Deputy Commissioner of Income-tax, Circle-3, Guwahati V. M/s. Assam Industrial Development Corporation Ltd., Guwahati

ITA 86/GTY/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6071 (ITAT-GUWAHATI)
• Duration Of Justice: 1 year(s) 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 14-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVINDRA SINGH J
• Keywords: Business expenditure; Rule 8D
• Section: 143(3); 14A

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. 86 / GAU / 2018 ASSESSMENT YEAR :2014-15 DCIT, CIRCLE-3 7 TH FLOOR, AAYAKAR BHAWAN, G.S. ROAD, GUWAHATI-781005 V/S . M/S ASSAM INDUSTRIAL DEVELOPMENT CORPORATION LTD., R.G. BARUAH ROAD, ZOO ROAD, GUWAHATI, ASSAM-781024 [ PAN NO.AACCA 4720 A ] /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI RAVINDRA SINGH, JCIT-DR /BY RESPONDENT NONE /DATE OF HEARING 09-07-2019 /DATE OF PRONOUNCEMENT 02-08-2019 / O R D E R PER BENCH:- THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2014-15 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-2 GUWAHATIS O RDER DATED 31.01.2018 PASSED IN CASE NO.604409681280117, INVOLVING PROCEE DINGS U/S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. CASE CALLED TWICE. NONE APPEARS AT THE ASSESSEES B EHEST. THE REGISTRY HAS ALREADY SENT RPAD NOTICE(S) FOR 12.06.2019 FOR HEARING. IT IS ACCORDINGLY PROCEEDED EX PARTE . ITA NO.86/GAU/2018 A.Y. 2014-15 DCIT, CIRI-3, GAU VS. M/S ASSAM INDUSTRIA L DEVELOPMENT CORPORATION LTD. PAGE 2 2. WE COME TO THE REVENUES THREE FOLDED GROUNDS. I TS FIRST SUBSTANTIVE GRIEVANCE IS THAT THE CIT(A) HAS ERRED IN LAW DELET ING DISALLOWANCE / ADDITION OF 49,62,367/- ON ACCOUNT OF BELATED PAYMENT OF EMPLO YEES PROVIDENT FUND. IT HAS COME ON RECORD THAT THE HON'BLE HIGH COURTS DECISION IN CIT VS. GEORGE WILLIAMSON (ASSAM) LTD. (2006) 284 ITR 619 (GAU) HAS SETTLED THE LAW THAT SUCH A PAYMENT IS ALLOWABLE AS BUSINESS EXPENDITURE IF IT IS CREDITED / PAID BEFORE THE DUE DATE OF FILING OF RETURN U/S. 139(1) OF THE ACT. THE REVENUE IS FAIR ENOUGH IN NOT DISPUTING THIS CLINCHING FACTUAL POSITION. WE DECLINE THIS FIRST SUBSTANTIVE GROUND ACCORDINGLY. 3. NEXT COMES SEC. 14A R.W.S. RULE 8D DISALLOWANCE OF 12,52,159/- @ 0.5% OF AN AVERAGE INVESTMENT FALLING UNDER 8D(2)(I II) IN THE NATURE OF ADMINISTRATIVE EXPENDITURE. IT HAS COME ON RECORD T HAT THE STATE GOVERNMENT HAS PROVIDED ALL CORRESPONDING FUNDS. THE CIT(A) HA S THEREFORE RIGHTLY HELD THAT THE IMPUGNED ADMINISTRATIVE EXPENDITURE CANNOT BE DISALLOWED SAME THE STATE GOVERNMENT HAS UNDERTAKEN ALL THE EXPENDITURE S AND NOT THE ASSESSEE. 4. THE NEXT CASE IS DISALLOWANCE OF PRIOR PERIOD EX PENDITURE AMOUNTING TO 39,95,523/-. SUFFICE TO SWAY, HON'BLE GUJARAT HIGH COURTS DECISION IN PCIT VS. ADANI ENTERPRISES TAX APPEAL NO. 566 OF 2016 HOLDS THAT THE IMPUGNED DISALLOWANCE IS SNOT ATTRACTED ONCE THE ASSESSEE IS ASSESSED AT THE SAME RATE OF TAX THROUGHOUT IN THE CORRESPONDING ASSESSMENT Y EARS. WE GO BACK THIS PRECISE REASONING TO CONFIRM THE CIT(A)S FINDING D ELETING THE IMPUGNED DISALLOWANCE. 5. THIS REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN ACCORDANCE WITH RULE 34(3) OF THE ITAT RULES BY PUTTING ON NOTICE BOARD ON 02/08/2019 SD/- SD/- ( #) (%& #) ( A.L.SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) GUWAHATI, *DKP '- 02 / 08 /201 9 ITA NO.86/GAU/2018 A.Y. 2014-15 DCIT, CIRI-3, GAU VS. M/S ASSAM INDUSTRIA L DEVELOPMENT CORPORATION LTD. PAGE 3 / COPY OF ORDER FORWARDED TO:- 1 . /APPELLANT-DCIT, CIR-3, 7 TH FL. AAYAKAR BHAWAN, G.SS. ROAD, GUWAHATII-781005 2 . /RESPONDENT-M/S ASSAM INDUSTRIAL DEVELOPMENT CORPOR ATION LTD., R.G BARUAH ROAD, GUWAHAT I, ASSAM-781024 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,