ITO, New Delhi V. M/s. Aditya Infra Developers (P) Ltd., New Delhi

ITA 2823/DEL/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65274 (ITAT-DELHI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 07-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K SUNDAR
• Keywords: Business expenditure
• Section: 143(3); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SHRI R.K. GUPTA AND SHRI A.N. PAHUJA ITA NO. 2823/DEL/12 A.YR. 2007-08 INCOME-TAX OFFICER, VS. M/S ADITYA INFRADEVELOPE RS WARD 1(2), NEW DELHI. (P) LTD., N-71, PANCHSHILLA PARK, NEW DELHI-110017. PAN/ GIR NO. AAECA9105B ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : SHRI SHASHI BHUSHAN SHUKLA DR RESPONDENT BY : SHRI U.N. MARWAH FCA & SHRI K. SUNDAR FCA O R D E R PER R.K. GUPTA, J.M: : THIS IS REVENUES APPEAL AGAINST CIT(A)S ORDER DA TED 23-04-2012 RELATING TO ASSESSMENT YEAR 2007-08. 2. THE DEPARTMENT IS OBJECTING IN DIRECTING THE ASS ESSING OFFICER TO SET OFF THE INTEREST INCOME OF RS. 11,34,963/- AGAINST THE EXPENDITURE OF RS. 18,86,490/- AND ALLOW THE BALANCE AMOUNT AS BUSINES S LOSS TO BE CARRIED FORWARD. 3. THE ASSESSEE IS CONDUCTING THE BUSINESS OF REAL ESTATE COMMENCED IN A.Y. 2006-07. ASSESSEE FILED RETURN CLAIMING LOSS O F RS. 7,51,527/- AS PER P&L A/C. RETURN WAS PROCESSED U/S 143(1) ON 28-2-2 009. THEREAFTER THE CASE WAS REOPENED BY ISSUANCE OF NOTICE U/S 148 DAT ED 18-2-2010 FOR THE REASON, IT WAS FOUND THAT IN ORDER U/S 143(3) FOR AY 2006-0 7, DISALLOWANCE/ CAPITALIZATION OF EXPENSES WAS MADE AND INTEREST IN COME WAS TAXED AS OTHER SOURCES. HOWEVER, ON PERUSAL OF THE RETURN FOR AY 2007-08, IT IS SEEN THAT 2 INTEREST INCOME OF RS. 7,47,988/- HAS NOT BEEN OFFE RED TO TAX BY ASSESSEE . THEREAFTER, ASSESSING OFFICER COMPLETED THE ASSESS MENT AND INTEREST INCOME CLAIMED IN P&L A/C WAS NOT ALLOWED TO BE SET OFF AG AINST BUSINESS EXPENDITURE BY OBSERVING THAT BUSINESS OF THE ASSES SEE COMPANY HAD NOT COMMENCED, THEREFORE, THEY ARE NOT ALLOWED. 4. CIT(A) ALLOWED THE CLAIM OF THE ASSESSEE BY OBS ERVING THAT ON SIMILAR FACTS THE TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2006-07 HAS HELD THAT ASSESSEE HAD COMMENCED BUSINESS DURING ASSESSMENT YEAR 2006-07 AND THE CLAIM DISALLOWED BY THE ASSESSING OFFICER ON ACCOU NT OF INTEREST EXPENSES WAS TO BE SET OFF AGAINST BUSINESS EXPENDITURE CLAI MED IN P&L A/C. ACCORDINGLY, APPEAL OF THE ASSESSEE WAS ALLOWED AND THE ASSESSING OFFICER WAS DIRECTED TO ALLOW SET OFF OF BUSINESS LOSS OF R S. 18,86,490/- AGAINST INCOME ON ACCOUNT OF INTEREST AND DETERMINED CARRIE D FORWARD BUSINESS LOSS OF RS. 7,51,527/-. 5. NOW THE DEPARTMENT IS IN APPEAL HEREIN BEFORE TH E TRIBUNAL. 6. AT THE OUT SET LD. A.R. OF THE ASSESSEE STATED T HAT THE ISSUE IS SQUARELY COVERED BY THE DECISION OF THE TRIBUNAL FOR IMMEDIA TELY PRECEDING YEAR I.E. FOR ASSESSMENT YEAR 2006-07 DECIDED IN ITA NO. 835/ DEL/2010 DATED 24-9- 2010, COPY OF WHICH IS PLACED IN THE PAPER BOOK. 7. ON THE OTHER HAND, LD. D.R. STATED THAT THOUGH T HE ISSUE IS COVERED BY THE ORDER OF THE TRIBUNAL, HOWEVER, HE PLACED RELIA NCE ON THE ORDER OF ASSESSING OFFICER . 8. AFTER CONSIDERING THE ORDER OF ASSESSING OFFICER AND CIT(A) WE FIND NO INFIRMITY IN THE FINDING OF LD. CIT(A) WHO ALLO WED THE ISSUE IN FAVOUR OF ASSESSEE FOLLOWING THE DECISION OF THE TRIBUNAL FO R IMMEDIATELY PRECEDING YEAR I.E. FOR ASSESSMENT YEAR 2006-07 WHEREIN SIMIL AR ISSUE WAS INVOLVED AND THE SAME WAS ALLOWED IN FAVOUR OF THE ASSESSEE. 3 9. SINCE FACTS ARE IDENTICAL AND LD. CIT(A) HAS AL LOWED THE CLAIM OF THE ASSESSEE FOLLOWING THE DECISION OF THE TRIBUNAL, TH EREFORE, WE SEE NO REASON TO INTERFERE IN THE FINDING OF CIT(A). ACCORDINGLY , WE CONFIRM HIS ORDER ON THE ISSUE INVOLVED. 10. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISM ISSED. ORDER PRONOUNCED IN OPEN COURT ON 08-08-2012. SD/- SD/- ( A.N. PAHUJA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 08-08-2012. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR