ACIT, New Delhi V. M/s. American Express (India) Pvt. Ltd., New Delhi

ITA 2525/DEL/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7438 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 01-08-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 24-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K JAIN
• Assessee Lawyers: K KARHEL
• Section: 10

Judgement Text

1 ITA NO. 252 5/DEL/2014 IN THE INCOME TAX APPELLATE TRIBUNA L DELHI BENCH: A NEW DELHI BEFORE SHRI R. S. SYAL, ACCOUNTANT MEMBER AND SMT SUCHITRA KAMBLE , JUDICIAL MEMBER I.T.A .NO.-2525/DEL/2014 (ASSESS MENT YEAR 2005-06) ACIT CIRCLE-1(1) NEW DELHI (APPELLANT) VS AMERICAN EXPRESS (INDIA) PVT. LTD. MGF METROPOLITAN, 7 TH FLOOR, SAKET DISTRICT CENTRE, SAKET NEW DELHI AAACA8163F (RESPONDENT) APPELLANT BY SH. S. K. JAIN, SR. DR RESPONDENT BY SH. K. KARHEL, ADV ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER DATED 18/2/2014 PASSED BY CIT(A)-XX, NEW DELHI. 2. GROUNDS OF APPEAL ARE AS UNDER:- 1. WHETHER THE LD.CIT(A) HAS ERRED ON FACTS AND IN LAW TO ALLOW CLAIM OF DEDUCTION OF RS.20,11,90,973/- U/S 1 0A OF THE I.T. ACT IGNORING THE FACT THAT SINCE THE ASSES SEE DID NOT FULFILL THE CONDITIONS PRESCRIBED IN SECTION 10 A(2) OF THE DATE OF HEARING 01.08.2016 DATE OF PRONOUNCEMENT 08.08.2016 2 ITA NO. 252 5/DEL/2014 I.T ACT, THE BENEFITS OF THE SECTION CANNOT BE GIVE N TO THE ASSESSEE. 3. THE LD. AR SUBMITTED THAT THE ISSUE BEFORE THE T RIBUNAL IS ALREADY CONTESTED IN THE APPEAL OF THE ASSESSEE I.E . ITA NO. 2712/DEL/2015 ASSESSMENT YEAR 2005-06 IN THE FAVOUR OF THE ASSESSEE. THE LD. AR FURTHER POINTED OUT THE ORDER PASSED BY THE ITAT IN ITA NO. 3532/DEL/2014 ASSESSMENT YEAR 2006- 07 THE SAID ORDER HELD THAT:- PARA 12. HAVING HEARD THE RIVAL SUBMISSIONS AND PE RUSED THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT TH IS IS A RECURRING ISSUE COMING FROM EARLIER YEARS. THIS FACT HAS ALS O BEEN RECOGNIZED BY THE DRP ON PAGE 19 OF ITS DIRECTIONS IN WHICH IT HAS BEEN NOTICED THAT THE TRIBUNAL HAS ACCEPTED THE ASSESSEES CLAIM FOR THE BENEFIT OF SECTION 10A IN THIS REGARD . WE HAVE ALSO GONE THROUGH THE ORDER PASSED BY THE TRIBUNAL IN TH E ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2004-05, A COPY OF WHICH HAS BEEN PLACED ON RECORD. THIS ASPECT HAS BEEN DI SCUSSED ON PAGE 21 OF THE ORDER. AFTER FOLLOWING THE VIEW TAK EN BY THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE ASSESSM ENT YEAR 2003-04, THE TRIBUNAL HAS GRANTED THE BENEFIT OF DE DUCTION U/S 10A IN RESPECT OF PROFITS OF NEWLY SET UP AEGSC UNI T. IN THE ABSENCE OF ANY DISTINGUISHING FEATURE HAVING BEEN B ROUGHT TO OUR NOTICE BY THE LD. DR, RESPECTFULLY FOLLOWING TH E PRECEDENT, WE GRANT THE BENEFIT OF DEDUCTION U/S 10A IN RESPEC T OF PROFITS OF AEGSC UNIT. THIS GROUND IS ALLOWED. 4. THE LD. DR COULD NOT CONTROVERT THE SAME IN THE LIGHT OF THE ORDERS OF THE ITAT IN ASSESSEES OWN CASE FOR THE A SSESSMENT YEAR 2005-06 AND 2006-07. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE O RDERS PASSED BY THE ITAT IN THE EARLIER ASSESSMENT YEARS FOR THE ASSESSEE. THE 3 ITA NO. 252 5/DEL/2014 ISSUE CONTESTED BY THE REVENUE HEREIN IS ALREADY DE CIDED IN ITA NO. 2712/DEL/2015 A. Y. 2005-06 AND ITA NO. 3532/DEL/20 14 A. Y. 2006-07. THEREFORE, THE REVENUES APPEAL DOES NOT S URVIVE. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 08TH OF AUGUST 2016. SD/- SD/- (R.S. SYAL) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 08/08/2016 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT R EGISTRAR ITAT NEW DELHI DATE 1. DRAFT DICTATED ON 01.08.2016 PS 2. DRAFT PLACED BEFORE AUTHOR 01.08.2016 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER .2016 JM/AM 4. DRAFT DISCUSSED/APPROVED BY JM/AM 4 ITA NO. 252 5/DEL/2014 SECOND MEMBER. 5. APPROVED DRAFT COMES TO THE SR.PS/PS 08.08.2016 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK 0 8 .0 8 .2016 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.