Deepak enterprises, New Delhi V. ACIT Circle-32(1), New Delhi

ITA 2272/DEL/2023

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 0876 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 27-02-2024
• Assessment Year: 2014-2015
• Appeal Filed On: 09-08-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK KUMAR UPADHYAY
• Assessee Lawyers: S.N. BHARGVA
• Keywords: Opportunity of being heard; Depreciation
• Section: 143(3); 37(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’: NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ITA No.2263/Del/2023 (Assessment Year: 2014-15) ITA No.2272/Del/2023 (Assessment Year: 2014-15) Deepak Enterprises, vs. JCIT, Range 32, 95A/1, Gautam Nagar, New Delhi. New Delhi – 110 016. (PAN : AAEFD7578G) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri S.N. Bhargva, Advocate Shri Nikhil Bhargva, Advocate REVENUE BY : Shri Vivek Kumar Upadhyay, Sr. DR Date of Hearing : 28.02.2024 Date of Order : 04.03.2024 ORDER PER SHAMIM YAHYA, ACCOUNTANT MEMBER : These are appeals by the assessee against the respective orders of the ld. CIT (Appeals)/National Faceless Appeal Centre (NFAC) dated 12.06.2023 for the assessment year 2014-15 confirming the quantum addition and penalty sustenance by the ld. CIT (A). 2. Grounds of appeal taken by the assessee read as under :- “ITA No.2263/Del/2023 (QUANTUM APPEAL) 2 ITA Nos.2263 & 2272/Del/2023 1. That Ld. JCIT has erred in law as much as on the facts of the case by arbitrary disallowing 100 percent expenses incurred on account of Research & Development of Rs.7,57,500/- under section 37(1) of the Act, without giving the opportunity of being heard. 2. That Ld. JCIT has erred in law as much as on the facts of the case by arbitrary disallowing expenses of Rs.8,024/- incurred on account of additional sales tax/fee under section 37(1) of the act, without giving the opportunity of being heard to the appellant. However, the claim made by the appellant for the said expenses was bonafide. 3. That Ld. JCIT has erred in law as much as on the facts of the case by arbitrary disallowing the following expenses out of the total expenses of respective head as personal expenses under section 37(1) of the act, though there is no personal usage made out of the said expenses. S.No. Name of expenses Head Total Expenses (Rs.) Disallowed (Rs.) 1. Vehicle running & maintenance Rs. 3,21,220/- 32,122/- 2. Depreciation on vehicles Rs. 1,97,023/- 19,702/- 3. Insurance of vehicle Rs. 37,580/- 3,758/- 4. Telephone Rs. 4,89,802/- 48,980/- 5. Total Rs.10,45,625/- 1,04,562/- It is therefore kindly prayed that the aforesaid unwarranted disallowance under section 37(1) of the act of Rs.8,70,086/- may kindly be deleted after providing an opportunity of being heard to the appellant.” ITA No.2272/Del/2023 (PENALTY APPEAL) “(a) That ld. ACIT has erred in law as much as on the facts of the case by arbitrary levied the penalty under seciton271(1)(c) of the Income Tax Act. (b) That the appellant has filed an appeal against order passed under section 143(3) of the act against the addition made by the ACIT. (c) That appellant has not filed inaccurate particular of income before ld. ACIT in the course of hearing of the case.” 3. At the outset, ld. Counsel for the assessee submitted that assessee has not been given an opportunity to properly canvass the case, hence he prayed that an opportunity may be granted to the assessee. He further submitted that ld. CIT (A) has kept the order pending for six year and then passed an order without giving an opportunity. 3 ITA Nos.2263 & 2272/Del/2023 4. On the other hand, ld. DR for the Revenue did not have any serious objection if the assessee is given one opportunity to canvass the appeal. 5. Upon careful consideration, we are of the considered view that interest of justice would be served if the appeals are set aside to the file of ld. CIT(A). Ld. CIT (A) shall give the assessee an opportunity of being heard and thereafter pass an order as per law. 6. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on this 4 th day of March, 2024. Sd/- sd/- (CHALLA NAGENDRA PRASAD) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated the 4 th day of March, 2024 TS Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT(Appeals) 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.