THE DCIT 5(1), BHOPAL vs. M.P. RAJYA VAN VIKAS NIGAM , BHOPAL

Grounds raised by the Revenue reads as follows: “On the facts and circumstances of the case the Ld. CIT(A)- 2, Bhopal has erred in: 1.Whether on facts and circumstances of the case, the Ld. CIT(A) was justified in deleting the addition made on account of profit of Government account termed as (lease

2 Madhya Pradesh Rajya Van Vikas Nigam ITANo.95/Ind/2022 A.Y.2017-18 rent) amounting to Rs.84,13,27,174/- despite the fact that NCA(National Commission on Agriculture) evolved the formula for determining the lease rent allowable to the extent of only Rs.63,67,826/- 2. Whether on facts and circumstances of the case, the Ld. CIT(A) was justified in deleting addition made on account of corporate expenses to tune of Rs.3,29,00,000/-”

Ld. CIT-DR agrees to the submission of the assessee’s representative that the issue is covered by the order of I.T.A.T., Indore Bench dated 21.08.2018 in assessee’s own appeal in ITANo. 453/Ind/2017 for preceding Assessment Year 2014-15. In the said order the Tribunal has decided the identical issue in favour of the assessee with following observations and findings: 3. Aggrieved with the action of the AO, the assessee preferred an appeal before the ld. CIT(A), who, in view of the facts/submissions and following the relevant orders of the ld. CIT(A) and ITAT deleted the addition. Aggrieved with the action of the ld. CIT(A), the Revenue is in appeal before us.

Before us, the ld. CIT/D.R. relied on the order of the AO whereas the assessee has, relying on the order of the ld. CIT(A), reiterated the submissions made before ld. CIT(A) and submitted that issue is covered against the Revenue by the orders of ITAT. Ld. CIT/DR could not controvert the submission of the learned Counsel for the assessee by bringing any contrary material on record. 5. We have perused the orders of lower authorities and material available on record. We find that the issue is covered against the Revenue by the orders dated 27.7.2016 & 20.3.2017 (copies filed) wherein on the similar set of facts & circumstances in the Departmental appeals in assessee’s own case for A.Ys. 2012-13 & 2013-14 (ITA Nos 724/Ind/2015 & ITAT, Indore Bench has confirmed the finding of ld. CIT(A) deleting the addition made on account of profit of govt. account termed as ‘lease rent’ amounting to Rs.47,28,83,250/-. Even before us, the ld. CIT/DR could not controvert the finding recorded by ld. CIT(A) by bringing any cogent material on record. We, therefore, following above orders of ITAT, Indore Bench, confirm the order of the ld. CIT(A) on this issue. Thus, the departmental ground no.1 is dismissed.

In the result, the appeal of the Revenue is dismissed.