DCIT, New Delhi V. M/s Kumara Kruppa Frontier Hotels Pvt. Ltd., New Delhi

ITA 3449/DEL/2017

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 9185 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2021
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Appeal Filed On: 31-05-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Principle of natural justice; TDS

Judgement Text

ITA NO. 3449/DEL/2017 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: D NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. NO. 3449/DEL/2017 (A.Y. 2013-14) (THROUGH VIDEO CONFERENCING) DCIT CIRCLE-14(2), ROOM NO. 311A, 3 RD FLOOR, C. R. BUILDING, I.P. ESTATE, NEW DELHI - 110002 (APPELLANT) VS KUMARA KRUPPA FRONTIER HOTELS PVT. LTD. ROOM NO. 510, 5 TH FLOOR, ESCOPE COMPANIES CORE-8, LODHI ROAD, NEW DELHI - 110003 AABCK9184F ( RESPONDENT) APPELLANT BY SH. SATYAJEET GOEL, CA RESPONDENT BY SH. UMESH TAKYAR, SR. DR ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER DATED 06/03/2017 PASSED BY CIT(A)- 5, NEW DELHI FOR ASSESSMENT YEAR 2013-14. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE WHETHER CIT(A) WAS JUSTIFIED IN DELETING ADDITION OF RS. 2,28,93,984/- MADE BY THE AO ON ACCOUNT OF UNDISCLOSED LEASE RENT BEING THE DIFFERENCE BETWEEN THE FULL LEASE RENT AS PER TDS CERTIFICATE ISSUED BY THE DEDUCTOR AND AS DECLARED BY THE ASSESSEE IN THE P & L A/C. DATE OF HEARING 06.01.2021 DATE OF PRONOUNCEMENT 06.01.2021 ITA NO. 3449/DEL/2017 2. THAT THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR FOREGO ANY GROUND(S) OF THE APPEAL RAISED ABOVE AT THE TIME OF HEARING. 3. THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF DERIVING INCOME FROM LEASE RENT OF HOTEL ASHOK BANGLORE AND AIRPORT RESTAURANT AT BANGLORE. THE ASSESSEE COMPANY FILED RETURN FOR THE A.Y. 2013-14 DECLARING TOTAL INCOME OF RS.8,22,90,560/- ON 27.09.2013. THE ASSESSMENT WAS COMPLETED BY ASSESSING THE TOTAL INCOME OF THE ASSESSEE AT RS. 10,51,84,540/-. THE ASSESSING OFFICER MADE DISALLOWANCE WITH REGARD TO UNDERSTATEMENT OF LEASE RENT TO THE TUNE OF RS. 2,28,93,984/-. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT (A) PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. 5. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND SUBMITTED THAT THE CIT(A) WAS NOT CORRECT IN DELETING ADDITION OF RS. 2,28,93,984/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNDISCLOSED LEASE RENT BEING THE DIFFERENCE BETWEEN THE FULL LEASE RENT AS PER TDS CERTIFICATE ISSUED BY THE DEDUCTOR AND AS DECLARED BY THE ASSESSEE IN THE P & L A/C. 6. THE LD. AR SUBMITTED THAT THE ISSUE STANDS SETTLED IN FAVOUR OF THE ASSESSEE FOR A.YS. 2004-05, 2008-09, 2009-10, 2011-12 AND 2012-13 AS THE TRIBUNAL HAS REMANDED BACK THE ISSUE TO THE FILE OF THE ASSESSING OFFICER AND THE ASSESSING OFFICER HAS GIVEN THE ORDER EFFECT ORDER OF THE TRIBUNAL IN A.Y. 2012-13 THEREBY ACCEPTING THE CONTENTIONS OF THE ASSESSEE. THE LD. AR FURTHER SUBMITTED THAT THE ASSESSING OFFICER HAS NOT ACCEPTED THE TREATMENT OF THE LEASE RENT BY THE ASSESSEE IN THE SUBSEQUENT ASSESSMENT YEAR THAT OF A.Y. 2014-15. THUS, THE LD. AR SUBMITTED THAT THE ORDER OF THE CIT(A) BE CONFIRMED. 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. FROM THE PERUSAL OF THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR ITA NO. 3449/DEL/2017 A.YS. 2004-05, 2008-09, 2009-10, 2011-12 AND 2012-13, IT CAN BE SEEN THAT THE TRIBUNAL HAS REMANDED BACK THE ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR RECONSIDERATION BY THE ASSESSING OFFICER IN LIGHT OF THE DOCUMENTS LIKE LEASE AGREEMENT, CONFIRMATION OF ACCOUNTS FROM THE BHL AND THE RECONCILIATION STATEMENTS ETC. TO BE FURNISHED BY THE ASSESSEE. IN THE PRESENT APPEAL ALSO THE ISSUE IS IDENTICAL, THEREFORE, WE ARE REMANDING BACK THE ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR RECONSIDERATION IN LIGHT OF THE ORDERS OF THE CO-ORDINATE BENCH AS WELL AS THE ORDER EFFECT ORDER OF THE ASSESSING OFFICER IN A.Y. 2011-12 AND 2012- 13. NEEDLESS TO SAY, THE ASSESSEE BE GIVEN OPPORTUNITY OF HEARING BY FOLLOWING PRINCIPLES OF NATURAL JUSTICE. THUS, THE APPEAL OF THE REVENUE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. 8. IN RESULT, THE APPEAL OF THE REVENUE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. 9. ORDER IS PRONOUNCED IN THE OPEN COURT IN PRESENCE OF BOTH THE PARTIES ON 06 TH JANUARY, 2021. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 06 TH DAY OF JANUARY, 2021 . SD/- SD/- (N. K. BILLAIYA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 06/01/2021 R. NAHEED, SR. PS * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ITA NO. 3449/DEL/2017 ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 06.01.2021. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 06.01.2021. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 06.01.2021. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS 06.01.2021. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 06.01.2021. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 06.01.2021. DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 06.01.2021. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 06.01.2021. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK