West Bengal Housing Infrastructure Development Corporation Ltd., Kolkata V. DCIT, Circle-14(2), Kolkata, Kolkata

ITA 626/KOL/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9829 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 31-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR A K NAYAK
• Assessee Lawyers: SAURABH BAGARIA ADV B R DUTTA
• Keywords: Additional evidence; Set aside
• Section: 80IA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA A BENCH, KOLKATA (BEFORE SRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER & SRI S.S. GODARA, JUDICIAL MEMBER) I.T.A. NO. 626/KOL/2017 ASSESSMENT YEAR: 2013-14 M/S. WEST BENGAL HOUSING INFRASTRUCTURE DEVELOPMENT CORPORATION LTD.................... APPELLANT [PAN : AAACW 4115 F] VS. DY. COMMISSIONER OF INCOME TAX, CIRCLE-14(2), KOLKATA.......................... RESPONDENT I.T.A. NO. 758/KOL/2017 ASSESSMENT YEAR: 2013-14 ASST. COMMISSIONER OF INCOME TAX, CIRCLE-14(2), KOLKATA....................... APPELLANT VS. M/S. WEST BENGAL HOUSING INFRASTRUCTURE DEVELOPMENT CORPORATION LTD.................RESPONDENT [PAN : AAACW 4115 F] APPEARANCES BY: SHRI SAURABH BAGARIA, ADV., B.R. DUTTA, FCA & RITESH GOEL, ADV., APPEARED ON BEHALF OF THE ASSESSEE. DR. A.K. NAYAK, CIT, APPEARED ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : SEPTEMBER 11 TH , 2019 DATE OF PRONOUNCING THE ORDER : SEPTEMBER 20 TH , 2019 ORDER PER J. SUDHAKAR REDDY, AM :- THESE ARE CROSS APPEALS FOR THE ASSESSMENT YEAR (AY FOR SHORT) 2013-14 DIRECTED AGAINST ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)- 5, KOLKATA [CIT(A) FOR SHORT] DATED 02.02.2017. 2. FIRST WE TAKE UP THE ASSESSEES APPEAL, THE GROUNDS OF WHICH ARE AS FOLLOWS: 1. THAT THE COMMISSIONER OF INCOME-TAX (APPEALS) WAS WRONG IN HOLDING THAT THE APPELLANT HAD ALLEGEDLY NOT BEEN ELIGIBLE FOR DEDUCTION U/S 80IA AND THUS HE ERRED IN NOT ALLOWING DEDUCTION OF RS.93,98,84,972 U/S 80IA. 2. THAT WITHOUT PREJUDICE TO THE CONTENTION RAISED IN GROUND NO.1 ABOVE, THE COMMISSIONER OF INCOME-TAX (APPEALS) WAS WRONG IN OBSERVING THAT THERE HAD ALLEGEDLY BEEN NO NEXUS BETWEEN THE APPELLANTS INCOME AND THE ACTIVITY SOUGHT TO BE PROMOTED OR ENCOURAGED BY SECTION 80IA AND THUS HE ERRED IN HOLDING THE APPELLANT AS ALLEGEDLY NOT ELIGIBLE FOR DEDUCTION U/S 80IA. 3. THAT THE COMMISSIONER OF INCOME-TAX (APPEALS) WAS WRONG IN CONFIRMING THE ACTION OF THE 2 I.T.A. NOS. 626 & 758/KOL/2018 ASSESSMENT YEAR: 2013-14 M/S. WEST BENGAL HOUSING INFRASTRUCTURE DEVELOPMENT CORPORATION ASSESSING OFFICER IN ADDING RS. 149,91,87,763 BEING INTERESTS RECEIVED BY THE APPELLANT FROM FDRS AND ALLOTTEES WHICH HAD BEEN REDUCED BY THE APPELLANT FROM ITS PROJECT COST. 4. THAT THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR WITH ANY GROUND OR GROUNDS OF APPEAL BEFORE OR AT THE HEARING OF THE APPEAL. 3. GROUND NOS. 1 & 2 ARE DISMISSED FOR THE SAME REASONS THAT WERE CITED WHILE DISPOSING OFF GROUND NO. 1 IN ITA NO. 246/KOL/2017 FOR THE AY 2011-12. THE ASSESSEE IS NOT ENTITLED TO A DEDUCTION U/S 80IA OF THE ACT. 4. GROUND NO. 3 IS ON THE ISSUE OF TAXABILITY OF INTEREST ON FDRS. CONSISTENT WITH THE VIEW TAKEN BY US WHILE ADJUDICATING GROUND NO. 3 FOR THE AY 2011-12 IN ITA NO. 246/KOL/2017 WE SET ASIDE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION IN ACCORDANCE WITH LAW. THIS ALSO TAKES CARE OF THE ADDITIONAL GROUND RAISED BY THE ASSESSEE ON THIS ISSUE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED IN PART. 6. NOW, WE COME TO THE APPEAL OF THE REVENUE WHICH IS ON THE FOLLOWING GROUNDS: 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF ACCRUED INTEREST OF RS.85,53,716/ ON INVESTMENT WITH TREASURY ACCOUNT WITHOUT APPRECIATING THE FINDINGS OF A.O. 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF ACCRUED INTEREST OF RS.85,53,716/ ON INVESTMENT WITH TREASURY ACCOUNT WITHOUT ABIDING BY THE JUDGEMENT OF THE JURISDICTIONAL APPELLATE TRIBUNAL ON THE SAME ISSUE IN ASSESSEES OWN CASE FOR A.Y. 2005-06, 2006-07, 2008-09 AND 2009-10. 3. THAT THE DEPARTMENT CRAVES LEAVE TO ADD, MODIFY OR ALTER ANY OF THE GROUNDS OF APPEAL AND/OR ADDUCE ADDITIONAL EVIDENCE AT THE TIME OF HEARING OF THE CASE. 7. GROUND NO. 1 AND 2 ARE ON THE ISSUE OF TAXABILITY OF INTEREST ON INVESTMENT WITH TREASURY ACCOUNT. CONSISTENT WITH THE VIEW TAKEN BY US WHILE DISPOSING OFF GROUND NO. 2 IN THE APPEAL FOR ASSESSMENT YEAR (AY FOR SHORT) 2011-12 IN ITA NO. 246/KOL/2017, WE SET ASIDE THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR ADJUDICATION IN ACCORDANCE WITH LAW. THUS, THESE GROUNDS ARE ALLOWED FOR STATISTICAL PURPOSES. 8. GROUND NO. 3 IS GENERAL IN NATURE. 9. IN THE RESULT, THIS APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. KOLKATA, THE 20 TH SEPTEMBER, 2019. SD/- SD/- [S.S. GODARA] [J. SUDHAKAR REDDY] JUDICIAL MEMBER ACCOUNTANT MEMBER 3 I.T.A. NOS. 626 & 758/KOL/2018 ASSESSMENT YEAR: 2013-14 M/S. WEST BENGAL HOUSING INFRASTRUCTURE DEVELOPMENT CORPORATION DATED : 20.09.2019 BIDHAN 4 I.T.A. NOS. 626 & 758/KOL/2018 ASSESSMENT YEAR: 2013-14 M/S. WEST BENGAL HOUSING INFRASTRUCTURE DEVELOPMENT CORPORATION COPY OF THE ORDER FORWARDED TO: 1. M/S. WEST BENGAL HOUSING INFRASTRUCTURE DEVELOPMENT CORPORATION, HIDCO BHABAN, 35-1111, MAJOR ARTERIAL ROAD, NEW TOWN, KOLKATA-700 156. 2. DY. COMMISSIONER OF INCOME TAX, CIRCLE-14(2), KOLKATA. 3. ASST. COMMISSIONER OF INCOME TAX, CIRCLE-14(2), KOLKATA . 4. CIT(A)- 5, KOLKATA. (SENT THROUGH MAIL) 5. CIT- 6. CIT(DR), KOLKATA BENCHES, KOLKATA. (SENT THROUGH MAIL) TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES