Deputy Commissioner of Income-tax, Cir 1(1), Pune V. M/s. City Corporation Ltd.,(Earlier known as M/s Amanora Future Towers P Ltd), Pune

MA 194/PUN/2022

AI Insights

The case revolves around a Miscellaneous Application (M.A. No. 194/PUN/2022) by the Revenue, challenging the Tribunal's earlier decision in ITA No. 276/PUN/2021, which allowed deductions for Education Cess and Higher Secondary Cess for the Assessment Year 2016-17. The Revenue contended that the Tribunal's decision was contrary to the law established by the Supreme Court in CIT Vs. K. Srinivasan. However, the Tribunal clarified that it had not granted a blanket deduction but had remitted the matter back to the Assessing Officer to ascertain the correct amount of Cess deductible. The Tribunal's decision was supported by judgments from the Bombay and Rajasthan High Courts, which were cited to affirm the deductibility of such Cess. The Tribunal dismissed the Revenue's application, stating that there was no apparent mistake in the original order that required rectification.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124442 (ITAT-PUNE)
• Duration Of Justice: 6 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 19-02-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 16-02-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 11-08-2022
• Other Referred Cases: CIT Vs. K. Srinivasan, Sesa Goa Lt. Vs. JCIT, Chambal Fertilisers and Chemicals Ltd. and Another Vs. JCIT
• Laws Referred To: CIT Vs. K. Srinivasan (1972) 83 ITR 346 (SC), Sesa Goa Lt. Vs. JCIT (2020) 423 ITR 426 (Bom.), Chambal Fertilisers and Chemicals Ltd. and Another Vs. JCIT (2018) 102 CCH 0202 (Raj-HC)
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER M.A. No. 194/PUN/2022 Arising out of ITA No. 276/PUN/2021 : A.Y. 2016-17 The Dy. C.I.T. Circ.e 1(1) Pune. Applicant Vs. M/s. City Corporation ltd. (Earlier known as Amanora Future Towers P. Ltd) 917/19A City Chambers, F.C. Road, Pune-411 1004 PAN: AAKCA3074I Respondent Applicant by : Shri Suhas Kulkarni Respondent by : Shri Manoj P. Jain Date of Hearing : 17-02-2023 Date of Pronouncement : 20-02-2023 ORDER PER SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER This Misc. application preferred by the Revenue emanates from order of the Tribunal in I. T.A. No. 276//PUN/2021 for A.Y. 2016-17, order dated 06-09-2021. 2. The only issue raised herein is that the Tribunal wrongly granted deduction for Education Cess and Higher Secondary Cess contrary to the law laid down by the Hon’ble Supreme Court in CIT Vs. K. Srinivasan (1972) 83 ITR 346 (SC). The ld. AR supported the impugned orders. 3. Having heard both the sides and gone through the relevant material on record, it is seen that, firstly, the Tribunal did not grant any blanket deduction but remitted the matter to the file of the Assessing Officer for ascertaining the correct amount of Education Cess and then allowing deduction. For the deductibility of Education Cess etc., the Tribunal relied on the judgment of Hon’ble jurisdictional High Court in Sesa Goa Lt. Vs. JCIT (2020) 423 ITR 426 (Bom.) and also the judgment of Hon’ble Rajasthan High Court in Chambal Fertilisers and Chemicals 2 M.A. No. 194/PUN/2022 City Corpoon. A.Y. 2016-17 Ltd. and Another Vs. JCIT (2018) 102 CCH 0202 (Raj-HC). The ld. DR fairly admitted that the decision of the Tribunal is otherwise in conformity with the view canvassed by the Hon’ble jurisdictional High Court. In deciding the issue accordingly, the Hon’ble High Court took into consideration certain judgments, including those of the Hon’ble Supreme Court. In view of the binding judgment under article 227 of the Constitution of India, deciding the issue in the manner dealing exactly with the point under consideration, we cannot characterize the impugned orders as erroneous requiring any rectification. We thus hold that there is no mistake much less mistake apparent from record requiring rectification in the impugned orders. 4. In the result, the Miscellaneous Application is dismissed. Order pronounced in the open court on this 20 th day of Feb. 2023. Sd/- sd/- (R.S. SYAL) (PARTHA SARATHI CHAUDHURY) VICE PRESIDENT JUDICIAL MEMBER Pune; Dated, the 20 th day of February 2023. Ankam Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The CIT(A)-13 Pune 4. The Pr. CIT – 5 Pune 5. D.R. ITAT ‘C’ Bench 5. Guard File BY ORDER, Sr. Private Secretary ITAT, Pune. /// TRUE COPY /// 3 M.A. No. 194/PUN/2022 City Corpoon. A.Y. 2016-17 Date 1 Draft dictated on 20-02-2023 Sr.PS 2 Draft placed before author 20-03-2023 Sr.PS 3 Draft proposed and placed before the second Member JM/AM 4 Draft discussed/approved by second Member AM/JM 5 Approved draft comes to the Sr. PS/PS Sr.PS/PS 6 Kept for pronouncement on 20-2-2023 Sr.PS/PS 7 Date of uploading of order 20-2-2023 Sr.PS/PS 8 File sent to Bench Clerk 20-2-2023 Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order