NORTH INDIA LPG CYLINDERS LTD.,KOLKATA vs. ITO, WARD 3(1), KOLKATA

2. That on the facts and in the circumstances of the case, the appellant company did not get the notice served for hearing Trom the office of the Ld. Commissioner Of income Tax (Appeals)- 11, Delhi.

That on the facts and in the circumstances of the case, the Ld. Commissioner of Income tax (Appeals) -11, Delhi, had erred in making disallowance on account of provision for gratuity amounting to Rs. 14,71, 745/ without considering that the assessee had suo moto disallowed the same.

That on the facts and in the circumstances of the case, the Ld. Commissioner of Income tax (Appeals) -11, Delhi, had erred in disallowing the credit of payment of advance tax of Rs.20,00,000/ to the appellant company. 6. That the appellant craves leave to supplement, cancel or otherwise amend any of the grounds herein above before or at the time of the hearing of the appeal.” 3. Ground No.1 is general in nature. Ground No.2 is not pressed. 4. Ground No.3 – Vide Ground No.3, the assessee agitated the 5. disallowance made by the lower authorities on account of delayed payment of Provident Fund and Employees State Insurance.

Ground No.4 – Vide Ground No.4, the assessee has agitated against the disallowance on account of provisions for gratuity amounting to Rs.14,71,745/-. 6.1 The ld. Counsel, in this respect, has submitted that the Assessing Officer has made double disallowance in respect of the said amount. That the assessee had already suo moto disallowed the said amount in the computation of total income, which has escaped attention of the Assessing Officer. 6.2 In view of the above, the issue is accordingly restored to the file of the Assessing Officer with a direction to verify the aforesaid contention of the assessee and if the assessee has already suo moto Assessment Years: 2017-18 North India LPG Cylinders Ltd disallowed the said provision for gratuity, no further disallowance will be attracted. Ground No.5 – Vide Ground No.5, the assessee has agitated 7. against the disallowance on account of credit of payment of advance tax of Rs.20,00,000/-. 7.1 The brief facts relevant to the issue are that there has been a demerger of the unit of M/s North India Wires Limited and owing to this Demerger ,the Howrah Unit of North India Wires Limited had been demerged and transferred to the resulting company i.e. M/s North India LPG Cylinders Limited (the assessee herein). The appointed date for the demerger was 01.04.2015, however, the financial effect of the merger had been taken in the financial year 2016-17. The assessee company had made payment of advance tax of Rs.20,00,000/- on 15.03.2017 vide PAN: AABCN0120A of merged entity i.e. M/s North India Wires Limited. Owing to the unit getting transferred, all the assets, liabilities, income and expenses got transferred to the assessee company. Accordingly, the assessee company has taken into account in its return of income, the income of the demerged company also, however, the credit of the advance paid on behalf of the demerged company has not been given to the assessee company. 7.2 We find force in the contention of the ld. Counsel for the assessee. Since, the demerger has taken effect from 01.04.2015 and the assessee company has taken into account the income of the merged company, therefore, the assessee company will also be entitled to the credit of the deposit of advance tax made on behalf of the merged company. The Assessing Officer is directed to verify the aforesaid facts and given due credit of the advance tax paid on behalf of the merged company to the assessee company.