ADIT (E), New Delhi V. M/s. Automotive Component Manufacturers Association of India, New Delhi

ITA 2905/DEL/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65315 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 11-06-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PITHI LAL
• Assessee Lawyers: K K KHANNA
• Keywords: Capital asset; Depreciation; Charitable institution; Principle of natural justice; Cost of acquisition; Capital expenditure
• Section: 12A; 32; 12; 11

Judgement Text

1 ITA NO.2905/DEL/2012 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI A BENC H BEFORE SHRI R.K. GUPTA , JM & SHRI A.N. PAHUJA, A M ITA NO.2905/DEL/2012 ASSESSMENT YEAR:2009-10 ADIT(E), INV. TRUST CIRCLE -I, 3 RD FLOOR, AAYKAR BHAWAN, DISTRICT CENTRE LAXMI NAGAR, NEW DELHI V/S . AUTOMOTIVE COMPONENT MANUFACTURERS ASSOCIATION OF INDIA THE CAPITAL COURT, OLOF PALME MARG MUNIRKA, NEW DELHI-110067 [PAN : AAATA1724F] (APPELLANT) (RESPONDENT) ASSESSEE BY SHRI K.K. KHANNA, AR REVENUE BY SHRI PITHI LAL, DR DATE OF HEARING 08-08-2012 DATE OF PRONOUNCEMENT 28-08-2012 O R D E R A.N.PAHUJA:- THIS APPEAL FILED ON 11.06.2012 BY THE REVENUE AGAI NST AN ORDER DATED 18 TH APRIL, 2012 OF THE LD. CIT(A)-XXI, NEW DELHI, RAIS ES THE FOLLOWING GROUNDS:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A) HAS ERRED IN ALLOWING DEPRECIATION AS AP PLICATION OF INCOME AS THE ASSESSEE TRUST HAS ALREADY CLAIMED AS APPLICATION OF INCOME AT THE TIME OF ADDITION TO FIXED ASSETS. 2. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER OR A MEND ANY GROUND OF APPEAL RAISED ABOVE AT THE TIME OF HEARING. 2. FACTS, IN BRIEF, AS PER THE RELEVANT ORDERS ARE THAT RETURN DECLARING INCOME OF ` 1,92,16,940/- FILED ON 29-09-2009 BY THE ASSESSEE, PROVIDING CONSULTANCY OF AUTOMOTIVE COMPONENTS, WAS SELECTED FOR SCRUTINY WI TH THE SERVICE OF NOTICE U/S 143(2) OF THE INCOME-TAX ACT, 1961 (HEREIN AFTER REFERRED TO AS THE ACT]) ISSUED ON 16.09.2010.DURING THE COURSE OF ASSESSMENT PROCEEDI NGS, THE ASSESSING OFFICER[AO IN 2 ITA NO.2905/DEL/2012 SHORT] NOTICED THAT THOUGH ASSESSEE WAS REGISTERED U/S 12A OF THE ACT, IT DID NOT CLAIM EXEMPTION U/S 11 OF THE ACT IN VIEW OF INSERTION OF PROVISO TO SECTION 2(15) OF THE ACT INTRODUCED BY THE FINANCE ACT, 2009 W.E.F 01.04.200 9. TO A QUERY BY THE AO AS TO WHY DEPRECIATION BE NOT DISALLOWED, THE ASSESSEE HAVING ALREADY CLAIMED THE ENTIRE MONEY SPENT ON ACQUISITION OF CAPITAL ASSETS BY WAY OF AP PLICATION OF FUNDS, THE ASSESSEE REPLIED THAT MERELY BECAUSE COST OF ACQUISITION OF CAPITAL ASSET HAS BEEN CLAIMED AS APPLICATION OF INCOME FOR CHARITABLE PURPOSES IN TH E YEAR OF ACQUISITION, DEDUCTION OF DEPRECIATION IN DETERMINATION OF INCOME CANNOT BE DENIED. INTER ALIA, THE ASSESSEE RELIED UPON DECISIONS IN CIT V SOCIETY OF THE SISTE RS OF ST. ANNE, 146 ITR 28 (KAR);CIT V RAIPUR PALLOTTINE SOCIETY 180 ITR 579(MP);CIT V SET H MANILAL RANCHHODDAS VISHRAM BHAWAN TRUST 198 ITR 598 (GUJ);CIT V INSTITUTE OF B ANKING (2003) 264 ITR 110 (BOMBAY);CIT V MARKET COMMITTEE PIPLI (2011) 330 IT R 16 (P&H);CIT V RAO BAHADUR CALAVALA CUNNAN CHETTY CHARITIES (1982) 135 ITR 485 (MAD) AND DIT(E) VS. FRAMJEE COWASJEE INSTITUTE,109 CTR(BOMBAY)463.HOWEVER, THE AO DID ACCEPT THE SUBMISSIONS OF ASSESSEE AND WHILE RELYING UPON THE DECISION OF THE HONBLE APEX COURT IN ESCORTS LTD. VS. UNION OF INDIA, 199 ITR 43(SC) DISALLOWED THE CLAIM FOR DEPRECIATION WHILE DETERMINING THE INCOME UNDER THE HEAD PROFITS AND GAINS OF THE BUSINESS OR PROFESSION. 3. ON APPEAL, THE LD. CIT(A) RELYING UPON THE DECIS ION OF ITAT, DELHI BENCH IN THE CASE OF DR. R.L. KHERA CHARITABLE TRUST AND INTERNA TIONAL GOUDIA VEDANTA TRUST, ITA NO-2920/DEL/2011 ALLOWED THE CLAIM OF THE ASSESSEE. 4. THE REVENUE IS NOW IN APPEAL BEFORE US AGAIN ST THE AFORESAID FINDINGS OF THE LD.. CIT(A). THE LD. DR WHILE RELYING UPON THE DEC ISION DATED 16.11.2011OF THE ITAT COCHIN BENCH IN THE CASE OF DDIT(E) VS. ADI SANKARA TRUST,12 TAXMANN.COM 105(COCHIN) SUPPORTED THE ORDER OF THE AO WHILE THE LD. AR ON BEHALF OF THE ASSESSEE MERELY RELIED UPON THE FINDINGS IN THE IMPUGNED ORD ER. 5. WE HAVE HEARD BOTH THE PARTIES AND GONE TH ROUGH THE FACTS OF THE CASE. INDISPUTABLY, EVEN THOUGH THE ASSESSEE IS REGISTERE D U/S 12A OF THE ACT, IT DID NOT CLAIM 3 ITA NO.2905/DEL/2012 BENEFIT OF PROVISIONS OF SEC. 11 & 12 OF THE ACT IN VIEW OF INSERTION OF FIRST PROVISO TO SECTION 2(15) OF THE ACT INTRODUCED BY THE FINANCE ACT, 2009 W.E.F 01.04.2009. THE ASSESSEE ITSELF DETERMINED INCOME IN THE COMPUTATIO N OF INCOME UNDER THE HEAD PROFITS AND GAINS OF THE BUSINESS OR PROFESSION AND NOT IN TERMS OF PROVISIONS OF SEC. 11 & 12 OF THE ACT. IN THE LIGHT OF THESE UNDISPUTED FACTS, THE ISSUE BEFORE US IS AS TO WHETHER OR NOT THE ASSESSEE IS ENTITLED TO DEPRECIATION U/S 32 OF THE ACT, WHEN THE ENTIRE COST HAD ALREADY BEEN CLAIMED IN THE PRECEDING YEARS BY WAY OF APPLICATION OF INCOME. BEFORE PROCEEDING FURTHER, WE MAY HAVE A LOOK AT THE DECIS IONS RELIED UPON BY THE ASSESSEE BEFORE THE LD. CIT(A).FIRST SUCH DECISION IS CIT V RAO BAHADUR CALAVALA CUNNAN CHETTY CHARITIES (1982) 135 ITR 485 (MAD),WHEREIN I T WAS HELD IN THE AYS 1965-66 & 1966-67 THAT THE INCOME FROM THE PROPERTIES HELD UNDER TRUST WOULD HAVE TO BE ARRIVED IT IN THE NORMAL COMMERCIAL MANNER WITHOUT REFERENC E TO THE PROVISIONS WHICH ARE ATTRACTED BY S. 14 OF THE ACT. FOLLOWING THIS DECIS ION, HONBLE KARNATAKA HIGH COURT IN SOCIETY OF THE SISTERS OF ST. ANNE (SUPRA) IN THE A Y 1997-78 HELD THAT IF DEPRECIATION IS NOT ALLOWED AS A NECESSARY DEDUCTION FOR COMPUTING THE INCOME OF A CHARITABLE INSTITUTION THEN THE CORPUS OF THE TRUST FOR DERIVI NG THE INCOME CANNOT BE PRESERVED AND THAT THE AMOUNT OF DEPRECIATION DEBITED TO THE ACCO UNT OF A CHARITABLE INSTITUTION IS TO BE DEDUCTED TO ARRIVE AT THE INCOME AVAILABLE FOR APPL ICATION TO CHARITABLE AND RELIGIOUS PURPOSES. THIS DECISION WAS FOLLOWED BY THE HONBLE MADHYA PRADESH HIGH COURT IN RAIPUR PALLOTTINE SOCIETY(SUPRA) IN THE AY 1973-74. SIMILAR VIEW WAS TAKEN BY THE HONBLE GUJARAT HIGH COURT IN SETH MANILAL RANCHHOD DAS VISHRAM BHAWAN TRUST(SUPRA) IN THE AY 1971-72 & 1972-73,FRAMJEE COWASJEE INSTIT UTE(SUPRA) AND INSTITUTE OF BANKING(SUPRA)IN THE AY 1984-85. FOLLOWING THE VIEW TAKEN BY THE HONBLE MADRAS & MADHYA PRADESH HIGH COURTS, HONBLE PUNJAB & HARYAN A HIGH COURT HELD IN MARKET COMMITTEE PIPLI (SUPRA) IN THE AY 2005-06 THAT THE INCOME OF THE ASSESSEE BEING EXEMPT, THE ASSESSEE IS ONLY CLAIMING THAT DEPRECIA TION SHOULD BE REDUCED FROM THE INCOME FOR DETERMINING THE PERCENTAGE OF FUNDS WHIC H HAVE TO BE APPLIED FOR THE PURPOSES OF THE TRUST AND THAT THERE IS NO DOUBLE D EDUCTION CLAIMED BY THE ASSESSEE. WHILE RELYING UPON THE DECISIONS IN DR. R.L. KHERA CHARITABLE TRUST AND INTERNATIONAL GOUDIA VEDANTA TRUST, ITA NO.2920/DEL/ 2011 IN THE AY 2008-09, FOLLOWING THE DECISION OF HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS M/S TINY TOTS EDUCATION 4 ITA NO.2905/DEL/2012 SOCIETY ,330 ITR 21(P&H), THE LD. CIT(A) ALLOWED DEPRECIATION FROM THE INCOME OF THE TRUST FOR DETERMINING THE PERCENTAGE OF FUNDS WHICH HAD TO BE APPLIED FOR THE PURPOSES OF THE TRUST. AN ANALYSIS OF THESE DECISIONS REVEA LS THAT IN NONE OF THESE DECISIONS, THE EMBARGO STIPULATED IN FIRST PROVISO TO SECTION 2(15 ) OF THE ACT ,HAS BEEN CONSIDERED NOR EVEN THE LD. CIT(A) RECORDED HIS SPECIFIC FINDINGS ON THE FACTS POINTED OUT BY THE AO IN THE LIGHT OF FIRST PROVISO TO SEC. 2(15) OF THE ACT EVEN WHEN THE ASSESSEE ITSELF DID NOT CLAIM BENEFIT OF PROVISIONS OF SEC. 11 & 12 OF THE ACT IN THE COMPUTATION OF INCOME ANNEXED WITH RETURN AS ALSO FILED REPORT OF AUDIT IN TERMS OF PROVISIONS OF SEC. 44AB OF THE ACT AND DECLARED INCOME UNDER THE HEADPROFITS AND GAINS OF THE BUSINESS OR PROFESSION. HONBLE DELHI HIGH COURT IN THE CASE O F INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA VS. DGIT(EXEMPTIONS),13TAXMANN.COM175(DEL HI) WHILE EXAMINING THE IMPACT OF AFORESAID FIRST PROVISO TO SEC. 2(15) OF THE ACT , OBSERVED AS UNDER : 12. AS THE FIRST PROVISO WAS INTRODUCED WITH EFFEC T FROM 1ST APRIL, 2009, THE SCOPE AND AMBIT OF THE SAID PROVISO TO SECTION 2(15) OF THE A CT HAS TO BE EXAMINED AND CONSIDERED. EARLIER ORDERS UNDER SECTION 10(23C)(IV) ARE NOT RE LEVANT AND ARE INCONSEQUENTIAL, AS THEY HAVE NOT EXAMINED THE SCOPE AND AMBIT OF THE F IRST PROVISO. THE PROVISO APPLIES ONLY IF AN INSTITUTION IS ENGAGED IN ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY AND POSTULATES THAT SUCH AN INSTITUTE IS NO T CHARITABLE IF IT IS INVOLVED IN CARRYING ON ANY ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINESS OR ANY ACTIVITY OF RENDERING ANY SERVICE IN RELATION TO ANY TRADE, COMMERCE OR B USINESS. THE SECOND PART, ANY ACTIVITY OF RENDERING ANY SERVICE IN RELATION TO AN Y TRADE, COMMERCE OR BUSINESS OBVIOUSLY INTENDS TO EXPAND THE SCOPE OF THE PROVIS O TO INCLUDE SERVICES, WHICH ARE RENDERED IN RELATION TO ANY TRADE, COMMERCE OR BUSI NESS. THE PROVISO FURTHER STIPULATES THAT THE ACTIVITY MUST BE FOR A CESS OR FEE OR ANY OTHER CONSIDERATION. THE LAST PART STATES THAT THE PROVISO WILL APPLY EVEN IF THE CESS OR FEE OR ANY OTHER CONSIDERATION IS APPLIED FOR A CHARITABLE ACTIVITY/PURPOSE. THE PROVISO HAS TO BE GIVEN FULL EFFECT TO. THUS, EVEN IF CESS, FEE OR CONSIDERATION IS USED OR UTILIZED FOR CHARITABLE PURPOSES, THE PROVISO AND THE BAR WILL APPLY. AN INSTITUTION WILL NOT BE REGARDED AS ESTABLISHED FOR CHARITABLE PURPOSE/ACTIVITY UNDER THE LAST LIMB, IF CESS, FEE OR CONSIDERATION IS RECEIVED FOR CARRYING ON ANY ACTIVITY IN NATURE OF TRADE, COMMERCE OR BUS INESS OR FOR ANY ACTIVITY OF RENDERING OF ANY SERVICE IN RELATION TO ANY TRADE, COMMERCE O R BUSINESS, EVEN IF THE CONSIDERATION OR THE MONEY RECEIVED IS USED IN FURTHERANCE OF THE CHARITABLE PURPOSES/ACTIVITIES. IN VIEW OF THE FIRST PROVISO, THE DECISIONS THAT THE A PPLICATION OF MONEY/PROFIT IS RELEVANT FOR DETERMINING WHETHER OR NOT A PERSON IS CARRYING ON CHARITABLE ACTIVITY, ARE NO LONGER RELEVANT AND APPOSITE. EVEN IF THE PROFITS EARNED A RE USED FOR CHARITABLE PURPOSES, BUT FEE, CESS OR CONSIDERATION IS CHARGED BY A PERSON F OR CARRYING ON ANY ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINESS OR ANY ACTIVI TY OF RENDERING OF ANY SERVICE IN ADDITION TO ANY TRADE, COMMERCE OR BUSINESS, IT WOU LD BE COVERED UNDER THE PROVISO AND THE BAR/PROHIBITION WILL APPLY. 5 ITA NO.2905/DEL/2012 5.1 IN ESCORTS LIMITEDS CASE [1993] 199 ITR 43 (SC) REFERRED TO BY THE COCHIN BENCH IN THEIR AFORESAID DECISION IN ADI SANKARA TRUST(SUPRA ), THE HONBLE SUPREME COURT WAS DEALING WITH A CASE RELATING TO TWO DEDUCTIONS BOTH UNDER SECTIONS 10(2)(VI) AND 10(2)(XIV) OF THE 1922 ACT OR BOTH UNDER SECTIONS 3 2(1)(II) AND 35(1)(IV) OF THE ACT. THE ASSESSEE THEREIN HAD INCURRED EXPENDITURE OF A CAPI TAL NATURE ON SCIENTIFIC RESEARCH RELATING TO THE BUSINESS WHICH RESULTED INTO ACQUIS ITION OF AN ASSET. THE ASSESSEE SOUGHT TO CLAIM A SPECIFIED PERCENTAGE OF THE WRITT EN DOWN VALUE OF THE ASSET AS DEPRECIATION AND AT THE SAME TIME CLAIMED DEDUCTION , IN FIVE CONSECUTIVE YEARS OF THE EXPENDITURE INCURRED ON THE ACQUISITION OF THE ASSE T. THE HONBLE APEX COURT OBSERVED (HEADNOTE) : 'WHERE A CAPITAL ASSET USED FOR SCIENTIFIC RESEARCH RELATED TO THE BUSINESS OF THE ASSESSEE IS ALSO IPSO FACTO AN ASSET USED FOR THE P URPOSE OF THE BUSINESS, IT IS IMPOSSIBLE TO CONCEIVE OF THE LEGISLATURE HAVING EN VISAGED A DOUBLE DEDUCTION IN RESPECT OF THE SAME EXPENDITURE, ONE BY WAY OF DEPR ECIATION UNDER SECTION 32 OF THE INCOME-TAX ACT, 1961 AND OTHER BY WAY OF ALLOWANCE UNDER SECTION 35(1)(IV) OF A PART OF THE CAPITAL EXPENDITURE ON SCIENTIFIC RESEARCH, EVEN THOUGH THE TWO HEADS OF DEDUCTION DO NOT COMPLETELY OVERLAP AND THERE IS SO ME DIFFERENCE IN THE RATIONALE OF THE TWO DEDUCTIONS. . .' IT WAS FURTHER RECORDED THAT (HEADNOTE) : 'THERE IS A FUNDAMENTAL, THOUGH UNWRITTEN, AXIOM TH AT NO LEGISLATURE COULD HAVE AT ALL INTENDED A DOUBLE DEDUCTION IN REGARD TO THE SA ME BUSINESS OUTGOING ; AND, IF IT IS INTENDED, IT WILL BE CLEARLY EXPRESSED. IN OTHER WO RDS, IN THE ABSENCE OF CLEAR STATUTORY INDICATION TO THE CONTRARY, THE STATUTE S HOULD NOT BE READ SO AS TO PERMIT AN ASSESSEE TWO DEDUCTIONS. . .' 6. IN THE LIGHT OF VIEW TAKEN IN THE AFORESAID DECISIONS , A MERE GLANCE AT THE IMPUGNED ORDER REVEALS THAT THE LD. CIT(A) DID NOT ANALYSE THE ISSUES IN PROPER PERSPECTIVE AND MERELY FOLLOWED DECISIONS RENDERED PRIOR TO INSERTION OF THE AFORESAID FIRST PROVISO TO SEC. 2(15) OF THE ACT, DESPITE THE UNDISPUTED FACT THAT THE ASSESSEE ITSELF DID NOT CLAIM BENEFIT OF PROVISIONS OF SEC. 11 & 12 OF THE ACT IN THE COMPUTATION OF INCOME ANNEXED WITH RETURN, FILED REPORT OF AUDIT IN FORM 3CD IN TERMS OF PROVISIONS OF SEC. 44AB OF THE ACT AND DECLARED SUO MOTU INCOME U NDER THE HEAD PROFITS AND GAINS OF THE BUSINESS OR PROFESSION. APPARENTLY, THE ORD ER PASSED BY THE LD. CIT(A) IS CRYPTIC AND GROSSLY VIOLATIVE OF ONE OF THE FACETS OF THE RULES OF NATURAL JUSTICE, NAMELY, THAT EVERY JUDICIAL/QUASI-JUDICIAL BODY/AUTHORITY MUST PASS 6 ITA NO.2905/DEL/2012 A REASONED ORDER, WHICH SHOULD REFLECT APPLICATION OF MIND BY THE CONCERNED AUTHORITY TO THE ISSUES/POINTS RAISED BEF ORE IT. THE APPLICATION OF MIND TO THE MATERIAL FACTS AND THE ARGUMENTS SHO ULD MANIFEST ITSELF IN THE ORDER. SECTION 250(6) OF THE ACT MANDATES TH AT THE ORDER OF THE CIT(A) WHILE DISPOSING OF THE APPEAL SHALL BE IN WR ITING AND SHALL STATE THE POINTS FOR DETERMINATION, THE DECISION THEREON AND THE REASONS FOR THE DECISION. THE REQUIREMENT OF RECORDING OF REASONS A ND COMMUNICATION THEREOF BY THE QUASI-JUDICIAL AUTHORITIES HAS BEEN READ AS AN INTEGRAL PART OF THE CONCEPT OF FAIR PROCEDURE AND IS AN IMPORTAN T SAFEGUARD TO ENSURE OBSERVANCE OF THE RULE OF LAW. IT INTRODUCES CLARIT Y, CHECKS THE INTRODUCTION OF EXTRANEOUS OR IRRELEVANT CONSIDERATIONS AND MINI MIZES ARBITRARINESS IN THE DECISION-MAKING PROCESS. HONBLE JURISDICTIONAL HIGH COURT IN THEIR DECISION IN VODAFONE ESSAR LTD. VS. DRP,196 TAXMAN423(DELHI) HE LD THAT WHEN A QUASI JUDICIAL AUTHORITY DEALS WITH A LIS, IT IS OBLIGATORY ON ITS PART TO ASCRIBE COGENT AND GERMANE REASONS AS THE SAME IS THE HEART AND SOUL OF THE MA TTER AND FURTHER, THE SAME ALSO FACILITATES APPRECIATION WHEN THE ORDER IS CALLED I N QUESTION BEFORE THE SUPERIOR FORUM. WE MAY POINT OUT THAT A DECISION DOES NOT MERELY MEAN THE CONCLUSION. IT EMBRACES WITHIN ITS FOLD THE REASONS FORMING BAS IS FOR THE CONCLUSION.[MUKHTIAR SINGH VS. STATE OF PUNJAB,(199 5)1SCC 760(SC)].AS ALREADY OBSERVED, THE IMPUGNED ORDER SUFFERS FROM L ACK OF REASONING AND IS NOT A SPEAKING ORDER ON ANY OF THE ISSUE INVOLV ED IN THIS APPEAL. IN VIEW OF THE FOREGOING, WE CONSIDER IT FAIR AND APP ROPRIATE TO SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER TO H IS FILE FOR DECIDING THE AFORESAID ISSUES, AFRESH IN ACCORDANCE WITH LAW, IN THE LIGHT OF OUR AFORESAID OBSERVATIONS, AFTER ALLOWING SUFFICIENT O PPORTUNITY TO BOTH THE PARTIES. NEEDLESS TO SAY THAT WHILE REDECIDING THE APPEAL, THE LD. CIT(A) SHALL PASS A SPEAKING ORDER, KEEPING IN MIND, INTER ALIA, THE MANDATE OF PROVISIONS OF SEC. 250(6) OF THE ACT, BRINGING OUT CLEARLY THE IMPACT OF FIRST PROVISO TO SEC. 2(15) OF THE ACT EVEN WHEN THE ASSE SSEE ITSELF DID NOT CLAIM BENEFIT OF PROVISIONS OF SEC. 11 & 12 OF THE ACT IN THE COMPUT ATION OF INCOME ANNEXED WITH RETURN, FILED REPORT OF AUDIT IN FORM 3CD IN TERMS OF PROV ISIONS OF SEC. 44BB OF THE ACT AND 7 ITA NO.2905/DEL/2012 DECLARED INCOME UNDER THE HEAD PROFITS AND GAINS O F THE BUSINESS OR PROFESSION. WITH THESE OBSERVATIONS, GROUND NO. 1 IN THE APPEAL IS D ISPOSED OF. 7. NO ADDITIONAL GROUND HAVING BEEN RAISED BEFORE U S IN TERMS OF RESIDUARY GROUND NO.2 IN THE APPEAL, ACCORDINGLY, THIS GROUND IS DI SMISSED. 8. NO OTHER PLEA OR ARGUMENT WAS MADE BEFORE US. 9. IN THE RESULT, APPEAL IS ALLOWED BUT FOR S TATISTICAL PURPOSES. SD/- SD/- (R.K.GUPTA) (A.N.PAHUJA) JUDICIAL MEMBER ACCOUNTANT MEMBER *AMIT KUMAR* COPY FORWARDED TO: 1. ASSESSEE 2. ADIT(E), INV. TRUST CIRCLE -I, NEW DELHI 3. DLT(EXEMPTIONS),NEW DELHI 4. CIT(APPEALS)-XXI, NEW DELHI 5. DR: ITAT,A BENCH,NEW DELHI 6. GUARD FILE ASSISTANT REGISTRAR ITAT, NEW DELHI