ACIT, Jaipur V. RAJASTHAN STATE CO-OPERATIVE BANK LTD., Jaipur

ITA 998/JPR/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5239 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 22-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S DAGUR
• Assessee Lawyers: G G MUNDRA C A DHK
• Keywords: Business expenditure
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH VH-VKJ-EHUK ] YS[KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI T.R. MEENA, AM VK;DJ VIHY LA-@ ITA NO. 998 & 999/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2011-12 & 12-13. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-6, JAIPUR. CUKE VS. M/S. RAJASTHAN STATE CO - OPERATIVE BANK LTD., APEX BUILDING, DC-1, LAL KOTHI, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAAAT 0824 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI R.S. DAGUR (ADDL.CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI G.G. MUNDRA (C.A.) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 15.06.2016. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 17/06/2016. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THESE ARE TWO APPEALS BY THE REVENUE DIRECTED AGAIN ST THE SEPARATE ORDER OF LD. CIT (APPEALS)-II, JAIPUR DATED 26.10.2015 PERTA INING TO A.YS. 2011-12 & 2012-13. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APP EAL :- ITA NO. 998/JP/2015 A.Y. 2011-12 : WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT (APPEALS) ERRED IN DELETING THE ADDITION OF RS. 28,27,116/- MADE BY THE AO BY DISALLOWING THE CONTRIBUTION TO PRIMARY A GRICULTURE CREDIT CO- OPERATIVE SOCIETY (PACS) DEVELOPMENT FUND BEING NON BUSINESS EXPENDITURE. ITA NO. 999/JP/2015 A.Y. 2012-13 : (I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE AND IN LAW, THE LD. CIT (APPEALS) ERRED IN DELETING THE ADDITIO N OF RS. 50,24,076/- MADE BY THE AO BY DISALLOWING THE CONTRIBUTION TO P RIMARY AGRICULTURE CREDIT CO-OPERATIVE SOCIETY (PACS) DEVELOPMENT FUND BEING NON BUSINESS EXPENDITURE. 2 ITA NOS. 998(2)/JP/2015 ACIT VS. RAJASTHAN STATE COOPERATIVE BANK LTD. (II) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE AND IN LAW, THE CIT (APPEALS) ERRED IN DELETING THE ADDITION OF RS. 53,73,914/- MADE BY AO U/S 36(1)(VA) READ WITH SECTION 2(24)(X) ON ACCOUNT OF DELAY IN PAYMENT OF EMPLOYEES CONTRIBUTION TO PF. SINCE GROUND NO. (I) IS COMMON IN BOTH THE APPEALS (EXCEPT CHANGE IN FIGURE), THEREFORE, THE RESULT OF THE SAME WILL BE APPLICABL E TO BOTH THE ASSESSMENT YEARS. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMEN T WAS FRAMED UNDER SECTION 143(3) OF THE I.T. ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) VIDE ORDER DATED 19 TH FEBRUARY, 2014. WHILE FRAMING THE ASSESSMENT, THE AO DISALLOWED THE CONTRIBUTION MADE TO PACS DEVELOPMENT FUND AT RS. 28,27,116/- AN D ADDED THE SAME TO THE TOTAL INCOME OF THE ASSESSEE. THE ASSESSEE AGGRIEVE D BY THIS ORDER, PREFERRED APPEAL BEFORE LD. CIT (A) WHO AFTER CONSIDERING THE SUBMIS SIONS AND FOLLOWING THE DECISION OF THE TRIBUNAL IN ITA NOS. 1077/JP/2010 AND 1022/J P/2011 FOR THE A.YS. 2007-08 AND 2008-09 RESPECTIVELY, AS ALSO THE ORDER OF LD. CIT (A)-II, JAIPUR FOR A.Y. 2010-11 IN APPEAL NO. 269/12-13 DATED 07.10.2013 DELETED TH E ADDITION. 3. NOW THE REVENUE IS IN APPEAL BEFORE US. 4. THE LD. D/R SUBMITTED THAT THE LD. CIT (A) WAS N OT JUSTIFIED IN DELETING THE ADDITION. HE SUBMITTED THAT THE ORDER OF LD. CIT (A ) BE SET ASIDE AND THE ORDER OF AO BE RESTORED. 4.1. ON THE CONTRARY, THE LD. COUNSEL FOR THE ASSES SEE REITERATED THE SUBMISSIONS AS ARE MADE IN THE WRITTEN SUBMISSIONS. HE SUBMITTE D THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISIONS OF ITAT JAIPUR. 4.2. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED TH E MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE LD. CIT (A) HAS FOLLOWED THE DECISIONS OF THE COORDINATE 3 ITA NOS. 998(2)/JP/2015 ACIT VS. RAJASTHAN STATE COOPERATIVE BANK LTD. BENCH OF THE TRIBUNAL PERTAINING TO EARLIER ASSESSM ENT YEARS I.E. 2007-08 & 2008-09 IN ITA NOS. 1277/JP/2010 AND 1022/JP/2011. THE COOR DINATE BENCH IN A.Y. 2010-11 IN ITA NO. 967/JP/2013 IN PARA 5 FOLLOWING THE EARL IER DECISION OF THE COORDINATE BENCH DECIDED THE ISSUE AGAINST THE ASSESSEE. THER E IS NO CHANGE IN THE FACTS AND CIRCUMSTANCES IN THE YEAR UNDER APPEAL. THEREFORE, WE DO NOT SEE ANY REASON TO INTERFERE INTO THE ORDER OF LD. CIT (A), WHICH IS H EREBY UPHELD. THE GROUND NO. (I) IN BOTH THE APPEALS OF THE REVENUE IS REJECTED. 5. GROUND NO. (II) IN ITA NO. 999/JP/2015 RELATES T O DELETION OF ADDITION OF RS. 53,73,914/- ON ACCOUNT OF DELAY IN PAYMENT OF EMPLO YEES CONTRIBUTION TO PF. 5.1. THE AO MADE THE ADDITION OF RS. 53,73,914/- ON THE GROUND THAT THE ASSESSEE HAS FAILED TO DEPOSIT EMPLOYEES CONTRIBUTION TO PF ON OR BEFORE THE PRESCRIBED DUE DATES INCLUDING THE GRACE PERIOD AS PROVIDED UNDER THE ACT. THEREFORE, BY INVOKING THE PROVISIONS OF SECTION 36(1)(VA) READ WITH SECTI ON 2(24)(X) OF THE IT ACT, 1961 THE AO DISALLOWED THE SAME AND ADDED TO THE TOTAL INCOM E OF THE ASSESSEE. ON APPEAL, THE LD. CIT (A) FOLLOWING THE JUDGMENT OF THE HONB LE JURISDICTIONAL HIGH COURT RENDERED IN THE CASE OF JAIPUR VIDHYUT VITHRAN NIGA M LTD., 265 CTR 62 (RAJ.) AND CIT VS. STATE BANK OF BIKANER & JAIPUR (2014) 99DTR 131 (RAJ.) DELETED THE ADDITION BY OBSERVING AS UNDER :- 3.3. I HAVE PERUSED THE FACTS OF THE CASE, THE ASS ESSMENT ORDER AND THE SUBMISSIONS OF THE APPELLANT. ADMITTEDLY, EPF C ONTRIBUTION HAS BEEN PAID BY THE APPELLANT, IN ALL INSTANCES, BEFOR E THE DUE DATE OF FILING THE RETURN OF INCOME U/S 139(1). THIS FACT I S, THEREFORE, NOT IN DISPUTE. IN VIEW OF THE JUDGMENTS OF THE RAJASTHAN HIGH COURT IN THE CASE OF JAIPUR VIDHYUT VITHRAN NIGAM LTD., 265 CTR 62 (RAJ.) AND CIT VS. STATE BANK OF BIKANER & JAIPUR (2014) 99DTR 131 (RAJ.) AND OTHER CASE LAWS ON THIS ISSUE, THE CLAIM OF THE APPELLANT IS ALLOWABLE. ACCORDINGLY, THE ADDITION MADE BY THE ASSESSING OFF ICER IS DELETED. THE GROUND OF APPEAL IS ALLOWED. 4 ITA NOS. 998(2)/JP/2015 ACIT VS. RAJASTHAN STATE COOPERATIVE BANK LTD. 5.2. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUS ED THE MATERIAL ON RECORD. THE REVENUE HAS NOT POINTED OUT ANY CHANGE IN FACT AND CIRCUMSTANCES OF THE CASE IN THE YEAR UNDER APPEAL. THEREFORE, RESPECTFULLY FOLLOWIN G THE DECISIONS OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASES OF JAIPUR VI DHYUT VITHRAN NIGAM LTD., 265 CTR 62 (RAJ.) AND CIT VS. STATE BANK OF BIKANER & JAIPU R (2014) 99 DTR 131 (RAJ.), WE UPHOLD THE ORDER OF LD. CIT (A). THE GROUND OF THE REVENUE IS REJECTED. 6. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 17/06/2016 . SD/- SD/- VH-VKJ-EHUK] ( DQY HKKJR ) ( T.R. MEENA) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 17/06/2016. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ACIT, CIRCLE-6, JAIPUR. 2. THE RESPONDENT- M/S. RAJASTHAN STATE COOPERATIVE BANK LTD., JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 998(2)/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 5 ITA NOS. 998(2)/JP/2015 ACIT VS. RAJASTHAN STATE COOPERATIVE BANK LTD.