Maroli Vibhag Khand Udyog Sahakari ... vs Department Of Income Tax

ी एन0एस0 सैनी, लेखा सद य एवं ी कुल भारत, या%यक सद य के सम& BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER आयकर अपील सं./ ITA No. 2175/Ahd/2011 %नधा)रण वष)/Assessment Year: 2007-2008 ACIT, Navsari Circle Maroli Vibhag Khand Udyog Navsari. Vs Sahkari Mandali Ltd. Maroli, Tal. Jalalpore Navsari. PAN: AAAAM 1187 H

अपीलाथ,/ (Appellant) -.यथ,/ (Respondent)

Revenue by : Shri M.K. Singh, Sr.DR Assessee(s) by : Shri Mitesh Modi

सन ु वाई क तार ख/ Dateof Hearing : 13/04/2015 घोषणा क तार ख / Date of Pronouncement: 16/04/2015

आदे श/O R D E R

PER N.S. SAINI, ACCOUNTANT MEMBER: This is an appeal filed by

the Revenue against the order of the Commissioner of Income-Tax (Appeals), Valsad dated 22.6.2011.

2. Sole ground of appeal taken by the Revenue reads as under:

"1. On the fats and in the circumstances of the case and in law, theld.CIT(A) erred in deleting the addition of Rs.29,94,798/- made on account of disallowance of cane purchase tax, as the assessee had made payment of this tax after due date of filing of return of income and failed to comply with the provision of section 43B of the IT Act, 1961."

3. Brief facts of the case are that the AO find that the assessee had made payment of cane purchase tax as under:

ITA No.2175/Ahd/2011 2 Sr.NO. Date of Purchase Amount of Tax 1. 20.11.2007 700000 2. 20.11.2007 600000 3. 20.11.2007 500000 4. 19.11.2007 800000 5. 17.11.2007 394798 Total 2994798

4. According to the AO, the assessee was required to make the payment before the due date of filing of return of income which was 31.3.2007. Therefore, deduction for the same was not allowable under section 43B of the Act, and accordingly, made addition to the income of the assessee at Rs.29,94,798/-.

5. On appeal before the CIT(A), the assessee submitted that the assessee was required to get its accounts audited under section 44AB of the Act, and therefore, was required to file its return of income by 31/10/2007. He submitted that due date for filing of return of income was extended upto 31st December, 2007, as for the first time, e-filing of the return of income was made mandatory to all such assessees, who were required to get their accounts audited under the Income Tax Act, therefore, he submitted that as the due date for filing of return of income was extended upto 31.12.2007, and the payments were made by the assessee before that, the disallowance made by the AO was not justified.

6. The CIT(A) accepted the submissions of the assessee and deleted the disallowance as the payments were made before 31/12/2007, which was the extended due date for filing of return under section 139(1) of the Act.

7. Being aggrieved by this order, the Revenue is in appeal before us.

8. We have heard the rival submissions and perused the orders of the Authorities below and material available on record. In the instant ITA No.2175/Ahd/2011 3

case, the assessee had outstanding liabilities of cane purchase tax of Rs.29,94,798/- as at the end of the relevant previous year which was paid by it during the period 17.11.2007 to 20.11.2007. The above facts are not in dispute. The A.O. disallowed and added back Rs.29,94,798/- by invoking provisions of section 43B of the Act.

9. On appeal, the CIT(A) deleted the above addition.

10. We find no merit in the ground of appeal of the Revenue because the due date of filing return of income for the year under consideration was extended by CBDT to 29.02.2008 and the outstanding tax was paid well within such extended due date of filing of return by the assessee. Therefore, this ground of appeal of the Revenue is dismissed.

11. In the result, the appeal of the Revenue is dismissed.

Order pronounced in the Court on Friday the 17th April, 2015 at Ahmedabad.

Sd/- Sd/- (KUL BHARAT) ( N.S. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER

Ahmedabad; Dated 17/04/2015

आदे श क0 -%त1ल2प अ3े2षत/Copy of the Order forwarded to :

1. अपीलाथ / The Appellant

2. यथ / The Respondent.

3. संबं धत आयकर आयु!त / Concerned CIT

4. आयकर आय! ु त(अपील) / The CIT(A)

5. $वभागीय 'त'न ध, आयकर अपील य अ धकरण / DR, ITAT,

6. गाड* फाईल / Guard file.

ु ार/ BY ORDER, आदे शानस

उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad