ASSISTANT COMMISSIONER OF INCOME TAX, DELHI V. TO THE NEW PRIVATE LIMITED, DELHI

ITA 5024/DEL/2024

AI Insights

The case revolves around the dispute concerning the deduction claimed under section 10AA of the Income Tax Act, 1961, by the assessee, TO THE NEW PRIVATE LIMITED, for the assessment year 2020-21. The initial order under section 143(1) by the Centralized Processing Center (CPC) disallowed the deduction without an opportunity for the assessee to contest. Upon appeal, the Ld. CIT(A) rectified this by allowing the deduction in the scrutiny assessment under section 143(3). The Revenue challenged this decision, leading to the current appeal before the Income Tax Appellate Tribunal. The tribunal's decision to dismiss the Revenue's appeal affirmed the CIT(A)'s decision, supporting the assessee's claim.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312955 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Assessee Lawyers: SANJIV SAPRA
• Section: 143(3); 10AA

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”, NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER, AND SHRI SUDHIR KUMAR, JUDICIAL MEMBER I.T.A. No. 5024/DEL/2024 A.Y.: 2020-21 ASSISTANT COMMISSIONER OF INCOME TAX, ROOM NUMBER 192A, FIRST FLOOR, C.R. BUILDING, NEW DELHI – 2 VS TO THE NEW PRIVATE LIMITED, 1301, NAURANG HOUSE 21, K.G. MARG, CONNAUGHT PLACE, NEW DELHI – 1 (PAN: AACCT4800A) (ASSESSEE) (RESPONDENT) Assessee by : Shri Sanjiv Sapra, CA Department by : Ms. Suman Malik, CIT(DR) Date of hearing : 24.04.2025 Date of pronouncement : 30.04.2025 ORDER PER SHAMIM YAHYA, AM : This appeal filed by the Revenue is directed against the order of the Ld. Addl/JCIT(A)-12, Mumbai dated 26.09.2024 pertaining to assessment year 2020-21 on the following ground:- 1. Whether, on the facts and circumstances of the case and in law, the Ld. CIT(A), NFAC has erred in allowing the deduction claimed u/s. 10AA of the Act amounting to Rs. 11,35,23,563/- on the wrong assumption that the AO has allowed deduction u/s. 10AA to the assessee while passing order u/s. 143(3) of the I.T. Act, 1961. 2. Whether, on the facts and circumstances of the case and in law, the Ld. CIT(A), NFAC has failed to notice that the AO while passing order u/s. 143(3) of the I.T. Act, 1961 has taken total income as per latest order i.e. order u/s. 143(1) wherein 2 disallowance of deduction u/s. 10AA amouting to Rs. 11,35,23,563/- was made by CPC u/s. 143(1) of the Act. 3. Whether, on the facts and circumstances of the case and in law, the Ld. CIT(A), NFAC has erred in allowed relief to the assessee in a summary manner and without examining the merits of the case. 2. In this case, order u/s. 143(1) was passed on 24.12.2021 wherein, the CPC did not provide deduction claimed u/s. 10AA, without providing an opportunity to the assessee. Upon assessee’s appeal, Ld. CIT(A) noted that in subsequent order passed u/s. 143(3) of the Act, the said deduction was allowed, hence, he deleted the addition and decided the issue in favour of the assessee. Against this order, Revenue is in appeal before us. 3. We have heard both the parties and perused the records. We find that in the order u/s. 143(3), which was selected for scrutiny inter alia, for examining 10AA claim, no disallowance has been made u/s. 10AA by the AO u/s. 143(3) of the Act. The CIT(A) on the instant observed as under:- “3.2 Subsequent to this, the assessment order for relevant year AY 2020-21 u/s. 143(3) was passed by the AO on 24.09.2022. 3.3 In the assessment order, one of the reasons for selection of the case under CASS scrutiny selection was large deduction claimed u/s. 80IA/80IAB/80IAC/80IB/80IC/80IBA/80ID/80IE/10A/10AA in comparison to last year. The order u/s. 143(3) was passed after making a disallowance u/s. 36(1)(va) of Rs. 24,51,093/- which is evident from the extract of assessment order given below:- Subject to the above remarks, total income of the assessee is computed as under:- Description Amount (Rs.) 3 Total income as per latest order 35,30,20,880/- Add: Disallowance u/s. 36(1)(va) 24,51,093/- Total assessed income 35,54, 71,973/- 3.4 Consequent to passing of assessment order u/s. 143(3) on 24.09.2022 the disallowance of CPC made vide intimation order dated 24.12.2021 is laid to rest as the same has been a point of examination in the scrutiny proceedings.” 4. After going through the aforesaid findings of the Ld. CIT(A), we find that Ld. CIT(A) has taken a correct view, hence, we do not find any infirmity in the order of the Ld. CIT(A). Ld. DR could not controvert the above facts, therefore, we uphold the order of the Ld. CIT(A) and reject the ground raised by the assessee. 5. In the result, the appeal filed by the Revenue stands dismissed. Order pronounced on 30/04/2025. Sd/- Sd/- (SUDHIR KUMAR) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER SRBHATNAGAR Copy forwarded to: - 1. Appellant. 2. Respondent. 3. CIT 4. CIT(A) 5. DR, ITAT Assistant Registrar "