Super Belts Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 1344/DEL/2015

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 2708 (ITAT-DELHI)
• Duration Of Justice: 6 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2009-2010
• Appeal Filed On: 09-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARAMITA M BISWAS
• Assessee Lawyers: AJAY BHAGWANI
• Section: 40A(3); 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI E BEN CH, NEW DELHI [THROUGH VIDEO CONFERENCE] BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI KULDIP SINGH, JUDICIAL MEM BER ITA NO. 1344/DEL/2015 [ASSESSMENT YEAR: 2006-07] & ITA NO. 1343/DEL/2015 [ASSESSMENT YEAR: 2009-10] SUPER BELTS PVT LTD VS. THE DY. C.I.T. M-11, MIDDLE CIRCLE, CENTRAL CIRCLE - 32 CONNAUGHT CIRCUS NEW DELHI NEW DELHI PAN : AAGCS 3368 G [APPELLANT] [RESPONDENT] DATE OF HEARING : 09.03.2021 DATE OF PRONOUNCEMENT : 09.03.2021 ASSESSEE BY : SHRI AJAY BHAGWANI, CA REVENUE BY : MS. PARAMITA M. BISWAS, CIT-DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- THE ABOVE TWO CAPTIONED APPEALS BY THE ASSESSEE ARE PREFERRED AGAINST THE SEPARATE ORDERS OF THE LD. CIT(A) - 30, NEW DELHI DATED 24.11.2014 AND 21.11.2014 PERTAINING TO A.YS 2006-0 7 AND 2009-10 2 RESPECTIVELY. SINCE COMMON ISSUES ARE INVOLVED IN BOTH THE APPEALS, THEY WERE HEARD TOGETHER AND ARE DISPOSED OF BY THI S COMMON ORDER FOR THE SAKE OF CONVENIENCE AND BREVITY. ITA NO. 1343/DEL/2015 2. THE SOLITARY ISSUE RELATES TO THE DISALLOWANCE O F RS. 9,93,622/- MADE U/S 40A(3) OF THE INCOME TAX ACT, 1961 [HEREIN AFTER REFERRED TO AS 'THE ACT' FOR SHORT]. 3. FACTS ON RECORD SHOW THAT ASSESSMENT ORDER DATED 25.03.2013 IS FRAMED U/S 153A OF THE ACT BY WHICH RETURNED INCOME OF RS. 5.61 LAKHS WAS ASSESSED AT RS. 15.55 LAKHS, AFTER MAKING ADDIT ION ON ACCOUNT OF DISALLOWANCE U/S 40A(3) OF THE ACT AMOUNTING TO RS. 9.93 LAKHS. 4. FACTS ON RECORD FURTHER SHOW THAT AN IDENTICAL D ISALLOWANCE WAS MADE IN ASSESSMENT FRAMED U/S 143(3) OF THE ACT AND THE MATTER TRAVELLED UPTO THE TRIBUNAL AND THE TRIBUNAL, VIDE CONSOLIDATED ORDER DATED 14.09.2015 FRAMED IN THE APPEALS OF GROUP CAS ES WHERE THE APPELLANT IN HAND WAS ALSO IN APPEAL IN ITA NO. 175 9/DEL/2013 AND THE IMPUGNED ISSUE WAS CONSIDERED AND DECIDED BY THE CO -ORDINATE BENCH AT PARA 37 OF ITS ORDER WHICH READS AS UNDER: 3 GROUND NO. 4 OF THE ASSESSEE'S APPEAL RELATES TO T HE SUSTENANCE OF DISALLOWANCE U/S 40A(3) OF THE ACT. THIS ISSUE I S SIMILAR TO THE ISSUE INVOLVED IN THE CASE OF M/S SUNGLOW OVERSEAS PVT. LTD. (SUPRA). THEREFORE IN VIEW OF OUR FINDINGS GIVEN IN THE SAID CASE IN THE FORMER PART OF THIS ORDER THE DISALLOWANCE SUST AINED BY THE LD. CIT(A) IS DELETED. 5. RESPECTFULLY FOLLOWING THE FINDINGS OF THE CO-OR DINATE BENCH, WE DO NOT FIND ANY MERITS IN THE ADDITION MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD. CIT(A). WE, ACCORDINGLY, DIRECT THE ASSESSING OFFICER TO DELETE THE ADDITION MADE U/S 40A(3) OF T HE ACT. 6. IN THE RESULT, THE APPEAL IS ALLOWED. ITA NO. 1344/DEL/2015 7. GROUND NO. 1 IS GENERAL IN NATURE AND NEEDS NO A DJUDICATION. 8. GROUND 2 WITH ITS SUB-GROUNDS WAS NOT PRESSED AN D IS ACCORDINGLY DISMISSED AS NOT PRESSED. 9. GROUND NO. 3 RELATES TO DISALLOWANCE OF RS. 40 L AKHS MADE U/S 40A(3) OF THE ACT. 4 10. FACTS ON RECORD SHOW THAT THE ASSESSMENT ORDER DATED 25.03.2013 WAS FRAMED U/S 153A OF THE ACT AND THE RETURNED INC OME WAS ASSESSED AT RS. 53.41 LAKHS AFTER MAKING, INTER ALIA, ADDITI ON ON ACCOUNT OF DISALLOWANCE MADE U/S 40A(3) OF THE ACT AT RS. 40 L AKHS. 11. SIMILAR DISALLOWANCE HAS BEEN CONSIDERED BY US IN ITA NO. 1343/DEL/2016 [SUPRA] WHEREIN, FOLLOWING THE DECISI ON OF THE COORDINATE BENCH, THE DISALLOWANCE HAS BEEN DELETED . THE FACTS BEING MUTATIS MUTANDIS SIMILAR TO THOSE OF ITA NO. 1343/DEL/2015, RESPECTFULLY FOLLOWING THE SAME, THE ADDITION IS DI RECTED TO BE DELETED. 12. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE IN ITA NOS. 1343 AND 1344/DEL/2015 ARE ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF BOTH THE RIVAL REPRESENTATIVES ON 09.03.2021. SD/- SD/- [KULDIP SINGH] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 09 TH MARCH, 2021 VL/ 5 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 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