M/s. Harsh International Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 2737/DEL/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7133 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 22-12-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 05-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRIT LAL SENIOR
• Keywords: Business expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH C CC C : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND SHRI KULDIP SINGH SHRI KULDIP SINGH SHRI KULDIP SINGH SHRI KULDIP SINGH, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 2737/DEL/2014 2737/DEL/2014 2737/DEL/2014 2737/DEL/2014 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2009 2009 2009 2009 - -- - 10 1010 10 M/S HARSH INTERNATIONAL M/S HARSH INTERNATIONAL M/S HARSH INTERNATIONAL M/S HARSH INTERNATIONAL PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., 11/2A, PUSA ROAD, 11/2A, PUSA ROAD, 11/2A, PUSA ROAD, 11/2A, PUSA ROAD, NEW D NEW D NEW D NEW DELHI ELHI ELHI ELHI 110 005. 110 005. 110 005. 110 005. PAN : AABCH1511K. PAN : AABCH1511K. PAN : AABCH1511K. PAN : AABCH1511K. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -8, 8,8, 8, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MUKESH GUPTA, ADVOCATE. RESPONDENT BY : SHRI AMRIT LAL, SENIOR DR. DATE OF HEARING : 22.12.2016 22.12.2016 22.12.2016 22.12.2016 DATE OF PRONOUNCEMENT : 02.01.2017 02.01.2017 02.01.2017 02.01.2017 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEA R 2009-10 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XXXII, NEW DELHI DATED 7 TH FEBRUARY, 2014. 2. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D HAVE PERUSED THE MATERIAL PLACED BEFORE US. THE ASSESSE E HAD FILED THE RETURN DECLARING LOSS OF `23,82,956/-. THE ASSESSI NG OFFICER DISALLOWED THE LOSS COMPUTED BY THE ASSESSEE ON THE GROUND THA T THE ASSESSEE DID NOT CARRY ON ANY BUSINESS. THE PENALTY HAS BEE N LEVIED IN VIEW OF THE ABOVE DISALLOWANCE OF LOSS. HOWEVER, IN THE QU ANTUM APPEAL, VIDE ORDER DATED 14 TH FEBRUARY, 2014 IN ITA NO.2498/DEL/2013, THE ITAT DIRECTED THE ASSESSING OFFICER TO ALLOW DEPRECIATIO N AS WELL AS BUSINESS EXPENDITURE. SINCE THE DISALLOWANCE OF LOSS BY THE ASSESSING OFFICER ON ITA-2737/DEL/2014 2 WHICH THE PENALTY HAS BEEN LEVIED IS NOT ACCEPTED B Y THE ITAT IN THE QUANTUM APPEAL, IN OUR OPINION, THE PENALTY BASED U PON SUCH DISALLOWANCE OF LOSS CANNOT BE SUSTAINED. THE SAME IS DELETED. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON 02.01.2017 . SD/- SD/- (KULDIP SINGH (KULDIP SINGH (KULDIP SINGH (KULDIP SINGH ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : M/S HARSH INTERNATIONAL PVT.LTD. , M/S HARSH INTERNATIONAL PVT.LTD., M/S HARSH INTERNATIONAL PVT.LTD., M/S HARSH INTERNATIONAL PVT.LTD., 11/2A, PUSA ROAD, 11/2A, PUSA ROAD, 11/2A, PUSA ROAD, 11/2A, PUSA ROAD, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 005. 110 005. 110 005. 110 005. 2. RESPONDENT : DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -8, NEW DELHI. 8, NEW DELHI. 8, NEW DELHI. 8, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR