Pepsico India Holding Pvt. Ltd, New Delhi v. DCIT Circle-14 (1), New Delhi

ITA 2926/DEL/2008 | 2004-2005
Pronouncement Date: 25-02-2011 | Result: Dismissed

Appeal Details

RSA Number 292620114 RSA 2008
Assessee PAN AAACP1272G
Bench Delhi
Appeal Number ITA 2926/DEL/2008
Duration Of Justice 2 year(s) 5 month(s) 8 day(s)
Appellant Pepsico India Holding Pvt. Ltd, New Delhi
Respondent DCIT Circle-14 (1), New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 25-02-2011
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 25-02-2011
Date Of Final Hearing 13-01-2011
Next Hearing Date 13-01-2011
Assessment Year 2004-2005
Appeal Filed On 16-09-2008
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH `F: NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPA VICE PRESIDENT AND SHRI C.L.SETHI JUDICIAL MEMBER. I.T. A. NO.2926/DEL/2008 ASSESSMENT YEAR: 2004-05 PEPSICO INDIA HOLDINGS PVT. LTD. THE COMMISSIONER OF L.G.F. 54 WORLD TRADE CENTRE VS. INCOME-TAX DE LHI-V BARAKHAMBA ROAD NEW DELHI. NEW DELHI. PAN: AAACP1272G (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI DEEPAK KUMAR ADVOCATE. RESPONDENT BY: SHRI A.D. MEHROTRA CIT-DR. O R D E R PER C.L. SETHI JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE A GAINST THE ORDER DATED 10.07.2008 PASSED BY THE LEARNED COMMISSIONER OF INCOME-TAX UNDER SEC. 263 OF THE INCOME-TAX ACT 1961 (THE ACT) PERT AINING TO THE ASSESSMENT YEAR 2004-05. 2. THE ASSESSEE HAS TAKEN A GROUND THAT THE LEARNED COMMISSIONER OF INCOME-TAX HAS ERRED IN LAW IN INVOKING THE POWER O F REVISION VESTED UNDER SEC. 263 OF THE ACT AND IN DIRECTING THE ASSESSING OFFICER TO RECOMPUTE THE 2 ASSESSEES INCOME AFTER ENQUIRING INTO AND EXAMININ G THE DETAILS IN RESPECT OF CERTAIN ITEMS. 3. WE HAVE HEARD BOTH THE PARTIES AND HAVE PERUSED THE MATERIAL ON RECORD. 4. IN THIS CASE ORIGINAL ASSESSMENT WAS COMPLETED BY THE ASSESSING OFFICER UNDER SEC. 143(3) OF THE ACT ON 28.08.2007 BY DETERMINING THE TOTAL LOSS OF RS.1 89 18 31 088/-. THEREAFTER THE ASSES SMENT RECORDS WERE EXAMINED BY THE LEARNED CIT UNDER HIS POWER CONFERR ED UPON HIM U/S 263 OF THE ACT. AFTER HEARING THE ASSESSEE AND PERUSING T HE RECORDS THE LEARNED CIT PASSED THE ORDER U/S 263 OF THE ACT DATED 10.07 .2008 DIRECTING THE AO TO PASS FARESH ASSESSMENT ORDER IN RESPECT OF THE F OLLOWING ITEMS:- A) BAD DEBTS & ADVANCES WRITTEN OFF DURING THE ASSESSM ENT YEAR 2004- 05. B) INTEREST FREE LOANS GRANTED BY THE APPELLANT TO ITS SUBSIDIARY. C) GOVERNMENT GRANT AMOUNTING TO RS.30 LAKHS ALLEGED T O BE RECEIVED DURING THE YEAR IGNORING THE FACT THAT THE GRANT IS YET TO BE RECEIVED FROM THE GOVERNMENT. D) PAYMENTS BOOKED AS MISCELLANEOUS EXPENSES. E) PAYMENTS FOR LEASEHOLD IMPROVEMENTS. F) SUNDRY CREDITORS ADVANCES RECEIVED & CURRENT LIABI LITIES. 5. IN THE MEANTIME THE ASSESSING OFFICER HAS COMPL ETED THE FRESH ASSESSMENT U/S 143(3)/263 OF THE ACT IN PURSUANCE T O THE DIRECTION OF THE LEARNED CIT GIVEN UNDER ORDER DATED 10.07.2008 UNDE R SEC. 263 OF THE ACT AND FOUND THE VARIOUS CLAIMS OF THE ASSESSEE TO BE IN ORDER EXCEPT A 3 DISALLOWANCE OF RS.2 LAKH UNDER SEC. 14A OF THE ACT HAS BEEN MADE IN THE FRESH ASSESSMENT. THE FRESH ASSESSMENT ORDER PASSE D UNDER SEC. 263/143(3) OF THE ACT DATED 31.12.2009 READS AS UNDER:- ORDER U/S 263/143(3) OF THE INCOME TAX ACT 1961. ASSESSMENT IN THE CASE WAS MADE U/S 143(3) OF THE ACT ON 28/08/2007 AT A LOSS OF RS.1 89 18 31 088/-. AN OR DER U/S 263 OF THE INCOME TAX ACT 1961 WAS MADE BY LD. COMMISS IONER OF INCOME TAX DELHI-V ON 10/07/2008 IN RESPECT OF ASS ESSMENT ORDER DATED 28/08/2007 THROUGH WHICH HE DIRECTED TH E ASSESSING OFFICER TO RE-EXAMINE CERTAIN ISSUES. 2 ASSESSEE WAS REQUIRED TO FURNISH DETAIL AND EXPL ANATION IN RESPECT OF VARIOUS ISSUES RAISED IN THE ORDER U/ S 263 OF THE ACT. ASSESSEE FILED DETAIL REPLY AND DOCUMENTARY E VIDENCE WHICH WERE DULY CONSIDERED. AFTER CONSIDERING THE FACT AND CIRCUMSTANCES OF THE CASE AN ADDITION OF RS.2 00 0 00/- IS MADE U/S. 14A OF THE ACT ON ESTIMATE BASIS. ACCORDINGLY THE INCOME OF THE ASSESSEE IS RE-COMPUTED AS UNDER: LOSS AS PER ORDER U/S. 143(3) OF THE ACT DATED 28/8/2007 RS.(-) 1 89 18 31 088/- ADD: DISALLOWANCE U/S. 14A OF THE A/C RS. 2 00 000/- REVISED LOSS = (-) RS. 1 89 16 31 088/- 6. IN THE LIGHT OF THE FRESH ASSESSMENT MADE BY THE AO IN PURSUANCE TO THE CITS ORDER UNDER SEC. 263 THE PRESENT APPEAL FILED BY THE ASSESSEE AGAINST THE CITS ORDER U/S 263 HAS BECOME INFRUCTU OUS AS SO ADMITTED BY THE LEARNED COUNSEL FOR THE ASSESSEE AT THE TIME OF HEA RING. THE ASSESSEE SHALL BE AT LIBERTY TO RAISE THIS ISSUE ABOUT DISALLOWANCE O F DEDUCTION U/S 14A OF THE 4 ACT IN APPEAL IF ANY FILED AGAINST THE FRESH ASSE SSMENT ORDER. WE THEREFORE DISMISS THIS APPEAL FILED BY THE ASSESSEE AS INFRUC TUOUS. 7. THIS DECISION IS PRONOUNCED IN THE OPEN COURT ON 25 TH FEBRUARY 2011. SD/- SD/- (G.E. VEERABHADRAPPA) (C.L. SETHI) VICE PRESIDENT JUDICIAL MEMBER DATED: 25 TH FEBRUARY 2011. COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. DR BY ORDER *MG DEPUTY REGISTRAR ITAT.