Case Law Details
M/s. Alladi Drilling Equipments Private Limited Vs. DCIT (ITAT Hyderabad)
In all the impugned years, AO made the addition of Rs. 10,00,000/- based on the show cause notice that assessee has paid an amount of Rs. 10 Lakhs by way of cash. As seen from the show cause notice, Central Excise Authorities have quantified the tax payable in para 40.1 & 40.2 and in para 40.3, they have given credit for Rs. 10 Lakhs paid vide TR-6 Challan dt. 23-09-2011 towards Central Excise Duty. It was the submission before the Ld.CIT(A) that this amount was paid by way of cheque and that date of payment is relevant for AY. 2012-13, which is outside the impugned assessment years. There was no other cash payment in any of the impugned assessment years. But Ld.CIT(A), without examining the facts, confirmed the addition only on the reason that assessee paid the amount in cash.
We are unable to approve the findings of Ld. CIT(A). Whether the payment is in cash or by way of cheque, the Central Excise amount paid would be eligible for deduction, out of the receipts of the business concern. This amount of Rs. 10 Lakhs in para 40.3 clearly state to have been paid on 23-09-2011, which is outside the four impugned assessment years, more so pertaining to AY. 2012-13. Why AO brought this amount to tax in all the assessment years is not understandable. We have perused the show cause notice. There is only one payment determined by the Excise Authorities and accordingly, we are of the opinion that addition of Rs. 10 Lakhs in each of the assessment years is not correct. Therefore, assessee’s grounds on this issue are allowed. AO is directed to delete the amounts. The same can be considered in AY. 2012-13, if required as per the provisions of the Act.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
These are cross-appeals by Assessee and Revenue against the common order of the Commissioner of Income Tax (Appeals)-1, Hyderabad, dated 04-03-2016. Since common issue is involved in all the assessment years, these appeals are heard together and disposed of by this order. Cross-Objections are by assessee in support of the order of CIT(A), the issue on which assessee has got relief.
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