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Income Tax Appellate Tribunal - Bangalore

T.D. Power Systems Limited, Bangalore vs Dcit, Bangalore on 22 December, 2017

               IN THE INCOME TAX APPELLATE TRIBUNAL
                        'C' BENCH, BENGALURU

          BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER
                              and
          SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER


                            ITA No.607/Bang/2016
                            (Assessment year: 20)


M/s.T D Power Systems Ltd.
Plot Nos.27, 28 & 29, KIADB Industrial Area,
Dobbspet,
Bengaluru-562 111                                          ...      Appellant
PAN:AABCT 0360 J

         Vs.

Deputy Commissioner of Income-tax LTU,
Bengaluru                                                  ...    Respondent


            Appellant by : Shri Satyanarayana Murthy, CA.
          Respondent by : Shri S.Nambirajan, Addl.CIT(DR).


                   Date of hearing : 25/09/2017
           Date of pronouncement : 22/12/2017

                               O R D E R

Per INTURI RAMA RAO, AM :

This is an appeal filed by the assessee directed against the order of the Commissioner of Income-tax (Appeals)-14, LTU [CIT(A)], Bengaluru, dated 27/01/2016 for the assessment year 2011-12.

2. The assessee raised the following grounds of appeal:

3. The only issue in the present appeal is whether an amount of contribution of Rs.15,44,850/- made to Japanese Red Cross Society towards Tsunamy victim relief in Japan is allowable deduction or not. It was claimed that this contribution was made by the Japan Branch of the company and it is an allowable expenditure u/s 37 of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short]. In this connection, reliance was placed on the decision of the Hon'ble Supreme Court in the case of Sri Venkata Satyanaraya Rice Mills Contractors Co. vs. CIT (223 ITR 101). The AO disallowed the claim.

4. On appeal before the CIT(A), the same came to be confirmed as the expenditure was incurred outside India.

5. We heard rival submissions and perused the material on record. The issue in the present appeal is whether the amount of contribution made to Red Cross Society, Japan is an allowable expenditure while computing income under the head 'business income'. It is claimed that the contribution was made by Japan branch of the assessee and it is not clear from the record whether any profits earned by Japan Branch of the appellant or not. Even if so, no evidence was brought on record as to how the contribution had benefited the business operations of the branch of the assessee-company and mere reliance on the judicial decision without laying factual foundation does not come to the rescue of the assessee. Therefore, claim made by assessee cannot be allowed.

6. In the result, the appeal filed by the assessee is dismissed.

Order pronounced in the open court on 22nd December 2017 Sd/- sd/-

 (VIJAY PAL RAO)                                 (INTURI RAMA RAO)
JUDICIAL MEMBER                                 ACCOUNTANT MEMBER
Place: Bengaluru
Date : 22/12/2017
srinivasulu, sps
                                                      ITA No.607/Bang/2016

                               Page 3 of 3
Copy to :
      1 Appellant
      2 Respondent
      3 CIT(A)-
      4 CIT
      5 DR, ITAT, Bangalore.
      6 Guard file
                                                   By order

                                              Senior Private Secretary
                                             Income-tax Appellate Tribunal
                                                 Bangalore