DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-3, GUWAHATI vs. M/S. ASSAM INDUSTRIAL DEVELOPMENT CORPORATION LTD.,, GUWAHATI

आदेश /O R D E R PER BENCH:- This Revenue’s appeal for assessment year 2014-15 arises against the Commissioner of Income Tax (Appeals)-2 Guwahati’s order dated 31.01.2018 passed in case No.604409681280117, involving proceedings u/s 143(3) of the Income Tax Act, 1961; in short ‘the Act’. Case called twice. None appears at the assessee’s behest. The registry has already sent RPAD notice(s) for 12.06.2019 for hearing. It is accordingly proceeded ex parte.

ITA No.86/Gau/2018 A.Y. 2014-15 DCIT, Ciri-3, Gau Vs. M/s Assam Industrial Development Corporation Ltd. Page 2 2. We come to the Revenue’s three folded grounds. Its first substantive grievance is that the CIT(A) has erred in law deleting disallowance / addition of ₹49,62,367/- on account of belated payment of employees’ provident fund. It has come on record that the hon'ble high court’s decision in CIT vs. George Williamson (Assam) Ltd. (2006) 284 ITR 619 (Gau) has settled the law that such a payment is allowable as business expenditure if it is credited / paid before the due date of filing of return u/s. 139(1) of the Act. The Revenue is fair enough in not disputing this clinching factual position. We decline this first substantive ground accordingly. 3. Next comes sec. 14A r.w.s. Rule 8D disallowance of ₹12,52,159/- @ 0.5% of an average investment falling under 8D(2)(iii) in the nature of administrative expenditure. It has come on record that the state government has provided all corresponding funds. The CIT(A) has therefore rightly held that the impugned administrative expenditure cannot be disallowed same the state government has undertaken all the expenditures and not the assessee. 4. The next case is disallowance of prior period expenditure amounting to ₹39,95,523/-. Suffice to sway, hon'ble Gujarat high court’s decision in PCIT vs. Adani Enterprises Tax Appeal No. 566 of 2016 holds that the impugned disallowance is snot attracted once the assessee is assessed at the same rate of tax throughout in the corresponding assessment years. We go back this precise reasoning to confirm the CIT(A)’s finding deleting the impugned disallowance. 5. This Revenue’s appeal is dismissed. Order pronounced in accordance with Rule 34(3) of the ITAT Rules by putting on Notice Board on 02/08/2019 Sd/- Sd/- (लेखा सद#य) (%या&यक सद#य) ( A.L.Saini) (S.S.Godara) (Accountant Member) (Judicial Member) Guwahati, *Dkp 'दनांकः- 02/08/2019 गूवाहाठ� ।

ITA No.86/Gau/2018 A.Y. 2014-15 DCIT, Ciri-3, Gau Vs. M/s Assam Industrial Development Corporation Ltd. Page 3 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. अपीलाथ�/Appellant-DCIT, Cir-3, 7th Fl. Aayakar Bhawan, G.Ss. Road, Guwahatii-781005 2. ��यथ�/Respondent-M/s Assam Industrial Development Corporation Ltd., R.G Baruah Road, Guwahati, Assam-781024 3. संबं2धत आयकर आयु3त गृवाहाठ8 / Concerned CIT Guwahati 4. आयकर आयु3त- अपील / CIT (A) Guwahati 5. ;वभागीय �&त&न2ध, आयकर अपील�य अ2धकरण, गूवाहाठ8 खंङपीठ / DR, ITAT, Guwahati 6. गाडA फाइल / Guard file. By order/आदेश से, /True Copy/ Sr. Private Secretary (on tour) आयकर अपील�य अ2धकरण, गूवाहाठ� ।