Assam Petro-Chemicals Limited, Namrup V. Assistant Commissioner of Income Tax, Circle -2, Dibrugarh

ITA 79/GTY/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6432 (ITAT-GUWAHATI)
• Duration Of Justice: 1 year(s) 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 24-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVINDRA SINGH J
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL GUWAHATI BENCH, GUWAHATI BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 79 / GAU / 2018 ASSESSMENT YEAR :2014-15 ASSAM PETERO-CHEMICALS LTD., P.O.PARBATPUR, NAMRUP-786623, DIST. DIBRUGARH [ PAN NO.PAABCA 6913 A ] V/S . ACIT, CIRCLE-2, DIBRUGARH, P.O. C.R. BUILDING, DIBRUGARH- 786003 /APPELLANT .. / RESPONDENT /BY APPELLANT NONE /BY RESPONDENT SHRI RAVINDRA SINGH, JCIT-DR /DATE OF HEARING 09-07-2019 /DATE OF PRONOUNCEMENT 31-07-2019 / O R D E R PER BENCH:- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2014-15 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-DIBRUGARHS OR DER DATED 07.02.2018 PASSED IN CASE NO. CIT(A), DIBRUGARH/10072/2014-15, INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT T HE ACT. CASE CALLED TWICE. NONE APPEARS AT THE ASSESSEES B EHEST. IT HAS MOVED AN ADJOURNMENT PETITION. NOBODY IS THERE TO P URSUE THE SAME. IT IS ACCORDINGLY PROCEEDED EX PARTE . ITA NO.79/GAU/2018 A.Y. 2014-15 APCL VS. ACIT, CIR-2, DIBRUGARH PAGE 2 2. THE ASSESSEES FIRST SUBSTANTIVE GROUND SEEKS TO REVERSE BOTH THE LOWER AUTHORITIES ACTION DISALLOWING ITS GENERAL EXPENSE S OF 14,25,520/- COMPRISING OF SUBSCRIPTIONS, DONATIONS AND SPONSORSHIPS TO BE NOT ALLWOABLE SINCE NOT INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS. THE CIT(A)S OBSERVATION IN LOWER APPELLATE FINDINGS ARE THAT TH E ASSESSING OFFICER HAD NOTICED THE IMPUGNED EXPENDITURE TO BE IN THE NATUR E OF DONATION AND SPONSORSHIP PAID TO LOCAL ORGANIZATION LIKE APL CLU B, IIT GUWAHATI FESTIVAL, MARGHERIA TOWN CLUB ETC. WE OBSERVE IN THESE FACTS THAT THE ASSESSEE HAS PROVED THE IMPUGNED DONATION AND SUBSCRIPTIONS TO H AVE BEEN INCURRED FOR THE PURPOSE OF GOODWILL CESSATION AMONGST THE LOCAL POP ULATION. THE FACT ALSO REMAINS THAT IT HAS NOT FILED ALL THE CORRESPONDING DETAILS EITHER IN THE COURSE OF ASSESSMENT OR BEFORE THE CIT(A). WE THEREFORE DEEM IT APPROPRIATE TO PARTLY ACCEPT THE ASSESSEES CLAIM TO THE EXTENT OF RS.13 LAC WITH A RIDER THAT THE SAME SHALL NOT BE TREATED AS A PRECEDENT IN ANY OTH ER ASSESSMENT YEAR. THIS FORMER SUBSTANTIVE GROUND IS PARTLY ACCEPT TO THE E XTENT OF 13 LAC. BALANCE ADDITION OF 1,25,520/- IS CONFIRMED. 3. NEXT COMES THE LATTER ISSUE OF DISALLOWANCE OF P ROJECT IMPLEMENTATION COST WRITTEN OFF AMOUNTING TO RS.83,97,695/-. MR. S INGH IS VERY VERY FAIR IN TAKING US THROUGH THE CIT(A)S FINDINGS HOLDING ABO VE EXPENDITURE ALLLOWABLE UNDER THE REVENUES HEAD GOING BY THE HON'BLE CALCU TTA HIGH COURTS DECISION OF BINANI CEMENT LTD. VS. CIT IN ITA NO. 265 OF 2009. HE THEN PLEADS THAT THE CIT(A) HAS HELD THAT THE ASSESSEE OUGHT TO HAVE CLA IM THE IMPUGNED SUM AS TAKEN IN THE YEAR OF WRITE OF THE PROJECT IN ASSESS MENT YEAR 2011-12. THERE IS 2014-15. WE THEREFORE DEEM IT APPROPRIATE TO RESTOR E THE INSTANT LATTERS ISSUE TO THE ASSESSING OFFICER WHEREIN THE ASSESSEE SHALL PRODUCE ALL THE SUPPORTIVE MATERIAL FOR THE PURPOSE OF TENDERING ITS EXPLANATI ON EXPLAINING REASONS IF NOT RAISING THE CLAIM IN ASSESSMENT YEAR 2011-12 BUT IN THE RELEVANT PREVIOUS YEAR. THIS LATTER SUBSTANTIVE GROUND IS TAKEN AS AC CEPTED FOR STATISTICAL PURPOSES. ITA NO.79/GAU/2018 A.Y. 2014-15 APCL VS. ACIT, CIR-2, DIBRUGARH PAGE 3 4. THIS ASSESSEES APPEAL IS PARTLY ALLOWED FOR STA TISTICAL PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN ACCORDANCE WITH RULE 34(3) OF T HE ITAT RULES BY PUTTING ON NOTICE BOARD 31/07/2019 SD/- SD/- ( #) (%& #) ( A.L.SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) GUWAHATI, *DKP '- 31 / 07 /201 9 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-ASSAM PETERO-CHEMICALS LTD. P.O. PARBATP UR,NAMRUP-7866232 DIST. DIBRUGARH, 2. /RESPONDENT-ACIT, CIR-2,P.O. C.R.BUILDING, DIBRUGAR H-786003 3. 2 3 8 / CONCERNED CIT GUWAHATI 4. 3- / CIT (A) GUWAHATI 5. ; &&2, 2, 8 / DR, ITAT, GUWAHATI 6. A / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY (ON TOUR) 2,