DCIT, CIRCLE - 11(1), , KOLKATA vs. M/S. HINDUSTAN STEELWORKS CONSTRUCTION LIMITED , KOLKATA

The instant appeal and corresponding cross objection filed by the Revenue and Assessee are directed against the order dated 26-06-2018 passed by the Ld. CIT(A)-4, Kolkata arising out of assessment order dated 10-03-2016 passed by the DCIT(The AO), Cir-11(1), Kol u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “ the Act”) for the Assessment Years 2013-14.

The deletion of addition made by the Ld. AO amounting to Rs. 3,36,40,289/- on account of “ provision written back” has been challenged before us by the Revenue.

The appellant assessee being a public sector undertaking limited company carrying on the business of steel plant construction jobs in various parts of the country filed its return of income declaring the income at loss at Rs. 14,13,62,940/-. During the course of assessment proceedings upon perusal of the computation of total income, it was found that the assessee has claimed deduction of Rs. 3,36,40,289/- on account of provision “made in earlier year and disallowed in that year now no longer required written back deducted”. The assessee was issued a show-cause as to why the amount on account of provision written back may not be added. It was submitted by the assessee that the provision for doubtful debt etc has been added back in computation of earlier years. However, the deduction has been claimed in the computation of this year, which was not found acceptable by the Ld. AO and provision for written back of Rs.3,36,40,289/- was disallowed, which was in turn, deleted by the Ld. CIT(A). Hence, the instant appeal before us.

At the time of hearing of the instant appeal, the Ld. Counsel appearing for the assessee submitted before us that the issue is covered in the case of assessee itself by an order/judgment dated 31-12-2019 passed by the Co-ordinate Bench in & 388/Kol/2018 both for the AY 2011-12., copy whereof has also been supplied to us. On the other hand, the Ld. DR fails to controvert such submissions made by the Ld.AR.

We have heard respective submissions made by the parties. We have also perused the relevant materials available on record including the order passed by the by the Co-ordinate Bench in & 388/Kol/2018 both for the AY 2011-12. Relevant paragraph dealing with the identical issue is reproduced hereinbelow:-

Since cross objection filed by the assessee in support of the order of the Ld. CIT(A), which we have already upheld in dismissing the appeal of the revenue, the cross objection filed by the assessee needs no further consideration. The same is thus, dismissed.

In the result, the appeal of the revenue and cross objection of the assessee both are dismissed. Order is pronounced in the open court on 18th November, 2020