POLYCAB INDIA LTD., MUMBAI v. ACIT CC 5 (2), MUMBAI

ITA 6275/MUM/2019 | 2016-2017
Pronouncement Date: 11-05-2021 | Result: Allowed

Appeal Details

RSA Number 627519914 RSA 2019
Assessee PAN AAACP6474E
Bench Mumbai
Appeal Number ITA 6275/MUM/2019
Duration Of Justice 1 year(s) 7 month(s) 8 day(s)
Appellant POLYCAB INDIA LTD., MUMBAI
Respondent ACIT CC 5 (2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 11-05-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 11-05-2021
Last Hearing Date 04-05-2021
First Hearing Date 04-05-2021
Assessment Year 2016-2017
Appeal Filed On 03-10-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH MUMBAI BEFORE SHRI SHAMIM YAHYA ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE JUDICIAL MEMBER ITA NO. 6275/MUM/2019 (A.Y: 2016-17) POLYCAB INDIA LTD. 1 ST FLOOR POLYCAB HOUSE 771 PANDIT SATWALEKAR MARG MAHIM WEST MUMBAI 400016. VS. ACIT CC (5)(2) AIR INDIA BUILDING NARIMAN POINT MUMBAI. PAN/GIR NO. : AA ACP6474E APPELLANT .. RESPONDENT APPELLANT BY : MS. PRIYANKA S RESPONDENT BY : SHRI MANPREET DUGGAL DR DATE OF HEARING 05 .0 5 .2021 DATE OF PRONOUNCEMENT 11 .0 5 .2021 / O R D E R PER PAVAN KUMAR GADALE JM: THE APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -53 MUM BAI PASSED U/S.143(3) AND 250 OF THE INCOME TAX ACT 19 61. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF AP PEAL: 1. ON THE FACTS AND CIRCUMSTANCES OF THE APPELLANTS CA SE AND IN LAW THE LD. CIT(A) ERRED IN CONFIRMING THE ACTI ON OF THE LD. AO. IN REJECTING THE REVISED COMPUTATION OF INC OME FILED BY THE APPELLANT DURING THE COURSE OF ASSESSMENT PROCEEDINGS AS PER THE GROUNDS CONTAINED IN THE ASSESSMENT ORDER OF OTHERWISE. ITA NO. 6275/MUM/2019 POLYCAB INDI LTD. MUMBAI - 2 - 2. ON THE FACTS AND CIRCUMSTANCES OF THE APPELLANTS CA SE AND IN LAW THE LD. CIT(A) ERRED IN CONFIRMING THE ACTI ON OF AO IN NOT ALLOWING THE DEDUCTION OF EDUCATION CESS AND SECONDARY AND HIGHER EDUCATION CESS CLAIMED IN THE REVISED COMPUTATION OF INCOME AS PER THE GROUNDS CONTAINED IN THE ASSESSMENT ORDER OR OTHERWISE. 3. ON THE FACTS AND CIRCUMSTANCES OF THE APPELLANTS CA SE AND IN LAW THE LD. CIT(A) ERRED IN CONFIRMING THE ACTI ON OF AO IN MAKING DISALLOWANCE U/S 14A R.W.R 8D(2)(III) OF RS. 9 33 000/- AS PER THE GROUNDS STATED IN THE ORDER O R OTHERWISE. 4. THE APPELLANT CRAVES LEAVES TO ALTER AMEND WITHDR AW OR SUBSTITUTE ANY GROUND OR GROUNDS OR TO ADD ANY NEW GROUND OR GROUNDS OF APPEAL. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE COMPANY IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND SALE OF WIRES & CABLES AND FILED THE RETURN OF INCOME ELECTRONICALLY FOR THE A.Y 2016-17 ON 30.11.2016 WI TH A TOTAL INCOME OF RS. 250 15 50 545/-. SUBSEQUENTLY THE ASSESSEE FILED REVISED RETURN OF INCOME ON 07.03.20 17 DISCLOSING A TOTAL INCOME OF RS. 231 23 63 832/- AN D THE RETURN OF INCOME WAS PROCESSED U/S 143(1) OF THE AC T. THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE U/S 1 43(2) AND 142(1) OF THE ACT ARE ISSUED. IN COMPLIANCE THE LD. AR OF THE ASSESSEE SUBMITTED THE DETAILS THROUGH ON LINE PORTAL.IN THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSEE FILED A REVISED COMPUTATION OF INCOME BY L ETTER DATED 14.12.2018 WHERE THE ASSESSEE COMPANY TREAT ED THE EDUCATION CESS AND SECONDARY AND HIGHER EDUCATI ON ITA NO. 6275/MUM/2019 POLYCAB INDI LTD. MUMBAI - 3 - CESS ARE ALLOWABLE EXPENDITURE RELYING ON THE JUDI CIAL DECISIONS. BUT THE A.O. OBSERVED THAT THE REVISED COMPUTATION OF INCOME SUBMITTED BY THE ASSESSEE CAN NOT BE CONSIDERED AND THEREFORE THE CLAIM OF THE ASSESS EE ON FILING THE REVISED COMPUTATION OF INCOME IS REJECTE D. ON THE OTHER DISPUTED ISSUES THE A.O MADE DISALLOWANCE U/S 14A R.W.R 8D2(III) OF RS9 33 000/- AND ASSESSED TH E TOTAL INCOME OF RS 224 54 71 908/-AND PASSED ORDER U/S 143(3) OF THE ACT DATED 25.12.2018. 3. AGGRIEVED BY THE ORDER THE ASSESSEE HAS FILED A N APPEAL BEFORE THE CIT(A). WHEREAS THE CIT(A) HAS DE ALT ON THE GROUNDS OF APPEAL FINDINGS OF THE A.O AND SUBMISSIONS AND FINALLY DISMISSED THE ASSESSEES AP PEAL. AGGRIEVED BY THE ORDER OF THE CIT(A) THE ASSESSEE HAS FILED AN APPEAL BEFORE THE HONBLE TRIBUNAL. 4. AT THE TIME OF HEARING THE LD. AR OF THE ASSESS EE SUBMITTED THAT THE ASSESSEE IS ENTITLED TO MAKE THE CLAIM IN REVISED COMPUTATION OF INCOME FILED IN THE ASSES SMENT PROCEEDINGS. THE ASSESSEE HAS RELIED ON THE JUDICIA L DECISIONS AND CLAIMED THE DEDUCTION OF EDUCATION CE SS AND SECONDARY AND HIGHER EDUCATION CESS. FURTHER T HE DISALLOWANCE U/S 14A R.W.R 8D(2)(III) IS NOT WARRAN TED AS THE ASSESSEE COMPANY HAS OWN FUNDS AND THE INVESTME NTS HAVE BEEN MADE OUT OF SURPLUS FUNDS. THE CONTENTION S OF ITA NO. 6275/MUM/2019 POLYCAB INDI LTD. MUMBAI - 4 - THE LD. AR THAT THERE WAS NO EXPENDITURE INCURRED O N EARNING THE EXEMPTED INCOME AND BARROWED FUNDS ARE NOT UTILIZED FOR INVESTMENT PURPOSE AND PRAYED FOR ALLO WING THE APPEAL. 4. CONTRA THE LD.DR OBJECTED THAT THE ASSESSEE COM PANY CANNOT CLAIM THE DEDUCTION IN THE REVISED COMPUTAT ION OF INCOME FILED IN THE ASSESSMENT PROCEEDINGS. 5. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE LD.ARS CONTENTION THAT TH E A.O HAS REJECTED THE CLAIM OF DEDUCTION OF EDUCATION CE SS AND SECONDARY AND HIGHER EDUCATION CESS IN THE REVISED COMPUTATION OF INCOME WERE THE ASSESSEE HAS RELIED ON THE JUDICIAL DECISIONS. WHEREAS THE A.O OBSERVES T HAT THE ASSESSEE HAS TO FILE A REVISED RETURN OF INCOME FOR SUCH CLAIM AND THE ASSESSEE IN CLAIMING THE DEDUCTION BA SED ON THE JUDICIAL DECISIONS. IN RESPECT OF DISALLOWAN CE U/S 14A R.W.R 8D(2)(III) THE CONTENTION OF THE LD.AR T HAT THE ASSESSEE HAS SUBSTANTIAL OWN FUNDS AND OUT OF THE SURPLUS OWN FUNDS THE INVESTMENTS ARE MADE AND NO EXPENDITURE WAS INCURRED FOR EARNING THE EXEMPTED INCOME. WE CONSIDERING THE OVERALL FACTS CIRCUMSTANCES AND JUDICIAL DECISIONS ARE OF THE OPINION THAT THE ASSESSEE CANNOT BE DENIED THE LEGITIMATE C LAIM OF DEDUCTION AND ARE INCLINED TO GRANT ONE MORE ITA NO. 6275/MUM/2019 POLYCAB INDI LTD. MUMBAI - 5 - OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CLA IM. ACCORDINGLY THE DISPUTED CLAIM ALONG WITH OTHER IS SUES ARE RESTORED TO THE FILE OF THE A.O TO VERIFY AND E XAMINE THE FACTS FOR LIMITED PURPOSE AND THE ASSESSEE SHOU LD BE PROVIDED ADEQUATE OPPORTUNITY OF HEARING AND SHALL COOPERATE IN SUBMITTING THE DETAILS. AND WE ALLOW T HE GROUNDS OF APPEAL OF THE ASSESSEE FOR STATISTICAL P URPOSE . 8. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 11.05.2021 SD/- SD/- (SHAMIM YAHYA) (PAVAN KUMAR GAD ALE) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI DATED 11.05.2021 KRK PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) 4. ( ) / CONCERNED CIT 5. !!' $ % / DR ITAT MUMBAI 6. () * + / GUARD FILE. / BY ORDER ! //TRUE COPY// 1. ( ASST. REGISTRAR)