ACIT (LTU), New Delhi V. M/s. Rites Ltd., New Delhi

ITA 1187/DEL/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61661 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 08-05-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 07-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHUMANA SEN
• Assessee Lawyers: R S SINGHVI CAS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH `F : NEW DELHI) BEFORE SHRI U.B.S. BEDI, JUDICIAL MEMBER AND SHRI A.N. PAHUJA, ACCOUNTANT MEMBER ITA NOS.1187 & 1188/DEL /2012 (ASSESSMENT YEARS : 2006-07 & 07-08) ACIT(LTU), VS. RITES LTD., NEW DELHI. SCOPE MINAR, LAXMI NAGAR, NEW DELHI. (PAN/GIR NO.AAACR0830Q) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.S. SINGHVI, CAS REVENUE BY : SMT. SHUMANA SEN , SR.DR ORDER PER BENCH THESE TWO APPEALS OF THE DEPARTMENT ARE DIRECTED A GAINST THE ORDER PASSED BY THE CIT(A)-LTU, NEW DELHI, BOTH DATED 24.01.20012, RELE VANT TO ASSESSMENT YEARS 2006-07 AND 2007-08, RESPECTIVELY. THESE APPEALS WERE HEAR D TOGETHER AND INVOLVE IDENTICAL FACTS AND SAME COMMON ISSUES, THEREFORE, BEING DISPOSED O F BY THIS SINGLE ORDER FOR THE SAKE OF CONVENIENCE. 2. AS REGARDS APPEAL FOR ASSESSMENT YEAR 2006-07 IS CONCERNED, THE DEPARTMENT HAS CHALLENGED THE DELETION OF ADDITION OF RS.1,91,33,0 00/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF VARIOUS PRIOR PERIOD EXPENSES DEBITED TO PROFIT & LOSS A/C. 3. AT THE VERY OUTSET, LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THIS ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY DECIS ION OF ITAT, C BENCH IN THE CASE OF THE ASSESSEE FOR ASSESSMENT YEAR 2002-03 IN I.T.A. NO.3074/DEL./2006 DATED 20.3.2008. I.T.A. NOS.1187 & 1188/DEL./2012 (A.YS. : 2006-07 & 07-08) 2 BY FILING COPY OF THE ORDER OF ITAT, LD.COUNSEL FOR THE ASSESSEE PRAYED FOR DISMISSAL OF THE APPEAL OF THE REVENUE ON THIS ISSUE AS IT IS A COVERED MATTER IN FAVOUR OF THE ASSESSEE. 4. LD.DR COULD NOT CONTROVERT THIS FACTUAL ASPECT, BUT RELIED UPON THE ORDER OF THE ASSESSING OFFICER. 5. AFTER HAVING HEARD BOTH THE SIDES AND CONSIDERIN G THE MATERIAL ON RECORD AS WELL AS PRECEDENT RELIED UPON BY THE LD.COUNSEL FOR THE ASSESSEE, WE FIND THAT FOR THE ASSESSMENT YEAR 2002-03 IN I.T.A. NO.3074 (SUPRA), THIS BENCH IN ASSESSEES OWN CASE, HAS ALREADY TAKEN THE VIEW IN FAVOUR OF THE ASSESSE E AND NO CONTRARY MATERIAL OR EVIDENCE HAS BEEN PRODUCED BEFORE THIS BENCH NOR ANY HIGHER COURTS ORDER REVERSING THE ORDER OF ITAT HAS BEEN FILED. THEREFORE, WHILE FOLLOWING TH E DECISION OF ITAT IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2002-03, WE UPHOLD THE OR DER OF CIT(A) AND DISMISS THE APPEAL OF THE REVENUE ON THIS ISSUE. HENCE, THE APPEAL OF THE DEPARTMENT FOR ASSESSMENT YEAR 2006-07 STANDS DISMISSED. 6. AS REGARDS APPEAL FOR ASSESSMENT YEAR 2007-08 I S CONCERNED, DEPARTMENT HAS RAISED TWO ISSUES IN RELATION TO DELETION OF ADDITI ON OF RS.1,13,54,696/- MADE ON ACCOUNT OF VARIOUS PRIOR PERIOD EXPENSES DEBITED TO THE PRO FIT & LOSS A/C AND AGAINST ALLOWING RELIEF TO THE ASSESSEE TO THE TUNE OF RS.7,77,331/- ON ACCOUNT OF AMORTIZATION OF LEASE MONEY. 7. AT THE VERY OUTSET, LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT BOTH THE ISSUES ARE COVERED IN FAVOUR OF THE ASSESSEE BY ORDER IN I.T.A . NO.3074/DEL./2006 OF ITAT, C NEW DELHI DATED 20.3.2008 . THEREFORE, FOLLOWING T HE SAID DECISION, THE ORDER OF CIT(A) ON BOTH THE COUNTS, IS LIABLE TO BE CONFIRMED WHICH MAY BE CONFIRMED. WHEREAS LD.DR COULD NOT CONTROVERT THIS FACTUAL ASPECT, BUT RELIE D UPON THE ORDER OF ASSESSING OFFICER. I.T.A. NOS.1187 & 1188/DEL./2012 (A.YS. : 2006-07 & 07-08) 3 8. WE HAVE HEARD BOTH THE SIDES, CONSIDERED THE MAT ERIAL ON RECORD AND THE PRECEDENT RELIED UPON AND FIND THAT BOTH THE ISSUES RAISED IN THE APPEAL OF THE REVENUE HAVE BEEN DEALT WITH BY ITAT IN ASSESSEES OWN CASE FOR THE A SSESSMENT YEAR 2002-03 AS PER THE PRECEDENT RELIED UPON BY THE LD.COUNSEL FOR THE AS SESSEE, NEITHER ANY CONTRARY MATERIAL HAS BEEN PLACED ON RECORD NOR ANY HIGHER COURTS ORD ER REVERSING THE ORDER OF ITAT HAS BEEN FILED BY THE REVENUE. SINCE THIS IS A COVERED CASE, THEREFORE, WHILE FOLLOWING THE EARLIER ORDER OF THE ITAT, WE UPHOLD THE ORDER OF C IT(A) ON BOTH THE ISSUES AND DISMISS THE APPEAL OF THE REVENUE FOR THIS YEAR ALSO. 9. AS A RESULT, BOTH THE APPEALS OF THE DEPARTMENT GET DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 11.05.2012. SD/- SD/- (A.N. PAHUJA) (U.B.S. BEDI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : MAY 11, 2012 SKB COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A)-LTU, NEW DELHI. 5. CIT(ITAT) DEPUTY REGISTRAR, ITAT