Provisions of Section 43B when revenue expenditure was not claimed in the earlier year

IN THE INCOME TAX APPELLATE TRIBUNAL
“A” BENCH, AHMEDABAD
(through web-based video conferencing platform)
BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT
AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER
ITA No. 1694/Ahd/2019 & CO No. 16/Ahd/2020
Assessment Years : 2013-14
DCIT,
Circle-2(1)(1),
Ahmedabad
Vs

M/s. Galaxy Global Pvt. Ltd.,
UGF 1-2, Riviera Arcade,
Nr. Prahladnagar Auda
Garden, Satellite Road,
Ahmedabad-380014
PAN : AACCG 1840 P

Revenue by : Shri S.S. Shukla, Sr DR
Assessee by : None

Date of Hearing : 28/09/2021

Date of Pronouncement: 04/10/2021

O R D E R

In response to the notice of hearing, no one has come present on behalf of the assessee. However, with the assistance of the learned Departmental Representative, we have gone through the record carefully and proceed to dispose of the appeal ex parte qua the assessee.

2. A perusal of the above would indicate that the assessee has paid custom duty which was allowable deduction of the assessee under Section 43B of the Act in the year of payment itself. However, the assessee was expecting certain special benefits as per Custom and Excise Rules; therefore, the assessee did not claim it in that year. Ultimately, those benefits were not given to the assessee and, in this year, he has written off the alleged customs duty receivable in the accounts and claimed it as revenue expenditure in the profit and loss account. We find that the learned First Appellate Authority has rightly adjudicated this issue after putting reliance upon the decision of the ITAT in the case of ACIT Vs. Rangoli Industries Pvt. Limited (Supra) and no interference is called for.

3. We have dismissed the appeal of the Revenue on merit. No one has come present on behalf of the assessee and no paper-book was filed in support of its Cross-Objection. The learned CIT(A) upheld the reopening of assessment by recording a well reasoned findings recorded at paragraph Nos. 2.3 to 2.5 of the impugned order. After going through the well reasoned findings, as recorded by the learned CIT(A), we do not find any merit in the Cross-Objection filed by the assessee and the reopening of the assessment is upheld. Accordingly, the Cross-Objection filed by the assessee is rejected.

4. In the result, the appeal filed by the Revenue and Cross-Objection filed by the assessee, both are dismissed.
Order pronounced in the Court on 4th October 2021 at Ahmedabad.

Please find attached the enclosed file for the full judgement