Mohan Energy Corporation Pvt. Ltd., New Delhi V. ACIT, New Delhi

ITA 1512/DEL/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9771 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2012-2013
• Appeal Filed On: 14-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AGAINST DATED PASSED
• Section: 142(1); 143(1)

Judgement Text

1 ITA NO. 1512/DEL/2017 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: E NEW DELHI BEFORE SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER I.T.A. NO. 1512/DEL/20 17 (A.Y 2012-13) MOHAN ENERGY CORPORATION PVT. LTD. MOHAN HOUSE, 8-9 ZAMRUDPUR, COMMUNITY CENTRE, KAILASH COLONY EXTENSION, NEW DELHI AAECN6956G (APPELLANT) VS ACIT CIRCLE-5(1) NEW DELHI (RESPONDENT) ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 14/02/2017 PASSED BY CIT(A)-6, NEW DELHI FOR ASSESSMENT YEAR 2012-13. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THAT WITHOUT APPRECIATING THE FACTS OF THE CASE AN D IN LAW, THE LD.CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS. 2,22,887/- ON ACCOUNT OF VALUE OF DEPB LICENSE. THAT IT MAY BE HELD THAT IN THE CIRCUMST ANCES THE ASSESSEE HAD CORRECTLY VALUED THE DEPB LICENSES AT THE NET ESTIM ATED REALIZABLE VALUE AT 90% OF THE FACE VALUE AND THE ADDITION OF RS. 2,22 ,887/- BE DELETED. 2. THAT THE CIT (A) HAS ERRED IN CONFIRMING THE FOL LOWING DISALLOWANCES FOR PERSONAL USE OF THE DIRECTORS AND EMPLOYEES OF THE ASSESSEE COMPANY WITHOUT APPELLANT BY NONE RESPONDENT BY MS. RINKU SINGH, SR. DR DATE OF HEARING 01.07.2019 DATE OF PRONOUNCEMENT 02 .07.2019 2 ITA NO. 1512/DEL/2017 ANY MATERIAL BASIS, ON ERE SURMISES. AMOUNT (RS.) A) OUT OF TELEPHONE EXPENSES (10%) 45481 B) OUT OF CONVEYANCE LOCAL 53137 C) OUT OF EXPORT PROMOTION (10%) 10567 27 1155345 THAT THE ADDITIONS BEING CONTRARY TO PROVISIONS OF LAW BE DELETED. 3. THE ASSESSEE COMPANY UNDERTOOK TURNKEY PROJECTS IN THE CONVENTIONAL AND UNCONVENTIONAL ENERGY LIKE TRANSMISSION LINES, DISTRIBUTION NETWORKS, SUB- STATIONS, SOLAR INSTALLATIONS, BIO MASS BASED POWER GENERATION ETC. DURING THE YEAR UNDER CONSIDERATION. RETURN OF INCOME DECLARI NG TOTAL INCOME OF RS. 8,48,87,410/- WAS FILED ON 26/09/2012 WHICH WAS PRO CESSED U/S 143(1) OF THE INCOME TAX ACT, 1961. THE CASE WAS SELECTED FO R SCRUTINY AND NOTICE U/S 143(2) AND 142(1) ALONG WITH DETAILED QUESTIONNAIRE S WERE ISSUED AND SERVED UPON THE ASSESSEE. IN RESPONSE THERETO, CHARTERED ACCOUNTANT AND AUTHORIZED REPRESENTATIVE OF THE ASSESSEE ATTENDED THE PROCEED INGS FROM TIME TO TIME AND FURNISH THE REQUISITE DETAILS WHICH WERE EXAMINED B Y THE ASSESSING OFFICER. THE ASSESSING OFFICER MADE ADDITIONS ON ACCOUNT OF SHORT PROVISION OF EXPORT INCENTIVE AMOUNTING TO RS. 2,22,887/- AND MADE DISA LLOWANCE ON ACCOUNT OF ELEMENT OF PERSONAL EXPENSES AMOUNTING TO RS. 11,55 ,345/-. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. 5. NONE APPEARED ON BEHALF OF THE ASSESSEE DURING T HE HEARING. THEREFORE, WE ARE TAKING UP THE SUBMISSIONS OF THE ASSESSEE BE FORE THE CIT(A). 6. THE LD. DR RELIED UPON THE ORDER OF THE ASSESSME NT AND ORDER OF THE 3 ITA NO. 1512/DEL/2017 CIT(A). BUT DURING THE HEARING, THE LD. DR ALSO SU BMITTED THAT FOR ASSESSMENT YEAR 2011-12 WHICH WAS RELIED UPON BY THE CIT(A) IN THE ORDER, THE SAME ASSESSMENT YEAR HAS BEEN DECIDED BY THE TRIBUNAL I N FAVOUR OF THE ASSESSEE. 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. AS REGARDS TO GROUND NO. 1, IT CAN BE SEEN THAT NO DEPB LICENSES WERE RECEIVED DURING THE YEAR IN RESPECT OF SALES MADE D URING THE YEAR. THE ASSESSEE IS NOT A MANUFACTURER AND THEREFORE, DEPB LICENCE C ANNOT BE USED, THE SAME HAS TO BE SOLD IN THE OPEN MARKET TO UTILIZE THE SA ME. THE ESTIMATED REALIZABLE VALUE OF DEPB LICENCES RECEIVABLE FOR EXPORTS DURI NG THE YEAR WERE PROVIDED AT RS. 20,05,978 AND SHOWN AS MISCELLANEOUS INCOME. FR OM THE RECORDS IT CAN BE SEEN THAT THE EACH INVOICE DETAILS WERE FILED BY TH E ASSESSEE AND THE DETAILS OF SUBSEQUENT SALES REALIZATION WAS ALSO GIVEN. THE TO TAL AMOUNT REALIZED WAS ONLY RS. 10,15,988 AGAINST THE PROVISION OF RS. 20,05,97 8/-. THE ASSESSING OFFICER WRONGLY TREATED THE SAID AMOUNT AS PROVISION ON EST IMATED BASIS AMOUNTING TO RS. 2,22,887/-. THUS, THE GROUND NO. 1 IS ALLOWED. AS RELATES TO GROUND NO. 2 THE DETAILS OF EXPENSES WERE FILED BEFORE THE ASSES SING OFFICER BY THE ASSESSEE WHICH WAS NOT TAKEN INTO ACCOUNT BY THE ASSESSING O FFICER. THEREFORE, GROUND NO. 2 IS ALLOWED. BESIDES THIS, THE ISSUE HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE IN ITS OWN CASE FOR ASSESSMENT YEAR 2011-1 2 WHICH WAS RELIED UPON BY THE CIT(A). THEREFORE, THE APPEAL OF THE ASSESS EE IS ALLOWED. 8. IN RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND JULY, 2019 . SD/- SD/- (N. K. BILLAIYA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 02/07/2019 R. NAHEED * 4 ITA NO. 1512/DEL/2017 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 01.07.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 01.07.2019 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