Principal Commissioner of Income Tax, Jaipur-2, Jaipur vs M/s Rajasthan State Beverages Corpn. Ltd.,

Heard.

For the reasons mentioned in Application No.5056/2017

seeking early hearing, the same is allowed.

In view of the nature of controversy, the matter is

being taken up today for hearing and final disposal itself.

By way of this appeal, the appellant has challenged the

judgment of the Income Tax Appellate Tribunal dated 24/09/2015,

whereby the Tribunal dismissed the income tax appeal filed by the

assessee against the order dated 08/10/2013 passed by the

Commissioner of Income-tax (Appeals), upholding the

assessment-order dated 04/01/2013 passed by the assessing

authority.

The facts giving rise to the filing of this appeal in brief

are that the assessee Corporation is a Rajasthan State

Government undertaking incorporated on 24/02/2005 to canalize

the sale of Indian made foreign liquor (IMFL) and Beer and to

regulate the liquor distribution in the State of Rajasthan. The case

of the assessee was selected under CASS for scrutiny assessment

u/S.143(3) of the Income-tax Act .

After issuing notice to it u/Ss.142(1) & 143(2), the

assessing officer assessed the income of the assessee for the

assessment year 2010-11 in the status of the company

u/S.143(3) of the Income-tax Act, to be Rs.26,10,31,330/- apart

from levying tax and charged interest u/Ss.234A, 234B and

234C of the Act and penalty proceedings u/S.271(1)(c) under

the said Act were separately issued, vide order dated

04/01/2013.

The assessee challenged the order dated 04/01/2013

passed by the assessing authority by way of filing income tax

appeal before the Commissioner of Income-tax (Appeals), which

after hearing upheld the order dated 04/01/2013 vide order

dated 08/10/2013.

The assessee further challenged the order dated

08/10/2013 passed by the appellate authority before the Income

Tax Appellate Authority and the Tribunal vide impugned-order

dated 24/09/2015 also upheld the order dated 08/10/2013

passed by the Commissioner of Income-tax (Appeals).

Hence, this appeal.

This Court while admitting the appeal on 21/04/2016,

framed the following substantial questions of law:-

"1. Whether in the facts and circumstances of the case, the Tribunal was justified in deleting the additions made by the Assessing Authority by way of disallowing Privilege Fee paid by the assessee to Excise Commissioner, Government of Rajasthan despite the fact that it was application of income? 2. Whether in case of delay in depositing of employees'' contribution towards PF and ESI, the case should be governed by Section 43B of the Income Tax Act, 1961 or it should be by Section 36(1)(va) read with Section 2(24)(x) of the Act of 1961?"

During the course of arguments, learned counsel for

the respondent relied upon division bench judgment rendered in

Commissioner of Income Tax Vs. M/s.Rajasthan State

Ganganagar Sugar Mills Ltd. dated 26/05/2016 passed in DB

Income Tax Appeal No.99/2009 and argued that the controversy

involved in the present matter is squarely covered by the said

judgment.

After perusal of the cited judgment, we find that the

law enunciated in the M/s.Rajasthan State Ganganagar Sugar

Mills Ltd. (supra) is mutatis mutandis applied to the facts of the

present case.

Hence, in view of the decision of this Court dated

26/05/2016 passed in DB Income Tax Appeal No.99/2009 :

Commissioner of Income Tax Vs. M/s.Rajasthan State

Ganganagar Sugar Mills Ltd., the present appeal also stands

dismissed.