DCIT(E) CIRCLE-1(1), NEW DELHI, CIVIC CENTRE NEW DELHI V. .INDIA TRADE PROMOTION ORGANIZATION, PRAGATI BHAWAN PRAGATI MAIDAN

ITA 385/DEL/2024

AI Insights

The case involves an appeal by the Revenue against the India Trade Promotion Organization concerning the assessment of income from space rent for the Assessment Year 2018-19. The Revenue challenged the CIT(A)'s decision, which had allowed the Assessee's appeal based on precedents set in earlier years (2009-10 to 2017-18). The core issue was whether the income from space rent, which was under dispute and not accounted for, should be taxed on an accrual basis. The Tribunal referenced similar cases and the dismissal of the Department's Special Leave Petition by the Supreme Court, leading to the dismissal of the Revenue's appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 23004 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Other Referred Cases: ITA No. 18/2023 (A.Y 2013-14), ITA No. 36/2023 (A.Y 2014-15), ITA No. 1795/Del/2022, ITA No. 1796/Del/2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAMAL BANSAL
• Assessee Lawyers: OM PRAKASH
• Section: 143(3)

Judgement Text

" 1 ITA No. 385/Del/2024 DCIT(E) VS. India Trade Promotion Organization IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘C’: NEW DELHI BEFORE BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER ITA No. 385/Del/2024 (A.Y 2018-19) DCIT (E) Circle-1(1) Civic Centre, Room No. 2418, 24th floor, E-2, Block Civic Centre, New Delhi Vs. India Trade Promotion Organization Pragati Bhawan, Prgati Maidan, New Delhi PAN No:AAATI2955C (Appellant) (Respondent) Appellant by Sh. Kamal Bansal, CA Respondent by Sh. Om Prakash, Sr. DR Date of Hearing 16/12/2024 Date of Pronouncement 18/12/2024 ORDER PER YOGESH KUMAR U.S.: The present appeal is filed by the Revenue against the order of Ld. CIT(A)/National Faceless Appeal Centre (‘NFAC’ for short), New Delhi dated 18/12/2023 for the Assessment Year 2018-19. 2. The Grounds of Appeal are as under: - “1. Whether, the LLCTT(A) was justified in allowing the appeal of the Assessee on the issue of space rent, as per the mercantile method of accounting. income has to be offered to tax on accrual basis whereas the Assessee has, in the notes to account, mentioned that such amount has not been accounted for since the rental income is under dispute. Such income which has accrued but not received is shown as receivable or under the head Sundry Debtor as the case may be in the Balance Sheet. It is entitled to claim it as bad and write off subsequently when it actually becomes bad as per the provisions of 2 ITA No. 385/Del/2024 DCIT(E) VS. India Trade Promotion Organization the Act but cannot resort to such accounting as has been done by it. This income is. therefore, brought so tax. 2 The appellant craves leave to add, to alter or amend any grounds of appeal raise above at the time of hearing.” 3. Brief facts of the case are that, an assessment order came to be passed u/s 143(3) r.w. Section 143(3A) and 143(3B) of the Income Tax Act, 1961 (‘Act’ for short) for Assessment Year 2018-19 by making an addition of Rs. 6,46,58,000/- on account of income from Space Rent on the basis of disclosure notes to the accounts of the Assessee. In the Appeal, the Ld. CIT(A) allowed the Appeal of the Assessee by following the order of the Tribunal for Assessment Years 2009-10 to 2017-18. Aggrieved by the order of the Ld. CIT(A) dated 18/12/2023, the Department of Revenue preferred the present Appeal on the grounds mentioned above. 4. The Ld. Assessee's Representative submitted that the issue involved in the present Appeal has been decided in favour of the Assessee and the SLP filed by the Department has been dismissed, therefore, sought for dismissal of the present Appeal of the Revenue. 5. Per contra, the Ld. Departmental Representative also submitted based on the information provided by the A.O. that the issue involved in the present Appeal has been decided in favour of the Assessee and the SLP filed by the Department has been dismissed. 3 ITA No. 385/Del/2024 DCIT(E) VS. India Trade Promotion Organization 6. We have heard both the parties and perused the material available on record. The solitary issue involved in the present Appeal regarding ‘Space Rent Income’ on the basis of disclosure in notes to accounts of the Assessee. The very same issue has been considered by the Tribunal for Assessment Year 2009-10 to 2017-18. The Co-ordinate Bench of the Tribunal while deciding the similar issue for Assessment Year 2016-17 and 2017-18 in ITA No. 1795/Del/2022 and 1796/Del/2022, relied on the Judgment of Jurisdictional High court in Assessee’s own case vide order dated 13/01/2023 in ITA No. 18/2023 (A.Y 2013-14) and order dated 19/01/2023 in ITA No. 36/2023 (A.Y 2014-15). Further the Ld. Departmental Representative has also submitted that the Ld. A.O. has informed that the SLP preferred by the Department of Revenue has been dismissed by the Hon'ble Supreme Court. Considering the above facts and circumstances, we find no reason to interfere with the order of the Ld. CIT(A) and find no merits in the Grounds of appeal of the Revenue. 7. In the result, the Appeal filed by the Revenue is dismissed. Order pronounced in open Court on 18th December, 2024 Sd/- Sd/- (SHAMIM YAHYA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 18/12/2024 R.N, Sr. PS 4 ITA No. 385/Del/2024 DCIT(E) VS. India Trade Promotion Organization Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "