Calance Software Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 3258/DEL/2010

• Counselvise Citation: 325820114 RSA 2010
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 18-08-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 02-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P C YADAVRAJESH JAIN
• Keywords: Revised return
• Section: 139

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 BENCH : B NEW DELHI DELHI BENCH : B NEW DELHI DELHI BENCH : B NEW DELHI DELHI BENCH : B NEW DELHI BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMEBR AND SHRI B.C. MEENA, ACCOUNTANT MEMBER I.T.A NO. 3258/DEL/10 ASSTT. YEAR 2006-07 CALANCE SOFTWARE PVT. LTD. C/O RAVI GUPTA ADVOCATE, D-10, KAILASH COLONY, NEW DELHI - 48 PAN AACCC5176A VS. DCIT, CIRCLE 3 (1), NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI P.C.YADAV/RAJESH JAIN, CA RESPONDENT BY: SHRI ROHIT GARG, SR. DR ORDER PER RAJPAL YADAV, JM: THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE OR DER OF LD. CIT(A) DATED 9 TH APRIL, 2010 PASSED FOR ASSTT. YEAR 2006-07. THE GR IEVANCE OF THE ASSESSEE IS THAT LD. CIT(A) HAS ERRED IN CONFIRMING THE TAXABILITY OF FRINGE BENEFIT AT ` 4,66,090/- AS AGAINST ` 4,02,010/- SHO WN BY THE ASSESSEE IN THE REVISED RETURN FILED BY IT. 2. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSEE HA S FILED ITS RETURN OF INCOME ON 13.1.2006. IT HAS DECLARED TOTAL VALUE OF TAXABLE FRINGE BENEFIT AT `4,66,090/-. THE ASSESSEE HAS SHOWN THE VALUE OF TAXABLE FRINGE BENEFIT AT THIS AMOUNT, BECAUSE M/S. ABRIDGE INFOTECH INDIA PVT. LTD. ALLEGED TO HAVE MERGED WITH IT AND A FRINGE BENEFIT O F ` 70,534/- RELATES TO THIS ITA NO. 3258/DEL/10 ASSTT. YEAR 2006-07 2 CONCERN WAS ALSO INCLUDED IN THE TOTAL VALUE OF THE FRINGE BENEFIT. IT CAME TO THE NOTICE OF THE ASSESSEE THAT MERGER OF TWO CO MPANIES CANNOT TAKE PLACE AT THEIR OWN. THEY HAVE TO FOLLOW A PROCEDURE AS PER THE COMPANIES LAW. THEREFORE, ASSESSEE HAS FILED REVISED RETURN A ND OFFERED THE TAXABLE FRINGE BENEFIT AT ` 4,02,015/-. THE AO HOWEVER ASSE SSED THE VALUE OF FRINGE BENEFIT AT ` 4,66,090/- ON THE GROUND THAT ASSESSEE FAILED TO SUBMIT THE REQUISITE DETAILS. 3. APPEAL TO THE LD. CIT(A) DID NOT BRING ANY RELIE F TO THE ASSESSEE. 4. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT ASSE SSEE HAS FILED ALL THE REQUISITE DETAILS. HE DREW OUR ATTENTION TOWARD S THE COPY OF REVISED RETURN AND THE OTHER DETAILS SUBMITTED BEFORE THE A O. ON THE OTHER HAND, LD. DR RELIED UPON THE ORDER OF AO. 5. WE HAVE DULY CONSIDERED THE RIVAL CONTENTION AND GONE THROUGH THE RECORD CAREFULLY. THE ASSESSEE HAS SUBMITTED REVISE D RETURN WELL WITHIN THE TIME PERIOD PROVIDED IN SECTION 139 (5) OF THE INCOME TAX ACT. IT HAS SUBMITTED THE BIFURCATION OF THE VALUE OF FRINGE BE NEFIT RELATABLE TO IT AS WELL AS RELATABLE TO M/S. ABRIDGE INFOTECH INDIA LT D.. THE AO IN THE IMPUGNED ASSESSMENT ORDER DID NOT POINT OUT AS TO W HY THE FRINGE BENEFIT ALLEGED TO RELATABLE TO M/S. ABRIDGE INFOTECH INDIA LTD. ARE IN FACT NOT RELATING TO THAT COMPANY. WITHOUT REFERRING TO THE DOCUMENTARY EVIDENCE SUBMITTED DURING THE COURSE OF ASSTT. PROCEEDINGS A ND PLACED ON PAGES NO. 5 TO 10 OF THE PAPER BOOK, HE CONFIRMED THE ORI GINAL VALUE OF FRINGE BENEFIT DECLARED BY THE ASSESSEE. TAKING INTO CONSI DERATION THE FACTS AND CIRCUMSTANCES, WE ARE OF THE VIEW THAT A SUM OF ` 4,02,015/- IS RELATABLE TO THE ASSESSEE. M/S. ABRIDGE INFOTECH HAS ALSO OFF ERED THE BALANCE FOR TAX IN ITS RETURN. THE AO OUGHT TO HAVE NOT ASSESSED THE VALUE OF FRINGE ITA NO. 3258/DEL/10 ASSTT. YEAR 2006-07 3 BENEFIT AT ` 4,66,090/-. WE ALLOW THE APPEAL OF ASS ESSEE AND DIRECT THE AO TO ASSESS THE VALUE OF FRINGE BENEFIT IN THE HANDS OF ASSESSEE AT ` 4,02,050/-. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH AUGUST, 2011. SD/ SD/ SD/ SD/- -- - [B.C. MEENA] [B.C. MEENA] [B.C. MEENA] [B.C. MEENA] SD/ SD/ SD/ SD/- -- - [RAJPAL YADAV] [RAJPAL YADAV] [RAJPAL YADAV] [RAJPAL YADAV] ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER DATED: 19 TH AUGUST, 2011 VEENA COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT