Assistant Commissioner of Income-tax, Ahmednagar Circle, Ahmednagar V. Karmaveer Shankarrao Kale Shakari Sakhar Karkhana Limited, Ahmednagar

MA 178/PUN/2022

• Counselvise Citation: [2023] 101 COUNSELVISE.COM (IT) 9669 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 5 month(s) 4 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-12-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 16-11-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 29-06-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 254(2); 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE „A‟ BENCHES:: PUNE BEFORE SHRI R.S. SYAL, HON. VICE-PRESIDENT & SHRI PARTHA SARATHI CHAUDHURY, HON. JUDICIAL MEMBER (Through virtual hearing) MA No.178/PUN/2022 (A.Y. 2014-15) ACIT, Ahmednagar Circle, Ahmednagar. vs Karmaveer Shankarrao Kale Sahakari Sakhar Karkhana Ltd., Gautamnagar, Post-Kolpewadi, Tal.Kopargaon, Dist. Ahmednagar. PAN: AACAK 5073 C (Old : AAATT 3070 H) Applicant Respondent Assessee by : Shri Mihir M. Bapat, CA Revenue by : Shri Ramnath P. Murkunde, DR Date of hearing : 17/11/2023 Date of pronouncement : 04/12/2023 ORDER Per PARTHA SARATHI CHAUDHURY, JM: This Misc. Application preferred by the Revenue emanates from the order of this Tribunal in ITA No.2061/PUN/2017, dated 22/12/2020 for A.Y. 2014-15. 2. The Revenue contends that and as also submitted by the ld.DR that the issue pertaining to contribution towards the area development fund does not arise from the assessment order and no additions were made in respect of the same. The Tribunal in the impugned order at page 11, para 8 has discussed and adjudicated this issue in ground Nos. 21 & 22 preferred by the assessee. The Tribunal had relied on MA No.178/PUN/2022 Karmaveer Shankarrao Kale Sahakari Sakhar Karkhana Ltd. 2 the decision of the coordinate Bench in ACIT v. Shri Shankar SSK Ltd. in ITA No. 382/PUN/2014 for A.Y. 2010-11 wherein the Tribunal had placed reliance on the decision of the Hon'ble Supreme Court in the case of Siddheshwar Sahakari Sakhar Karkhana Ltd. v. CIT [2004] 270 ITR 1 (SC) and had remanded the issue of contribution towards area development fund to the file of the AO for fresh adjudication. Ld.DR contended that since this issue is not emanating from the assessment order and since no addition has been made therein, therefore, it was not correct for the Tribunal to adjudicate this issue and thus there had crept in a mistake apparent from record. 3. Per contra, ld.AR submitted that they have suo-motu made disallowance in their computation of income regarding contribution towards area development fund. Thereafter, during the course of appellate proceedings before the first appellate authority, they came to know that this issue was deductible and there was no need for making suo-motu disallowance, therefore, they had raised this ground before the ld. CIT(A), but since this was not coming out from the assessment order, the contentions of the assessee were dismissed. Thereafter, they had raised this issue in ground Nos. 21 & 22 before the ITAT. It was further submitted that since the contribution towards area development fund were deductible in the hands of the assessee and, therefore, the Tribunal in its impugned order was absolutely correct in remitting the issue back to the file of the AO placing reliance on the MA No.178/PUN/2022 Karmaveer Shankarrao Kale Sahakari Sakhar Karkhana Ltd. 3 decision of the Hon'ble Supreme Court (supra) to adjudicate as per law. Therefore, there is no mistake much less apparent from record in the order of the Tribunal. 4. We have heard the rival submissions and have considered the contents of the Misc. Application. We have observed from the computation of income that initially the assessee had suo-motu disallowed the contribution towards area development fund and as submitted by the ld.AR that during the course of proceedings even before the ld. CIT(A), they came to know that the said amount was deductible in the hands of the assessee and, therefore, in due course, the issue was raised before this Tribunal and accordingly, the Tribunal had adjudicated the said issue as appearing in the impugned order. That, given these stated facts and circumstances, there is no mistake much less apparent from record in the order of the Tribunal and does not give any reason to exercise jurisdiction u/sec. 254(2) of the Act. The Misc. Application of the Revenue is found to be devoid of any merit hence dismissed. 5. In the result, Misc. Application filed by the Revenue is dismissed. Order pronounced in open Court on 04 th December, 2023. Sd/- Sd/- (R.S. SYAL) (PARTHA SARATHI CHAUDHURY) VICE-PRESIDENT JUDICIAL MEMBER Dated : 04 th Dec., 2023 MA No.178/PUN/2022 Karmaveer Shankarrao Kale Sahakari Sakhar Karkhana Ltd. 4 vr/- Copy to : 1. The Appellant. 2. The Respondent. 3. The Pr. CIT concerned. 4. The DR, ITAT, “A” Bench Pune. 5. Guard File. By Order // TRUE COPY // Senior Private Secretary ITAT, Pune.