ACIT, New Delhi Vs Indian Farmer Fertilisers Co- op Ltd. (ITAT Delhi)- From the tax audit report, we also find that amount of Rs. 13,03,74,047/- has been shown as paid on or before due date for furnishing return of income for the previous year u/s 139(1) of the Act. Form 3CD has been prepared and signed by Rajnish & Associates, CA. The accounts of the assessee have been audited by statutory auditors. The assessee had filed the details of payment of Rs. 13,03,74,047/-. The assessee is entitled for deduction u/s 43B of the Act in respect of amount of Rs. 13,03,74,047/-. Accordingly, we do not find any infirmity in the order passed by the CIT(A) deleting the addition made u/s 43B of the Act.
Business expenditure and Principle of consistency – Assessee is entitled to deduction u/s. 37 for provision for contribution of administrative expenses of Coop. Education fund as per Multi State Co-operative Society as in the preceding years, the AO itself allowed such claim and without any material change it cannot be rejected.
Expenses cannot be disallowed @ 100% of the exempted income earned and the dis-allowance was rightly restricted as per Rule 8D.
ACIT Vs Indian Farmer Fertilisers Coop Ltd
Decided by – ITAT Delhi
ITA Nos. 3350/Del/2009
and 1194/Del/2011
AYs- 2005– 2006
and 2006–2007
Decided on: 31 May 2011.
ORDER
PER K.D. RAJNAN, AM
These appeals by the Revenue for assessment years 2005- 06 & 06- 07 arise from separate order of CIT(A)-XXII, New Delhi. These appeals were heard together and for the sake of convenience are disposed of by this common order.
I.T.A. No. 1194/Del./201 1
2. The first issue for consideration relates to deleting the addition of Rs 13,03,74,047/- made u/s 43B of the Act. The facts of the case stated in brief are that the AO from tax audit report found that a sum of Rs. 23,98,96,527/- has been shown payable as on 31.03.06. The tax audit report also stated that a sum of Rs. 13,03,74,047/- on account of payments of these liabilities had been added back and the balance amount of Rs. 10,95,22,480/-. The assessee was required to produce evidence for payment of liabilities. However, since assessee did not file any evidence, he disallowed the amount of Rs. 13,03,74,047/- u/s 43B of the Act.
