ITO (EXEMPTIONS), CUTTACK vs. M/S. ORISSA STATE FINANCIAL CORPORATION EMPLOYEES PROVIDENT FUND, CUTTACK

The common issue taken by the Revenue in both the appeals is with regard to allowing the expenditure claimed by the assessee accepting the additional evidence relating to the details of expenditure, thereby violating the Rule 46A of I.T.Rules, 1962 3. None appeared on behalf of the assessee even both the cases were called for hearing on second round. Therefore, the Bench considering the submissions of ld. DR and the material evidence available on record.

Ld. DR relied on the order of AO and submitted that the CIT(A) has passed order after considering the additional evidence filed by the assessee in violation of the Rule 46A of I.T.Rules, 1962 and the same is not permitted at this stage. Hence, the appeal of the Revenue deserves to be allowed.

After considering the submissions of ld. DR and perusing the relevant material placed in the record of the Tribunal, we find that during the course of appellate proceedings, the assessee produced a list of 298 employees whose accounts have been credited with interest in A.Y.2010-2011, on which basis, the CIT(A) allowed the appeal of the assessee considering the submissions of the assessee and deleted the addition made by the AO and reinstated the excess of expenditure over income as shown in the audited accounts of the assessee. However, the ground raised by the Revenue before us that the CIT(A) has violated the Rules 46A of I.T.Rules, 1962 in accepting the details of expenditure in the form of additional evidence is not accepted because the principal expenses of the assessee are interest payment to its members and miscellaneous administrative expenses, which are parts of the record.

Further, we found that both appeals of the Revenue are less than the 8th August, 2019. Therefore, on careful perusal of the findings recorded by the CIT(A) on merit as well as the factual aspect of the matter, the contention of the Revenue pointing towards the exceptional clause provided by the aforesaid CBDT circular, does not survive.

In view of the above facts and circumstances of the case, we dismiss both the appeals of the Revenue holding the same as below the tax limit prescribed by the CBDT Circular No.17/2019, dated 8th August, 2019.

In the result, the both appeals of the Revenue are dismissed. Order pronounced in the open court on 17/06/ 2020. Sd/- Sd/- (C.M.GARG) (L.P.SAHU) न्यानयक सदस्य / JUDICIAL MEMBER ऱेखा सदस्य / ACCOUNTANT MEMBER कटक Cuttack; ददनाांक Dated 17/06/2020 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to : अऩीऱाथी / The Appellant- 1. ITO(Exemptions), Cuttack प्रत्यथी / The Respondent- 2. Orissa State Financial Corporation Employee Provident Fund, At: OMP Square, College Square, Cuttack-753003 आयकर आयुक्त(अऩीऱ) / The CIT(A), 3. आयकर आयुक्त / CIT 4. ववभागीय प्रनतननधध, आयकर अऩीऱीय अधधकरण, कटक / DR, ITAT, 5. Cuttack गार्ा पाईऱ / Guard file. 6. आदेशािुसार/ BY ORDER, सत्यावऩत प्रनत //True Copy//