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Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI R.S. SYAL
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT �ी आर. एस.�ाल, उपा�� के सम� आयकर अपील सं. / ITA No. 2674/PUN/2017 िनधा�रण वष� / Assessment Year : 2011-12
M/s. HUF India Pvt. Ltd., Vs. ACIT, Circle-9, Gat No.304, Nanekarwadi, Pune Chakan, Tal. Khed, Pune – 410501 Maharashtra PAN : AABCH9173K (Appellant) (Respondent)
Appellant by Smt. Deepa Khare Respondent by Shri Prashant Mahajan Date of hearing 14-11-2019 Date of pronouncement 15-11-2019 आदेश / ORDER PER R.S.SYAL, VP :
This appeal by the assessee arises out of the order passed by the Commissioner of Income-tax (Appeals)-6, Pune on 03-07-2017 in relation to the assessment year 2011-12.
The only assail herein is to the confirmation of addition of Rs.9.00 lakh made by the Assessing Officer (AO) u/s.35D of
2 ITA No.2674/PUN/2017 M/s. HUF India Pvt. Ltd.,
the Income-tax Act, 1961 (hereinafter also called `the Act’) by
treating the amount as pre-operative expenses.
Succinctly, the facts of the case are that the assessee
claimed deduction of Rs.9.00 lakh towards pre-operative
expenses u/s.35D of the Act. The AO noticed that the assessee
had incurred expenditure of Rs.98,11,558/- as pre-operative
expenses during the financial year relevant to the assessment
year 2009-10, out of which a sum of Rs.45.00 lakh was treated as qualifying amount. 1/5th of such qualifying amount, namely,
Rs.9.00 lakh was claimed as deduction u/s.35D of the Act for
and from the A.Y. 2009-10 including the year under
consideration. On examination of the details of such amount of
Rs.98.00 lakh, the AO came to hold that the sum of Rs.9.00
lakh was liable to be added. He, therefore, made the
disallowance, which came to be sustained in the first appeal.
The assessee is aggrieved by such confirmation of the addition.
I have heard both the sides and gone through the relevant
material on record. In the course of an earlier hearing of this
appeal, the ld. DR was required to submit a report on the
granting or otherwise of deduction of such expenses of Rs.9.00
3 ITA No.2674/PUN/2017 M/s. HUF India Pvt. Ltd.,
lakh in the earlier years. A copy of the report from the AO has
been placed on record by the ld. DR. As per this report, a
deduction of Rs.9.00 lakh was claimed for the first time in the
return for the A.Y. 2009-10 which was not granted, but the ld.
CIT(A) accepted the assessee’s claim and the Revenue’s appeal
has been dismissed, albeit on low tax effect. No assessment
was taken up u/s. 143(3) of the Act for the A.Y. 2010-11,
meaning thereby that the deduction got allowed. From the
above report of the AO, it is ostensible that the assessee has
been consistently allowed deduction of Rs.9.00 lakh in the
assessments for the A.Ys 2009-10 and 2010-11. The
assessment year 2011-12, under consideration, is a consecutive 3rd year in line. In view of the fact that the deduction for
similar amounts has been allowed in the immediately two
preceding assessment years, following the principle of
consistency, I hold the assessee to be entitled to deduction of
Rs.9.00 lakh in the year under consideration as well. The
impugned order is overturned on this score and the deduction of
Rs.9.00 lakh is granted.
4 ITA No.2674/PUN/2017 M/s. HUF India Pvt. Ltd.,
In the result, the appeal is allowed.
Order pronounced in the Open Court on 15th November, 2019.
Sd/- (R.S.SYAL) उपा�य� उपा�य�/ VICE PRESIDENT उपा�य� उपा�य�
पुणे Pune; �दनांक Dated : 15th November, 2019 सतीश आदेश क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत / Copy of the Order is forwarded to : क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत आदेश आदेश आदेश अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. आयकर आयु�(अपील) / 3. The CIT (Appeals)-6, Pune 4. The Pr.CIT- 5, Pune 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “SMC” / DR ‘SMC’, ITAT, Pune; गाड� फाईल / Guard file. 6. // True copy // आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार आदेशानुसार
// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune
ITA No.2674/PUN/2017 M/s. HUF India Pvt. Ltd.,
Date 1. Draft dictated on 14-11-2019 Sr.PS 2. Draft placed before author 14-11-2019 Sr.PS 3. Draft proposed & placed -- JM before the second member 4. Draft discussed/approved -- JM by Second Member. 5. Approved Draft comes to Sr.PS the Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *