TMI Blog2015 (4) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... and was approved by the board of directors and ratified by the Joint Registrar of the Co-operative Societies, Government of Karnataka. The expenditure incurred did not bring into existence any capital asset to the assessee. We find that the said grant has been given by the assessee to milk producers' co-operative societies in order to put up a building to facilitate the collection of milk and testing it. The milk so collected is handed over to the assessee-society. In this context it helps the assessee to carry out its business objects more effectively and hence the Commissioner of Income-tax (Appeals) has rightly held that the expenditure of ₹ 5 lakhs is deductible as revenue expenditure. Therefore, we uphold the Commissioner of Income-tax (Appeals) order. - Decided against revenue. - ITA No.1059/Bang/2012 - - - Dated:- 25-10-2013 - Shri George George K. Shri Jason P. Boaz, JJ. For the Appellant : Shri L.V.Bhaskara Reddy, DR For the Respondent : Shri V. Srinivasan, CA ORDER George George K. (Judicial Member).- This appeal at the instance of the Revenue is directed against the Commissioner of Income-tax (Appeals)'s order dated June 20, 2012 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Act by the assessee, the Assessing Officer directed the assessee to file the copies of the statement showing the details of TDS affected. Accordingly, the assessee filed a statement showing the expenditures under various heads together with the TDS made thereon. The details as per the statement (TDS quarterly returns) are as under : S. No. Nature of payment Amount (Rs.) TDS (Rs.) 1 Truck hire PTC/DTC 4,14,89,034 9,29,842 2 Car hire charges 15,89,645 33,058 3 Tanker hire charges 97,01,794 2,19,843 4 LN2 hire charges 3,31,478 7,512 5 Cattle feed transportation charges 78,70,281 1,78,341 6 Contract and security service charges 86,16,726 1,95,256 7 Others 1,36,80,6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the profit and loss account. It was submitted that this was due to the fact that various expenditures debited in the profit and loss account of the assessee-company, regrouped and re-arranged for convenience, for the purpose of filing quarterly return. Further it was submitted that the same expenditure debited in the profit and loss account, when split into partywise payments, were found to be not liable for TDS as they fell below the maximum amount not liable for TDS. It was contended that after filing of appeal, the assessee did reconciled the figures in quarterly returns with the expenditure debited in the profit and loss account. It was submitted in the last quarterly return for January 1, 2008 to March 31, 2008, the TDS effect in the name of Dharwad Milk Union Ltd. was wrongly entered in the gross value at ₹ 3,22,536 instead a figure of ₹ 1,56,57,082 and same was rectified by filing a revised TDS return dated January 28, 2011. 3.5. The Commissioner of Income-tax (Appeals) taking note of copies of the original and the revised TDS (26 Q4 form) allowed the appeal of the assessee and deleted the additions made under section 40(a)(ia) amounting to ₹ 1,59, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed a reasonable opportunity to examine the evidence or document or to cross examine the witness produced by the assessee or to produce any evidence or document or any witness in rebuttal of the additional evidence produced by the assessee. 3.8.1. In the instant case the Commissioner of Income-tax (Appeals) has deleted the additions made by the Assessing Officer by admitting fresh evidence namely the revised TDS return wherein the figures have been reconciled with the expenditure debited in the profit and loss account. The revised TDS return in Form 26Q4 was filed much subsequent to the completion of the assessment order, therefore, the Assessing Officer did not have an opportunity/occasion to examine the same. In the interest of justice and equity, we are of the view that opportunity should be granted to the Assessing Officer to examine the evidence filed by the assessee in the course of appellate proceedings. Therefore, the issue of disallowance of expenditure under section 40(a)(ia) is restored to the Assessing Officer. He shall dispose of the matter in accordance with the law as expeditiously as possible, after allowing a reasonable opportunity of being heard to the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income-tax (Appeals). 4.5. We have heard the rival submission and perused the material on record. The grant of ₹ 10,000 to each of the 50 milk producing co-operative societies was given by the assessee-society for the purpose of constructing their own building for milk collection and testing. The payment was permitted as per the byelaws of the society and was approved by the board of directors and ratified by the Joint Registrar of the Co-operative Societies, Government of Karnataka. The expenditure incurred did not bring into existence any capital asset to the assessee. We find that the said grant has been given by the assessee to milk producers' co-operative societies in order to put up a building to facilitate the collection of milk and testing it. The milk so collected is handed over to the assessee-society. In this context it helps the assessee to carry out its business objects more effectively and hence the Commissioner of Income-tax (Appeals) has rightly held that the expenditure of ₹ 5 lakhs is deductible as revenue expenditure. Therefore, we uphold the Commissioner of Income-tax (Appeals) order. In the result, ground No.5 raised by the R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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