ACIT, New Delhi v. M/s. Oriental Structural Engineers Pvt. Ltd., New Delhi

ITA 526/DEL/2010 | 2007-2008
Pronouncement Date: 14-01-2011 | Result: Dismissed

Appeal Details

RSA Number 52620114 RSA 2010
Bench Delhi
Appeal Number ITA 526/DEL/2010
Duration Of Justice 11 month(s) 9 day(s)
Appellant ACIT, New Delhi
Respondent M/s. Oriental Structural Engineers Pvt. Ltd., New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 14-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 14-01-2011
Date Of Final Hearing 13-01-2011
Next Hearing Date 13-01-2011
Assessment Year 2007-2008
Appeal Filed On 04-02-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI DELHI BENCH F NEW DELHI DELHI BENCH F NEW DELHI DELHI BENCH F NEW DELHI BEFORE SHRI G.E.VEERABHADRAPPA VICE PRESIDENT AND BEFORE SHRI G.E.VEERABHADRAPPA VICE PRESIDENT AND BEFORE SHRI G.E.VEERABHADRAPPA VICE PRESIDENT AND BEFORE SHRI G.E.VEERABHADRAPPA VICE PRESIDENT AND SHRI C.L.SETHI JUDICIAL MEMBER SHRI C.L.SETHI JUDICIAL MEMBER SHRI C.L.SETHI JUDICIAL MEMBER SHRI C.L.SETHI JUDICIAL MEMBER ITA NO.526/DEL/2010 ITA NO.526/DEL/2010 ITA NO.526/DEL/2010 ITA NO.526/DEL/2010 ASSESSMENT YEAR : 2007 ASSESSMENT YEAR : 2007 ASSESSMENT YEAR : 2007 ASSESSMENT YEAR : 2007- -- -08 0808 08 ASSTT.COMMISSIONER OF VS. M/S ORIENTAL STRUCTURAL INCOME TAX ENGINEERS PVT.LTD. CENTRAL CIRCLE-7 21/48 COMMERCIAL COMPLEX NEW DELHI. MALCHA MARG NEW DELHI 110 021. PAN NO.AAACO0054F. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI H.K.LAL SR.DR. RESPONDENT BY : SHRI K.V.S.R.KRISHNA CA. ORDER ORDER ORDER ORDER PER C.L.SETHI JM: PER C.L.SETHI JM: PER C.L.SETHI JM: PER C.L.SETHI JM: THE REVENUE IS IN APPEAL AGAINST THE ORDER DATED 30. 11.2009 PASSED BY CIT(A) FOR THE ASSESSMENT YEAR 2007-08. 2. IN THIS APPEAL THE REVENUE HAS DISPUTED THE CIT(A) S ACTION IN DELETING THE FOLLOWING ADDITIONS:- (I) ` 4 94 501/- ON ACCOUNT OF COMPUTER AND REPAIR MAINTENANCE. (II) ` 3 30 463/- ON ACCOUNT OF FOREIGN TRAVELLING EXPEN SES. 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS IT WAS NOT ICED BY THE ASSESSING OFFICER THAT ASSESSEE HAD INCURRED ` 24 40 34 2/- TOWARDS COMPUTER AND SOFTWARE EXPENSES. THE ASSESSING OFFICER EXA MINED THE DETAILS SUBMITTED BY THE ASSESSEE. THE ASSESSING OFFICER OBSE RVED ITA-526/DEL/2010 2 THAT NO DOCUMENTARY EVIDENCE FOR ` 4 94 501/- WAS FU RNISHED TO JUSTIFY THESE EXPENSES. ASSESSING OFFICER THEREFORE DISALLOWED T HE SUM OF ` 4 94 501/- OUT OF COMPUTER AND SOFTWARE EXPENSES. BEF ORE THE CIT(A) THE ASSESSEE SUBMITTED THAT A NOTE DATED 26.12.2008 WAS SU BMITTED BEFORE THE ASSESSING OFFICER STATING THEREIN THAT THE EX PENDITURE INCURRED REPRESENTED AMOUNT DEBITED BY JOINT VENTURE EXECUTED ROAD PROJECT WORK IN TAMIL NADU. THE JOINT VENTURE AGRE EMENT WAS ALSO PLACED ON RECORD. THE COMMON EXPENDITURE INCURRED BY JOINT VENTURE WAS EQUALLY SHARED BY ITS PARTICIPANTS. THE TOTAL EXP ENDITURE INCURRED BY JOINT VENTURE WAS ` 14 83 503/- 1/3 RD THEREOF AMOUNTING TO ` 4 94 501/- HAD FALLEN IN ASSESSEES SHARE IT WAS CLAIMED BY THE ASSESSEE AS REVENUE DEDUCTION. CONSIDERING THIS ASPECT OF THE MATTER CIT (APPEALS) DELETED THE ADDITION. 4. AFTER HEARING BOTH THE PARTIES AND CONSIDERING THI S FACT THAT ASSESSEE WAS LIABLE TO BEAR 1/3 RD OF THE TOTAL EXPENDITURE INCURRED BY JOINT VENTURE IN RESPECT OF THE CONTRACT WORK EXECUT ED BY IT WE ARE OF THE CONSIDERED OPINION THAT CIT (APPEALS) HAS RIGHTLY DELETED THE ADDITION. WE FURTHER HOLD THAT ALL THESE DETAILED SU BMISSIONS WERE BEFORE THE ASSESSING OFFICER AS PER NOTE ATTACHED WITH T HE ASSESSEES SUBMISSION DATED 26.12.2008 WHICH THE ASSESSING OFFICER HA D FAILED TO TAKE INTO ACCOUNT. WE THEREFORE UPHOLD THE ORDER OF CIT (APPEALS) IN DELETING THE ADDITION OF ` 4 94 501/-. 5. COMING TO THE ISSUE ABOUT DISALLOWANCE OF ` 3 30 46 3/- OUT OF FOREIGN TRAVELLING EXPENSES WE FIND THAT THE ASSESSING O FFICER HAS DISALLOWED THE AFORESAID EXPENSES BY OBSERVING THAT THE ASSESSEE HAS NOT FURNISHED ANY DOCUMENT OR CORRESPONDENCE OR ANY M ATERIAL SHOWING AS TO WHY SHRI K.S.BAKSHI HAD GONE TO LONDON A ND WHAT WAS THE BUSINESS INTEREST FOR TRAVELLING AND INCURRING THE AFORESAID EXPENDITURE OF ` 3 30 463/-. ON AN APPEAL CIT (AP PEALS) DELETED THE ITA-526/DEL/2010 3 ADDITION AFTER CONSIDERING THE ASSESSEES SUBMISSION THAT ASSE SSEE WAS HAVING JOINT VENTURE AGREEMENT WITH FOREIGN COMPANY FOR A CONTRACT VALUED OVER ` 400 CRORES AND IN ORDER TO HAVE BUSINESS MEETING WITH JOINT VENTURE PARTNERS SHRI K.S.BAKSHI HAD TO VISIT F OREIGN COUNTRY AND WHATEVER AIRFARE WERE INCURRED BY HIM WERE DEBITED TO THE REVENUE ACCOUNT. IN THE COURSE OF HEARING OF THIS APPEAL TH E LEARNED DR HAS NOT BEEN ABLE TO POINT OUT ANY MATERIAL TO CONTROVE RT THESE FACTS. THEREFORE IN THE LIGHT OF THE FACTS POINTED OUT BY THE ASSESSEE TO THE CIT (APPEALS) AND AS SO EXPLAINED BEFORE THE ASSESSING OFF ICER VIDE ASSESSEES LETTER DATED 26.12.2008 WE ARE INCLINED TO U PHOLD THE ORDER OF CIT (APPEALS) IN DELETING THE ADDITION OF ` 3 30 463/- ON ACCOUNT OF FOREIGN TRAVELLING EXPENSES. 6. BEFORE PARTING WITH THIS APPEAL WE MAY OBSERVE TH AT WHILE DELETING THESE ADDITIONS LEARNED CIT(A) HAS NOT TAKEN INTO ACCOUNT ANY FRESH EVIDENCE AS SO ALLEGED BY THE DEPARTMENT IN THE GROUNDS BUT RATHER CIT (APPEALS) HAS DELETED THE ADDITIONS IN THE LIGHT OF ASSESSEES SUBMISSIONS AND EVIDENCES THAT WERE SUBMITTED BEFORE THE ASSESSING OFFICER VIDE LETTER DATED 26.12.2008. THEREFORE T HE REVENUES OBJECTION THAT CIT (APPEALS) HAS VIOLATED THE PROVISIO NS OF RULE 46A IS NOT TENABLE AND HENCE REJECTED. 7. IN THE RESULT THE APPEAL FILED BY THE REVENUE IS DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 14 TH JANUARY 2011. SD/- SD/- (G.E.VEERABHADRAPPA) (G.E.VEERABHADRAPPA) (G.E.VEERABHADRAPPA) (G.E.VEERABHADRAPPA) (C.L.SETHI) (C.L.SETHI) (C.L.SETHI) (C.L.SETHI) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT JUDICIAL ME JUDICIAL ME JUDICIAL ME JUDICIAL MEMBER MBER MBER MBER DATED : 14.01.2011 VK. COPY FORWARDED TO : ITA-526/DEL/2010 4 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT. ASSISTANT REGISTRAR