ITD Cementation India Ltd. v. DCIT

Case Laws Analysis
REFERRED Dy. CIT v. Total Oil India (P) Ltd. 2023 TaxPub(DT) 2480 (Mum-Trib)
REFERRED Checkmate Services (P) Ltd v CIT 2022 TaxPub(DT) 6647 (SC)
REFERRED Goetze (India) Ltd. v. CIT 2006 TaxPub(DT) 1528 (SC)

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The Tax Publishers2024 TaxPub(DT) 999 (Mum-Trib) IN THE ITAT MUMBAI BENCH VIKAS AWASTHY, J.M. & PRASHANT MAHARISHI, AM ITD Cementation India Ltd. v. DCIT ITA No. 1401/Mum/2023 22 February, 2024 Assessee by: Vijay Mehta, AR Revenue by: Ramkrishna Bandi, CIT DR ORDER *Prashant Maharishi, A.M.* ITA No. 1401/Mum/2023, is filed by ITD Cementation India Ltd., (Assessee/Appellant) against the appellate order passed by The Commissioner of Income-tax (Appeals)-53, Mumbai, (the learned Commissioner (Appeals)) for assessment year 2018-19 dated 2-3-2023, wherein the appeal filed by the assessee against the assessment order passed by the National e-assessment Centre ( the learned assessing officer) dated 23-4-2021, under section 143(3) read with section 144B of the Income-tax Act, 1961 (the Act), was partly allowed. Therefore, the assessee is aggrieved and is in appeal before us. 2. The assessee has raised following grounds of appeal:- 1. The Hon'ble Commissioner of Income tax (Appeals) -53 ('Hon'ble CIT(A)-53') has erred in upholding the disallowance made by the learned assessing office ('learned assessing officer') of the deduction claimed under section 80-IA of the Act amounting to Rs. 2,75,52,02,630 in respect of the contracts entered with non- government entities without appreciating the fact that the said contract is originally awarded by the government to these parties. 2. The Hon'ble Commissioner (Appeals)-53 has erred in partly upholding the disallowance made by the learned assessing officer of the deduction claimed under section 80-1A of the Act amounting to Rs. 2,83,68,967 in respect of the contracts awarded by Government or local or statutory authorities for developing and/or operating and/or maintaining a new infrastructure facility. 3. The Hon'ble Commissioner (Appeals)-53 has erred in confirming the action of the learned assessing officer in disallowing Rs. 1,97,740 under section 36(1)(va) of the Act in respect of delay in depositing contribution received from employees to the employee's contribution fund after the due date under respective Act but before due date of filing return of income. 4. The Hon'ble Commissioner (Appeals)-53 has erred in confirming the action of the learned assessing officer in not restricting the levy of the dividend distributed tax on the dividend distributed/paid to the Appellant's holding company to 15% in terms of article 10-Dividends of the Double Taxation Avoidance Agreement (DTAA) between India and Thailand instead of 20.360% levied in terms of section 115-0 of the Act. 3. Ground no.1 and 2 were modified by the assessee, which we deal with later on. 4. Brief fact of the case shows that assessee is a company engaged in the business of civil construction, mining and specialized engineering in construction activities. It undertakes construction of dams, bridges, port, airport and heavy constructions. The assessee obtains contracts including Government contract through tenders and further carries out projects throughout India. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2024 TaxPub(DT) 999 (Mum-Trib)

IN THE ITAT MUMBAI BENCH

VIKAS AWASTHY, J.M. & PRASHANT MAHARISHI, AM

ITD Cementation India Ltd. v. DCIT

ITA No. 1401/Mum/2023

22 February, 2024

Assessee by: Vijay Mehta, AR

Revenue by: Ramkrishna Bandi, CIT DR

ORDER

Prashant Maharishi, A.M.

ITA No. 1401/Mum/2023, is filed by ITD Cementation India Ltd., (Assessee/Appellant) against the appellate order passed by The Commissioner of Income-tax (Appeals)-53, Mumbai, (the learned Commissioner (Appeals)) for assessment year 2018-19 dated 2-3-2023, wherein the appeal filed by the assessee against the assessment order passed by the National e-assessment Centre ( the learned assessing officer) dated 23-4-2021, under section 143(3) read with section 144B of the Income-tax Act, 1961 (the Act), was partly allowed. Therefore, the assessee is aggrieved and is in appeal before us.

2. The assessee has raised following grounds of appeal:-

1. The Hon'ble Commissioner of Income tax (Appeals) -53 ('Hon'ble CIT(A)-53') has erred in upholding the disallowance made by the learned assessing office ('learned assessing officer') of the deduction claimed under section 80-IA of the Act amounting to Rs. 2,75,52,02,630 in respect of the contracts entered with non- government entities without appreciating the fact that the said contract is originally awarded by the government to these parties.

2. The Hon'ble Commissioner (Appeals)-53 has erred in partly upholding the disallowance made by the learned assessing officer of the deduction claimed under section 80-1A of the Act amounting to Rs. 2,83,68,967 in respect of the contracts awarded by Government or local or statutory authorities for developing and/or operating and/or maintaining a new infrastructure facility.

3. The Hon'ble Commissioner (Appeals)-53 has erred in confirming the action of the learned assessing officer in disallowing Rs. 1,97,740 under section 36(1)(va) of the Act in respect of delay in depositing contribution received from employees to the employee's contribution fund after the due date under respective Act but before due date of filing return of income.

4. The Hon'ble Commissioner (Appeals)-53 has erred in confirming the action of the learned assessing officer in not restricting the levy of the dividend distributed tax on the dividend distributed/paid to the Appellant's holding company to 15% in terms of article 10-Dividends of the Double Taxation Avoidance Agreement (DTAA) between India and Thailand instead of 20.360% levied in terms of section 115-0 of the Act.

3. Ground no.1 and 2 were modified by the assessee, which we deal with later on.

4. Brief fact of the case shows that assessee is a company engaged in the business of civil construction, mining and specialized engineering in construction activities. It undertakes construction of dams, bridges, port, airport and heavy constructions. The assessee obtains contracts including Government contract through tenders and further carries out projects throughout India.