Reed & Pick Impex (P) Ltd., Panipat V. ACIT Circle, Panipat

ITA 2031/DEL/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 9578 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: F
• Assessment Year: 2013-2014
• Appeal Filed On: 07-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

Page 1 of 5 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’: NEW DELHI BEFORE, SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA No.2031/Del/2019 (ASSESSMENT YEAR 2013-14) Reed & Pick Impex (P) Ltd. ITI, G.T. Road, Panipat-132 103 PAN-AADCR 7101D Vs. Asst. CIT, Circle Panipat Panipat (Appellant) (Respondent) Appellant by Sh. R.K. Mehra, CA Respondent by Ms. Meenakshi Dohare, Senior Departmental Representative (“Sr. DR” for short) ORDER PER ANADEE NATH MISSHRA, AM: (A) This appeal by Assessee is filed against the order of Learned Commissioner of Income Tax (Appeals)-Karnal [“Ld. CIT(A)”, for short], dated 03/01/2019 for Assessment Year 2013-14. Grounds taken in this appeal are as under: “1. That on the facts and in the circumstances of the case the Learned Commissioner of Income Tax (Appeals) has erred in confirming the addition of Rs.100000.00 P. out of an addition of Rs.2114907.00 P. made by the Learned Assessing Officer out of various expenses incurred by the Appellant. The same may kindly deleted. ITA No.2031/Del/2019 Reed & Pick Impex (P) Ltd. vs. ACIT Page 2 of 5 2. That on the facts and in the circumstances of the case the Learned Commissioner of Income Tax (Appeals) has erred in confirming the addition of Rs.67840.00 P. out of Travelling/Telephone Expenses made by the Learned Assessing Officer. The same may kindly deleted. 3. That the Appellant craves the permission to add/modify/amend the grounds of appeal before the appeal is heard & disposed off.” (B) In this case, assessment order dated 16/02/2016 was passed by the Assessing Officer (“AO” for short) u/s 143(3) of Income Tax Act (“IT Act” for short), determining the total income at Rs.95,65,417/- (rounded off to Rs.95,65,420/-) as against returned income of Rs.63,82,617/-. In the aforesaid assessment year, an addition of Rs.21,14,907/- was made out of Salary/Wages, Labour Welfare, Travelling & Conveyance, Misc. Expenses, Legal & Professional Charges, Cartage & Freight Outwards, Building Repair etc. on the ground that the assessee failed to put forth any explanation regarding disproportionate increase in these expenses and also did not produce the supporting bills, vouchers, for verification. Further, a disallowance of Rs.67,840/- was made out of Car Expenses, Car Depreciation and Telephone Expenses; on account of estimated personal and non-business use. The assessee filed appeal in the office of the Ld. CIT(A). Vide impugned appellate ITA No.2031/Del/2019 Reed & Pick Impex (P) Ltd. vs. ACIT Page 3 of 5 order dated 03/01/2019, the Ld. CIT(A) confirmed the addition of Rs.10,00,000/- out of the aforesaid addition of Rs.21,14,907/- and deleted the remaining amount of Rs.11,14,907/-. Further, the addition of aforesaid amount of Rs.67,840/- was sustained by the Ld. CIT(A). The present appeal has been filed by the assessee against the aforesaid impugned appellate order dated 03/01/2019 of the Ld. CIT(A). In the course of appellate proceedings in Income Tax Appellate Tribunal (“ITAT”, for short), a paper book consisting of the following particulars was filed from the assessee’s side: S No. Particulars 1. Copy of letter dated Dec.2018 of the appellant company, addressed to the Commissioner of Income Tax (Appeals), Karnal in Remand Proceedings 2. Copy of letter filed on 04/10/2018 by the appellant company, addressed to the Income Tax Officer, Ward-5, Panipat in Remand Proceedings. 3. Copy of letter filed on 27/09/2018 of the appellant company addressed to the Income Tax Officer, Panipat, in Remand Proceedings along with ledger of accounts from (A) 01/04/2012 to 31/03/2013 & (B) 01/04/2011 to 31/03/2012 as follows: (i) Legal & Professional Charges (ii) Cartage & Freight (Outward) (iii) Repair & Maintenance (Building) (iv) Salary and Wages (v) Travelling and Conveyance (vi) Labour Welfare (vii) Misc. Expenses ITA No.2031/Del/2019 Reed & Pick Impex (P) Ltd. vs. ACIT Page 4 of 5 4. Copy of letter dated 27/29-06-2018 of the Income Tax Officer in Remand Proceedings. 5. Copy of Application filed under rule 46A dated 15/06/2016 of the appellant company addressed to the Commissioner of Income tax, Karnal 6. Copy of computation of taxable total income for the assessment year 2013-14 7. Copy of balance sheet as on 31/03/2013 and profit and loss account for the year ending 31/03/2013 along with annexures attached there to. (C) At the time of hearing before us, the learned Authorized Representative (“AR” for shot) of the assessee as well as the learned Sr. DR for Revenue submitted that all the issues in dispute in the present appeal may be restored to the file of the Assessing Officer for fresh order in accordance with law after providing reasonable opportunity to the assessee. In view of the foregoing, and as representatives of both sides are in agreement with this, we set aside the impugned appellate order dated 03/01/2019 of the Ld. CIT(A) and restore all the issues in dispute in the present appeal before us to the file of the Assessing Officer, with the direction to pass fresh order in accordance with law after providing reasonable opportunity to the assessee. All the grounds of appeal are treated as disposed off in accordance with aforesaid directions. ITA No.2031/Del/2019 Reed & Pick Impex (P) Ltd. vs. ACIT Page 5 of 5 (C) In the result, for statistical purposes, this appeal is partly allowed. This order was already pronounced orally on 28 th September, 2022 in Open Court, in the presence of representatives of both sides, after conclusion of the hearing. Now this order in writing is signed today on 30/09/2022. /- Sd/- /-/- Sd/- (KUL BHARAT) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 30/09/2022 Pk Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW, DELHI