M/s Hydel Construction (P) Ltd., New Delhi V. DCIT, New Delhi

ITA 2170/DEL/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4971 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Appeal Filed On: 21-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ALOK PERIWAL
• Keywords: Revised return

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES D, NEW DELHI BEFORE SH. BHAVNESH SAINI, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 2170/DEL/2016 : ASSTT. YEAR : 2012-13 HYDEL CONSTRUCTION (P) LTD. C-287, DEFENCE COLONY, NEW DELHI. VS DCIT CIRCLE 11(2) NEW DELHI. (APPELLANT) (RESPONDENT) PAN NO. AAACH3012Q ASSESSEE BY : SH. ALOK PERIWAL REVENUE BY : SH. DEEPAK GARG, SR. DR DATE OF HEAR ING: 16 . 10 .201 9 DATE OF PRONOUNCEMENT: 07 .1 1 .201 9 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE A GAINST THE ORDER DATED 01.04.2016 PASSED BY THE LD. CIT(AP PEALS)-4, NEW DELHI RELATING TO AY 2012-13 ON THE FOLLOWING G ROUNDS OF APPEAL: 1. ACTION OF THE LD. CIT(APPEALS) IN UPHOLDING THE AC TION OF DEPUTY COMMISSIONER OF INCOME TAX IN NOT ALLOWIN G THE CLAIM MADE BY THE APPELLANT COMPANY ON ACCOUNT OF ADJUSTMENT OF REVALUATION NOT BEING TAXABLE AND THEREBY NOT ALLOWING CLAIM OF RS. 70,40,684/- IS UN JUST, ILLEGAL ARBITRARY AND AGAINST THE FACTS AND CIRCUMS TANCES OF THE CASE. ITA NO. 2170/DEL/2016 HYDEL CONSTRUCTION (P) LTD. 2 2. THE ASSESSING OFFICER HAS DISALLOWED THE AMOUNT CLAIMED BY THE ASSESSEE ON ACCOUNT OF ADJUSTMENT TO REVALUATION RESERVE. THE ASSESSING OFFICER HELD THAT THE ASSESSEE WAS REQUIRED TO EXPLAIN AS TO WHETHER THIS FACT OF REVALUATION WAS REPORTED BY THE AUDITOR IN TH E AUDIT REPORT OR NOT SHOWN ACCOUNTS. IT WAS HELD BY THE ASSESSING OFFICER THAT TH E CLAIM OF THE ASSESSEE IS AFTER THOUGHT AS THIS FACT WAS NOT REPORTED BY THE AUDITOR. FURTHER, IT WAS HELD THAT THE LOSS SHOULD HAVE BEEN CLA IMED BY FILLING OF REVISED RETURN FOR THE AY 2012-13 AND SIMPLY FILING A STATEMENT NO DEDUCTION OR CLAIM CAN BE ENTERTAINMENT AS HELD BY THE HONBLE SUPREME COURT IN THE CASE OF GOETZ INDIA LTD. VS. CIT 284 ITR 323. 3. THE LD. CIT(A) CONFIRMED THE DISALLOWANCE ON THE GR OUNDS THAT THE CLAIM OF RS. 70,40,684/- MADE BY THE ASSESSEE ON ACCOUNT OF ADJUSTMENT TO REVALUATION RESERVE NOT BEING TAXABLE. IT WAS HE LD THAT THE ASSESSEE WAS REQUIRED TO EXPLAIN WHETHER THE REVALUATION WAS R EPORTED BY THE AUDITOR IN THE AUDIT REPORT OR SHOWN IN THE ACCOUNTS. THE ASSESSEE ADMITTED BEFORE THE ASSESSING OFFICER THAT THIS FACT WAS NO T REPORTED IN THE AUDIT REPORT. THE LD. CIT(A) HELD THAT THERE IS NO HARM IN MAKING A CLAIM BY THE ASSESSEE DURING THE COURSE OF ASSESSMENT PROCEEDINGS BU T AT THE SAME TIME THIS CLAIM SHOULD HAVE BEEN AUDITED. 4. HEARD THE ARGUMENTS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE ONLY REASON THE LD. CIT(A) CONFIRMED THE DISALLOWANCE WAS THAT THE ACCOUNTS HAVE NOT BEEN AUDI TED WITH REGARD TO THE CLAIM OF LOSS ON ACCOUNT OF REVALUATION RESERVE. IT WAS NOT DISPUTED BY THE REVENUE THAT THE CLAIM IS NOT TENABLE. HENCE, K EEPING IN VIEW THE FACTS OF THE CASE AND RELYING ON THE JUDGMENT OF HONBLE APEX COURT IN THE CASE OF GOETZ INDIA LTD. VS. CIT 284 ITR 323, WE HEREB Y REMAND THE MATTER TO THE FILE OF THE ASSESSING OFFICER TO ALLOW THE CLAIM OF THE ASSESSEE AFTER DUE VERIFICATION. ITA NO. 2170/DEL/2016 HYDEL CONSTRUCTION (P) LTD. 3 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 07/11/2019. SD/- SD/- (BHAVNESH SAINI) (DR. B . R. R. KUMAR) JUDICIAL MEMBER AC COUNTANT MEMBER DATED: 07/11/2019 *KAVITA ARORA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR