DCIT, Circle-4(2), New Delhi V. Cinestaan Film Company Pvt. Ltd., Delhi

ITA 2702/DEL/2022

AI Insights

The case involves appeals by the Revenue against the orders of the National Faceless Appeal Centre (NFAC), Delhi, which pertained to the assessment years 2016-17 and 2017-18. The primary issue in these appeals was the allowance of deductions under section 35(2AB) of the Income Tax Act, 1961, for payments made to a director of a company, which the CIT(A) had permitted. However, the grounds of appeal presented by the Revenue were found to be inconsistent with those authorized by the ld. PCIT, leading to the dismissal of the appeals.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 116070 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 30-08-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 15-11-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SHRUTI GUPTA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Ms. Astha Chandra, Judicial Member ITA No. 2702/Del/2022 : Asstt. Year : 2016-17 ITA No. 2703/Del/2022 : Asstt. Year : 2017-18 DCIT, Circle-4(2), New Delhi-110002 Vs. Cinestaan Film Company Pvt. Ltd., 1 st Floor, Vikas Puri, West Delhi, New Delhi-110018 (APPELLANT) (RESPONDENT) PAN No. AAFCC4066Q Assessee by : Sh. R. K. Kapoor, CA & Ms. Shruti Gupta, CA Revenue by : Sh. T. James Singson, CIT DR Date of Hearing: 31.08.2023 Date of Pronouncement: 05.09.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeals have been filed by the Revenue against the orders of National Faceless Appeal Centre (NFAC), Delhi dated 23.09.2022. 2. Since, the issue involved in both the appeals are similar, they were heard together and being adjudicated by a common order. ITA Nos. 2702 & 2703/Del/2022 Cinestann Film Company Pvt. Ltd. 2 3. The grounds duly authorized by ld. PCIT-1, New Delhi vide authorization dated 14.11.2022 are as under: 4. The grounds authorized by the ld. PCIT are in accordance with the addition made by the Assessing Officer and as deleted by the ld. CIT(A). 5. In ITA No. 2702/Del/2022, following grounds have been raised by the Revenue: “1. Th a t on th e fa ct s an d ci rcum sta n c es of th e ca s e and i n l aw , th e L d. C I T( A) h a s erred i n hol d i ng th at pay m ent s mad e t o a di rect or o f a c om pa n y i s an all owabl e d ed u cti on u/ s 35( 2A B) of th e In com e Ta x Ac t , 19 61. ITA Nos. 2702 & 2703/Del/2022 Cinestann Film Company Pvt. Ltd. 3 2. Th at on t h e fa ct s an d ci rcu m stan c es of th e c as e a n d i n law , th e Ld . CI T( A) h a s erred i n a ll owi n g t h e d edu cti on u / s 35( 2A B) of t h e A ct of th e am ou nt n ot in c lu d ed in Form 3C L a s su b m i t ted by D SIR si n ce th e s am e wa s n ot in cu rred on Sc i ent ifi c Resea r ch .” 6. However, we find that the grounds raised by the DCIT, Circle-4(2), Delhi as mentioned above at para 5 are totally in contrast with the grounds duly authorized by ld. PCIT. This fact has brought to the notice that the Revenue and directed to file a revised Form No. 36. Inspite of lapse of more than 90 days, the grounds have not been amended. 7. Hence, the appeals of the revenue is hereby dismissed with liberty to the Revenue to approach the Tribunal with amended grounds as authorized by the ld. PCIT and along with the reasoning for not filing appropriate grounds of appeal. 8. In the result, the appeals of the Revenue are dismissed. Order Pronounced in the Open Court on 05/09/2023. Sd/- Sd/- (Astha Chandra) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 05/09/2023 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR