ACIT, Gurgaon V. M/s. Planet Edu Pvt. Ltd., Gurgaon

ITA 2382/DEL/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97541 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 30-09-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 18-05-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR KEDIA
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : F : NEW DELHI BEFORE SHRI R.S. SYAL, AM & MS. SUCHITRA KAMBLE, JM ITA NO.2382/DEL/2012 ASSESSMENT YEAR : 2008-09 ACIT, CIRCLE-2, GURGAON. VS. PLANET EDU PVT. LTD., 101, GREENWOOD PLAZA, GREEN WOOD CITY, SEC.-45, GURGAON. PAN: AACCP3937A (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SANJAY SOOD, CA DEPARTMENT BY : SHRI RAJESH KUMAR KEDIA, SR. DR DATE OF HEARING : 30. 09.2015 DATE OF PRONOUNCEMENT : 30.09.2015 ORDER PER R.S. SYAL, AM: THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER DATED 22.2.2012 PASSED BY THE CIT (A) IN RELATION TO THE ASSESSMENT YEAR 2009-10. ITA NO.2382/DEL/2012 2 2. THE ONLY GRIEVANCE RAISED IN THIS APPEAL IS AGAI NST THE DELETION OF ADDITION OF RS.1,90,04,580/-. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE FILED RETURN DECLARING INCOME OF RS.83,47,980/-. A REVISED RETU RN WAS FILED DECLARING LOSS OF RS.95,59,969/-. THE RETURN WAS R EVISED FOR CLAIMING EXPENDITURE OF RS.1,90,04,580/- INCURRED ON PROJECT EDEXCEL, WHICH WAS CAPITALIZED AT THE TIME OF FILING THE ORIGINAL RETU RN. IN SUPPORT OF THIS DEDUCTION, THE ASSESSEE SUBMITTED THAT IT HAD, IN A N EFFORT TO SHOW IMPROVED RESULTS TO SHAREHOLDERS/POTENTIAL INVESTOR S, ETC., ALLOCATED VARIOUS REVENUE COSTS SUCH AS SALARY, RENT AND COMM UNICATION EXPENSES, ETC. TO EDEXCEL PROJECT AND TREATED THE SAME AS PA RT OF FIXED ASSETS IN THE BALANCE SHEET, WHEREAS THESE WERE ACTUALLY REVENUE EXPENSES DEDUCTIBLE IN FULL. ON BEING CALLED UPON TO PRODUCE LEDGER ACCOUNT AND RELEVANT BILLS AND VOUCHERS IN SUPPORT OF THESE EXPENSES, TH E ASSESSEE DID NOT TENDER THE SAME. THIS RESULTED INTO DISALLOWANCE O F RS.1.90 CRORE. THE LD. CIT(A) DELETED THE ADDITION. ITA NO.2382/DEL/2012 3 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS OBSERVED THAT THE ASSESS EE HAS MADE A CASE BEFORE THE AO THAT A SUM OF RS.1.90 CRORE REPRESENT ED REVENUE EXPENSES WHICH WERE CAPITALIZED BY IT IN ITS BALANCE SHEET B Y MEANS OF WINDOW DESIGN TO SHOW A BETTER PROFIT TO ITS SHAREHOLDERS AND OTHER STAKEHOLDERS. ON BEING CALLED UPON TO SUBSTANTIATE ITS CLAIM, NO DETAILS OF SUCH EXPENSES, BILLS AND VOUCHERS, ETC. WERE FILED BEFO RE THE AO. HOWEVER, THE LD. CIT(A) HAS DELETED THIS ADDITION ON THE BAS IS OF CERTAIN DETAILS FILED BEFORE HIM FOR THE FIRST TIME. THIS POSITION HAS BEEN ADMITTED BY THE LD. AR. IN OUR CONSIDERED OPINION THIS IS A FIT CASE OF VIOLATION OF RULE 46A. WE, THEREFORE, SET ASIDE THE IMPUGNED OR DER AND SEND THE MATTER BACK TO THE FILE OF THE AO FOR CONSIDERING T HE DEDUCTIBILITY OR OTHERWISE OF EXPENSES OF RS.1.90 CRORE AFRESH AS PE R LAW, AFTER ALLOWING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSE SSEE. ITA NO.2382/DEL/2012 4 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 30.09.201 5. SD/- SD/- [SUCHITRA KAMBLE] [R.S. SYAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, 30 TH SEPTEMBER, 2015. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.