M/s. IRS Industries Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 411/DEL/2013

• Counselvise Citation: 41120114 RSA 2013
• Duration Of Justice: 2 year(s) 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 08-04-2015
• Assessment Year: 2003-2004
• Appeal Filed On: 22-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Assessee Lawyers: ASHWANI TANEJA
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: C NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SH. T.S.KAPOOR, ACCOUNTANT MEMBER I.T.A .NO. - 411 /DEL/201 3 (ASSESSMENT YEAR - 200 3 - 0 4 ) IRS INDUSTRIES PVT. LTD., B - 2, ESSEL HOUSE, 10 ASAF ALI ROAD, NEW DELHI PAN - AAACI2815G (APPELLANT) VS ITO, WARD - 11(4), NE W DELHI (RESPONDENT) APPELLANT BY S H. ASHWANI TANEJA, ADV. & SH. TARUN, ADV RESPONDENT BY SH.T.VASANTHAN, SR. DR ORDER PER DIVA SINGH, JM THIS IS AN AP PEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 21.11 .201 2 OF CIT(A) - XI II, NEW DELHI PERTAINING TO 200 3 - 0 4 ASSESSMENT YEAR ON VARIOUS G ROUNDS. HOWEVER THE SOLE PRAYER OF THE ASSESSEE WAS THAT THE ISSUE OF DISALLOWANCE OF EXPENDITURE OF REPAIR AND MAINTENANCE ETC. ARISING FROM THE VIEW TAKEN IN THE EARLIER YEARS NEEDS TO BE RESTORED AS THE ISSUE IN THE BA SE YEAR STANDS RESTORED TO THE CIT(A) BY THE ITAT VIDE ORDER DATED 09.06.2010 IN ITA NO.2217/DEL/2009 (COPY AVAILABLE ON RECORD). CONSIDERING THE LIMITED PRAYER OF THE ASSESSEE THE SR. DR HAD NO OBJECTION. 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSE D THE MATERIAL AVAILABLE ON RECORD. IT IS SEEN THAT IN THE YEAR UNDER CONSIDERATION THE ASSESSEE RETURNED AN INCOME OF RS.2,65,940/ - . THE SAID RETURN WAS PROCESSED U/S 143(1) SUBSEQUENTLY IT WAS RE - OPENED BY ISSUANCE OF NOTICE U/S 148 AS IT WAS FOUND THA T IN 2004 - 05 ASSESSMENT YEAR THAT THE ASSESSEE DID NOT CARRY OUT ANY MANUFACTURING ACTIVITY. THE RELEVANT EXTRACT FROM THE ASSESSMENT ORDER IN THE YEAR UNDER CONSIDERATION IS REPRODUCED HEREUNDER FOR READY - REFERENCE: - DATE OF HEARING 08 .0 4 .2015 DATE OF PRONOUNCEMENT 24 .0 4 .2015 I.T.A .NO. - 411 /DEL/201 3 2 'AS PER INFORMATION FILED DURING THE ASSTT. PROCEEDINGS FOR AY 2004 - 05, THE REPAIR & MAINTENANCE EXPENSES OF RS.582800/ - WERE CLAIMED TO HAVE BEEN PAID TO SHRI C. S GUPTA FOR FACTORY REPAIR & MAINTENANCE VID ECH NO.582374 DTD.9.2.2004 FOR RS.3 LACS AND VIDE CH. NO.256833 DTD. 8.3. 04 FOR RS.2 ,82,800/ - . ON ENQUIRY IT WAS FOUND THAT CH. NO.582374 DTD.9.2.04 FOR RS.3 LAC WAS ISSUED TO M.S SIRDI ENTERPRISES HAVING A/C NO.CA/OL/004158 WITH CORPORATION BANK, KAROL BAGH. THE SECOND CH. NO.256833 DTD.8.3.2004 FOR RS.282800 WAS FOUND TO HAVE BEEN ISSUE D TO M/S ABM TRADERS (PROP. SHRI MANOJ KUMAR) HAVING A/C NO.CA/0L/050390 WITH CORPORATION BANK, PITAMPURA. THE ABOVE PARTIES DID NOT CONFIRM ANY PAYMENT TO SHRI C.S.GUPTA. NEITHER ASSESSEE COULD PROVE ANY PAYMENT TO SHRI C.S.GUPTA. IT WAS ALSO NOTED THAT SHRI CS GUPTA DID NOT FILE REPLY TO VARIOUS QUERIES RAISED IN CONNECTION WITH THE REPAIR WORK CLAIMED TO HAVE CARRIED OUT BY HIM FOR THE ASSESSEE. EVEN HE DID NOT FILE ANY DOCUMENTS LIKE IT PA, VOTER I CAR/RATION CAR OR DRIVING LICENSE TO ESTABLISH ITS ID ENTITY. THUS THE ASSESSEE'S CLAIM OF REPAIR AND MAINTENANCE EXPENSES AT RS.582000/ - WAS FOUND TO BE WRONG.' 3. THE SUBMISSIONS ON BEHALF OF THE ASSESSEE THAT ITS MANUFACTURING UNIT WAS IN SUSPENDED ANIMATION SINCE NOV.1999 AND THEY RESUMED OPERATIONS IN OCTOBER 2004 WAS NOT ACCEPTED. SIMILARLY THE ARGUMENTS THAT THE ASSESSEE ENGAGED IN THE MANUFACTURING OF STEEL INGOTS WHICH REMAINED SUSPENDED DUE TO ADVERSE MARKET CONDITIONS TILL THE MARKET CONDITIONS IMPROVE AND IN THE CIRCUMSTANCES EXPENSES INCREASE D FOR KEEPING THE PLANT AND MACHINERY IN RUNNING CONDITION FOR WHICH REGULAR MAINTENANCE AND PERIODICAL OVERHAULING OF FURNACE WAS REQUIRED WAS ALSO NOT ACCEPTED BY THE AO ON THE REASONING THAT THE ISSUE HAD BEEN EXAMINED AT LENGTH IN 2004 - 05 ASSESSMENT YE AR . 4. A PERUSAL OF THE IMPUGNED ORDER SHOWS THAT THE CIT(A) FOLLOWED THE VIEW TAKEN IN THE APPEAL IN 2004 - 05 ASSESSMENT YEAR. BEFORE US THE ASSESSEE HAS FILED COPY OF THE ORDER DATED 09.06.2010 IN ITA NO. - 2217/DEL/2009 IN THE CASE OF THE ASSESSEE FOR 200 4 - 05 ASSESSMENT YEAR. A PERUSAL OF THE SAME SHOWS THAT FOR WANT OF REPRESENTATION THE ISSUE WAS DECIDED AGAINST THE ASSESSEE BY THE CIT(A). ON CHALLENG E BY THE ASSESSEE THE CIT(A) S ORDER WAS SET ASIDE GRANTING THE ASSESSEE ONE MORE OPPORTUNITY TO STATE ITS CASE BEFORE THE CIT(A) IN VIEW OF THE SAME THE ISSUE IN THE LIGHT OF THE SUBMISSION S ADVANCED BY THE PARTIES BEFORE THE BENCH AND CONSIDERING THE MATERIAL AVAILABLE ON RECORD IT IS CONSIDERED APPROPRIATE TO RESTORE THE ISSUE BACK TO THE FILE OF THE CIT(A) TO CONSIDER THE ALLOWANCE OF REPAIR & MAINTENANCE EXPENDITURE OF RS.5,82,000/ - WHICH DISALLOWANCE HAS BEEN MADE ON THE BASIS OF THE VIEW TAKEN IN 2004 - 05 I.T.A .NO. - 411 /DEL/201 3 3 ASSESSMENT YEAR WHICH ISSUE IS ALSO PENDING BEFORE THE CIT(A). ACCORDINGLY THE APPEAL OF THE A SSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE SAID ORDER WAS PRONOUNCED IN THE OPEN COURT ON 24 TH APRIL , 2015. SD/ - SD/ - (T.S.KAPOOR) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 24 TH APRIL , 2015 *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI