Bharat Commerce Industries Ltd. v. CIT

230 ITR 733Supreme Court of India1998#790 most cited

What is Bharat Commerce Industries Ltd. v. CIT authority for?

The Supreme Court holds that interest paid under Section 201(1A) of the Income-tax Act, for failure to deduct tax at source, is not an allowable business expenditure under Section 37(1) of the Act.

130

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2012 to 2026.

Also referred to as

Bharat Commerce Industries Ltd. v. CIT · 230 ITR 733 SC · Section 37(1) · Section 201(1A) · deductibility of interest · interest on TDS default · not allowable business expenditure · interest on statutory dues · disallowance of interest · interest for failure to deduct tax

Sections most often in play

Section 37(1)Section 143(3)Section 201(1A)Section 36(1)(viii)Section 69CSection 90(3)Section 37Section 132
Read the full judgment

Issues it is cited on

section 215section 2(43)section 40(a)(ii)interest under section 201(1a)section 221intra group servicessection 201(1a)section 2(28a)explanation to section 37section 21statutory duesfar analysis

Judgments citing Bharat Commerce Industries Ltd. v. CIT

M/S. Sahyog Homes Ltd, Mumbai vs. ACIT -11(1) (2), Mumbai

In the result, all the appeals are partly allowed

ITA 1920/MUM/2021[2012-13]Status: DisposedITAT Mumbai23 Dec 2022AY 2012-13

Bench: Shri Kuldip Singh () & Shri Rifaur Rahman (

Section 143(3)Section 37(1)Section 40

…made by the Assessing Officer in view of the Explanation to section 37(1) on the ground that the same was not made for the purpose of business and relied upon the decision rendered by Hon’ble Supreme Court in case of Bharat Commerce & Industries vs CIT (1998) 230 ITR 733 (SC). Ld.CIT(A) also relied upon decision rendered by Hon’ble Bombay High Court in case of Ferro Alloys Ltd vs. CIT 196 ITR 406(Bom) and Hon’ble Calcutta High Court in case of Martin & Harris Pvt Ltd vs CIT 73 taxmann 555(Cal) by returning following findings:- “6.4 It was submitted by the appellant that interest paid on Professional tax is compe…

M/S. Sahyog Homes Ltd, Mumbai vs. DCIT Cent. Cir 6(2), Mumbai

In the result, all the appeals are partly allowed

ITA 1919/MUM/2021[2012-13]Status: DisposedITAT Mumbai23 Dec 2022AY 2012-13

Bench: Shri Kuldip Singh () & Shri Rifaur Rahman (

Section 143(3)Section 37(1)Section 40

…made by the Assessing Officer in view of the Explanation to section 37(1) on the ground that the same was not made for the purpose of business and relied upon the decision rendered by Hon’ble Supreme Court in case of Bharat Commerce & Industries vs CIT (1998) 230 ITR 733 (SC). Ld.CIT(A) also relied upon decision rendered by Hon’ble Bombay High Court in case of Ferro Alloys Ltd vs. CIT 196 ITR 406(Bom) and Hon’ble Calcutta High Court in case of Martin & Harris Pvt Ltd vs CIT 73 taxmann 555(Cal) by returning following findings:- “6.4 It was submitted by the appellant that interest paid on Professional tax is compe…

M/S. Sahyog Homes Ltd, Mumbai vs. DCIT (A) -8(3), Mumbai

In the result, all the appeals are partly allowed

ITA 1918/MUM/2021[2011-12]Status: DisposedITAT Mumbai23 Dec 2022AY 2011-12

Bench: Shri Kuldip Singh () & Shri Rifaur Rahman (

Section 143(3)Section 37(1)Section 40

…made by the Assessing Officer in view of the Explanation to section 37(1) on the ground that the same was not made for the purpose of business and relied upon the decision rendered by Hon’ble Supreme Court in case of Bharat Commerce & Industries vs CIT (1998) 230 ITR 733 (SC). Ld.CIT(A) also relied upon decision rendered by Hon’ble Bombay High Court in case of Ferro Alloys Ltd vs. CIT 196 ITR 406(Bom) and Hon’ble Calcutta High Court in case of Martin & Harris Pvt Ltd vs CIT 73 taxmann 555(Cal) by returning following findings:- “6.4 It was submitted by the appellant that interest paid on Professional tax is compe…

Air India Ltd, Mumbai vs. DCIT 5(1), Mumbai

In the result, the appeals filed by the assessee are partly allowed for statistical purposes and the appeals filed by the revenue are dismissed

ITA 4467/MUM/2018[2010-11]Status: DisposedITAT Mumbai13 Dec 2022AY 2010-11

Bench: Shri Baskaran Br, Accountat Member & Shri Pavan Kumar Gadaleita No. 4467, 4518 & 4544/Mum/2018 (A.Y: 2010-11, 2011-12 & 2012-13)

For Appellant: Shri Madhur Agrawal.ARFor Respondent: Smt Sailaja Rai, CIT DR
Section 143(2)Section 14ASection 250Section 44A

…the assessee. Thus any delay in the payment of TDS by the assessee cannot be linked to the income tax of the assessee and consequently the principles laid down by the Hon’ble Apex Court in the case of Bharat Commerce Industries Ltd. Vs. CIT (1998) reported in 230 ITR 733 cannot be applied to the case on hand. Thus, in our considered view, the principle laid down by the Hon'ble Supreme Court in the case of Bharat Commerce Industries Ltd. (supra) is not applicable in the instant facts of the case. Thus, we hold that the Assessing Officer in the instant case has wrongly applied the principle laid down by the Hon'ble…

Air India Ltd, Mumbai vs. DCIT 5(1)(1), Mumbai

In the result, the appeals filed by the assessee are partly allowed for statistical purposes and the appeals filed by the revenue are dismissed

ITA 4544/MUM/2018[2012-13]Status: DisposedITAT Mumbai07 Dec 2022AY 2012-13

Bench: Shri Baskaran Br, Accountat Member & Shri Pavan Kumar Gadaleita No. 4467, 4518 & 4544/Mum/2018 (A.Y: 2010-11, 2011-12 & 2012-13)

For Appellant: Shri Madhur Agrawal.ARFor Respondent: Smt Sailaja Rai, CIT DR
Section 143(2)Section 14ASection 250Section 44A

…the assessee. Thus any delay in the payment of TDS by the assessee cannot be linked to the income tax of the assessee and consequently the principles laid down by the Hon’ble Apex Court in the case of Bharat Commerce Industries Ltd. Vs. CIT (1998) reported in 230 ITR 733 cannot be applied to the case on hand. Thus, in our considered view, the principle laid down by the Hon'ble Supreme Court in the case of Bharat Commerce Industries Ltd. (supra) is not applicable in the instant facts of the case. Thus, we hold that the Assessing Officer in the instant case has wrongly applied the principle laid down by the Hon'ble…

Air India Ltd, Mumbai vs. DCIT 5(1), Mumbai

In the result, the appeals filed by the assessee are partly allowed for statistical purposes and the appeals filed by the revenue are dismissed

ITA 4518/MUM/2018[2011-12]Status: DisposedITAT Mumbai07 Dec 2022AY 2011-12

Bench: Shri Baskaran Br, Accountat Member & Shri Pavan Kumar Gadaleita No. 4467, 4518 & 4544/Mum/2018 (A.Y: 2010-11, 2011-12 & 2012-13)

For Appellant: Shri Madhur Agrawal.ARFor Respondent: Smt Sailaja Rai, CIT DR
Section 143(2)Section 14ASection 250Section 44A

…the assessee. Thus any delay in the payment of TDS by the assessee cannot be linked to the income tax of the assessee and consequently the principles laid down by the Hon’ble Apex Court in the case of Bharat Commerce Industries Ltd. Vs. CIT (1998) reported in 230 ITR 733 cannot be applied to the case on hand. Thus, in our considered view, the principle laid down by the Hon'ble Supreme Court in the case of Bharat Commerce Industries Ltd. (supra) is not applicable in the instant facts of the case. Thus, we hold that the Assessing Officer in the instant case has wrongly applied the principle laid down by the Hon'ble…

DCIT 5(1)(1), Mumbai vs. Air India Ltd, Mumbai

In the result, the appeals filed by the assessee are partly allowed for statistical purposes and the appeals filed by the revenue are dismissed

ITA 4486/MUM/2018[2010-11]Status: DisposedITAT Mumbai07 Dec 2022AY 2010-11

Bench: Shri Baskaran Br, Accountat Member & Shri Pavan Kumar Gadaleita No. 4467, 4518 & 4544/Mum/2018 (A.Y: 2010-11, 2011-12 & 2012-13)

For Appellant: Shri Madhur Agrawal.ARFor Respondent: Smt Sailaja Rai, CIT DR
Section 143(2)Section 14ASection 250Section 44A

…the assessee. Thus any delay in the payment of TDS by the assessee cannot be linked to the income tax of the assessee and consequently the principles laid down by the Hon’ble Apex Court in the case of Bharat Commerce Industries Ltd. Vs. CIT (1998) reported in 230 ITR 733 cannot be applied to the case on hand. Thus, in our considered view, the principle laid down by the Hon'ble Supreme Court in the case of Bharat Commerce Industries Ltd. (supra) is not applicable in the instant facts of the case. Thus, we hold that the Assessing Officer in the instant case has wrongly applied the principle laid down by the Hon'ble…

DCIT 5(1)(1), Mumbai vs. Air India Ltd, Mumbai

In the result, the appeals filed by the assessee are partly allowed for statistical purposes and the appeals filed by the revenue are dismissed

ITA 4485/MUM/2018[2011-12]Status: DisposedITAT Mumbai07 Dec 2022AY 2011-12

Bench: Shri Baskaran Br, Accountat Member & Shri Pavan Kumar Gadaleita No. 4467, 4518 & 4544/Mum/2018 (A.Y: 2010-11, 2011-12 & 2012-13)

For Appellant: Shri Madhur Agrawal.ARFor Respondent: Smt Sailaja Rai, CIT DR
Section 143(2)Section 14ASection 250Section 44A

…the assessee. Thus any delay in the payment of TDS by the assessee cannot be linked to the income tax of the assessee and consequently the principles laid down by the Hon’ble Apex Court in the case of Bharat Commerce Industries Ltd. Vs. CIT (1998) reported in 230 ITR 733 cannot be applied to the case on hand. Thus, in our considered view, the principle laid down by the Hon'ble Supreme Court in the case of Bharat Commerce Industries Ltd. (supra) is not applicable in the instant facts of the case. Thus, we hold that the Assessing Officer in the instant case has wrongly applied the principle laid down by the Hon'ble…

M/S Dell International Services India Private Limited, Bangalore vs. Joint Commissioner of Income Tax Ltu, Bangalore

In the result, the appeals of the assessee and the revenue are partly allowed

ITA 932/BANG/2017[2012-13]Status: DisposedITAT Bangalore14 Nov 2022AY 2012-13

Bench: Smt. Beena Pillai & Ms. Padmavathy Sit(Tp)A No.844/Bang/2017 Assessment Year : 2012-13 The Joint Vs. M/S.Dell International Services India Commissioner Of Private Limited, Income Tax, Ltu, (For The Merged Entity Dell India Bangalore. Private Limited), No.12/1, 12/2A, 13/1A, Divyashree Gardens, Challagutta Village, Varthur Hobli, Bangalore – 560 071. Pan : Aaach1925Q Appellant Respondent It(Tp)A No.932/Bang/2017 Assessment Year : 2012-13 M/S.Dell International Services Vs. The Joint Commissioner India Private Limited, Of Income Tax, Ltu, (For The Merged Entity Dell India Bangalore. Private Limited), Bangalore – 560 071. Pan : Aaach1925Q Appellant Respondent Revenue By : Shri Manjunath Karkihalli, Cit(Dr)(Itat), Bengaluru. Assessee By : Shri T. Suryanarayana, Advocate Date Of Hearing : 07.11.2022 Date Of Pronouncement : 14.11.2022

For Appellant: Shri T. Suryanarayana, AdvocateFor Respondent: Shri
Section 143(2)Section 92C

…s not an item of expenditure. The amount not deducted and remitted has the character of tax and has to be remitted to the State and cannot be utilised by the assessee for its own business. The Supreme Court in the case of Bharat Commerce and Industries [1998] 230 ITR 733, rejected the argument advanced by the assessee that retention of money payable to the State as tax or income-tax would augment the IT(TP)A Nos.844 & 932/Bang/2017 Page 50 of 53 capital of the assessee and the expenditure incurred, namely, interest paid for the period of such retention would assume character of business expenditure. The court he…

Joint Commissioner of Income Tax (Ltu), Bangalore vs. M/S Dell International Services India Private Limited, Bangalore

In the result, the appeals of the assessee and the revenue are partly allowed

ITA 844/BANG/2017[2012-13]Status: DisposedITAT Bangalore14 Nov 2022AY 2012-13

Bench: Smt. Beena Pillai & Ms. Padmavathy Sit(Tp)A No.844/Bang/2017 Assessment Year : 2012-13 The Joint Vs. M/S.Dell International Services India Commissioner Of Private Limited, Income Tax, Ltu, (For The Merged Entity Dell India Bangalore. Private Limited), No.12/1, 12/2A, 13/1A, Divyashree Gardens, Challagutta Village, Varthur Hobli, Bangalore – 560 071. Pan : Aaach1925Q Appellant Respondent It(Tp)A No.932/Bang/2017 Assessment Year : 2012-13 M/S.Dell International Services Vs. The Joint Commissioner India Private Limited, Of Income Tax, Ltu, (For The Merged Entity Dell India Bangalore. Private Limited), Bangalore – 560 071. Pan : Aaach1925Q Appellant Respondent Revenue By : Shri Manjunath Karkihalli, Cit(Dr)(Itat), Bengaluru. Assessee By : Shri T. Suryanarayana, Advocate Date Of Hearing : 07.11.2022 Date Of Pronouncement : 14.11.2022

For Appellant: Shri T. Suryanarayana, AdvocateFor Respondent: Shri
Section 143(2)Section 92C

…s not an item of expenditure. The amount not deducted and remitted has the character of tax and has to be remitted to the State and cannot be utilised by the assessee for its own business. The Supreme Court in the case of Bharat Commerce and Industries [1998] 230 ITR 733, rejected the argument advanced by the assessee that retention of money payable to the State as tax or income-tax would augment the IT(TP)A Nos.844 & 932/Bang/2017 Page 50 of 53 capital of the assessee and the expenditure incurred, namely, interest paid for the period of such retention would assume character of business expenditure. The court he…

M/S Bhandari Health Care Pvt. Ltd., Jaipur vs. Income Tax Officer, Ward-6-3, Jaipur

ITA 689/JPR/2018[2014-15]Status: DisposedITAT Jaipur24 Aug 2022AY 2014-15
For Appellant: Sh. Sandeep JhanwarFor Respondent: Sh. Prathviraj Meena (CIT)
Section 143(3)Section 40Section 43B

…the assessee. Thus any delay in the payment of TDS by the assessee cannot be linked to the income tax of the assessee and consequently the principles laid down by the Hon'ble Apex Court in the case of Bharat Commerce Industries Ltd. v. CIT (1998) reported in 230 ITR 733 cannot be applied to the case on hand.' 6. Being consistent with the above decision of the co-ordinate bench, we hold that the interest paid on delayed payment of TDS u/s 201(1A) is an allowable deduction. We direct accordingly. Assessee succeeds in its appeal. Respectfully following with the said findings of the co-ordinate bench decision we a…

M/S Bhandari Health Care Pvt. Ltd., Jaipur vs. Assistant Commissioner of Income Tax, Circle-6, Jaipur

ITA 688/JPR/2018[2013-14]Status: DisposedITAT Jaipur24 Aug 2022AY 2013-14
For Appellant: Sh. Sandeep JhanwarFor Respondent: Sh. Prathviraj Meena (CIT)
Section 143(3)Section 40Section 43B

…the assessee. Thus any delay in the payment of TDS by the assessee cannot be linked to the income tax of the assessee and consequently the principles laid down by the Hon'ble Apex Court in the case of Bharat Commerce Industries Ltd. v. CIT (1998) reported in 230 ITR 733 cannot be applied to the case on hand.' 6. Being consistent with the above decision of the co-ordinate bench, we hold that the interest paid on delayed payment of TDS u/s 201(1A) is an allowable deduction. We direct accordingly. Assessee succeeds in its appeal. Respectfully following with the said findings of the co-ordinate bench decision we a…

Expat Engineering India Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-2(1)(1), Bangalore

In the result, the appeal by the assessee is partly allowed

ITA 503/BANG/2022[2017-18]Status: DisposedITAT Bangalore01 Aug 2022AY 2017-18

Bench: Shri N.V. Vasudevan, Vice Preseident & Shri Padmavathy S

For Appellant: Shri Rajgopal, CAFor Respondent: Smt. Priyadarshini Baseganni
Section 139Section 139(1)Section 143(3)Section 2(24)(x)Section 36Section 43B

…ons operate in different fields, the former is an enabling provision while the latter is a disabling provision. 14. The question directly arose for consideration before the Hon’ble Supreme Court in the case of Bharat Commerce and Industries Ltd. v. CIT [1998] 230 ITR 733 and the question that was considered by the Hon’ble Supreme Court in that case was whether payments required to be made by way of income-tax 'under the Income-tax Act are not SP No.31/Bang/2022 & ITA No.503/Bang/2022 Page 10 of 23 deductible as expenditure and the further amounts which a person may be required to pay by a reason of failure to com…

M/S J.C.Sharma & Sons, Bhopal vs. Pr CIT -1, Bhopal

In the result, appeal of assessee is allowed

ITA 139/IND/2021[2016-17]Status: DisposedITAT Indore21 Jul 2022AY 2016-17

Bench: Shri Mahavir Prasad & Shri B.M. Biyani

Section 143(3)Section 163Section 263Section 37Section 37(1)

…he interest on TDS of Rs.14,221/- is not allowable u/s 37(1) of the Act but the second component i.e. the interest on indirect-taxes of Rs. 1,86,840/- is allowable u/s 37(1) because of the decision of Hon’ble Supreme Court in Bharat Commerce & Industries Ltd. 230 ITR 733. Ld. AR submitted that having examined the nature of components comprised in the said interest of Rs. 2,01,061/-, the Ld. AO has rightly made a disallowance of Rs. 14,221/- and refrained from making disallowance of remaining sum of Rs. 1,86,840/- and hence there is no fault on the part of Ld. AO in making necessary enquiries with regard to the cl…

M/S Total Environment Building Systems Private Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-7(1)(1), Bangalore

In the result, revenue’s appeal stands dismissed and the assessee’s appeals for A

ITA 46/BANG/2017[2011-12]Status: DisposedITAT Bangalore29 Jun 2022AY 2011-12

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Respondent: Shri Vilas V Shinde, CIT DR
Section 250Section 37Section 40Section 43B

…the assessee. Thus any delay in the payment of TDS by the assessee cannot be linked to the income tax of the assessee and consequently the principles laid down by the Hon'ble Apex Court in the case of Bharat Commerce Industries Ltd. v. CIT (1998) reported in 230 ITR 733 cannot be applied to the case on hand.' 6. Being consistent with the above decision of the co- ordinate bench, we hold that the interest paid on delayed payment of TDS u/s 201(1A) is an allowable deduction. We direct accordingly. Assessee succeeds in its appeal.” 16.2 Respectfully following the same we direct the Ld.AO to delete the disallowance…

Total Environment Building Systems Private Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-7(1)(1), Bangalore

In the result, revenue’s appeal stands dismissed and the assessee’s appeals for A

ITA 45/BANG/2017[2010-11]Status: DisposedITAT Bangalore29 Jun 2022AY 2010-11

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Respondent: Shri Vilas V Shinde, CIT DR
Section 250Section 37Section 40Section 43B

…the assessee. Thus any delay in the payment of TDS by the assessee cannot be linked to the income tax of the assessee and consequently the principles laid down by the Hon'ble Apex Court in the case of Bharat Commerce Industries Ltd. v. CIT (1998) reported in 230 ITR 733 cannot be applied to the case on hand.' 6. Being consistent with the above decision of the co- ordinate bench, we hold that the interest paid on delayed payment of TDS u/s 201(1A) is an allowable deduction. We direct accordingly. Assessee succeeds in its appeal.” 16.2 Respectfully following the same we direct the Ld.AO to delete the disallowance…

Deputy Commissioner of Income Tax Circle-7(1)(1), Bangalore vs. M/S Total Environment Building Systems Pvt Ltd, Bangalore

In the result, revenue’s appeal stands dismissed and the assessee’s appeals for A

ITA 40/BANG/2017[2010-11]Status: DisposedITAT Bangalore29 Jun 2022AY 2010-11

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Respondent: Shri Vilas V Shinde, CIT DR
Section 250Section 37Section 40Section 43B

…the assessee. Thus any delay in the payment of TDS by the assessee cannot be linked to the income tax of the assessee and consequently the principles laid down by the Hon'ble Apex Court in the case of Bharat Commerce Industries Ltd. v. CIT (1998) reported in 230 ITR 733 cannot be applied to the case on hand.' 6. Being consistent with the above decision of the co- ordinate bench, we hold that the interest paid on delayed payment of TDS u/s 201(1A) is an allowable deduction. We direct accordingly. Assessee succeeds in its appeal.” 16.2 Respectfully following the same we direct the Ld.AO to delete the disallowance…

M/S Bhopal Dugdh Sangh Sahakari My.Dairy Plant, Bhopal vs. DCIT -1 (1), Bhopal

In the result, the appeal of assessee is partly allowed for statistical purposes

ITA 128/IND/2020[2012-13]Status: DisposedITAT Indore28 Jun 2022AY 2012-13

Bench: Shri Mahavir Prasad & Shri B.M. Biyani

For Appellant: Shri Ashish Goyal & N.D. Patva, ARsFor Respondent: Shri Amit Soni, Sr. D.R
Section 143(3)

…Hon’ble Apex Court in Lachmandas Mathura Vs. CIT 254 ITR 799 wherein the deduction of interest on late payment of sales-tax was allowed as business deduction, as compared to the decision of Hon’ble Apex Court in Bharat Commerce Industries Ltd. Vs. CIT (1998) 230 ITR 733 wherein the deduction of interest on late payment of income-tax was disallowed. The Hon’ble ITAT observed that the principle laid down in Lachmandas Mathura Vs. CIT reported in 254 ITR 799 can be applied to the interest expenses levied on account of delayed payment of TDS as the assessee deducts TDS out of the specified expenses and the TDS so de…

Welkin Telecom Infra Pvt. Ltd, Kolkata vs. DCIT, Cir.11(1), Kolkata

In the result, appeal of the assessee is partly allowed

ITA 12/KOL/2021[2014-15]Status: DisposedITAT Kolkata18 Apr 2022AY 2014-15

Bench: Shri A. T. Varkey, Jm & Shri Rjesh Kumar, Am ]

Section 143(1)Section 143(2)Section 69C

…e-tax’ of the assessee or ‘tax levied on its profits and gain of business’ and therefore the TDS component paid on the expenditure is not disallowable u/s 40(a)(ii) of the Act. The Hon’ble Supreme Court in the case of Bharat Commerce & Industries Ltd. v. CIT (230 ITR 733), has held that if the income-tax is to be disallowed, then the consequent interest thereon should also be disallowed. The relevant observations are as follows: “If income-tax itself is not a permissible deduction under section 37, any interest payable for default committed by the assessee in discharging his statutory obligation under the Act, w…

M/S Resoive & Fire India Pvt. Ltd, Mumbai vs. DCIT 14 (3)(1), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 841/MUM/2019[2015-16]Status: DisposedITAT Mumbai18 Apr 2022AY 2015-16

Bench: Shri S.Rifaur Rahman () & Shri Amarjit Singh ()

Section 201Section 206C(7)Section 215Section 220(2)

…the assessee. Thus any delay in the payment of TDS by the assessee cannot be linked to the income tax of the assessee and consequently the principles laid down by the Hon'ble Apex Court in the case of Bharat Commerce Industries Ltd. Vs. CIT (1998) reported in 230 ITR 733 cannot be applied to the case on hand.” 7 ITA 841/Mum/2019 6. Being consistent with the above decision of the co-ordinate bench, we hold that the interest paid on delayed payment of TDS u/s 201(1A) is an allowable deduction. We direct accordingly. Assessee succeeds in its appeal. 7. In the result, appeal filed by the assessee is allowed. Order…