Shivam Condev Pvt Ltd, Bhubaneswar V. DCIT Circle-1(1), Cuttack

ITA 128/CTK/2023

AI Insights

Shivam Condev Pvt. Ltd. filed appeals against the orders of the CIT(A)-2, Bhubaneswar, for the assessment years 2015-2016 to 2018-2019. The main issues in the appeals were the denial of deduction under section 80IA and an adhoc disallowance of 10% on miscellaneous expenses. The Tribunal noted the absence of the assessee's representative during the hearings and rejected an adjournment application for lack of substantiation. The Senior DR argued that the assessee failed to provide necessary evidence at the AO or CIT(A) levels, particularly concerning the deduction under section 80IA and the nature of the miscellaneous expenses. The Tribunal decided to restore the issue of section 80IA deduction to the CIT(A) for further examination and removed the disallowance on miscellaneous expenses due to the lack of specific identification of non-allowable expenses.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127109 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB
• Next Hearing Date: 27-06-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 16-04-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80IA

Judgement Text

आयकर अऩीऱीय अधधकरण, कटक न्यायऩीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश क ु मार, ऱेखा सदस्य के समक्ष । (THROUGH VIRTUAL HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अऩीऱ सं/ITA Nos.126 - 129/ CT K/ 2023 (ननधाारण वषा / Asses s m ent Year : 2015-2 016 to 2018-2019) Shivam Condev Pvt. Ltd. OU-522, 5 th Floor, Esplanade Commercial Development, Unit No.32, 721, Rasulgarh, Bhubaneswar-10 Vs ACIT, Circle-1(1), Cuttack PAN No. :AATCS 1852 Q (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee by : None राजस्व की ओर से /Revenue by : Shri S.C.Mohanty, Sr. DR स ु नवाई की तारीख / Date of Hearing : 28/06/2023 घोषणा की तारीख/Date of Pronouncement : 28/06/2023 आदेश / O R D E R Per Bench : These appeals are filed by the assessee against the order of the ld. CIT(A)-2, Bhubaneswar, passed in IT Appeal Nos. Cuttack/10363/2017- 18, Cuttack/10312/2018-19, Cuttack/10485/2019-20, dated 01.02.2023 and in IT Appeal No.NAFC/2017-18/10035828, dated 31.01.2023, for the assessment years 2015-2016, 2016-2017, 2017-2018 & 2018-2019. 2. None appeared on behalf of the assessee even the case was called for the second round of hearing, however, the AR of the assessee has filed an adjournment application stating therein that he needs more time to prepare in the appeal. The appeal has been filed by the assessee on 17 th April, 2023 and till now, the ld. AR seeks time to prepare in the ITA Nos.126-129/CTK/2023 2 appeal. The reasons given being unsubstantiated, the adjournment application is rejected. 3. It was submitted by the ld.Sr. DR that the assessee has not produced evidence before the AO or the ld.CIT(A) in regard to the issue of deduction u/s.80IA of the Act and consequently no fresh evidence can also be produced before the Tribunal. It was the prayer that the order of the ld. CIT(A) is liable to be confirmed. 4. In regard to ITA No.127/CTK/2023 for the assessment year 20162017, it was submitted by the ld. DR that there is one extra ground in regard to the disallowance confirmed by the ld. CIT(A) in respect of 10% of the miscellaneous expenses. It was the submission that the AO had disallowed 10% on the ground that the bills and vouchers though produced showed that the substantial portion was incurred in cash and was supported by self-made bills and vouchers. It was also submitted that the bills and vouchers produced and the narrations were inadequate to show that all such expenses which are incurred was wholly and exclusively for the purpose of business. It was the submission that the order of the AO and that of the ld.CIT(A) on this ground is also liable to be upheld. 5. We have considered the submissions of ld. Sr. DR. In respect of the issue of deduction u/s.80IA of the Act, a perusal of the order of the ld. CIT(A) shows that he has confirmed the order of the AO on the ground that the copy of the agreement entered into by the assessee with the undertaking regarding the details of the infrastructure ITA Nos.126-129/CTK/2023 3 developed/maintained by the assessee were not available. A perusal of the assessment order shows that the deduction has been denied on account of non-providing of the Form 10CCB. Admittedly the issue of the non-submission of the Form 10CCB has not been adjudicated by the ld. CIT(A). In this regard, as the ld. CIT(A) has not adjudicated the issue in respect of 80IA of the Act claimed on account of the issues raised by the AO and has also taken the stand that the copy of the agreement entered into having not been produced by the assessee, in the interest of justice, this issue is restored to the file of ld. CIT(A) for readjudication after granting the assessee adequate opportunity to produce of such evidence as required to substantiate his claim. 6. In regard to the issue of adhoc disallowance of 10% out of the miscellaneous expenses claimed, it is noticed that the AO has not identified any specific bills or vouchers but has made an estimate disallowance. The estimate disallowance are not permitted under the Act. This being so the adhoc disallowance of 10% as made by the AO and confirmed by the ld. CIT(A) stands deleted. 7. In the result, all the four appeals of the assessee for the assessment years are partly allowed for statistical purposes. Order dictated and pronounced in the open court on 28/06/2023. Sd/- (राजेश क ु मार) (RAJESH KUMAR) Sd/- (जाजज माथन) (GEORGE MATHAN) ऱेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 28/06/2023 Prakash Kumar Mishra, Sr.P.S. ITA Nos.126-129/CTK/2023 4 आदेश की प्रनतलऱपऩ अग्रेपषत/Copy of the Order forwarded to : आदेशान ु सार/ BY ORDER, (Assistant Registrar) आयकर अऩीऱीय अधधकरण, कटक/ITAT, Cuttack 1. अऩीऱाथी / The Appellant- Shivam Condev Pvt. Ltd. OU-522, 5 th Floor, Esplanade Commercial Development, Unit No.32, 721, Rasulgarh, Bhubaneswar-10 2. प्रत्यथी / The Respondent- ACIT, Circle-1(1), Cuttack 3. आयकर आय ु क्त(अऩीऱ) / The CIT(A), 4. आयकर आय ु क्त / CIT 5. ववभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, ITAT, Cuttack 6. गार्ज पाईऱ / Guard file. सत्यावऩत प्रयत //True Copy//