Joint Commissioner of Income Tax (LTU) , Bangalore M/s Teaxas Instruments (India) Pvt Ltd , Bangalore

This case involves an appeal by the Joint Commissioner of Income Tax against an order by the CIT(A) concerning Texas Instruments (India) Pvt. Ltd. The core issue is the deletion of an addition of Rs 5,53,30,473 made by the Assessing Officer (AO) under Section 40(a)(i) of the Income Tax Act for the assessment year 2007-08. The AO had disallowed this amount after the assessee provided evidence for only a portion of a previously disallowed sum.

IN THE INCOME TAX APPELLATE TRIBUNAL
“C’’ BENCH: BANGALORE

BEFORE SHRI GEORGE GEORGE K., JUDICIAL MEMBER
AND
SHRI B.R. BASKARAN, ACCOUNTANT MEMBER

ITA No.1958/Bang/2018
Assessment Year: 2007-08

JCIT(LTU)
Bangalore 
APPELLANT 

Vs.

M/s. Texas Instruments (India) Pvt. Ltd.
Bgmane Tech Park
No.66/3, Adjacent to LRDE
C.V Raman Nagar Post
Byrasandra
Bangalore-560 093
PAN NO : AAACT5445M
RESPONDENT

Appellant by : Smt. R. Premi, D.R.
Respondent by : Shri Sharath Rao, A.R.

Date of Hearing : 15.12.2020
Date of Pronouncement : 16.12.2020

O R D E R

PER B.R. BASKARAN, ACCOUNTANT MEMBER:

The revenue has filed this appeal challenging the order dated 30-03-2018 passed by Ld CIT(A)-2, Bengaluru and it relates to the assessment year 2007-08. The only issue urged by the revenue is whether the Ld CIT(A) was justified in deleting the addition of Rs.5,53,30,473/- made by the AO u/s 40(a)(i) of the Income-tax Act,1961 ['the Act' for short].

2. The facts relating to the issue are discussed in brief. The original assessment for the year under consideration was completed by the AO on 26-08-2011 u/s 143(3) r.w.s. 144C of the Act. The above said assessment order was revised by Ld CIT (LTU) u/s 263 of the Act and hence the AO passed re-assessment order u/s 143(3) r.w.s 263 of the Act. The issue under dispute relates to the addition of Rs.5,53,30,473/- made by the AO.

3. The Ld CIT (LTU) noticed that the assessee had disallowed a sum of Rs.24,77,29,455/- in the earlier year u/s 40(a)(i)/(ia) of the Act, but claimed the above said amount fully as deduction during the year under consideration. The Ld CIT took the view that the assessee is required to substantiate the said claim with evidences. He noticed that the AO has not properly examined the above said claim made by the assessee in the original assessment proceedings. Accordingly, the Ld CIT (LTU) revised the assessment order and restored the matter to the file of AO for examining it afresh. In the set aside proceedings, the AO observed that the assessee has furnished evidences to the tune of Rs.19,23,98,982/- only. Accordingly, he disallowed the balance amount of Rs.5,53,30,473/- and added the same to the total income of the assessee.

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