Reckitt Benckiser (India) Ltd., Kolkata V. DCIT, CIR-12, KOLKATA, Kolkata

MA 31/KOL/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5609 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 17-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 18-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS
• Section: 40(a)(ia)

Judgement Text

1 MA. NO. 31/KOL/2019 M/S. RECKITT BENCKISER (I) P.LTD (FORMERLY KNOWN AS RECKITT BENCKISER (I) LTD. . IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH , KOLKATA [BEFORE SHRI J. SUDHAKAR REDDY, AM & SHRI S.S. GODARA , J M] M .A NO . 31 /KOL/201 9 ( A/O ITA NO. 760/KOL/2014 A.Y 20 09 - 10 ) M/S. RECKITT B ENCKISER (INDIA) PVT. LTD (FORMERLY KNOWN AS RECKITT BENCK ISER (INDIA) LIMITED PAN: AABC R 2655Q VS. D.C.I.T, CIRCLE - 12 , KOLKATA APP LICANT RESPONDENT DATE OF HEARING 0 5 - 04 - 201 9 DATE OF PRONOUNCEMENT 17 - 05 - 2019 FOR THE APP LICANT/ ASSESSEE SHRI J.P. KHAITAN, SR. COUNSEL/ LD.AR FOR THE RESPONDENT /REVEN UE SHRI SANKAR HALDER, JCIT, LD. SR.DR ORDER SHRI S.S. GODARA, JM : THIS ASSESSESSEES MISCELLANEOUS APPLICATION FILED U/S 254(2) OF THE INCOME - TAX ACT , 1961 ( IN SHORT ACT) SEEKS TO RECALL /RECTIFY OUR ORDER DATED 14 - 09 - 2018 DISMISSING I TS SUBSTANTIVE GROUND NO. 3 SEEKING TO DELETE SECTION 40(A)(IA) DISALLOWANCE OF VARIOUS EXPENSES AMOUNTING TO RS.1 , 24 , 97 , 943/ - . HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. IT TRANSPIRES AT THE OUTSET THAT OUR ORDER DT. 14 - 09 - 2018 IN ISSUE HAD REJECTED ASSESSEES THIRD SUBSTANTIVE GROUND VIDE FOLLOWING DISCUSSION : - 10. THE ASSESSEES THIRD SUBSTANTIVE GROUND PLEADS THAT THE CIT(A) HAS ERRED IN LAW AS WELL AS ON FACTS IN NOT CONSIDERING ITS WRITTEN SUBMISSION DATED 16.01.2014 SEEKING TO ALLOW EXPENDI TURE CLAIM TO RS. 1,24,97,943/ - DISALLOWED U/S. 40(A)(IA) INVOLVING SUMS OF RS.3,60,029/ - , RS. 16,54,560/ - AND RS. 1,04,83,354/ - PERTAINING TO FINANCIAL YEARS 2003 - 04 AND 2004 - 05 WHOSE TDS WAS DEDUCTED AND DEPOSITED TO THE GOVERNMENT TREASURY DURING THE RE LEVANT PREVIOUS YEAR. HOWEVER THE WRITTEN SUBMISSION FILED BEFORE THE CIT(A) DATED 16.01.2014 ARE A T PAGES 180 TO 190 OF THE PAPER BOOK. WE FIND NO MERIT IN THE INSTANT PLEADINGS. THE ASSESSEES CASE AT BEST IS THAT IT HAD FILED THE IMPUGNED RELEVANT FACTS IN ITS WRITTEN SUBMISSION DATED 16.01.2014 BEFORE THE CIT(A) FOR THE FIRST TIME. THE LOWER APPELLATE ORDER ON THE OTHER HAND MAKES IT EVIDENT THAT 2 MA. NO. 31/KOL/2019 M/S. RECKITT BENCKISER (I) P.LTD (FORMERLY KNOWN AS RECKITT BENCKISER (I) LTD. . THE LAST HEARING BEFORE THE CIT(A) TOOK PLACE ON 13.01.2014 FINALLY CULMINATING IN THE ORDER UNDER CHALLEN GE DATED 16.01.2014. THE ASSESSEES WRITTEN SUBMISSION OF THE SAME DATE WHERE PROVE THAT THEY HAD BEEN ACTUALLY RECEIVED BEFORE PASSING OF THE FINAL ORDER IN THE LOWER APPELLATE PROCEEDINGS. WE DO NOT SEE ANY VALID REASON IN ASSESSEES INSTANT THIRD AND LA ST SUBSTANTIVE GROUND, ON THIS GROUND ALONE. ITS APPEAL I.T.A NO. 760/KOL/2014 IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 3. IT TRANSPIRES DURING THE COURSE OF HEARING WITH THE ABLE ASSISTANCE OF BOTH THE PARTIES THAT THE IMPUGNED EXPENDI TURE PER TAINS TO F.YS 2003 - 04 AND 2004 - 05 RELEVANT TO A/YS. 2004 - 05 AND 2005 - 06. THE ASSESSE E HAD RAISED ITS DEDUCTION CLAIM IN THE SAID ASSESSMENT YEAR AS WELL. THE ISSUE REACHED BEFORE THIS TRIBUNAL IN BOTH THE ASSESSMENT YEARS . LD. CO - ORDINATE BENCHS ORDER S DT. 25 - 05 - 2016 AND 6 - 1 - 2017 ( ASSESSMENT YEAR MIX ES ) : RESPECTIVELY HELD THAT THE ASSESSE E WOULD BE ENTITLED FOR THE IMPUGNED DEDUCTION IN THE RELEVANT PREVIOUS YEAR I.E THE YEAR WHEN IT PAID & DEPOSITED ITS CORRESPONDING TDS PAYMENTS. L EARNED DEPARTMENTAL REPRESENTATIVE FAILS TO REBUT ALL THESE CLINCHING DEVELOPMENTS . AND ALSO THE FACT THAT OUR ORDER HAS NOT CONSIDERED THE SAME MAKING IT A CASE OF APPARENT MISTAKE. WE THEREFORE MODIFY OUR ORDER DT. 14 - 09 - 2018 AND MAKE IT CLEAR THAT THE ASSESSE E IS ENTIT LED TO CLAIM THE IMPUGNED EXPENDITURE PERTAINING TO THESE TWO EARLIER ASSESSMENT YEARS IN THE IMPUGNED ASSESSMENT YEAR AS PER TRIBUNALS ORDER S (SUPRA) . WE ACCORDINGLY RESTORE ITS THIRD SUBSTANTIVE GROUND IN THE MAIN APPEAL ITA NO. 760/KOL/2014 BACK T O THE ASSESSING OFFICER FOR AFRESH FACTUAL VERIFICATION AS PER LAW. THE SAID THIRD SUBSTANTIVE GROUND IS ACCEPTED FOR STATISTICAL PURPOSES IN ABOVE TERMS. 5 . THIS ASSESSEES M ISC. A PPLICATION FILED IS ALLOWED IN ABOVE TERMS. ORDE R PRONOUNCED IN THE OPEN COURT ON 17 - 05 - 2019 S D/ - SD/ - J.SUDHAKAR REDDY S.S.GODARA ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 17 - 05 - 2019 3 MA. NO. 31/KOL/2019 M/S. RECKITT BENCKISER (I) P.LTD (FORMERLY KNOWN AS RECKITT BENCKISER (I) LTD. . * PP(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. APP LICANT / ASSESSEE: M/S. RECKITT BENCK ISER (I) PVT. LTD (FORMERLY KNOWN AS RECKITT BENCKISER (I) LTD, INFINITY LAGOON, 12 TH FL., UNIT - 1201, PLOT NO. E2 - 2/1 BLOCK - EP - GP, SALT LAKE, SECTOR V, KOLKATA - 700 091. 2 RESPONDENT/ REVENUE: D.C.I.T, CIRCLE - 12(1), AAYKAR BHAWAN, P - 7 CHOWRINGHEE SQUAR E, KOLKATA - 69. 3. CIT, 4. CIT(A), KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA **PP/SPS TRUE COPY BY BY ORDER ASSISTANT REGISTRAR ITAT KOLKATA