Appeal details
Counselvise Citation
[2010] 119 COUNSELVISE.COM (IT) 5757 (ITAT-DELHI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
5 month(s) 25 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
26-03-2010
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
E
Next Hearing Date
25-02-2010
Assessment Year
2006-2007
Appeal Filed On
01-10-2009
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E DELHI) BEFORE SHRI A.D. JAIN AND SHRI DEEPAK R. SHAH ITA NOS. 4018 & 4019(DEL)2009 ASSESSMENT YEARS: 2005-06 & 2006-07 TEXT HUNDRED INDIA PVT. LTD., ASSTT.COMMISSIO NER OF INCOME TAX, 2 ND FLOOR, TDI CENTRE, JASOLA V. CIRCLE 16(1), NEW DELHI. BUSINESS DISTRICT, SARITA VIHAR, NEW DELHI-25. (APPELLANT) (RESPONDEN T) APPELLANT BY: SHRI AJAY VOHRA, ADV. & SRI AVDHESH BANSAL, CA RESPONDENT BY: SHRI H.K. LAL, SR. DR ORDER PER A.D. JAIN, J.M. ITA NO. 4018(DEL)2009 IS THE ASSESSEES APPEAL FOR THE ASSESSMENT YEAR 2005-06 TAKING THE FOLLOWING GROUND S:- 1. THAT THE CIT(A) ERRED ON FACTS AND IN LAW IN U PHOLDING THE ORDER OF THE ASSESSING OFFICER DISALLOWING DEDUCTIO N OF MANAGEMENT SERVICE CHARGES OF RS. 2,00,83,451/- INC URRED BY THE APPELLANT WHOLLY AND EXCLUSIVELY FOR THE PURPOSES O F THE BUSINESS. 1.1 THAT THE CIT(A) ERRED ON FACTS AND IN LAW IN HO LDING THAT THE APPELLANT HAD NOT DISCHARGED THE BURDEN OF SUCCESSFULLY DEMONSTRATING THAT ANY SERVICES WERE R ECEIVED FROM THE GROUP COMPANIES NECESSITATING ANY PAYMENT. 2. THE CIT(A) HAS ERRED ON THE FACTS AND IN LAW BY UPH OLDING THE CHARGE OF INTEREST UNDER SECTION 234 B & 234 D OF T HE ACT. ITA NOS. 4018&4019(DEL)09 2 3. THAT THE CIT(A) HAS ERRED ON FACTS AND IN LAW IN WI THDRAWING INTEREST UNDER SECTION 244 A OF THE ACT, WHICH WAS NEVER PAID TO THE APPELLANT. 2. APROPOS GROUND NO.1, THE AO DISALLOWED DEDUCTION OF MANAGEMENT SERVICE CHARGES OF RS.2,00,83,451/-, STA TED BY THE ASSESSEE TO HAVE BEEN INCURRED WHOLLY AND EXCLUSIVELY FOR TH E BUSINESS PURPOSES. THE LD. CIT(A) CONFIRMED THE DISALLOWANCE. 3. THE TRIBUNAL IN THE ASSESSEES OWN CASE, FOR ASS ESSMENT YEAR 2004-05, VIDE ORDER DATED 18.12.2009, A COPY WHEREO F HAS BEEN PLACED AT PAGES 639 TO 654 OF THE ASSESSEES PAPER BOOK ( APB FOR SHORT), HAS RESTORED THIS ISSUE TO THE FILE OF THE AO FOR FRESH DECISION , IN THE ASSESSEES APPEAL ON EXAMINATION OF THE EVIDENCE FI LED, COLLECTING ANY FURTHER EVIDENCE, IF NECESSARY, HEARING THE ASSESSE E AND THEREAFTER DECIDING THE MATTER AS PER LAW. THE FACTS REMAINI NG THE SAME FOR THE YEAR UNDER CONSIDERATION ALSO, THIS ISSUE IS, AS AG REED BETWEEN THE PARTIES, ALSO RESTORED TO THE FILE OF THE AO FOR FR ESH DECISION, AS IN THE EARLIER YEAR. 4. GROUND NO.2 IS CONSEQUENTIAL. 5. GROUND NO. 3 PERTAINS TO THE WITHDRAWAL OF INTER EST U/S 244 A OF THE I.T. ACT, WHICH STATEDLY, WAS NEVER PAID TO THE ASSESSEE. SINCE THE MATTER REGARDING DEDUCTION OF MANAGEMENT SERVICE CH ARGES HAS BEEN ITA NOS. 4018&4019(DEL)09 3 RESTORED TO THE AO AS ABOVE, THE ISSUE AT HAND IS A LSO RESTORED TO THE AO FOR FRESH DECISION, SUBJECT TO VERIFICATION. 6. ITA NO. 4019(DEL)2009 IS THE ASSESSEES APPEAL F OR THE ASSESSMENT YEAR 2006-07 TAKING THE FOLLOWING GROUND S:- 1. THAT THE CIT(A) ERRED ON FACTS AND IN LAW IN U PHOLDING THE ORDER OF THE ASSESSING OFFICER DISALLOWING DEDUCTIO N OF MANAGEMENT SERVICE CHARGES OF RS. 1,54,56,965/- IN CURRED BY THE APPELLANT WHOLLY AND EXCLUSIVELY FOR THE PURPOSES O F THE BUSINESS. 1.1 THAT THE CIT(A) ERRED ON FACTS AND IN LAW IN HO LDING THAT THE APPELLANT HAD NOT DISCHARGED THE BURDEN OF SUCCESSFULLY DEMONSTRATING THAT ANY SERVICES WERE R ECEIVED FROM THE GROUP COMPANIES NECESSITATING ANY PAYMENT. 2. THE CIT(A) HAS ERRED ON THE FACTS AND IN LAW BY UPH OLDING THE CHARGE OF INTEREST UNDER SECTION 234 B & 234 D OF T HE ACT. 3. THAT THE CIT(A) HAS ERRED ON FACTS AND IN LAW IN WI THDRAWING INTEREST UNDER SECTION 244 A OF THE ACT, WHICH WAS NEVER PAID TO THE APPELLANT. 6. GROUND NO.1 PERTAINS TO DISALLOWANCE OF DEDUCTIO N OF MANAGEMENT SERVICE CHARGES OF RS. 1,54,56,965/-. 7. THIS ISSUE STANDS RESTORED TO THE FILE OF THE AO , FOR ASSESSMENT YEAR 2005-06, IN ITA NO. 4018(DEL)2009, THE ASSESSEES APPEAL AS ABOVE. THIS ISSUE IS ALSO LIKEWISE RESTORED TO T HE FILE OF THE AO. 8. GROUND NO.2 IS CONSEQUENTIAL. ITA NOS. 4018&4019(DEL)09 4 9. GROUND NO.3 , PERTAINING TO WITHDRAWAL OF INTERE ST U/S 244 A OF THE I.T. ACT IS ALSO RESTORED TO THE FILE OF THE AO , SUBJECT TO VERIFICATION, FOR ASSESSMENT YEAR 2006-07. 10. IN THE RESULT, FOR STATISTICAL PURPOSES, BOTH T HE APPEALS OF THE ASSESSEE ARE TREATED AS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26.03.2010. SD/- SD/- (DEEPAK R. SHAH) (A.D. JAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 26.03.2010 *RM COPY FORWARDED TO: 1. TEXT HUNDRED INDIA PVT. LTD., 2 ND FLOOR, TDI CENTRE, JASOLA BUSINESS DISTRICT, SARITA VIHAR, NEW DELHI-25. 2. ACIT, CIRCLE 16(1), NEW DELHI. 3. CIT 4. CIT(A) 5. DR TRUE COPY BY ORDER DEPUTY REGISTRAR
