M/s. Honda Siel Power Products Ltd., Gautam Budh Nagar V. ACIT, New Delhi

ITA 2299/DEL/2014

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3760 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 16-04-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUNIT SINGH
• Assessee Lawyers: NEERAJ JAIN MS SHAILY GUPTA; MRINAL GOYAL
• Keywords: Revision of order; Opportunity of being heard; Assessment record; Revised return; Set aside
• Section: 234B; 201; 144C; 251; 113; 43; 13; 263; 63; 144

Judgement Text

IN TH E INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : C : NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO. 2299 / DEL/201 4 ASSESSMENT YEAR : 20 0 7 - 08 HONDA SIEL POWER PRODUCTS LTD., PLOT NO.5, SECTOR - 41 (KASNA), GREATER NOIDA INDUSTRIAL DEVELOPMENT AREA, GAUTAM BUDH NAGAR PAN: AAACH8464L VS ACIT, CIRCLE - 12(1), NEW DELHI. (APP ELL A NT ) (RESPONDENT) A SSESSEE BY : SHRI NEERAJ JAIN, ADVOCATE MS SHAILY GUPTA, CA & MS MRINAL GOYAL, CA RE VENUE BY : MS SUNIT SINGH, CIT - DR DATE OF HEARING : 1 2 . 10 . 20 20 DATE OF PRONOUNCEMENT : 23 . 10 . 20 20 ORDER PER R. K. PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 14 TH FEBRUARY 2014 PASSED U/S 2 63 BY THE C IT , DELHI - 4, DELHI , FOR ASSESSMENT YEAR 2007 - 0 8 . 2. F ACTS OF THE CASE , IN BRIEF , ARE THAT THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURING OF PORTABLE GENERATING SETS, I C ENGINES , WATER PUMPING ITA NO. 2299 /DEL/201 4 2 SETS AND MANUFACTURE AND PROCESS ING OF PRESSURE DIE - CASTING PARTS . IT FILED IT'S RETURN OF INCOME ON 27 TH OCTOBER 2007 DECLARING NIL INCOME . S UBSEQUENTLY , THE ASSESSEE FILED A REVISED RETURN ON 29 TH OCTOBER 2007 DECLARING TOTAL INCOME AT RS. 31 , 49 , 18 , 923 / - . THE AO PASSED THE ORDER UNDER SECTION 143 ( 3 ) READ WITH SECTION 144 C OF THE A CT ON 24 TH OCTOBER 2011 , DETERMINING THE TOTAL INCOME OF THE ASSESSEE A T RS. 44 , 78 , 49 , 680 / - WHEREIN HE MADE ADDITION OF RS.13,29,30,660/ - UNDER VARIOUS HEADS SUCH AS ROYALTY, TECHNICAL GUIDANCE, EXPERT COMMISSI ON AND ON ACCOUNT OF TP ADJUSTMENT. 3. S UBSEQUENTLY , THE LD. CIT CALLED FOR RECORDS AND EXAMINED THE SAME AND FOUND THAT THE ASSESSMENT ORDER PASSED BY THE AO WAS ERRONEOUS INSOFAR AS IT WAS PRE JUDICIAL TO THE INTEREST OF THE R EVENUE FOR THE FOLLOWING RE ASONS : - (I) ON SCRUTINY OF ASSESSMENT RECORD IT WAS SEEN THAT THAT AS PER PARA 17 (K) OF THE 3CD REPORT THE ASSESSEE HAD BOOKED AN AMOUNT OF RS. 36,82,645/ - BEING ENTRY TAX PAYABLE FOR PONDICHERRY WORKS. THIS EXPENDITURE WAS CLEARLY MENTIONED AS OF CONTIN GENT NATURE HENCE WAS AN UNASCERTAINED LIABILITY AND, THEREFORE, SHOULD HAVE BEEN ADDED BACK TO THE INCOME OF THE ASSESSEE. (II) IT WAS FURTHER NOTICED THAT THE ASSESS.EE HAD BOOKED AN AMOUNT OF RS. 27,65,000/ - ON ACCOUNT OF PROVISION FOR SLOW MOVING INVE NTORY. AS THIS EXPENDITURE WAS ALSO IN THE NATURE OF A PROVISION IT SHOULD HAVE ADDED BACK TO THE INCOME OF THE ASSESSEE. (III) IT WAS ALSO NOTICED THAT AS PER PARA 18 OF SCHEDULE 11, THE ASSESSEE HAD BOOKED AN AMOUNT OF RS. 75,95,000/ - ON ACCOUNT O F PROVISION FREE OF COST SERVICES AND DEBITED TO PROFIT AND LOSS ACCOUNT UNDER THE ITEM SERVICE CHARGES, FT WAS FURTHER REVEALED THAT EVEN THE PROVISION MADE FOR THE SAID ITEM HAD NOT BEEN CONSUMED FULLY. THUS AS THIS EXPENDITURE WAS IN THE NATURE OF A PRO VISION IT SHOULD HAVE ADDED BACK TO THE INCOME OF THE ASSESSEE. (IV) IT WAS FOUND THAT INTEREST U/S 234B WAS CHARGED TO THE TUNE OF RS. 2,43,90,156 INSTEAD OF CORRECT AMOUNT OF RS.2,74,21,525/ - AND WAS THUS UNDERCHARGED TO THE EXTENT OF RS. 30,31,369 / - . ITA NO. 2299 /DEL/201 4 3 4. H E , THEREFORE , ISSUED A NOTICE DATED 27 TH DECEMBER 2013 UNDER SECTION 263 OF THE A CT TO THE ASSESSEE TO EXPLAIN AS TO WHY PROCEEDINGS UNDER SECTION 263 OF THE ACT SHOULD NOT BE INITIATED . I T WAS EXPLAINED THAT ASSESSMENT IN THE INSTANT CASE WAS P ASSED P URSUANT TO DIRECTIONS OF THE DRP AND SCOPE OF D R P AND POWERS CONFERRED UNDER SECTION 144 C TO THE DRP WAS IN ESSENCE IN THE NATURE AND POWER OF REVIEW TO SAFEGUARD THE INTERESTS OF THE R EVENUE . I T WAS ACCORDINGLY ARGUED THAT ONCE DRA F T ASSESSMENT ORD ER WAS APPROVED BY THE D RP , TH E CIT HAS NO JURISDICTION TO REVIEW THE MATTER AGAIN UNDER THE PROVISIONS OF SECTION 263 OF THE ACT. I T WAS ARGUED THAT THE D RP HAS THE POWER TO CONF IRM , REDUCE OR ENHANCE THE VARIATIONS PROPOSED IN THE DRA F T ORDER AND THE DRP WAS ALSO EMPOWERED TO CONSIDER ANY MATTER ARISING OUT OF THE ASSESSMENT PROCEEDINGS RELATING TO THE DRA F T ORDER . T HEREFORE , THE INHERENT POWER OF REVIEW IS AVAILABLE WITH THE DR P AND WHEN THE DRP HAS EXAMINED THE MATTER AND GIVEN THE DIRECTION AFTER DUE A PPLICATION OF MIND , THE ASSESSMENT ORDER CANNOT BE HELD AS ERRONEOUS SO AS TO WARRANT EXERCISE OF REVISIONARY J URISDICTION UNDER SECTION 263 OF THE ACT. I T WAS FURTHER ARGUED THAT THE DRP I S A COLLEGIUM OF THREE COMMISSIONERS AND , THEREFORE , THE ORDER PASS ED IN ACCORDANCE WITH THE DIRECTIONS OF THE DRP CANNOT BE REVIEWED BY A SINGLE COMMISSIONER UNDER SECTION 263 OF THE A CT . I T WAS SUBMITTED THAT THE TW IN CONDITIONS THAT THE ORDER IS ERRONEOUS AND THAT THE ORDER IS PREJUDI CIAL TO THE INTEREST OF THE R EVENUE ARE NOT BEING FULFILLED IN THE INSTANT CASE AND , THEREFORE , THE CIT WAS NOT JUSTIFIED IN EXERCISING JURISDICTION UNDER SECTION 263 OF THE ACT. ITA NO. 2299 /DEL/201 4 4 5. S O FAR AS THE MERIT OF THE CASE IS CONCERNED , IT WAS ARGUED THAT THE SUM OF RS.36,82,645/ - BEING ENTRY TAX PAYABLE BEING MENTIONED AS CONT IN GENT NATURE WAS AL READY A DDED BACK IN THE DI SALLOWANCE MADE UNDER SECTION 43 B OF THE A CT . T HE ASSESSEE FILED THE WORKING OF DISALLOWANCE MADE UNDER SECTION 43 B OF THE A CT . O N THE ISSUE OF PROVISION OF RS. 27 , 65 , 000 / - ON ACCO UNT OF SLOW / NON - MOVING INVENTORY , IT WAS SUBMITTED THAT SUCH PROVISION FOR SLOW / NON - MOVING ITEMS WAS MADE BY THE ASSESSEE AS PER IT'S INTERNAL POLICY BASED ON INDUSTRIAL NORMS , I.E., 100% OF CLOSING STOCK IF INVENTORY IS NOT SOLD FOR A PERIOD OF ONE YEAR A ND 50% OF CLOSING STOCK IF INVENTORY IS NOT SOLD FOR A PERIOD OF 6 MONTHS TO ONE YEAR . I T WAS ARGUED THAT SUCH PROVISION WAS ALSO IN ACCORDANCE WITH SCHEDULE - 14 OF THE COMPANIES ACT , 1956 . F URTHER , THIS POLICY HAS CONSISTENTLY BEEN FOLLOWED BY THE ASSESSE E AND NO ADVERSITY HAS EVER BEEN REPORTED BY THE AUDITOR IN THIS REGARD . I T WAS FURTHER ARGUED THAT THE AO S ORDER ALLOWING THE PROVISIO N WAS SUPPORTED BY JUDICIAL PRECE DENTS AND THERE WAS NO ERROR IN THIS REGARD . I T WAS FURTHER ARGUED THAT EVEN OTHERWISE ALSO NO PREJUDICE WAS CAUSED TO THE R EVENUE AS THE PRO VISION WAS WRITTEN OFF IN THE SUBSEQUENT ASSESSMENT YEAR . 6. S O FAR AS THE ISSUE OF ALLOWABILITY OF 2% OF RS. 75.95 LACS IN RESPECT OF SERVICE COUPONS , IT WAS EXPLAINED THAT THIS CLAIM WAS PART OF SER VICE EXPENSES UNDER THE HEAD OTHER EXPENSES . O N THE ISSUE OF INTEREST UNDER SECTION 234B OF THE A CT , IT WAS SUBMITTED THAT THE VERY ISSUE OF LEVY OF INTEREST UNDER SECTION 234 B WAS PURSUANT TO T HE ADDITIONS MADE IN THE ASSESSMENT WHICH WAS SUBJ UDICE BEFO RE THE ITA NO. 2299 /DEL/201 4 5 ITAT AND THE CALCULATION OF INTEREST AS MADE IN THE NOTICE UNDER SECTION 263 OF THE ACT WAS ALSO NOT CORRECT . I T WAS ACCORDINGLY REQUESTED TO DROP THE PROCEEDINGS INITIATED UNDER SECTION 263 OF THE ACT. 7. H OWEVER, THE CIT WAS NOT SATISFIED WITH TH E ARGUMENTS ADVANCED BY THE ASSESSEE . S O FAR AS THE ARGUMENT OF THE L D. COUNSEL THAT THE ORDER WAS PASSED AS PER DIRECTION OF THE DRP UNDER SECTION 1 4 4 C OF THE ACT, WHO HA S GOT THE POWER TO REVIEW ANY ISSUE AND THE REFORE, THE CIT COULD NOT HAVE EXERCISED J URISDICTION UNDER SECTION 263 OF THE ACT IS CONCERNED, THE LD. CIT HELD THAT THERE IS NO STIPULATION IN THE PROVISION S THAT ANY ORDER PASSED BY THE AO AS PER THE DIRECTION OF THE DRP UNDER SECTION 144 C O F THE A CT CANNOT BE SUBJECT TO REVIEW OF CIT UNDER SE CTION 263 . T HEREFORE , IN ABSENCE OF ANY S U CH EXCEPTIONAL POWER UNDER SECTION 263 THE OBJECTION RAISED BY THE ASSESSEE HAS TO BE REJECTED . A CCORDING TO HIM , THE PROVISION OF SECTION 144 C IS ONLY A MECHANISM TO COMPLETE THE ASSESSMENT A ND THE ASSESSEE HAS BE EN ALLOWED THE OPTION EITHER TO FILE AN APPEAL BEFORE TH E CIT(A) OR APPROACH THE DRP AGAINST THE ABOVE ASSESSMENT ORDER ISSUED UNDER SECTION 144C OF THE A CT BY THE AO. H E OBSERVED THAT THE POWER OF THE D RP TO ENHANCE THE VARIATIONS OR FOR THAT MATTER TO M AKE ENHANCEMENT ON ANY ISSUE NOT BEING SUBJECT MATTER OF THE DRA F T ORDER IS SIMILAR TO THE POWER AVAILABLE WITH TH E CIT(A) TO ENHANCE THE ASSESSMENT . T HIS POWER OF ENHANCEMENT IN NO WAY INTERFERES WITH THE POWER OF THE CIT TO INVOKE THE PROCEEDINGS U/S 263 , IF THE TWIN CONDITIONS AS MENTIONED IN THIS SECTION ARE FOUND TO BE SATISFIED. ITA NO. 2299 /DEL/201 4 6 8. SO FAR AS THE ARGUMENT OF THE L D. COUNSEL THAT THE DRP BEING A COLLEGIUM OF THREE COMMISSION S , AND, THEREFORE, THE ADMINISTRATIVE CIT BEING A SINGLE COMMISSIONER HAS NO P OWER TO REVIEW THE DIRECTIONS OF THE DRP IS CONCERNED, HE REJECTED THE SAME HOLDING THAT IF TH E CIT CAN REVIEW THE ORDER OF THE D RP AND FILE AN APPEAL AGAINST THE IR DIRECTION BEFORE THE ITAT, THEN, IN THAT CASE, THERE CAN BE NO BAR TO INVO KE PROVISIONS OF SECTION 263 IN CASES COMPLETED P URSUANT TO DIRECTION OF THE DRP. 8.1 H E FURTHER OBSERVED THAT NONE OF THE ISSUE S ON WHICH THE PROCEEDINGS UNDER SECTION 263 OF THE A CT HAS BEEN INITIATED WERE CONSIDERED BY THE DRP AND NO DIRECTION HAS BEEN ISSUED IN THIS REGARD . THEREFORE, HE HELD THAT THERE IS NO ILLEGALITY IN ASSUMING JURISDICTION UNDER SECTION 263 . 8.2 S O FAR AS THE NOTICE ISSUED UNDER SECTION 263 ON ACCOUNT OF CONTINGENT LIABILITY OF ENTRY TAX PAYABLE , HE ACCEPTED THE PLEA OF THE ASSESSEE A ND D ROPP ED THE PROCEEDINGS ON THIS ISSUE . H E ALSO ACCEPTED THE PLEA OF THE A SSESSEE THAT LEVY OF INTEREST UNDER SECTION 234B OF THE ACT WAS P URSUANT TO ADDITIONS MADE IN THE ASSESSMENT AND ONLY CONSEQUENTIAL IN NATURE AND SUCH INTEREST LEVIABLE HAS TO BE RECOMPUT ED ON EACH OCCASION WHEN THE TOTAL INCOME IS REVISED . HOWEVER, ON ACCOUNT OF THE OTHER TWO ISSUES , I.E., PROVISION FOR SLOW MOVING INVENTORY OF RS. 27 , 6 5 ,000/ - AND THE P ROVISION FOR RS. 75.95 LAKHS IN RESPECT OF SERVICE COUPONS , HE HELD THAT THE ORDER OF TH E AO IS ERRONEOUS AND PRE JUDICIAL TO THE INTERESTS OF THE R EVENUE . ITA NO. 2299 /DEL/201 4 7 9. S O FAR AS THE PROVISION FOR SLOW MOVING I NVENTORY OF RS. 27 . 6 5 LAKHS IS CONCERNED , HE OBSERVED THAT NO PROVISION FOR SLOW MOVING INVENTORY WAS DEBITED IN THE PRECEDING YEAR AND THE CL AIM WAS MADE FOR THE FIRST TIME IN THE CURRENT YEAR . T HERE FORE, THE CLAIM OF THE A SSESSEE THAT THE POLICY FOR MAKING THE PROVISION FOR SLOW MOVING INVENTORY HAS BEEN CONSISTENTLY FOLLOWED WAS NOT FOUND TO BE CORRECT . HE FURTHER NOTED THAT APART FROM THE PR OVISION FOR INVENTORY OF RS. 27.65 LAKHS THE ASSESSEE HAD ALSO DEBITED ANOTHER AMOUNT O F INVENTORY W R ITTEN OFF OF RS. 11.5 2 LAKHS IN THE SCHEDULE OTHER EXPENSES ACCOUNT . THE ASSESSEE COULD NOT EXPLAIN AS TO WHY THE CLAIM FOR PROVISION FOR SLOW MOVING INV ENTORY WAS MADE FOR THE FIRST TIME IN THE CURRENT YEAR CONSIDERING THE FACT THAT THE ASSESSEE HAD ALREADY MADE T HIS CLAIM ON ACCOUNT OF INVENTORY WRITTEN OF F. HE, THEREFORE, HELD THAT THE ORDER OF THE AO IS ERRONEOUS AND PRE JUDICIAL TO THE INTEREST OF THE R EVENUE ON THIS ISSUE . 10. S O FAR AS THE PROVISION OF RS. 75.95 LAKH IN RESPECT OF SERVICE COUPONS IS CONCERNED , HE NOTED THAT THE EXPLANATION OF THE ASSESSEE THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSEE HAS FILED EXPLANATION WAS NOT FOUN D AVAILABLE ON RECORD . FURTHER, THE EXACT BASIS AND THE WORKING OF THIS PROVISION WAS ALSO NOT FOUND AVAILABLE ON RECORD . H E , THEREFORE , HELD THAT IN ABSENCE OF ANY VERIFICATION THE AO COULD NOT HAVE ALLOWED THIS CLAIM OF THE ASSESSEE . A CCORDING TO THE L D . CIT , THE MATTER IS NOT OF ALLOWA BILITY OF THE CLAIM BUT ALSO THE YEAR IN WHICH THE CLAIM IS MADE . T HE AO WAS REQUIRED TO COMPUTE THE INCOME FOR THE CURRENT YEAR CORRECTLY AND IT IS NOT OPEN TO HIM TO ALLOW CERTAIN CLAIM ALLOWABLE IN THE NEXT YEAR IN THE ITA NO. 2299 /DEL/201 4 8 CURRENT YEAR OR VICE VERSA . A NY SUCH MIS TAKE ACCORDING TO HIM RENDERS THE ORDER ERRONEOUS AND PRE JUDICIAL TO THE INTEREST OF THE R EVENUE . HE, THEREFORE, SET ASIDE THE ORDER OF THE AO ON THE ISSUE OF PROVISION OF SLOW MOVING ITEMS AND ALSO DIRECTED HIM TO EXAMINE THE EXACT BASIS FOR MAKING THE PROVISION FOR FREE SERVICE COUPONS AS MADE BY THE ASSESSEE . R ELYING ON VARIOUS DECISIONS HE OBSERVED THAT SINCE THE A O HAS PASS ED THE ORDER UNDER SECTION 143 ( 3 )/ 144C WITHOUT PROPER APPRECIATION OF THE FACTS OF THE CA SE AND WITHOUT DUE APPLICATION OF PROVISIONS OF THE LAW , THEREFOR E, THE ORDER HAS BECOME ERRONEOUS AS WELL AS PRE JUDICIAL TO THE INTEREST OF THE R EVENUE . HE, THEREFORE, SET ASIDE THE ORDER OF THE AO AND DIRECTED HIM TO PASS FRESH ASSESSMENT ORDER AFTER MAK ING THE VERIFICATION OF THE ISSUE AS DIRECTED AND AFTER GIVING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 11. AGGRIEVED WITH SUCH ORDER OF THE CIT , THE ASSESSEE IS IN APPEAL BEFORE T HE TRIBUNAL BY RAISING THE FOLLOWING GROUNDS : - 1. THAT ON TH E FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE ORDER PASSED BY THE COMMISSIONER OF INCOME - TAX (CIT), UNDER SECTION 263 OF THE INCOME - TAX ACT, 1961 ( THE ACT ) IS WITHOUT JURISDICTION, BAD IN LAW AND VOID - AB - INITIO. 2. THAT ON THE FACTS AND CIRCUMST ANCES OF THE CASE AND IN LAW, THE CIT ERRED IN EXERCISING JURISDICTION UNDER SECTION 263 OF THE ACT WITHOUT APPRECIATING THAT THE ORIGINAL ASSESSMENT ORDER UNDER SECTION 143(3)/144C OF THE ACT WAS PASSED WITH THE APPROVAL/SANCTION OF THE DRP, COMPRISING OF A COLLEGIUM OF THREE CIT S EXERCISING SIMILAR POWER AND AS SUCH AN ASSESSMENT WAS NOT AMENABLE TO REVISION UNDER SECTION 263 OF THE ACT. 2.1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT ERRED IN NOT APPRECIATING THAT COMMISSIONER OF CO - ORDINATE RANK CANNOT ASSUME JURISDICTION UNDER SECTION 263 OF THE ACT IN RESPECT OF ASSESSMENT ORDER PASSED UNDER SECTION 144C(13) OF THE ACT, PASSED WITH THE STATUTORY APPROVAL ITA NO. 2299 /DEL/201 4 9 OF ANOTHER COMMISSIONER, IN THE PRESENT CASE BY DRP COMPRISING OF THREE CITS. 2.2 WITHOUT PREJUDICE, THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT FAILED TO APPRECIATE THAT THE ORDER SOUGHT TO BE REVISED UNDER SECTION 263 OF THE ACT WAS AN ORDER PASSED UNDER SECTION 144C(13) OF THE ACT, IN PURSUANCE OF T HE DIRECTIONS OF THE DRP AND SUCH ORDER COULD NOT BE CONSTRUED TO BE AN ORDER PASSED BY THE ASSESSING OFFICER. 3. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT ERRED IN EXERCISING REVERSIONARY POWERS UNDER SECTION 263 OF THE ACT WITH OUT APPRECIATING THAT THE TWIN CONDITIONS OF THAT SECTION VIZ., ASSESSMENT ORDER BEING ERRONEOUS AS WELL AS PREJUDICIAL TO THE INTERESTS OF THE REVENUE, WERE NOT SATISFIED IN THE APPELLANT S CASE. WITHOUT PREJUDICE: 4. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT ERRED IN DISALLOWING PROVISION MADE FOR SLOW/ NON MOVING INVENTORY AGGREGATING TO RS.27,65,000/ - IN RESPECT OF GOODS SOLD BY THE APPELLANT. 4.1 THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT FAILED TO APPRECIATE THAT THERE WAS NO PREJUDICE CAUSED TO THE REVENUE IN AS MUCH AS THE PROVISION CREATED DURING THE AY 2007 - 08 WAS WRITTEN OFF IN THE SUBSEQUENT YEARS 2008 - 09 AND 2009 - 10. 5. THAT ON FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT ERRED IN SETTING ASIDE TO THE ASSESSING OFFICER THE ISSUE OF ALLOWANCE OF PROVISION FOR FREE SERVICE COUPONS, FOR EXAMINING THE BASIS AND WORKING OF PROVISION MADE TO THE EXTENT OF RS. 75.95 LACS IN RESPECT OF SUCH PROVISION. 5.1 THAT ON FACTS AND CIRCUMSTANCES O F THE CASE AND IN LAW, THE CIT ERRED IN FAILING TO APPRECIATE THAT THE PROVISION FOR SERVICE COUPONS IS AN ASCERTAINED LIABILITY CREATED ON A SCIENTIFIC BASIS AFTER CONSIDERING TECHNICAL ESTIMATES AND IS CONSISTENTLY FOLLOWED BY THE APPELLANT. 5.2 WITHOUT PREJUDICE, THAT ON FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT ERRED IN NOT DIRECTING THE ASSESSING OFFICER TO ALTERNATIVELY ALLOW DEDUCTION OF EXPENSES AGGREGATING TO RS. 66.75 LACS. 6. ON PROPER APPRECIATION OF FACTS OF THE CASE AND CORRECT CONSTRUCTION OF LAW THE CIT SHOULD HAVE DROPPED THE PROCEEDINGS INITIATED UNDER SECTION 263 OF THE ACT. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR VARY FROM THE AFORESAID GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING. ITA NO. 2299 /DEL/201 4 10 12. THE LD. C OUN SE L FO R THE ASSESSEE STRONGLY CHALLENGED THE ORDER OF THE CIT IN INVOKING THE POWERS UNDER SECTION 263 . HE SUBMITTED THAT THE AO PASSED THE ORDER THROUGH THE DRP P ROCESS . R EFERRING TO THE PROVISIONS OF SECTION 144 C(8) OF THE AC T HE SUBMITTED THAT THE DRP HAS T HE POWER TO CONF IRM , REDUCE OR ENHANCE THE VARIATIONS PROPOSED IN THE DR AF T ORDER . T HEREFORE , THE CIT SHOULD NOT HAVE ASSUMED JURISDICTION UNDER SECTION 263 WHEN THE DRP HAS NOT RAISED ANY OBJECTION AND THE ASSESSMENT HAS BEEN COMPLETED P URSUANT TO THE DIR ECTION OF THE DRP. 13. S O FAR AS THE MERIT OF THE CASE IS CONCERNED , HE SUBMITTED THAT ADEQUATE DISCLOSURE WAS MADE BY THE AUDITORS IN THE NOTES TO ACCOUNTS AND SUCH ITEM IS ALSO APPEARING IN THE TAX AUDIT REPORT . I T IS ALSO IN CONFORMITY WITH THE ACCO UNTING STANDARDS - 2 ACCORDING TO WHICH THE AUDITORS SHOULD ESTIMATE THE COST OF INVENTORY THE ASSESSEE IS CARRYING . HE SUBMITTED THAT IT IS THE CONSISTENT POLICY OF THE COMPANY TO VALUE THE COST OF INVENTORY AND TO MAKE PROVISION FOR S U CH INVENTORY AT 100% IF NOT SOLD FOR MORE THAN ONE YEAR AND TO MAKE 50% PROVISION IF SUCH INVENTORY IS NOT SOLD FOR A PERIOD OF MORE THAN 6 MONTHS TO ONE YEAR . R EFERRING TO THE LETTER ADDRESS ED TO DC IT ON 10 TH MARCH 2014 , HE SUBMITTED THAT IN RESPONSE TO NOTICE OF ASSESSMEN T PROPOSED UNDER SECTION 263 READ WITH SECTION 143 (2)/ 14 2(1) OF THE A CT , THE ASSESSEE HAD SUBMITTED THAT WITH EFFECT FROM 01.04.2006, THE ASSESSEE HAS ADOPTED A POLICY FOR CREATING PROVISION FOR SLOW MOVING / OBSOLETE STOCK IN THE BOOKS OF ACCOUNT IF THERE W AS NO M OVEMENT IN STOCK FOR UNUSED MATERIAL FOR MORE THAN ONE YEAR AT THE RATE OF 100% OF STOCK VALUE AND MORE THAN 6 ITA NO. 2299 /DEL/201 4 11 MONTHS AND LESS THAN ONE YEAR @ 50% OF STOCK VALUE . H E SUBMITTED THAT THE ASSESSEE HAS NOT CLAIMED ANY DOUBLE DE DUCTION AND IT IS A REVENU E NEUTRAL EXERCISE . R EFERRING TO THE DECISION OF THE HON BLE SUPREME COURT IN THE CASE OF CIT VS. GLAXO SMITHKLINE ASIA (P) LTD., REPORTED IN 236 C TR 113 , HE SUBMITTED THAT IF THE ALLOWANCE IS ON ACCOUNT OF CONSISTENT POLICY AND REVENUE NEUTRAL , NO 263 P ROCEEDING IS POSSIBLE SINCE IT IS NOT PREJUDICIAL TO THE INTEREST OF THE R EVENUE . HE SUBMITTED THAT IN ANY CASE THE PROVISION FOR SLOW MOVING INVENTORY IS BASED ON PRUDENT ACCOUNTING POLICY WHICH HAS CONSISTENTLY BEEN FOLLOWED AND THE ACCOUNTS OF THE ASSE SSEE ARE BEING PREPARED ON A CONSERVATIVE BASIS AND THEREFORE THERE IS NO ERROR IN THE ORDER OF THE AO IN GRANTING SUCH CLAIM TO THE ASSESSEE . 13.1 S O FAR AS THE PROVISION FOR SERVICE WARRANTY OF RS. 75 .95 LAKHS IS CONCERNED HE SUBMITTED THAT S UCH SERVICE COUPONS ARE ISSUED TO THE CUSTOMERS WHO WITHIN A PERIOD OF ONE YEAR CAN GET THE PRODUCT REPA I RED . H E SUBMITTED THAT SUCH P ROVISION HAS BEEN MADE ON A REASONABLE AND SCIENTIFIC BASIS . H E SUBMITTED THAT THE BASIS OF MY MAKING SUCH PROVISION HAS BEEN UPHELD BY THE TRIBUNAL AND ALSO THE H ON BLE HIGH COURT IN SUBSEQUENT ASSESSMENT YEARS. T HEREFORE , THERE IS NO ERROR IN THE ORDER OF THE AO IN ALLOWING BOTH THE P ROVISIONS. 14. T HE L D. COUNSEL SUBMITTED THAT DISALLOWANCE OF PROVISION FOR SLOW / NON MOVING INVENTO RY HAS BEEN ALLOWED BY THE TRIBUNAL IN ASSESSEE S OWN CASE FOR ASSESSMENT YEAR 20 0 9 - 1 0 AND 2010 - 11 V IDE ORDER DATED 13 TH APRIL 2016 IN ITA NO. 551 / DEL / 2014 AND ITA NO. 636 / DEL / 2015 FOR ASSESSMENT YEAR 20 0 9 - 10 AND ITA NO. 2299 /DEL/201 4 12 2010 - 11 RESPECTIVELY . S IMILARLY THE PROVISIO N FOR FREE SERVICE COUPONS WAS UPHELD BY THE TRIBUNAL FOR ASSESSMENT YEAR 201 1 - 1 2 AND 20 12 - 13 AND THE HON BLE DELHI HIGH COURT HAS UPHELD THE DECISION OF THE TRIBUNAL IN ALLOWING THE PROVISION FOR FREE SERVICE COUPONS . R ELYING ON THE FOLLOWING DECISIONS , HE SUBMITTED THAT THE C IT IS NOT JUSTIFIED IN EXERCISING JURISDICTION UNDER SECTION 263 IN THE FACTS OF THE PRESENT CASE : - I. MALABAR INDUSTRIAL CO. LTD. V CIT: 243 ITR 83 (SC) II. R. SRINIVASAN V ACIT: 260 CTR 201 (MAD) III. HARI IRON TRADING CO. V CIT: 263 ITR 437 (P&H) IV. DECISION OF THE CHENNAI BENCH OF THE TRIBUNAL IN THE CASE OF SICAL LOGISTICS LTD. V ADDTL.CIT: 127 ITD 187 (TM) V. DECISION OF THE CUTTACK BENCH OF THE TRIBUNAL IN THE CASE OF KAILASH CHANDRA SAHOO V ITO: (2014) 65 SOT 1 63 VI. DECISION OF THE KOLKATA BENCH OF THE TRIBUNAL IN THE CASE OF GARDEN REACH SHIPBUILDERES & ENGINEERS LTD V CIT: 40 ITR(T) 475 VII. DECISION OF THE DELHI BENCH OF THE TRIBUNAL IN ASSESSEE S OWN CASE FOR ASSESSMENT YEAR 2010 - 11: ITA NO. 636/DEL /2015 VIII. DECISION OF THE DELHI BENCH OF THE TRIBUNAL IN ASSESSEE S OWN CASE FOR ASSESSMENT YEAR 2011 - 12: ITA NO. 1573/DEL/2016 IX. DECISION OF THE PUNE BENCH OF THE TRIBUNAL IN THE CASE OF ORIENT (GOA) LTD. V DCIT: 66 ITD 479 X. DECISION OF THE PUNE BENCH OF THE TRIBUNAL IN THE CASE OF J R. AGARWAL V ACIT: 75 ITD 270 XI. DECISION OF THE BOMBAY BENCH OF THE TRIBUNAL IN THE CASE OF TRUSTEES OF PARSI PANCHAYAT FUNDS & PROPERTIES V DIT: 57 ITD 328 XII. DECISION OF THE BOMBAY HIGH COURT IN THE CASE OF VIRENDRA KUMAR JHAMB V N.K. VOHRA: 222 CTR 88 ITA NO. 2299 /DEL/201 4 13 15. T HE L D. DR, ON THE OTHER HAND , HEAVILY RELIED ON THE ORDER OF THE CIT IN EXERCISING THE POWERS UNDER SECTION 263 . S O FAR AS THE ARGUMENT OF THE L D. COUNSEL THAT SINCE THE ORDER WAS PASSED UNDE R SECTION 14 4 C PURSUANT TO THE DIRECTION OF THE DR P WHICH IS A BODY OF THREE COMMISSIONERS WHO HAVE THE POWERS TO CONF IRM , REDUCE OR ENHANCE THE VARIATIONS PROPOSED IN THE DRA F T ORDER AND , THEREFORE , THE CIT HAS NO POWER UNDER SECTION 263 IS CONCERNED , HE SUBMITTED THAT THERE IS NO STIPULATION IN TH E P ROVISION U/S 263 THAT ANY ORDER PASSED BY THE AO AS PER THE DIRECTION OF THE DRP UNDER SECTION 144 C OF THE A CT CANNOT BE SUBJECT TO REVIEW BY THE CIT UNDER SECTION 263 OF THE A CT . FURTHER, WHEN THE CIT CAN RE VIEW THE ORDER OF THE DRP AND FILE AN APPEAL BEFORE THE ITAT AGAINST THE DIRECTION , THEN THERE CAN BE NO BAR TO INVOKE THE PROVISION S OF SECTION 263 IN THE CASES COMPLETED P URSUANT TO THE DIRECTION OF THE DR P. F URTHER , NONE OF THE ISSUES ON WHICH THE PROC EEDINGS UNDER SECTION 263 HAS BEEN INITIATED WERE CONSIDERED BY THE DRP AND ANY DIRECTION ISSUED IN THIS REGARD . S HE ACCORDINGLY SUBMITTED THAT THERE IS ABSOLUTELY NO ERROR IN ASSUMING JURISDICTION UNDER SECTION 263 BY CIT ON THIS ISSUE . 15.1 S O FAR AS THE TWO ISSUES ON WHICH THE L D. CIT HAS ASSUMED JURISDICTION UNDER SECTION 263 IS CONCERNED , S HE SUBMITTED THAT THE ASSESSEE FOR THE FIRST TIME HAS MADE A PROVISION FOR SLOW MOVING I NVENTORY OF RS. 2 7, 65 , 000 / - . W HEN THIS CLAIM WAS MADE FOR THE FIRST TIME , T HE AO SHOULD HAVE EXAM INED THE ISSUE SINCE THIS IS NOT A REC URRING ISSUE OR A CONSISTENT BUSINESS POLICY OF THE ASSESSEE . FURTHER, T HERE WAS ANOTHER AMOUNT OF INVENTORY WRITTEN OFF FOR RS. 11.52 LAKH SHOW N UNDER THE ITA NO. 2299 /DEL/201 4 14 HEAD OTHER EXPENSES ACCOUNT . THE AO SH OULD HAVE ASKED THE ASSESSEE REGARDING THE NATURE AND ALLOWABILITY OF PROVISION FOR INVENTORY OF RS. 27.65 LAKHS. S INCE THE AO HAS NOT EXAMINE D THE ISSUE, THEREFORE, THE ORDER HAS BECOME ERRONEOUS AND PRE JUDICIAL TO THE INTEREST OF THE R EVENUE AND THE CIT IS F U L LY JUSTIFIED IN ASSUM ING JURISDICTION THE SECTION 263 ON THIS ISSUE . 16. SO FAR AS THE PROVISION OF RS. 75.95 LAKHS I N RESPECT OF SERVICE CO UPONS IS CONCERNED , S HE SUBMITTED THAT THE AO HAS NOT AT ALL CALLED FOR AN Y EXPLANATION FROM THE ASSESSEE ON THIS ISSUE REGARDING ITS ALLOW ABILITY AND THE BASIS OF SUCH WORKING . S INCE THE AO H AS NOT VERIFIED THIS CLAIM MADE BY THE ASSESSEE , AND THEREFORE THE ORDER HAS BECOME ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE R EVENUE ON THIS ISSUE . SO FAR AS THE ARGUMENT OF THE L D. COUNSEL THAT SUCH CLAIM HAS BEEN ALLOWED IN SUBSEQUENT YEARS , THE LD. DR SUBMITTED THAT IN TH OSE YEARS THE A O HAS EXAM INED THE ISSUE AND THEREAFTER THE APPELLATE AUTHORITIES HAVE ALLOWED SUCH CLAIM AFTER EXAMINING ITS BASIS AND ALLOWA B I LITY . H OWEVER , THE ORDER OF THE AO FOR THIS YEAR IS COMPLETELY SILENT AND , THEREFORE , THE ORDER HAS BECOME ERRONEOUS . R ELYING ON VARIOUS DECISIONS THE LD. DR SUBMITTED THAT THE LD.CIT HAS RIGHTLY ASSUMED JURISDICTION UNDER SECTION 263 ON THE TWO ISSUES , I .E., PROVISION FOR SLOW MOVING I NVENTORY OF RS. 27.65 LAKHS AND PROVISION FOR 75 .95 LAKHS IN RESPECT OF SERVICE COUPONS . 17. W E HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY BOTH THE SIDES , PERUSE D THE ORDERS OF THE AO AND THE CIT AND THE PAPER BOOK FILED ON BEHALF OF THE ASSESSEE. ITA NO. 2299 /DEL/201 4 15 W E HAVE ALSO CONSIDERED THE VARIOUS DECISIONS CITED BEFORE US . W E FIND THE AO, IN THE INSTANT CASE , COMPLETED THE ASSESSMENT U/S 143 ( 3 ) READ WITH SECTION 144C ON 24 TH OCTOBER 2011 , DETERMINING THE TOTAL INCOME AT RS. 44 , 78 , 49 , 600 / - AS AGAINST THE REVISED RETURNED INCOME OF RS.3 1 , 49 , 18 , 9 2 3 / - . W E FIND THE LD. CIT HELD THE ORDER TO BE ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE R EVENUE ON TWO ISSUES , I.E., PROVISION FOR SLOW MOVING I NVENTORY OF 27.65 LAKHS AND PROVISION FOR RS. 75. 95 LAKHS IN RESPECT OF SERVICE COUPONS WHICH WAS CLAIMED BY THE ASSESSEE IN THE P&L ACCOUNT AND WHICH W ERE NOT EXAMINED BY THE AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS . IT IS T HE S UBMISSION OF THE LD. COUNSEL THAT WHEN THE ORDER WAS PASSED PURSUANT T O THE DIRECTION OF THE DRP AND WHEN THE SCOPE OF D RP AND POWERS CONFERRED UNDER SECTION 144 C TO THE D RP WAS IN ESSENCE IN TH E NATURE OF POWER OF REVIEW TO SAFEGUARD THE INTEREST S OF THE R EVENUE , THE CIT HAS NO JURISDICTION TO REVIEW THE MATTER AGAIN UNDER THE PROVISIONS OF SECTION 263 . FURTHER, THE DRP IS A COLLEGIUM OF THREE COMMISSIONERS AND , THEREFORE , THE ORDER PASSED IN ACCORDANCE WITH THE DIRECTION OF THE DRP CANNOT BE REVIEWED BY A SINGLE COMMISSIONER UNDER SECTION 263 . I T IS ALSO THE SUBMISSION OF T HE L D. COUNSEL THAT THE TW IN CONDITIONS , NAMELY , THE ORDER IS ERRONEOUS AND PRE JUDICIAL TO THE INTEREST OF THE R EVENUE MUST BE SATISFIED . H OWEVER , IN THE INSTANT CASE , THE T WIN CONDITIONS ARE NOT SATISFIED . A CCORDING TO HIM , THE PROVISION FOR SLOW MOVING I NVENTORY OF RS. 27 .65 LAKHS IS POLICY DECISION OF THE ASSESSEE AND IT IS REVENUE NEUTRAL . F URTHER , SUCH CLAIM HAS BEEN ACCEPTED IN SUBSEQUENT YEARS BY THE TRIBUNAL AND THE H ON BLE HIGH COURT THERE FORE, EVEN THOUGH THE AO HAS NOT CONSIDERED THIS ISSUE IN BL ACK AND WHITE , ITA NO. 2299 /DEL/201 4 16 HOW EVER, THE SAME MAY BE PREJUDICIAL TO THE INTEREST OF THE R EVENUE BUT CANNOT BE SAID TO BE ERRONEOUS . S IMILARLY THE PROVISION FOR RS. 75.9 5 LAKHS IN RESPECT OF FREE SERVICE COUPONS IS ALSO BASED ON REASONABLE AND SCIENTIFIC BASIS WHICH HAS BEEN ACCEPTED BY THE TRIBUNAL AND UPHELD BY THE H IGH C OURT IN SUBSEQUENT YEARS . T HEREFORE , ON BOTH THE ISSUES THE ORDER OF THE AO CANNOT BE HELD TO BE ERRONEOUS AL THOUGH IT MAY BE PREJUDICIAL TO THE INTEREST OF THE R EVENUE . 18. W E DO NOT FIND ANY FORCE IN THE ABOVE ARGUMENT OF THE L D. C OUNSEL FOR THE ASSESSEE. S O FAR AS THE ARGUMENT THAT WHEN THE ORDER WAS PASSED BY THE AO AS PER THE DIRECTION OF THE DRP UNDER SECTION 144C OF THE A CT WHO HAS GOT THE POWER TO REVIEW ANY ISSUE AND THAT THE DRP BEING A COL LEGIUM OF THREE COMMISSIONER S TH E CIT SHOULD NOT HAVE EXERCISED JURISDICTION UNDER SECTION 263 IS CONCERNED , WE FIND THERE IS NO STIPULATION IN THE P ROVISIONS OF SECTION 263 THAT ANY ORDER PASSED BY THE AO AS PER DIRECTION OF D RP UNDER SECTION 144 C OF THE A CT CANNOT BE SUBJECT TO REVIEW BY THE CIT UNDER SECTION 263 OF THE A CT . IN OUR OPINION, T HE PROVISION OF SECTION 144 C OF THE A CT IS ONLY A MECHANISM TO COMPLETE THE ASSESSMENT AND THE ASSESSEE HAS AN OPTION EITHER TO FILE AN APPEAL BEFORE THE CIT (A) OR APPRO ACH THE DRP AGAINST THE DRA F T ASSESSMENT ORDER ISSUED UNDER SECTION 144C OF THE A CT BY THE AO . W E FIND FORCE IN THE ARGUMENT OF THE L D. CIT - DR THAT THE POWER OF THE DRP TO CONF IRM , REDUCE OR ENHANCE THE VARIATIONS PROPOSED IN THE DRAFT ASSESSMENT ORDER OR FOR THAT MATTER TO MAKE ENHANCEMENT O N ANY ISSUE NOT BEING SUBJECT MATTER OF THE DRA F T ORDER IS SIMILAR TO THE POWER AVAILABLE TO THE CIT (A) TO ENHANCE ITA NO. 2299 /DEL/201 4 17 THE ASSESSMENT U/S 251 OF THE IT ACT, 1961. T H IS POWER OF ENHANCEMENT IN NO WAY INTERFERES WITH THE PO WER OF CIT TO INVO K E THE PROCEEDINGS UNDER SECTION 263 IF THE TWIN CONDITIONS , NAMELY , THE ORDER IS ERRONEOUS AND PRE JUDICIAL TO THE INTERESTS OF THE R EVENUE ARE SATISFIED . I N OUR OPINION , IF THE CIT CAN REVIEW THE ORDER OF THE DRP AND FILE AN APPEAL AGAIN ST THE IR DIRECTIONS BEFORE THE TRIBUNAL, THEN THERE CAN BE NO BAR TO INVOKE PROVISIONS UNDER SECTION 263 IN THE CASE S COMPLETED PURSUANT TO DIRECTION OF THE DRP. F URTHER , WE FIND NONE OF THE ISSUES ON WHICH THE PROCEEDINGS UNDER SECTION 263 HAS BEEN INITIA TED W AS CONSIDERED BY THE DRP AND ANY DIRECTION ISSUED IN THIS REGARD . T HEREFORE, WE FIND NO ILLEGALITY ON THE PART OF THE CIT IN INITIATING PROCEEDINGS UNDER SECTION 263 OF THE A CT WHEN THE ORDER HAS BEEN PASSED UNDER THE DIRECTION OF THE DRP. THEREFORE, THE ARGUMENT OF THE LD. COUNSEL ON THIS ISSUE FAILS . 18.1 S O FAR AS THE ISSUE OF PROVISION FOR SLOW MOVING I NVENTORY OF RS. 27.6 5 LAKHS IS CONCERNED , IT IS A FACT THAT SUCH PROVISION WAS MADE FOR THE FIRST TIME BY THE ASSESSEE AND NO SUCH PROVISION FOR S LOW MOVING INVENTORY WAS DEBITED IN THE PRECEDING YEAR . T HEREFORE , WHEN THE AO HAS NOT EXAMINE D THE ISSUE WHICH WAS CLAIMED FOR THE FIRST TIME , IT CANNOT BE SAID THAT THE ASSESSEE IS CONSISTENTLY FOLLOWING THIS PROVISION FOR SLOW MOVING INVENTORY . THEREFOR E, IN OUR OPINION , THE ORDER HAS BECOME ERRONEOUS AND PRE JUDICIAL TO THE INTEREST OF THE R EVENUE ON THIS ISSUE . S IMILARLY , THE PROVISION FOR RS. 75.95 LAKHS IN RESPECT OF FREE SERVICE COUPONS WAS ALSO NOT EXAMINED BY AO. N E I THER ANY QUERY WAS RAISED BY THE AO ITA NO. 2299 /DEL/201 4 18 NOR ANY REPLY WAS GIVEN BY THE ASSESSEE GIVING THE EXACT BASIS AND WORKING OF THIS PROVISION . W HEN THE AO FAILED TO EXAMINE THIS ISSUE THE ORDER OF THE AO , IN OUR OPINION , HAS BECOME ERRONEOUS AND PR EJUDICIAL TO THE INTEREST OF THE REVENUE. WE, THEREF ORE, HOLD THAT THE ORDER PASSED BY THE AO IS ERRONEOUS AND PRE JUDICIAL TO THE INTEREST OF THE R EVENUE IN SO FAR AS THE ISSUE RELATING TO PROVISION FOR SLOW MOVING I NVENTORY OF RS. 27.65 LAKHS AND PROVISION FOR FREE SERVICE COUPONS TO THE TUNE OF RS.75.95 LA KHS ARE CONCERNED . T HE VARIOUS D ECISIONS RELIED ON BY THE LD. COUNSEL ARE NOT APPLICABLE TO THE FACTS OF THE PRESENT CASE AND ARE DISTINGUISHABLE . WE, THEREFOR E UPHOLD THE ORDER OF THE CI T ON THIS ISSUE AND THE GROUNDS RAISED BY THE ASSESSEE ARE DISMISSE D . 19. I N THE RESULT THE APPEAL FILED BY THE ASSESSEE IS DISMISSED . THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 23 . 10.2020. SD/ - SD/ - ( KULDIP SINGH ) ( R. K. PANDA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 23 RD OCTOBER, 2020. DK COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI