2022 (11) TMI 1429 - AT - Income Tax

Accrual of income - Addition on account of receipt under MAP Marketing Assistance Programmed agreement - basis of assessment was that the agreement are silent in what manner the assessee is legally obliged to utilize these funds - CIT(A) deleted addition - HELD THAT - Regarding profit from the Marketing Assistance Programme (MAP) is squarely covered in favour of the assessee and against Revenue by the aforesaid orders 2021 (4) TMI 734 - ITAT DELHI and 2018 (10) TMI 1888 - ITAT DELHI on identical issue, and on identical facts and circumstances, for AY 2011-12 and 2012-13 respectively. Neither side has brought any distinguishing facts and circumstances, or decided precedents, or any legal submissions to our consideration to persuade us to take a view different from the view taken above. Neither side has brought any materials for our consideration to persuade us to interfere with the impugned order of Ld. CIT(A). We decided the issue in dispute in the present appeal before us, in favour of the assessee

Summary

Issues:
1. Whether the deletion of an addition on account of receipt under MAP agreement by the Ld. CIT(A) was justified.

Analysis:
(A) The appeal by Revenue challenged the order of the Ld. CIT(A) deleting an addition of Rs.3,95,86,272/- on account of profit from Marketing Assistance Programmed (MAP) for Assessment Year 2013-14. The Ld. CIT(A) based the deletion on earlier orders in the assessee's own case for Assessment Years 2011-12 and 2012-13.

(A.1) The assessment order under section 143(3) of the Income Tax Act assessed the taxable income at Rs.5,96,09,045/-, including the disputed amount. The assessee appealed, and the Ld. CIT(A) deleted the addition following past decisions in the assessee's favor. The Revenue filed the present appeal against this decision.

(A.2) The appeal was filed more than 60 days after the impugned order was communicated but was treated as filed in time due to the exclusion of the pandemic period. Both sides agreed to admit and decide the appeal on merits.

(B) During the proceedings, the assessee submitted orders of Co-ordinate Benches of ITAT, Delhi for Assessment Years 2011-12 and 2012-13, which favored the assessee on the same issue. Both sides agreed that the issue was covered in the assessee's favor by these orders, and no distinguishing facts or legal submissions were presented to persuade a different view.

(B.1) As no new facts or circumstances were presented to justify a different view from the past decisions, the Tribunal decided in favor of the assessee based on the earlier orders. The appeal by the Revenue was dismissed accordingly.

(C) The Tribunal dismissed the Revenue's appeal, upholding the decision of the Ld. CIT(A) to delete the addition on account of profit from the MAP agreement. The written order was signed on 22/11/2022 following the oral pronouncement on 21st November, 2022.