Vossloh Cogifer SA, New Delhi V. CIT International Taxation-3 Delhi, Delhi

ITA 1097/DEL/2022

AI Insights

The case involves Vossloh Cogifer SA, the appellant, contesting an order by the CIT under section 263 of the Income Tax Act, 1961, which pertained to the assessment year 2017-18. The CIT's order was based on the grounds that the original assessment did not adequately investigate the deemed export benefits claimed by the assessee, which were considered as an ascertained liability for the year. The ITAT agreed that the initial assessment lacked sufficient inquiry but disagreed with the CIT's directive to disallow the claimed benefits without further examination. The matter was thus remanded back to the Assessing Officer for a detailed examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113129 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: D
• Next Hearing Date: 03-07-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 18-05-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Deemed export
• Section: 263; 143(3)

Judgement Text

I.T.A. No. 1097/Del/2022 1 IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH “D” : DELHI ] BEFORE SHRI G. S. PANNU, PRESIDENT A N D SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER आ.अ.सं./I.T.A No. 1097/Del/2022 िनधाᭅरणवषᭅ/ Assessment Years: 2017-18 Vossloh Cogifer SA, Alternate India Address: Unit No. 5, 12th Floor, Eros Corporate Tower, Nehru Place, New Delhi – 110 019. बनाम Vs. CIT-3, International Taxation, Delhi. PAN No. AACCV8605R अपीलाथᱮ / Appellant ᮧ᭜यथᱮ / Respondent िनधाᭅᳯरतीकᳱओरसे /Assessee by : Shri Salil Kapoor, Advocate; राज᭭वकᳱओरसे / Department by : Ms. Prajna Paramita; [CIT] - D. R. सुनवाईकᳱतारीख/ Date of hearing : 4/07/2023 उ᳃ोषणाकᳱतारीख/Pronouncement on : 25/09/2023 आदेश / O R D E R PER C. N. PRASAD, J. M. : 1. This appeal is filed by the assessee against the order of the ld. Commissioner of Income Tax-3 (hereinafter referred to CIT) I.T.A. No. 1097/Del/2022 2 New Delhi, dated 23.03.2022 passed under section 263 of the Income Tax Act, 1961 (the Act) for assessment year 2017-18. 2. In this case the ld. CIT passed order under section 263 of the Act for the reason that the assessment order was passed without making enquiries or verification on the deemed export benefit as per foreign trade policy as the assessee has considered the eligibilities/availabilities of deemed benefits which is available to its domestic suppliers/subsidiaries Vossloh Beekay Casting Limited (VBCL) and Vossloh Cogifer Turnouts India Private Limited (VCTI) as an ascertained liability of the assessee for the assessment year 2017-18. 3. On hearing both the sides in so far as invocation of the provisions under section 263 of the Act are concerned in holding that the assessment order passed under section 143(3) on 19.12.2019 for the assessment year 2017-18 was erroneous and prejudicial to the interest of Revenue we agree with the ld. CIT that there was no adequate enquiry or examination as to whether the claim made by the assessee in respect of deemed export benefits as an ascertained liability for the assessment year under consideration was not examined. However, we find that the ld. CIT without giving any opportunity to the assessee to explain as to whether the liability is an ascertained liability for this year or not directed the Assessing Officer to disallow the claim of deemed export compensation which, in our view, is not correct. Therefore, we set aside the order of the ld. CIT in so far as the direction given to disallow the deemed export compensation. I.T.A. No. 1097/Del/2022 3 Therefore, we modify the above direction of the ld. CIT and restore the issue to the Assessing Officer with a direction to examine the issue as to whether the deemed export compensation claimed by the assessee is an ascertained liability for the year under consideration i.e. assessment years 2017-18 and to decide the issue in accordance with law after providing adequate opportunity of being heard to the assessee. The assessee may furnish all the necessary evidences to prove its claim before the Assessing Officer. With these directions we dispose of the appeal of the assessee. 4. In the result, appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on : 25/09/2023. Sd/- Sd/- ( G. S. PANNU ) ( C. N. PRASAD ) PRESIDENT JUDICIAL MEMBER Dated : 25/09/2023. *MEHTA* आदेश की Ůितिलिप अŤेिषत / Copy of Order Forwarded to:- 1. आवेदक / Assessee 2. राजˢ / Revenue 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ- अपील / CIT (A) 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, DELHI / DR, ITAT, DELHI I.T.A. No. 1097/Del/2022 4 6. गाडŊ फाइल / Guard file. By order ASSISTANT REGISTRAR ITAT,New Delhi. Date of dictation 18.09.2023 Date on which the typed draft is placed before the dictating Member 19.09.2023 Date on which the typed draft is placed before the Other Member 25.09.2023 Date on which the approved draft comes to the Sr. PS/PS 25.09.2023 Date on which the fair order is placed before the Dictating Member for pronouncement 25.09.2023 Date on which the fair order comes back to the Sr. PS/PS 25.09.2023 Date on which the final order is uploaded on the website of ITAT 25.09.2023 Date on which the file goes to the Bench Clerk 25.09.2023 Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order