Bewealthy Properties P.Ltd, New Delhi V. ACIT, circle-4(2), New Delhi

ITA 3242/DEL/2018

AI Insights

The case involves Bewealthy Properties Pvt. Ltd, the appellant, contesting an order from the CIT(A)-2, New Delhi, which enhanced the disallowance of interest under section 36(1)(iii) from Rs. 6,41,21,719 to Rs. 10,64,98,550 without proper notice of enhancement under section 251 of the Income Tax Act. Additionally, the CIT(A) directed the assessing officer to report the late payment of TDS to the TDS wing for appropriate action. The Tribunal found that the issue of disallowance of interest was not adequately addressed by the CIT(A) and required re-examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131711 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 22-02-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 03-05-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS
• Section: 251

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL DELHIBENCH ‘A’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Sh. Yogesh Kumar US, Judicial Member ITA No. 3242/Del/2018: Asstt. Year: 2014-15 Bewealthy Properties Pvt. Ltd, 28, Raja Garden, New Delhi Vs. ACIT, Circle-4(2), Delhi (APPELLANT) (RESPONDENT) PAN No. AAFCB1711M Assessee by : Sh. Vikash Jain, Adv. Revenue by : Sh. P. Praveen Sidharth, CIT DR Date of Hearing: 23.02.2023 Date of Pronouncement: 19.05.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of ld. CIT(A)-2, New Delhi dated 05.01.2018. 2. The operative grounds raised by the assessee are as under: “3. That the CIT(A) has grossly erred in law and on facts in enhancing the addition made by an AO U/s 36(1)(iii) to the tune of Rs. 10,64,98,550/- without giving notice of enhancement U/s 251 of the Act. 4. That the CIT(A) has grossly erred in law and on facts making the direction to the assessing officer to report the late payment of TDS to the TDS wing of the Department for appropriate action as per provisions of the I.T. Act, 1961.” 3. Heard the arguments of both the parties and perused the material available on record. ITA No. 3242/Del/2018 Bewealthy Properties Pvt. Ltd 2 4. We have gone through the para no. 10 of the ld. CIT(A) order wherein the ld. CIT(A) categorically mentioned that the issue of disallowance of interest made by the Assessing Officer u/s 36(1)(iii) has not been pressed and then the the ld. CIT(A) enhanced the disallowance from Rs.6,41,21,719/- to Rs.10,64,98,550/-. The ld. AR submitted that the issue has been pressed before the ld. CIT(A) as per the additional grounds taken before the ld. CIT(A). Since, the issue needs to be re-examined at the end of the revenue de novo, we hereby remand the matter to the file of the ld. CIT(A) to adjudicate the issue afresh including the issue of TDS after affording an opportunity to the assessee. 5. In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 19/05/2023. Sd/- Sd/- (Yogesh Kumar US) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 19/05/2023 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR