Power Finance Corporation Ltd., New Delhi v. ACIT, New Delhi

ITA 4919/DEL/2015 | 2008-2009
Pronouncement Date: 11-03-2021 | Result: Dismissed

Appeal Details

RSA Number 491920114 RSA 2015
Assessee PAN AAACP1570H
Bench Delhi
Appeal Number ITA 4919/DEL/2015
Duration Of Justice 5 year(s) 7 month(s) 11 day(s)
Appellant Power Finance Corporation Ltd., New Delhi
Respondent ACIT, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 11-03-2021
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 11-03-2021
Last Hearing Date 04-11-2020
First Hearing Date 04-11-2020
Assessment Year 2008-2009
Appeal Filed On 30-07-2015
Judgment Text
ITA NOS.- 5148/DEL/2016 AND OTHERS. M/S POWER FINANCE CORPORATION LTD. PAGE 1 OF 16 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: F: NEW DELHI) (THROUGH VIDEO CONFERENCING) BEFORE SHRI AMIT SHUKLA JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA ACCOUNTANT MEMBER ITA NO:- 5148/DEL/2016 ( ASSESSMENT YEAR: 2012-13) DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1 LTU NEW DELHI. VS. M/S POWER FINANCE CORPORATION LTD. NEW DELHI. APPELLANT RESPONDENT PAN NO: AAACP1570H REVENUE BY : SMT. SUSHMA SINGH CIT(DR) ASSESSEE BY : MS. AGGARTA GUPTA CA ITA NO:- 18/DEL/2017 ( ASSESSMENT YEAR: 2013-14) DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1 LTU NEW DELHI. VS. M/S POWER FINANCE CORPORATION LTD. NEW DELHI. APPELLANT RESPONDENT PAN NO: AAACP1570H REVENUE BY : SMT. SUSHMA SINGH CIT(DR) ASSESSEE BY : MS. AGGARTA GUPTA CA ITA NOS.- 5148/DEL/2016 AND OTHERS. M/S POWER FINANCE CORPORATION LTD. PAGE 2 OF 16 ITA NO:- 20/DEL/2016 ( ASSESSMENT YEAR: 2010-11) DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1 LTU NEW DELHI. VS. M/S POWER FINANCE CORPORATION LTD. NEW DELHI. APPELLANT RESPONDENT PAN NO: AAACP1570H REVENUE BY : SMT. SUSHMA SINGH CIT(DR) ASSESSEE BY : MS. AGGARTA GUPTA CA ITA NO:- 4742/DEL/2016 ( ASSESSMENT YEAR: 2012-13) POWER FINANCE CORPORATION LTD. NEW DELHI. VS. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1 LTU NEW DELHI. APPELLANT RESPONDENT PAN NO: AAACP1570H ASSESSEE BY : MS. AGGARTA GUPTA CA REVENUE BY : SMT. SUSHMA SINGH CIT(DR) ITA NO:- 6274/DEL/2016 ( ASSESSMENT YEAR: 2013-14) POWER FINANCE CORPORATION LTD. NEW DELHI. VS. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1 LTU NEW DELHI. APPELLANT RESPONDENT PAN NO: AAACP1570H ASSESSEE BY : MS. AGGANTA GUPTA CA REVENUE BY : SMT. SUSHMA SINGH CIT(DR) ITA NOS.- 5148/DEL/2016 AND OTHERS. M/S POWER FINANCE CORPORATION LTD. PAGE 3 OF 16 ITA NO:- 1744/DEL/2018 ( ASSESSMENT YEAR: 2014-15) ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-1 LTU NEW DELHI. VS. M/S POWER FINANCE CORPORATION LTD. NEW DELHI. APPELLANT RESPONDENT PAN NO: AAACP1570H REVENUE BY : SMT. SUSHMA SINGH CIT(DR) ASSESSEE BY : MS. AGGARTA GUPTA CA ITA NO:- 4919/DEL/2015 ( ASSESSMENT YEAR: 2008-09) POWER FINANCE CORPORATION LTD. URJA NIDHI 1 BARAKHAMBA LANE CONNAUGHT PLACE NEW DELHI. VS. ASSISTANT COMMISSIONER OF INCOME TAX LTU NEW DELHI. APPELLANT RESPONDENT PAN NO: AAACP1570H ASSESSEE BY : MS. UMANG LUTHRA ADV. REVENUE BY : SMT. SUSHMA SINGH CIT(DR) ITA NO:- 5186/DEL/2015 ( ASSESSMENT YEAR: 2008-09) ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-2 CIRCLE-1(I/C)-LTU NEW DELHI. VS. POWER FINANCE CORPORATION LTD. URJA NIDHI 1 BARAKHAMBA LANE NEW DELHI. APPELLANT RESPONDENT PAN NO: AAACP1570H REVENUE BY : SMT. SUSHMA SINGH CIT(DR) ASSESSEE BY : MS. UMANG LUTHRA ADV. ITA NOS.- 5148/DEL/2016 AND OTHERS. M/S POWER FINANCE CORPORATION LTD. PAGE 4 OF 16 ITA NO:- 6620/DEL/2015 ( ASSESSMENT YEAR: 2010-11) POWER FINANCE CORPORATION LTD. URJA NIDHI 1 BARAKHAMBA LANE CONNAUGHT PLACE NEW DELHI. VS. DEPUTY COMMISSIONER OF INCOME TAX LTU NEW DELHI. APPELLANT RESPONDENT PAN NO: AAACP1570H ASSESSEE BY : MS. UMANG LUTHRA ADV. REVENUE BY : SMT. SUSHMA SINGH CIT(DR) ITA NO:- 4920/DEL/2015 ( ASSESSMENT YEAR: 2009-10) POWER FINANCE CORPORATION LTD. URJA NIDHI 1 BARAKHAMBA LANE CONNAUGHT PLACE NEW DELHI. VS. ASSISTANT COMMISSIONER OF INCOME TAX LTU NEW DELHI. APPELLANT RESPONDENT PAN NO: AAACP1570H ASSESSEE BY : MS. UMANG LUTHRA ADV. REVENUE BY : SMT. SUSHMA SINGH CIT(DR) ITA NO:- 4978/DEL/2015 ( ASSESSMENT YEAR: 2009-10) ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-2 CIRCLE-1(I/C)-LTU NEW DELHI. VS. POWER FINANCE CORPORATION LTD. URJA NIDHI 1 BARAKHAMBA LANE NEW DELHI. APPELLANT RESPONDENT PAN NO: AAACP1570H ITA NOS.- 5148/DEL/2016 AND OTHERS. M/S POWER FINANCE CORPORATION LTD. PAGE 5 OF 16 REVENUE BY : SMT. SUSHMA SINGH CIT(DR) ASSESSEE BY : MS. UMANG LUTHRA ADV. ITA NO:- 224/DEL/2016 ( ASSESSMENT YEAR: 2011-12) POWER FINANCE CORPORATION LTD. URJA NIDHI 1 BARAKHAMBA LANE CONNAUGHT PLACE NEW DELHI. VS. DEPUTY COMMISSIONER OF INCOME TAX LTU NEW DELHI. APPELLANT RESPONDENT PAN NO: AAACP1570H ASSESSEE BY : MS. UMANG LUTHRA ADV. REVENUE BY : SMT. SUSHMA SINGH CIT(DR) ITA NO:- 514/DEL/2016 ( ASSESSMENT YEAR: 2011-12) DEPUTY COMMISSIONER OF INCOME TAX LTU NEW DELHI. VS. POWER FINANCE CORPORATION LTD. URJA NIDHI 1 BARAKHAMBA LANE CONNAUGHT PLACE NEW DELHI. APPELLANT RESPONDENT PAN NO: AAACP1570H REVENUE BY : SMT. SUSHMA SINGH CIT(DR) ASSESSEE BY : MS. UMANG LUTHRA ADV. ITA NOS.- 5148/DEL/2016 AND OTHERS. M/S POWER FINANCE CORPORATION LTD. PAGE 6 OF 16 PER BENCH (A) THE AFOREMENTIONED APPEALS IN THE CASE OF THE ASSE SSEE AND REVENUE ARE TAKEN UP TOGETHER FOR THE SAKE OF CONVENIENCE AND BREVITY; A ND ARE HEREBY DISPOSED OFF THROUGH THIS CONSOLIDATED ORDER. GROUNDS TAKEN IN THESE AP PEALS ARE AS UNDER: ITA NO:- 5148/DEL/2016 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW LD. CIT (A) HAS ERRED IN ALLOWING DIRECT EXPENSES RELATING TO INTEREST ON DE POSITS UPFRONT FEE GUARANTEE FEE MANAGEMENT AND AGENCY FEES FOR COMPUTING DEDUCTION U/S 36(1 )(VIII) OF I.T.ACT 1961. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW LD. CIT (A) HAS ERRED IN DIRECTING THE AO TO ALLOW DEDUCTION U/S 36(1 )(VIIA )(C) AND 36(1 )(VIII) CONTRARY TO THE SCHEME LAID BY THE ITAT DECISION IN THE CASE OF RUR AL ELECTRIFICATION CORPORATION LTD. (REC) VS. ADDL. CIT [2009] 34 SOT 159 (DELHI). 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LD. CIT (A) HAS ERRED IN DIRECTING THE AO TO ALLOW DEDUCTION U/S 36(1)(VIIA) (C) AND 36(1 )(VIII) AS PER THE SCHEME LAID DOWN BY THE ITAT DECISION IN THE CASE OF TOURI SM FINANCE CORPORATION OF INDIA VS .JCIT [2010] 2 ITR (TRIB.)1 (DELHI). 4. THE APPELLANT CRAVES LEAVE TO ADD TO ALTER AM END OR VARY FROM THE ABOVE GROUNDS OF APPEAL AT OR BEFORE THE TIME OF HEARING. ITA NO:- 18/DEL/2017 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW LD. CIT(A) HAS ERRED IN ALLOWING DIRECT EXPENSES RELATING TO INTEREST ON DE POSITS UPFRONT FEE GUARANTEE FEE MANAGEMENT AND AGENCY FEES FOR COMPUTING DEDUC TION U/S 36(1 )(VIII) OF I T. ACT 1961. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE A ND IN LAW LD. CIT(A) HAS ERRED IN DIRECTING THE AO TO ALLOW DEDUCTION U/S 36(1 )(VIIA )(C) AND 36(1 )(VIII) CONTRARY TO THE SCHEME LAID BY THE ITAT DECISION IN THE CASE OF RURAL ELECTRIFICATION CORPORATION LTD. (REC) VS. ADDL. CIT [ 2009 ] 34 SO T 159 ( DELHI ). 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LD. CIT(A) HAS ERRED IN DIRECTING THE AO TO ALLOW DEDUCTION U/S 36(1)(VI IA)(C) AND 36(1 )(VIII) AS PER THE SCHEME LAID DOWN BY THE ITAT DECISION IN THE CA SE OF TOURISM FINANCE CORPORATION OF INDIA VS. JCIT [2010] 2 ITR (TRIB.) 1 (DELHI). 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LD. CIT(A) HAS ERRED ITA NOS.- 5148/DEL/2016 AND OTHERS. M/S POWER FINANCE CORPORATION LTD. PAGE 7 OF 16 IN REDUCING THE DISALLOWANCE TO 36 45 565/- FROM RS . 7 01 79 261/- MADE BY THE AO UNDER SECTION 14A OF THE I T. ACT READ WITH RULE 8D OF THE INCOME TAX RULES 1962. 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LD. CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE OF RS. 6 65 03 700/- M ADE BY THE AO U/S 14A OF THE I T. ACT READ WITH RULE 8D 2(II) OF THE INCOME TAX RULES AS THE ASSESSEE HAD INCURRED RS. 103 51 88 17 630/- AS INTEREST EXPENSE S AND THE CIT(A) HAD NOT MADE ANY FINDING IN HIS ORDER THAT THIS ENTIRE INTE REST EXPENSES IS DIRECTLY ATTRIBUTABLE TO ANY INCOME OR RECEIPT EARNED BY THE ASSESSEE DURING THE RELEVANT ASSESSMENT YEAR AS REQUIRED UNDER RULE 8D 2(II) OF THE INCOME TAX RULES 1962. 6. THE APPELLANT CRAVES LEAVE TO ADD TO ALTER A MEND OR VARY FROM THE ABOVE GROUNDS OF APPEAL AT OR BEFORE THE TIME OF HEARING. ITA NO:- 20/DEL/2016 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW LD. CIT (A) HAS ERRED IN ALLOWING DIRECT EXPENSES RELATING TO INTEREST ON DEPOSITS UPFRONT FEE GUARANTEE FEE. MANAGEMENT AND AGENCY FEES FOR COMPU TING DEDUCTION U/S 36(1 )(VIII) OF I.T ACT 1961. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW LD. CIT (A) HAS ERRED IN DIRECTING THE AO TO ALLOW DEDUCTION U/S 36{1){VIIA)(C) AND 36(1 )(VIII) CONTRARY TO THE SCHEME LAID BY THE ITAT DECISION IN THE CASE OF RURAL ELECTRIFICATION CORPORATION LTD. (REC) VS. ADDL. CI T [2009] 34 SOT 159 (DELHI). 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LD. CIT (A) HAS ERRED IN DIRECTING THE AO TO ALLOW DEDUCTION U/S 36 (1)(VIIA)(C) AND 36(1 )(VIII) AS PER THE SCHEME LAID DOWN BY THE ITAT DECISION IN THE CASE OF TOURISM FINANCE CORPORATION OF INDIA LTD. VS .JCIT [2010] 2 ITR (TRIB.)1 (DELHI). 4. THE APPELLANT CRAVES LEAVE TO ADD TO ALTER A MEND OR VARY FROM THE ABOVE GROUNDS OF APPEAL AT OR BEFORE THE TIME OF HEARING . ITA NO. 4742/DEL/2016 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE ORD ER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) (CIT(A)) IS BA D BOTH IN THE EYE OF LAW AND ON FACTS. 2. (I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE DISALLOWANCE OF CORPORATE SOCIAL RESPONSIBILITY EXPENSES OF RS. 4 32 38 300/- INCURR ED BY THE ASSESSEE TREATING THE SAME NOT ELIGIBLE FOR DEDUCTION 37( 1) OF THE A CT. (II) THAT THE ABOVE DISALLOWANCE HAS BEEN CONFIRMED DESPITE THE FACT THAT THE EXPENDITURE HAS BEEN INCURRED WHOLLY AND EXCLUSIVEL Y FOR BUSINESS PURPOSES. 3 (I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE DISALLOW ANCE OF THE EXPENDITURE OF RS. 16 41 937/- TOWARDS GRANT GIVEN FOR RESTRICTING OF STATE ELECTRICITY BOARD ITA NOS.- 5148/DEL/2016 AND OTHERS. M/S POWER FINANCE CORPORATION LTD. PAGE 8 OF 16 WHO ARE THE BORROWERS OF THE APPELLANT. (II) THAT THE ABOVE DISALLOWANCE HAS B EEN SUSTAINED DESPITE THE FACT THAT THE EXPENDITURE HAS BEEN INCURRED WHOLLY AND EXCLUSIVEL Y FOR THE PURPOSE OF BUSINESS OF THE ASSESSEE COMPANY. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED ON FACTS AND IN LAW IN SUSTAINING THE DISALLOWANCE IN PART ON ACCOUNT OF PROVISION OF RS. 1 05 74 062/- FOR POST-RETIREMENT MEDICAL/EC ONOMIC REHABILITATION BENEFITS OF THE EMPLOYEES CREATED ON THE BASIS ACT UARIAL VALUATION TREATING THE SAME AS CONTINGENT LIABILITY. 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE ACTION OF THE AO IN EXCLUDING INTEREST ON DEPOSITS (RS. 2 36 72 47 617/-) GUARANTEE FEES (RS. 4 05 40 773) MANAGEMENT & AGENCY FEES (RS. 61 32 05 809) AND UPF RONT FEES (RS. 26 80 50 547) WHILE COMPUTING DEDUCTION U/S 36(1)(V III) OF THE INCOME TAX ACT. 6. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE ACTION OF THE AO IN CHARGING INTEREST U/S 234D OF THE ACT. 7. THE APPELLANT CRAVES LEAVE TO ADD AMEND OR ALT ER ANY OF THE GROUNDS OF APPEAL. ITA NO.- 6274/DEL/2016 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) (CIT(A)) IS BA D BOTH IN THE EYE OF LAW AND ON FACTS. 2. (I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE DISALLOWANCE OF CORPORATE SOCIAL RESPONSIBILITY EXPENSES OF RS. 9 74 46 872/- INCURR ED BY THE ASSESSEE TREATING THE SAME NOT ELIGIBLE FOR DEDUCTION 37( 1) OF THE A CT. (II) THAT THE ABOVE DISALLOWANCE HAS BEEN CONFIRMED DESPITE THE FACT THAT THE EXPENDITURE HAS BEEN INCURRED WHOLLY AND EXCLUSIVEL Y FOR BUSINESS PURPOSES. 3 (I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE DISALLOW ANCE OF THE EXPENDITURE OF RS. 1 00 00 000/- TOWARDS GRANT GIVEN FOR RESTRICTI NG OF STATE ELECTRICITY BOARD WHO ARE THE BORROWERS OF THE APPELLANT. (II) THAT THE ABOVE DISALLOWANCE HAS B EEN SUSTAINED DESPITE THE FACT THAT THE EXPENDITURE HAS BEEN INCURRED WHOLLY AND EXCLUSIVEL Y FOR THE PURPOSE OF BUSINESS OF THE ASSESSEE COMPANY. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED ON FACTS AND IN LAW IN SUSTAINING THE DISALLOWANCE ON ACCOUNT OF PROVISION OF RS. 1 62 56 522/- FOR POST-RETIREMENT MEDICAL/ECONOMIC REHABILITATION BENEFITS OF THE EMPLOYEES CREATED ON THE BASIS ACTUARIAL VALUA TION TREATING THE SAME AS CONTINGENT LIABILITY. ITA NOS.- 5148/DEL/2016 AND OTHERS. M/S POWER FINANCE CORPORATION LTD. PAGE 9 OF 16 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE ACTION OF THE AO IN EXCLUDING INTEREST ON DEPOSITS (RS. 1 49 32 68 245/-) GUARANTEE FEES (RS. 85 49 314/-) MANAGEMENT & AGENCY FEES (RS. 1 14 70 77 060/-) AND UPFRONT FEES (RS. 39 69 23 315/-) WHILE COMPUTING DEDUCTION U/S 36(1) (VIII) OF THE INCOME TAX ACT. 6. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING DISALLOWANCE OF RS. 36 45 565/- UNDER SECTION 14A READ WITH RULE 8D(2)(III). 7. THE APPELLANT CRAVES LEAVE TO ADD AMEND OR ALT ER ANY OF THE GROUNDS OF APPEAL. ITA NO.- 1744/DEL/2018 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW LD. CIT(A) HAS ERRED IN ALLOWING DIRECT EXPENSES RELATING TO INTEREST ON DE POSITS. UPFRONT FEE GUARANTEE FEE MANAGEMENT AND AGENCY FEES FOR COMPU TING DEDUCTION U/S 36(1 )(VIII) OF I.T. ACT 1961. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW LD. CIT(A) HAS ERRED IN DIRECTING THE AO TO ALLOW DEDUCTION U/S 36(1)(VIIA) (C) AND 36(1)(VIII) CONTRARY TO THE SCHEME LAID BY THE ITAT DECISION IN THE CASE OF RURAL ELECTRIFICATION CORPORATION LTD. (REC) VS. ADDL. CIT [ 2009 ] 34 SO T 159 ( DELHI ). 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LD. CIT(A) HAS ERRED IN REDUCING THE DISALLOWANCE TO 1 24 26 535/- FROM RS. 36 03 44 702/- MADE BY THE AO UNDER SECTION 14A OF THE I.T. ACT RE AD WITH RULE 8D OF THE INCOME TAX RULES 1962. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE OF RS.34 79 18 1 67/- MADE BY THE AO U/S 14A OF THE I.T. ACT READ WITH RULE 8D 2(II) OF THE INCOME TAX RULES. 5. THE APPELLANT CRAVES LEAVE TO ADD TO ALTER AM END OR VARY FROM THE ABOVE GROUNDS OF APPEAL AT OR BEFORE THE TIME OF HEARING. ITA NO.- 4919/DEL/2015 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) (CIT(A)) IS BA D BOTH IN THE EYE OF LAW AND ON FACTS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED IN SUSTAINING THE ADDITIONS/ DISALLOWANCES OF RS. 20 9 2 01 130/- MADE BY THE AO TO THE RETURNED INCOME OF RS. 1418 75 99 543/-. ITA NOS.- 5148/DEL/2016 AND OTHERS. M/S POWER FINANCE CORPORATION LTD. PAGE 10 OF 16 3. (I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE T HE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN PARTIALLY CONFIRMING THE ACT ION OF THE AO IN RESTRICTING THE DEDUCTION UNDER SECTION 36(1)(VIII) TO RS. 308 76 6 6 619/- AS AGAINST RS.329 68 67 750/- CLAIMED AND ALLOWABLE UNDER THE ACT. (II) ON THE FACTS AND CIRCUMSTANCES OF THE CASE TH E LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE ACTION O F THE AO IN EXCLUDING UPFRONT FEES AND MANAGEMENT FEES FROM THE NET TOTAL INCOME WHILE COMPUTING DEDUCTION UNDER SECTION 36(1)(VIII) OF THE INCOME TAX ACT. (III) IN THE FACTS AND CIRCUMSTANCES THE LEARNED C IT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN NOT ALLOWING THE SPECIAL RESERVE U/S 36(I)(VIII) ON INTEREST ON DEPOSITS AND GUARANTEE FEES. 4. (I) THAT THE ABOVE SAID ACTION OF THE AO H AS BEEN CONFIRMED BY THE LEARNED CIT(A) DESPITE THE FACT THAT THESE INCOMES HAVE DIR ECT NEXUS WITH THE FINANCING ACTIVITIES OF THE COMPANY AND THE SAME ARE ELIGIBLE FOR CLAIMING DEDUCTION UNDER SECTION 36(1)(VIII) OF THE ACT. (II) THAT THE ABOVE SAID DISALLOWANCE HAS BEEN CO NFIRMED IGNORING THE EVIDENCES AND THE DETAILED EXPLANATION SUBMITTED BY THE ASSES SEE. 5. THE APPELLANT CRAVES LEAVE TO ADD AMEND OR ALTE R ANY OF THE GROUNDS OF APPEAL. ITA NO.- 5186/DEL/2015 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW LD. CIT (A) HAS ERRED IN DIRECTING THE AO TO ALLOW DEDUCTION U/S 36(1)(VI IA)(C) AND 36(1 )(VIII) CONTRARY TO THE SCHEME LAID BY THE ITAT DECISION IN THE CASE OF RURAL ELECTRIFICATION CORPORATION LTD.(REC) VS. ADDL. CIT [2009] 34 SOT 159 (DELHI). 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT (A) HAS ERRED IN DIRECTING THE AO TO ALLOW DEDUCTION U/S 36 (1 )(VIIA)(C) AND 36(1 )(VIII) AS PER THE SCHEME LAID DOWN BY THE ITAT DECISION IN THE CA SE OF TOURISM FINANCE CORPORATION OF INDIA VS. JCIT [2010] 2 ITR (TRIB.) 1 (DELHI). 3. THE APPELLANT CRAVES LEAVE TO ADD TO ALTER A MEND OR VARY FROM THE ABOVE GROUNDS OF APPEAL AT OR BEFORE THE TIME OF HEARING. ITA NO.- 6620/DEL/2015 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A)] IS BA D BOTH IN THE EYE OF LAW AND ON FACTS. 2. (I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE T HE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE DISALLOWANCE OF THE EXPENDITURE OF RS. ITA NOS.- 5148/DEL/2016 AND OTHERS. M/S POWER FINANCE CORPORATION LTD. PAGE 11 OF 16 1 37 58 725/- AS GRANT GIVEN FOR RESTRUCTURING OF S TATE ELECTRICITY BOARDS WHO ARE THE BORROWERS OF THE CORPORATION. (II) THAT THE ABOVE DISALLOWANCE HAS BEEN SUSTAINE D DESPITE THE FACT THAT THE EXPENDITURE HAS BEEN INCURRED WHOLLY AND EXCLUSIVEL Y FOR THE PURPOSE OF BUSINESS OF THE ASSESSEE COMPANY. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN SUSTAINING THE DISALLOWANCE TO THE EXTENT OF RS. 2 80 35 265/- MADE ON ACCOUNT OF PROVISION FOR POST-RETIREMENT BE NEFITS OF THE EMPLOYEES CREATED ON THE BASIS OF ACTUARIAL VALUATION TREATING THE SA ME AS CONTINGENT LIABILITY. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE ACTION OF THE AO IN EXCLUDING UPFRONT FEES IN THE NET TOTAL INCOME WHILE COMPUTING DEDUCTION UNDER SECTIO N 36(1)(VIII) OF THE INCOME TAX ACT. 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN NOT ALLOWING DEDUCTION UNDER SE CTION 36(1 )(VIII) OF THE INCOME TAX ACT ON INTEREST ON DEPOSITS GUARANTEE FEES AND MAN AGEMENT & AGENCY FEES. 6. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE ACTION OF THE AO IN CHARGING INTEREST U/S 234D OF THE ACT. 7. THE APPELLANT CRAVES LEAVE TO ADD AMEND OR ALTE R ANY OF THE GROUNDS OF APPEAL. ITA NO.- 4920/DEL/2015 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) (CIT(A)) IS BA D BOTH IN THE EYE OF LAW AND ON FACTS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED IN SUSTAINING THE ADDITIONS/ DISALLOWANCES OF RS. 48 8 6 79 895/-/- MADE BY THE AO TO THE RETURNED INCOME OF RS. 1437 09 53 561/-. 3. (I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE T HE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE ACTION OF THE AO IN RESTRICTING THE DEDUCTION UNDER SECTION 36(1)(VIII) TO RS. 305 28 37 825/- AS AGAINST RS.354 15 17 720/- CLAIMED AND ALLOWABLE UNDER THE ACT. (II) ON THE FACTS AND CIRCUMSTANCES OF THE CASE TH E LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE ACTION O F THE AO IN EXCLUDING INTEREST ON DEPOSITS UPFRONT FEES AND MANAGEMENT & AGENCY F EES FROM THE NET TOTAL INCOME WHILE COMPUTING DEDUCTION UNDER SECTION 36(1 )(VIII) OF THE INCOME TAX ACT. 4. (I) THAT THE ABOVE SAID ACTION OF THE AO HAS BE EN CONFIRMED BY THE LEARNED CIT(A) DESPITE THE FACT THAT THESE INCOMES HAVE DIRECT NEX US WITH THE FINANCING ACTIVITIES OF THE COMPANY AND THE SAME ARE ELIGIBLE FOR CLAIMI NG DEDUCTION UNDER SECTION 36(1)(VIII) OF THE ACT. ITA NOS.- 5148/DEL/2016 AND OTHERS. M/S POWER FINANCE CORPORATION LTD. PAGE 12 OF 16 (II) THAT THE ABOVE SAID DISALLOWANCE HAS BEEN CO NFIRMED IGNORING THE EVIDENCES AND THE DETAILED EXPLANATION SUBMITTED BY THE ASSES SEE. 5. THE APPELLANT CRAVES LEAVE TO ADD AMEND OR ALTE R ANY OF THE GROUNDS OF APPEAL. ITA NO.- 4978/DEL/2015 1. ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW LD. CIT(A) HAS ERRED IN ALLOWING DIRECT EXPENSES RELATING TO INTER EST ON DEPOSITS UPFRONT FEE GUARANTEE FEE MANAGEMENT AND AGENCY FEES FOR COMPU TING DEDUCTION U/S 36(1)(VIII) OF I.T. ACT 1961. 2. THE APPELLANT CRAVES LEAVE TO ADD TO ALTER A MEND OR VARY FROM THE ABOVE GROUNDS OF APPEAL AT OR BEFORE THE TIME OF HEARING. ITA NO.- 224/DEL/2016 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) (CIT(A)) IS BA D BOTH IN THE EYE OF LAW AND ON FACTS. 2. (I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE DISALLOWANCES OF CORPORATE SOCIAL RESPONSIBILITY EXPENSE OF RS. 1 93 00 000/- INCURRE D BY THE ASSESSEE TREATING THE SAME NOT ELIGIBLE FOR DEDUCTION U/S 37(1) OF THE AC T. (II) THAT THE ABOVE DISALLOWANCE HAS BEEN CONFIRME D DESPITE THE FACT THAT THE EXPENDITURE HAS BEEN INCURRED WHOLLY AND EXCLUSIVEL Y FOR BUSINESS PRUPOSES. 3. (I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE T HE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE DISALLOWANCE OF THE EXPENDITURE OF RS. 1 15 45 924/- AS GRANT GIVEN FOR RESTRUCTURING OF S TATE ELECTRICITY BOARD / OTHER ENTITIES WHO ARE THE BORROWERS OF THE APPELLANT. (II) THAT THE ABOVE DISALLOWANCE HAS BEEN SUSTAINE D DESPITE THE FACT THAT EXPENDITURE HAS BEEN INCURRED WHOLLY AND EXCLUSIVEL Y FOR THE PURPOSE OF BUSINESS OF THE ASSESSEE COMPANY. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN SUSTAINING THE DISALLOWANCE IN PART ON ACCOUNT OF PROVISION OF RS. 6 28 14 541/- FOR POST-RETIREMENT MEDICAL / ECO NOMIC REHABILITATION BENEFITS OF THE EMPLOYEES CREATED ON THE BASIS ACTUARIAL VA LUATION TREATING THE SAME AS CONTINGENT LIABILITY. 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE ACTION OF THE AO IN EXCLUDING INTEREST ON ITA NOS.- 5148/DEL/2016 AND OTHERS. M/S POWER FINANCE CORPORATION LTD. PAGE 13 OF 16 DEPOSITS GUARANTEE FEES MANAGEMENT & AGENCY FEES AND UPFRONT FEES WHILE COMPUTING DEDUCTION U/S 36(1)(VIII) OF THE INCOME T AX ACT. ITA NO.- 514/DEL/2016 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW LD. CIT(A) HAS ERRED IN ALLOWING DIRECT EXPENSES RELATING TO INTEREST ON DEPOSITS UPFRONT FEE GUARANTEE FEE MANAGEMENT AND AGENCY FEES FOR COMPU TING DEDUCTION U/S 36(1 )(VIII) OF I.T.ACT 1961. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW LD. CIT(A) HAS ERRED IN DIRECTING THE AO TO ALLOW DEDUCTION U/S 36(1 )(V IIA)(C) AND 36(1 )(VIII) CONTRARY TO THE SCHEME LAID BY THE ITAT DECISION IN THE CASE OF RURAL ELECTRIFICATION CORPORATION LTD. (REC) VS. ADDL. CI T [2009] 34 SOT 159 (DELHI). 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN DIRECTING THE AO TO ALLOW DEDUCTION U/S 36 (1 )(VIIA)(C) AND 36(1 )(VIII) AS PER THE SCHEME LAID DOWN BY THE ITAT DECISION IN THE CASE OF TOURISM FINANCE CORPORATION OF INDIA VS. JCIT [2010] 2 ITR (TRIB.) 1 (DELHI) 4. THE APPELLANT CRAVES LEAVE TO ADD TO ALTER A MEND OR VARY FROM THE ABOVE GROUNDS OF APPEAL AT OR BEFORE THE TIME OF HEARING. (B) AT THE TIME OF HEARING AT THE OUTSET THE LEARNED COUNSELS FOR THE ASSESSEE INFORMED US THAT THE ASSESSEE HAS OPTED TO SETTLE T HE AFOREMENTIONED APPEALS UNDER VIVAD SE VISHWAS SCHEME 2020 (VSVS FOR SHORT) AND THA T THE ASSESSEE HAS ALREADY FILED THE RELEVANT FORMS. THE LD. COUNSEL FOR ASSESSEE ALS O DREW OUR ATTENTION TO TWO SEPARATE LETTERS EACH DATED 03 RD MARCH 2021 FILED IN INCOME TAX APPELLATE TRIBUNAL (ITAT FOR SHORT) GIVING INTIMATION FOR THE SAME AND REQUESTI NG TO WITHDRAW THESE APPEALS. (B.1) AT THE TIME OF HEARING BEFORE US THE LD. COUNSEL F OR ASSESSEE AS WELL AS THE LEARNED COMMISSIONER OF INCOME TAX (DEPARTMENTAL RE PRESENTATIVE) [LD. CIT (DR) FOR SHORT] SUBMITTED BEFORE US THAT THESE APPEALS MAY B E TREATED AS WITHDRAWN AND MAY BE ITA NOS.- 5148/DEL/2016 AND OTHERS. M/S POWER FINANCE CORPORATION LTD. PAGE 14 OF 16 DISMISSED ON ACCOUNT OF THE AFORESAID VSVS ALL THE APPEALS HAVING BECOME INFRUCTUOUS ON ACCOUNT OF THE AFORESAID VSVS. AFTER DUE CONSIDER ATION AND IN VIEW OF THE FOREGOING; AND AS BOTH SIDES HAVE AGREED TO THIS; WE ARE OF TH E VIEW THAT THESE APPEAL HAVE BECOME INFRUCTUOUS AND WE TREAT THESE APPEALS AS WITHDRAW N ON ACCOUNT OF THE AFORESAID VSVS. ACCORDINGLY THESE APPEALS HAVING BECOME INFRUCTUOU S ARE HEREBY DISMISSED AS WITHDRAWN SUBJECT TO SETTLEMENT OF THE DISPUTES IN THE APPEALS UNDER THE AFORESAID VSVS. (C) BEFORE WE PART WE HEREBY CLARIFY BY WAY OF AB UNDANT CAUTION THAT IF FOR SOME REASON THE DISPUTES UNDER ANY ONE OR MORE OF T HESE APPEALS BEFORE US ARE NOT SETTLED UNDER THE AFORESAID VSVS THEN THE ASSESSEE/ REVENUE WILL BE AT LIBERTY TO APPROACH ITAT FOR RESTORATION OF THE COR RESPONDING APPEAL(S) IN ACCORDANCE WITH LAW. (D) IN THE RESULT ALL THESE APPEALS ARE DISMISSED. ORDER WAS ALREADY PRONOUNCED ORALLY IN THE OPEN COU RT ON 09/03/2021 AFTER CONCLUSION OF THE HEARINGS IN THE PRESENCE OF REPR ESENTATIVES OF BOTH SIDES. NOW THIS ORDER IN WRITING IS SIGNED TODAY ON 11-03- 2021 . SD/- SD/- (AMIT SHUKLA) (ANADEE NATH M ISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: 11/03/2021 POOJA/- ITA NOS.- 5148/DEL/2016 AND OTHERS. M/S POWER FINANCE CORPORATION LTD. PAGE 15 OF 16 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NOS.- 5148/DEL/2016 AND OTHERS. M/S POWER FINANCE CORPORATION LTD. PAGE 16 OF 16 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER