSPET, BENGALURU - 562 111 PAN:AABCT 0360 J VS. APPELLANT DEPUTY COMMISSIONER OF INCOME - TAX LTU, BENGALURU RESPONDENT APPELLANT BY : SHRI SATYANARAYANA MURTHY, CA. RESPONDENT BY : SHRI S.NAMBIRAJAN, ADDL.CIT (DR). DATE OF HEARING : 25/09/2017 DATE OF PRONOUNCEMENT : 22 /12/2017 O R D E R PER I NTURI RAMA RAO, AM : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME - TAX (APPEALS) - 14, LTU [CIT(A) ], BENGA LURU, DATED 27/01/2016 FOR THE ASSESSMENT YEAR 2011 - 12. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL: ITA NO . 607 /BANG/201 6 PAGE 2 OF 3 3. THE ONLY ISSUE IN THE PRESENT APPEAL IS WHETHER AN AMOUNT OF CONTRIBUTION OF RS.15,44,850/ - MADE TO JAPANESE RED CROSS SOCIETY TOWARDS TSUNAMY VICTIM RELIEF IN JAPAN IS ALLOWABLE DEDUCTION OR NOT . IT WAS CLAIMED THAT THIS CONTRIBUTION WAS MADE BY THE JAPAN BRANCH OF THE COMPANY AND IT IS AN ALLOWABLE EXPENDITURE U/S 37 OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT]. IN THIS CONNECTION, RELIANCE WAS PLACED ON THE DECISION OF THE HON BLE SUPREME COURT IN THE CASE OF SRI VENKATA SATYANARAYA RICE MILLS CONTRACTORS CO. VS. CIT (223 ITR 101). THE AO DISALLOWED THE CLAIM. 4. ON APPEAL BEFORE THE CIT(A), THE SAME C AME TO BE CONFIRMED AS THE EXPENDITURE WAS INCURRED OUTSIDE INDIA. 5. WE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ISSUE IN THE PRESENT APPEAL IS WHETHER THE AMOUNT OF CONTRIBUTION MADE TO RED CROSS SOCIETY, JAPAN IS AN ALLOWAB LE EXPENDITURE WHILE COMPUTING INCOME UNDER THE HEAD BUSINESS INCOME . IT IS CLAIMED THAT THE CONTRIBUTION WAS MADE BY JAPAN BRANCH OF THE ASSESSEE AND IT IS NOT CLEAR FROM THE RECORD WHETHER ANY PROFITS EARNED BY JAPAN BRANCH OF THE APPELLANT OR NOT . E VEN IF SO, NO EVIDENCE WAS BROUGHT ON RECORD AS TO HOW THE CONTRIBUTION HA D BENEFITED THE BUSINESS OPERATIONS OF THE BRANCH OF THE ASSESSEE - COMPANY AND MERE RELIANCE ON THE JUDICIAL DECISION WITHOUT LAYING FACTUAL FOUNDATION DOES NOT COME TO THE RESCUE OF THE ASSESSEE. THEREFORE, CLAIM MADE BY ASSESSEE CANNOT BE ALLOWED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND DECEMBER 201 7 SD/ - SD/ - ( VIJAY PAL RAO ) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : B EN GAL URU D ATE : 22 / 1 2 /2017 SRINIVASULU, SPS ITA NO . 607 /BANG/201 6 PAGE 3 OF 3 COPY TO : 1 APPELL ANT 2 RESPONDENT 3 CIT(A) - 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME - T AX APPELLATE TRIBUNAL BANGALORE