Piron Learning & Training (P) Ltd., Delhi V. ACIT, Central Circle- 17 , New Delhi

CO 164/DEL/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 7923 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 14 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 27-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 13-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES C : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER C.O.NO.164/DEL./2018 IN ITA.NO.3701/DEL./2015 - ASSESSMENT YEAR 2011-2012 THE ACIT, CENTRAL CIRCLE- 17, ROOM NO.356, ARA CENTRE, E2 JHANDEWALAN, NEW DELHI. [ VS. M/S. PIRON LEARNING & TRAINING (P) LTD., DELHI 110 085. PAN AAFCP1537K C/O. KAPIL GOEL, ADVOCATE, F-26/124, SECTOR-7, ROHINI, DELHI-85 (APPELLANT) (RESPONDENT) FOR REVENUE : - NONE - FOR ASSESSEE : SHRI VED JAIN, ADVOCATE. DATE OF HEARING : 27 .08.2020 DATE OF PRONOUNCEMENT : 27 .08.2020 ORDER PER BHAVNESH SAINI, J.M. THIS CROSS OBJECTION BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-25, NEW DELHI, DATED 25.03.2015, FOR THE A.Y. 2011-2012, CHALLENGING THE ADDITION OF RS.19,30,250/- BEING 50% OF THE AMOUNT OF 2 C.O.NO.164/DEL./2018 IN ITA.NO.3701/DEL./2015 M/S. PIRON LEARNING & TRAINING P. LTD., DELHI. INCOME FROM SERVICES RENDERED TO M/S. ESAJV D-ART INDO INDIA P. LTD. 2. THE LD. CIT(A) CONSIDERING THE ADDITION OF RS.38,60,000/- BEING RECEIPT FROM M/S. ESAJV D-ART INDO INDIA P. LTD., ON THE BASIS OF AN IDENTICAL ISSUE DECIDED VIDE ORDER DATED 25.03.2015. THE LD. CIT(A) FOLLOWING THAT ORDER DELETED 50% ADDITION. 3. LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMITTED THAT WHILE DECIDING THE DEPARTMENTAL APPEAL FOR THE IMPUGNED A.Y. 2011-2012, THE ITAT C-BENCH, DELHI IN ITA.NO.3701/DEL./2015 VIDE ORDER DATED 05.11.2018 HELD THAT ENTIRE ADDITION IS LIABLE TO BE SET ASIDE. THE FINDINGS OF THE TRIBUNAL IN PARA-6 OF THE ORDER DATED 05.11.2018 IS REPRODUCED AS UNDER : 6. THE GROUND NO. 4 IN REVENUE'S APPEAL IS RELATING TO ADDITION OF RS.38,60,500/- MADE BY THE ASSESSING OFFICER IN RESPECT OF THE SERVICE CHARGES RECEIVED BY THE ASSESSEE FROM M/S ESAJV D-ART INDO INDIA PVT. LTD. THE LD. CIT(A) HAS GIVEN RELIEF OF 50% OF 3 C.O.NO.164/DEL./2018 IN ITA.NO.3701/DEL./2015 M/S. PIRON LEARNING & TRAINING P. LTD., DELHI. THE TOTAL ADDITION. A SIMILAR ADDITION WAS MADE BY THE ASSESSING OFFICER IN THE CASE OF PIRON EDUCATION PVT. LTD. A SISTER CONCERN OF THE ASSESSEE COMPANY ON THE SAME REASONING AS STATED BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDER. THE CIT(A) IN THAT CASE HAS ALSO GIVEN RELIEF OF 50% OF THE TOTAL ADDITION. WE HAVE DECIDED THE APPEAL IN THE CASE OF ACIT VS. PIRON EDUCATION PVT. LTD. (ITA.NO.3699/DEL/2015) (AY 2011-12) VIDE ORDER DATED 31.10.2018 WHEREBY WE HAVE HELD THAT' THIS ADDITION IS UNSUSTAINABLE ON THE GROUND THAT THE ASSESSEE HAVING INCLUDED THE SERVICE CHARGES IN ITS INCOME, THE SAME AMOUNT CANNOT BE ADDED AGAIN. IT WAS AGREED BY BOTH THE LD. DR AND LD. AR THAT THE FACTS OF THE PRESENT CASE ARE IDENTICAL TO THE FACTS IN THE CASE OF PIRON EDUCATION PVT. LTD. (SUPRA). THIS ENTIRE AMOUNT OF RS.38,60,500/- FORMS PART OF THE RECEIPT DECLARED BY THE ASSESSEE AS ITS INCOME IN THE PROFIT & TOSS ACCOUNT OF THE YEAR UNDER CONSIDERATION. 4 C.O.NO.164/DEL./2018 IN ITA.NO.3701/DEL./2015 M/S. PIRON LEARNING & TRAINING P. LTD., DELHI. ACCORDINGLY FOLLOWING THE REASONING GIVEN IN OUR ORDER DATED 31.10.2018 IN THE CASE OF ACIT VS. PIRON EDUCATION PVT. LTD., (SUPRA), WE DIRECT THE ASSESSING OFFICER TO DELETE THE ENTIRE ADDITION ON THIS ACCOUNT. IN THE RESULT GROUND NO. 4 OF REVENUE'S APPEAL IS DISMISSED. 3.1. HE HAS, THEREFORE, SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE. 4. NONE APPEARED ON BEHALF OF THE DEPARTMENT. 5. CONSIDERING THE ABOVE FACTS IN THE LIGHT OF THE ORDER OF THE TRIBUNAL WHILE DECIDING THE DEPARTMENTAL APPEAL SINCE IT IS HELD THAT ENTIRE ADDITION IS LIABLE TO BE DELETED, THEREFORE, FOLLOWING THE SAME ORDER, WE SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT(A) AND DELETE THE ENTIRE ADDITION. 6. IN THE RESULT, CROSS OBJECTION OF THE ASSESSEE ALLOWED. 5 C.O.NO.164/DEL./2018 IN ITA.NO.3701/DEL./2015 M/S. PIRON LEARNING & TRAINING P. LTD., DELHI. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (O.P. KANT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 27 TH AUGUST, 2020 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT C BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.