Shri Harjeet Singh, Noida V. DCIT, Noida

ITA 2502/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4993 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 26-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI C BEN CH, NEW DELHI BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER. ITA NO. 2502/DEL/2017 [A.Y. 2012-13] SHRI HARJEET SINGH VS. THE DY. CIT PROP M/S WEBRIDGES INFO SYSTEM CIRCLE - 1 C -92, SECTOR 61 NOIDA NOIDA [U.P] PAN : AORPK 8555 M [APPELLANT] [RESPONDENT] DATE OF HEARING : 23.08.2017 DATE OF PRONOUNCEMENT : 28.08.2017 ASSESSEE BY : SHRI ANKIT GUPTA , ADV REVENUE BY : SHRI ARUN KUMAR YADAV, SR.DR ORDER PER B.P. JAIN, ACCOUNTANT MEMBER: THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER OF THE LD. CIT(A) - 1, NOIDA VIDE ORDER DATED 27.03.2017 FOR ASSESSME NT YEAR 2012-13. 2. THE ASSESSEE HAS RAISED AS MANY AS 13 GROUNDS OF APPEAL. HOWEVER, THE EFFECTIVE GROUNDS ARE AGAINST THE DISA LLOWANCE OF RS. 14,96,280/- MADE ON ACCOUNT OF DEPRECIATION ON COMP UTERS ON THE GROUND THAT THE ADDITION TO FIXED ASSETS I.E. COMPU TERS IS BOGUS, - 2- ITA NO. 2502/DEL/2017 DELETION OF RS. 18,185/- ON ACCOUNT OF REPAIR AND M AINTENANCE AND RS. 9,97,520/- ON ACCOUNT OF ACCRETION OF CAPITAL. 3. WE HAVE HEARD THE PARTIES. FACTS OF THE CASE, A S EMANATING FROM THE ORDER OF THE ASSESSING OFFICER, ARE THAT THE AS SESSEE HAS DECLARED TO HAVE PURCHASED THE COMPUTERS/DESK TOP TOTALING T O RS. 24,93,800/- FOR WHICH THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TOWARDS PAGES 15 TO 17 OF THE PAPER FILED ON RECORD WHICH A RE BILLS RAISED BY M/S PREMIUM SOLUTION AND SERVICES, NOIDA AMOUNTING TO RS. 1,016,110/-, RS. 2,26,030/- AND RS. 21.61,660/-. T HE ASSESSEE HAS PAID VAT @ 5% WHICH IS INCLUDED IN THE SAID AMOUNT OF RS. 50529163/- RS. 1,02,936/- TOTALING TO RS. 1,17,151/-. THIS FA CT IS NOT DISPUTED. THE ASSESSEE HAS ALSO PLACED ON RECORD COPY OF BANK ACCOUNT FROM DEUTSHE BANK WHERE THE ASSESSEE HAS PAID AMOUNT THR OUGH BANKING CHANNEL ON27.03.2012 THROUGH RTGS TO SAID M/S PREMI UM SOLUTION AND SERVICES, NOIDA AMOUNTING TO RS. 24,93,800/-. THIS FACT IS ALSO NOT UNDER DISPUTE BY ANY OF THE AUTHORITIES BELOW OR EV EN BY THE LD. DR. NOTHING HAS BEEN BROUGHT ON RECORD TO CONTROVERT TH E FACT THAT THE ASSESSEE HAS RECEIVED BACK THE VAT AMOUNT OR THE CO ST OF COMPUTERS BACK IN CASH FROM THE SUPPLIER OF THE COMPUTER. - 3- ITA NO. 2502/DEL/2017 4. AS REGARDS THE INSPECTION BY THE INCOME-TAX INSP ECTOR, THE SAME WAS DONE AFTER 13.1.2015 WHEN THE ASSESSEE PROVIDED COPY OF THE BILLS WHEREAS THE CASE PERTAINS TO F.Y. ENDING ON 31.03.2 012 AND BILLS ARE DATED SEPTEMBER 2011. THE INSPECTION WAS DONE AFTE R MORE THAN THREE YEARS AND IF THE SUPPLIER IS NOT FOUND AT THE GIVEN ADDRESS, THEN IT IS NOT THE RESPONSIBILITY OF THE ASSESSEE TO TRA CE HIM. SINCE THE ASSESSEE DOES NOT HAVE ANY CONTACT AFTER RECEIVING COMPUTER AND MAKING PAYMENTS AND ALL THE WARRANTIES OF THE COMPU TERS/DESK TOP ARE WITH THE MANUFACTURER I.E. H.P. COMPANY, THEREFORE, IN THE ABSENCE OF ANY REQUIREMENT OF THE SUPPLIER BY THE ASSESSEE, DO ES NOT HAVE ANY CONTACT AND ACCORDINGLY, LAST AVAILABLE ADDRESS WHI CH WAS AVAILABLE ON THE BILLS WAS GIVEN TO THE INCOME-TAX DEPARTMENT. SIMPLE ASSUMPTION BY THE ASSESSING OFFICER AND THE LD. CIT(A) THAT TH E ASSESSEE COULD NOT GIVE SATISFACTORY EVIDENCE REGARDING PURCHASE OF CO MPUTER AND GENUINENESS OF THE TRANSACTION AND IDENTITY COULD N OT PROVED IS WITHOUT ANY BASIS AND THE TRANSACTION CANNOT BE SAID TO BE BOGUS UNDER THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE. MOREO VER, AS PER THE EXPENDITURE IN THE PRECEDING YEAR AND DURING THE YE ARS, EXPENSES HAVE INCREASED BECAUSE OF THE INCREASE IN COMPUTER AND I N VIEW OF NEW CONTRACT RECEIVED BY THE ASSESSEE. THE SAID EXPENS ES ARE AS PER CHART - 4- ITA NO. 2502/DEL/2017 S. NO. EXPENSES A.Y. 2011 - 12 AS ON 31.03.2011 A.Y. 2012 - 13 AS ON 31.03.2012 1. SALARY 61,88,110 1,15,61,018 2. OFFICER RENT 1,39,050 3,37,002 3. STAFF WELFARE 42,970 1,72,140 4. CAB RUNNING EXPENSES 2,41,364 5. DEPRECIATION 3,56,756 25,05,944 6. PRINT ID & ACCESS CARD 10,910 7. PLACEMENT EXPENSES 30,167 2,24,184 8. PRINTING AND STATIONERY 19,039 34,055 5. THIS ALSO GOES TO SHOW THAT THE ASSESSEE HAS INC REASED THE STAFF AND OFFICE RENT AND OTHER EXPENSES WHICH HAVE NOT B EEN DOUBTED BY EITHER OF THE AUTHORITIES BELOW AND NO ADDITION ON THAT ACCOUNT HAS BEEN MADE. IN SUCH CIRCUMSTANCES, IF THE ASSESSEE HAD CLOSED HIS OFFICE OR SURRENDERED HIS VAT NUMBER, IT IS NOT THE RESPONSIBILITY OF THE ASSESSEE. UNDER SUCH FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) IS NOT JUSTIFIED IN TREATING THE SAID PURCHA SE OF COMPUTER AS BOGUS AND CANNOT CONFIRM THE DISALLOWANCE OF DEPREC IATION ON SUCH COMPUTERS. ACCORDINGLY, SUCH DISALLOWANCE OF DEPRE CIATION IS DIRECTED TO BE DELETED. 6. THE ASSESSING OFFICER IS ALSO NOT JUSTIFIED IN M AKING THE SUBSEQUENT ADDITION TO THE MAIN ADDITION, FOR REPAI RS AND MAINTENANCE AMOUNTING TO RS. 18,185/- AND INCREASE IN CAPITAL O F RS. 9,97,520/- WHICH IS ALSO DIRECTED TO BE DELETED. THUS, ALL TH E ADDITIONS MADE BY - 5- ITA NO. 2502/DEL/2017 THE ASSESSING OFFICER AND CONFIRMED BY THE LD. CIT( A) ARE DIRECTED TO BE DELETED. ACCORDINGLY, ALL THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 28.08. 2017. SD/- SD/- [KULDIP SINGH] [B.P. JAIN] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 28 TH AUGUST, 2017 VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI