M/S IC INDIA PRIVATE LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-3(1)(1), BANGALORE

O R D E R

Per Shri A.K. Garodia, Accountant Member

by the assessee are as under. “1. The order passed by the learned CIT (A) to the extent prejudicial to the appellant is bad in law and liable to be quashed.

2. The CIT (A) has erred in upholding the Order of the DCIT 3(1)(1) by disallowing the deduction towards Contractors' Benevolent Fund (CBF), a Statutory Business Expenditure on the ground that it is a Charitable Donation u/s. 40a.

3. The learned CIT (A) has erred in confirming the levy of interest under section 234B of the Act on the amount so disallowed.”

3. In course of hearing, it was submitted by ld. AR of assessee that as per para no. 4.3 of his order, it is held by ld. CIT(A) that assessee has not produced any documents to show that 0.1% deduction towards Contractor Welfare fund was also in the nature of cess or levy imposed by the Government. He Page 2 of 3 submitted that on pages 266 to 275 of the paper book is the copy of the Proceedings of the Govt of Karnataka (Public Works, CAD & Electricity Department) requiring the departments to deduct amounts towards Contractors beneficiary fund from the amounts payable to PWD Contractors. He submitted that this document could not be produced before ld. CIT(A) as the same was not available with the assessee at that point of time. The assessee has procured the same afterwards. He submitted that this additional evidence should be admitted because it goes to the root of the matter and the matter may be restored back to the file of CIT(A) for a fresh decision in the light of this additional evidence. The ld. DR of revenue supported the order of CIT(A).