ACIT, Jaipur V. RAJASTHAN STATE GANGANAGAR SUGAR MILLS LTD., Jaipur

ITA 62/JPR/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5433 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 27-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BK GUPTA
• Assessee Lawyers: T C JAIN DHK
• Section: 43B

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 VH-VKJ-EHUK] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF; D LNL; DS LE{K BEFORE: SHRI T.R.MEENA, AM & SHRI LALIET KUMAR, JM VK;DJ VIHY LA- @ ITA NO. 62/JP/2014 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2010-11 THE A.C.I.T. CIRCLE-6, JAIPUR. CUKE VS. M/S RAJASTHAN STATE GANGANAGAR SUGAR MILLS LTD., 4 TH FLOOR, NEHRU SAHAKAR BHAWAN, BHAWANI SINGH ROAD, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ L A-@ PAN/GIR NO.: AAACR 8906 R VIHYKFKHZ @ APPELLANT IZR;FKHZ @ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SHRI B.K. GUPTA (CIT) FU/KZKFJRH DH VKSJ LS @ ASSESSEE BY : SHRI T.C. JAIN (ADVOCATE) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 20/01/2016. MN?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 24/02/2016. VKNS'K@ ORDER PER T.R. MEENA, A.M THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 08/11/2013 OF THE LEARNED C.I.T.(A)-II, JAIPUR FOR A .Y. 2010-11. THE COMMON EFFECTIVE GROUNDS OF ALL THE APPEALS ARE AS UNDER:- (I) WHETHER ON THE FACTS AND IN CIRCUMSTANCES OF T HE CASE AND IN LAW THE LD. CIT (APPEALS) HAS ERRED IN DELETI NG 2 ITA NO. 62/JP/2014 ACIT VS M/S RAJASTHAN STATE GANGANAGAR SUGAR MILLS LT D. THE ADDITION OF RS.62,88,000/- MADE BY THE AO BY VALUING CLOSING STOCK BY INCLUDING ELEMENT OF EXCIS E DUTY THEREIN. (II) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN AW THE LD. CIT (APPS ' ' HAS ERRED DELETING THE ADDITION OF RS. 1,50,00,000/- MADE BY THE AO BY DISCLOSING EXPORT PASS FEE WITHOUT APPRECIATIN G THE FACT THAT LIABILITY TO MAKE SUCH PAYMENT IS FINALIZED. (III) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCE S OF THE CASE AND IN LAW THE LD. CIT (APPEALS) HAS ERRED IN DELETING THE ADDITION OF RS. 12,28,000/- MADE BY TH E AO ON ACCOUNT OF INTEREST RECEIVED ON FDR. (IV) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE IN LAW THE LD. CIT (APPEALS) HAS ERED IN DELETIN G THE ADDITION OF RS. 14,23,55,569/- MADE BY THE AO B Y DISALLOWING THE PAYMENT OF PRIVILEGE FEES WITHOUT APPRECIATING THE FACT THAT THE SAID EXPENSES ARE OF CAPITAL IN NATURE. (V) (A) WHETHER ON THE FACTS AND IN THE C IRCUMSTANCES OF THE CASE AND IN LAW THE LD CIT (APPEALS) HAS ERRED IN DELETING ADDITION OF RS.4,86,608/- MADE FOR DEPOSITING THE EMPLOYEES CONTRIBUTION TO PF BEYOND THE PRESCRIBED TIME LIMIT PROVIDED IN THE RESPECTIVE ACTS. (B) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(APPEALS) HAS ERRED IN HOLDING THAT EMPLOYEES CONTRIBUTION TO PF ARE GOVERNED BY THE PROVISION OF SECTION 43B AND NOT BY SECTION 36(1 )(VA) R.W.S. 2(24)(X) OF I.T.ACT. 3 ITA NO. 62/JP/2014 ACIT VS M/S RAJASTHAN STATE GANGANAGAR SUGAR MILLS LT D. (VI) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT (APPEALS) HAS ERRED IN DELETING THE ADDITION OF RS.7,30,000/- MADE BY THE AO BY DISALLOWING OF CONTRIBUTION TO STATE RENEWAL FUND. 2. REGARDING THIS APPEAL, THE LD AR OF THE ASSESSEE HAS SUBMITTED THAT ALL THE ISSUES INVOLVED IN THIS APPEAL ARE COV ERED BY THE ORDER OF THE HONBLE ITAT, JAIPUR BENCH, JAIPUR PASSED IN THE ASS ESSEES OWN CASE IN ITA NO. 31/JP/2013 FOR A.Y. 2009-10 ORDER DATED 17/ 04/2015. THEREFORE, HE PRAYED TO REVERSE THE ORDER OF THE LD CIT(A). 3. AT THE OUTSET, THE LD DR HAS VEHEMENTLY SUPPORTE D THE ORDER OF THE LOWER AUTHORITIES AND PRAYED TO UPHOLD THE ORDER OF THE LD CIT(A). 4. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. THE ID ENTICAL ISSUE INVOLVED IN THIS APPEAL, HAS BEEN DECIDED BY THE CO ORDINATE BENCH IN ASSESSEES OWN CASE FOR 2009-10 VIDE ORDER DATED 17/ 04/2015. THE OPERATIVE PORTION OF THE COORDINATE BENCHS ORDER I S REPRODUCED AS UNDER:- 4. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. W E FIND MERIT IN THE ARGUMENTS OF THE LD COUNSEL FOR T HE ASSESSEE. REVENUES GROUNDS NO. (I) TO (V) ARE COVE RED 4 ITA NO. 62/JP/2014 ACIT VS M/S RAJASTHAN STATE GANGANAGAR SUGAR MILLS LT D. IN FAVOUR OF THE ASSESSEE BY SUCCESSIVE JUDGMENTS O F THE ITAT AS MENTIONED ABOVE. THE DETAILED REASONINGS ARE MENTIONED IN THE ITATS ORDER FOR A.Y. 2008-09. RESPECTFULLY FOLLOWING THE SAME, THE GROUND NOS. (I) TO (V) OF THE REVENUE APPEAL ARE DISMISSED. 4.1. APROPOS GROUND NO. (VI) ALSO, THE DISALLOWANCE HAS BEEN DELETED IN TERMS OF SECTION 43B ON ACTUAL PAYMENT BASIS IN VIEW THEREOF, WE FIND NO INFIRMITY I N THE ORDER OF THE LD CIT(A), WHICH IS UPHELD. BY RESPECTFULLY FOLLOWING THE ORDER OF THE COORDINAT E BENCH IN ASSESSEES OWN CASE, WE REVERSE THE ORDER OF THE LD CIT(A). 5. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24/02/2016. SD/- SD/- YFYR DQEKJ VH-VKJ-EHUK (LALIET KUMAR) (T.R. MEENA) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 24 TH FEBRUARY, 2016 RANJAN* VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1 VIHYKFKHZ @ THE APPELLANT- THE A.C.I.T., CIRCLE-6, JAIPUR.. 2. IZR;FKHZ @ THE RESPONDENT- M/S RAJASTHAN STATE GANGANAGAR SUGAR MILLS LTD., JAIPUR. 3. VK;DJ VK;QDR @ CIT 5 ITA NO. 62/JP/2014 ACIT VS M/S RAJASTHAN STATE GANGANAGAR SUGAR MILLS LT D. 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 62/JP/2014) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR