Bharat Anand, New Delhi V. ACIT, Circle-61(1), New Delhi

ITA 130/DEL/2020

AI Insights

The case involves Bharat Anand, the appellant, challenging the assessment order and the subsequent order of the First Appellate Authority, which were based on an incorrect methodology for calculating disallowances. The appellant argued that the AO did not adhere to the amended Rule 8D of the Income Tax Rules, which was effective from 02.06.2016, as specified in the Central Board of Direct Taxes notification S. O. 1949(E). The respondent, represented by the Senior Departmental Representative, did not contest this point. The Tribunal found that the AO had indeed referred to the unamended Rule 8D in the assessment order, leading to the decision to set aside the assessment and remand the matter back to the AO for recalculation under the correct, amended rule.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 131144 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 23-11-2022
• Assessment Year: misc
• Appeal Filed On: 06-01-2020
• Laws Referred To: Income Tax Rules, Central Board of Direct Taxes notification dated 02.06.2016 S. O. 1949(E)
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A”: NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No. 130/Del/2020 (Assessment Year: 2016-17) Bharat Anand, 1, jaipur Estate, Nizamuddin East, New Delhi Vs. ACIT, Circle-6(1), New Delhi (Appellant) (Respondent) PAN: AKYPA2495D Assessee by : Shri. B. K. Anand, FCA Revenue by: Sh. Kanv Bali, Sr. DR Date of Hearing 24/11/2022 Date of pronouncement 29/11/2022 O R D E R PER ANUBHAV SHARMA, J. M.: 1. Heard and perused. 2. The assessee has preferred this appeal challenging the impugned order of ld CIT(A)-20, New Delhi in appeal no 20/10387/2018-19 dated 24.12.2018 for Assessment Year 2016-17 and at the time of hearing in regard to grounds as raised the ld AR submitted that primarily the assessment order and the consequent order of the ld First Appellate Authority, have been challenged for invoking wrong methodology of calculation of the disallowances. 3. The ld AR referred to the Central Board of Directs Taxes notification dated 02.06.2016 S. O. 1949(E) and submitted that w.e.f 02.06.2016, Rule 8D of the Income Tax Rules was substituted and the ld AO was supposed to make a calculation according to said Rule Page | 2 however, the calculation has been done in ignorance of Notification dated 02.06.2016. 4. The ld DR could not rebut the same. 5. On perusal of para 4.2 of the assessment order it can be observed that the ld AO had referred to un-amended Rule 8D. That being so, the assessment order is set aside and the issue is restored to the files of Ld. AO to make to make a recalculation and passed a fresh assessment order according to Amended Rule. Order pronounced in the open court on 29/11/2022. -Sd/- -Sd/- (SHAMIM YAHYA) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29/11/2022 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi