Income Tax Appellate Tribunal - Jaipur
Rajasthan State Ganganagar Gugatr ... vs Department Of Income Tax on 17 April, 2015
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IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR
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BEFORE: SHRI R.P. TOLANI, JM & SHRI T.R. MEENA, AM
vk;dj vihy la-@ITA No. 31/JP/2013
fu/kZkj.k o"kZ@Assessment Year : 2009-10
The A.C.I.T. cuke M/s Rajasthan State Ganganagar
Circle-6, Jaipur. Vs. Sugar Mills Ltd., 4th Floor, Nehru
Sahakar Bhawan, Jaipur.
LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAACR 8906 R
vihykFkhZ@Appellant izR;FkhZ@Respondent
jktLo dh vksj ls@ Revenue by : Shri Rajesh Ojha (JCIT)
fu/kZkfjrh dh vksj ls@ Assessee by : Shri T.c. Jain (Advocate)
lquokbZ dh rkjh[k@ Date of Hearing : 23/03/2015.
?kks"k.kk dh rkjh[k@ Date of Pronouncement : 17/04/2015
vkns'k@ ORDER
PER: R.P. TOLANI, J.M. This is an appeal filed by the revenue against the order dated 30/10/2012 by the learned CIT(A)-II, Jaipur for A.Y. 2009-10. Respective grounds of appeal are as under:
"On the facts and in the circumstances of the case, the learned CIT(Appeals), has erred in:-
2 ITA 31/JP/2013_ ACIT Vs. M/s Rajasthan State Ganganagar Sugar Mills Ltd.
(i) deleting the addition of Rs. 73,20,000/- made by the A.O. by valuing closing stock by inclusion of element of excise duty therein.
(ii) deleting the addition of Rs. 97,15,000/- made by the A.O. by disallowing the export pass fee without appreciating the fact that liability to make such payment is not finalized.
(iii) deleting the addition of Rs. 6,86,900/- made by the A.O. on account of interest received on FDR.
(iv) deleting the addition of Rs. 1 crore made by the A.O. by disallowing the payment of privilege fees without appreciating the fact that the aid expenses are of capital in nature.
(v) deleting the addition of Rs. 6463/- (correct amount of Rs.
6812/-) made by the A.O. on account of belated deposit of employees contribution to ESI.
(vi) deleting the addition of Rs. 31,15,264/- made by the A.O. on account of prior period expenses."
2. The ld DR relied on the order of the Assessing Officer. At the outset, the ld AR for the assessee, on the other hand, contends that revenues grounds No. (i) to (v) are covered in assessee's favour by the Hon'ble ITAT's judgments in assessee's own case in earlier years i.e. A.Y. 2005-06, 2006-07 and 2008-09. Referring to the Hon'ble ITAT order for 2008-09, the respective grounds have been decided in assessee's favor as under:-
3 ITA 31/JP/2013_ ACIT Vs. M/s Rajasthan State Ganganagar Sugar Mills Ltd.
(i) ITAT order page 4, para 6, in which following the A.Y. 2007-08 ITAT judgment the valuation of closing stock in respect of inclusion of element of excise duty has been decided in favour of the assessee.
(ii) Page 5, para 11 following the order of the ITAT for A.Y. 2007-08, the disallowance of export pass fee has been decided in favour of the assessee.
(iii) FDR interest has been decided in favour of the assessee at page 7 para 15 relying on ITAT order for A.Y. 2007-08.
(iv) The addition of Rs. 1 crore for payment of privilege fee has been held to be allowable as revenue in nature by the ITAT in page 7 para 18 following A.Y. 2007-08.
(v) The addition on account of employees contribution to ESI is also held in favour of the assessee by the ITAT at page 11 para 23 following the decision of Hon'ble Delhi High court in the case of CIT Vs. P.M. Electronics 313 ITR 161.
Ld counsel for assessee thus contends that all the above revenue grounds No. (i) to (v) are covered in favour of the assessee by the Hon'ble ITAT orders, consequently these revenue grounds may be dismissed.
3. Apropos remaining ground i.e. ground No. (vi) of the revenue's appeal in respect of prior period expenses, the ld CIT(A) deleted the same by following observations:-
4 ITA 31/JP/2013_ ACIT Vs. M/s Rajasthan State Ganganagar Sugar Mills Ltd.
"From the submission of the appellant it is clear that out of Prior Period expenses of Rs. 31,15,264/-, payment of Rs. 24,00,000/- on account of License fee for manufacturing of IMFL was made to the Excise Commissioner, Rajasthan through cheque dated 15/06/2008 which was informed as part of challan dated 21/06/2008 of Rs. 32,00,000/-. Balance payment of interest on difference of Rs. 1,40,650/-; excise duty on shortage of Rs. 2,93,565/-; excise duty on excess wastage of Rs. 97,171/- and interest on late deposit of excise duty Rs. 1,83,878/- were adjusted by the Excise office from out of refund of Rs. 9 lacs due to the appellant as per letter dated 10/02/2009 of that office. The letter of excise department dated 09/8/2008, copy of challan dated 21/06/2008 and letter of excise office dated 10/02/2009 are enclosed as Annexure-1 of this order, which show that the expenses pertaining to earlier were paid in the current year therefore the A.O. is directed to delete Prior period expenses to the extent of Rs. 31,15,264/-, the balance addition of Rs. 2,12,314/- (Rs. 33,27,578 - Rs. 31,15,264/-) is upheld as nothing was clarified with respect to this by the appellant."
Ld. Counsel contents that the perusal of ld. CIT(A) order reveals that the expenditures in respect of excise duty payment has been allowed in terms of Section 43B on actual payment, therefore, there is no infirmity in the order of the ld CIT(A), which has been passed in accordance with provisions of Section 43B of the Act.
5 ITA 31/JP/2013_ ACIT Vs. M/s Rajasthan State Ganganagar Sugar Mills Ltd.
4. We have heard the rival contentions of both the parties and perused the material available on the record. We find merit in the arguments of the ld counsel for the assessee. Revenue's grounds No. (i) to (v) are covered in favour of the assessee by successive judgments of the ITAT as mentioned above. The detailed reasonings are mentioned in the ITAT's order for A.Y. 2008-09. Respectfully following the same, the ground Nos. (i) to (v) of the revenue appeal are dismissed. 4.1. Apropos ground No. (vi) also, the disallowance has been deleted in terms of Section 43B on actual payment basis in view thereof, we find no infirmity in the order of the ld CIT(A), which is upheld.
5. In the result, revenue's appeal is dismissed.
Order pronounced in the open court on 17/04/2015.
Sd/- Sd/-
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(T.R. Meena) (R.P.Tolani)
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fnukad@Dated:- 17th April, 2015
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vkns'k dh izfrfyfi vxzsf'kr@Copy of the order forwarded to:
1. vihykFkhZ@The Appellant- The A.C.I.T., Circle-6, Jaipur..
6 ITA 31/JP/2013_ ACIT Vs. M/s Rajasthan State Ganganagar Sugar Mills Ltd.
2. izR;FkhZ@ The Respondent- M/s Rajasthan State Ganganagar Sugar Mills Ltd., Jaipur.
3. vk;dj vk;qDr@ CIT
4. vk;dj vk;qDr¼vihy½@The CIT(A)
5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur
6. xkMZ QkbZy@ Guard File (ITA No. 31/JP/2013) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asst. Registrar