CEC -Soma JV, New Delhi V. ACIT, Circle-62(1), New Delhi

ITA 4396/DEL/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 2889 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 08-06-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SAGAR MALHOTRA
• Keywords: Principle of natural justice; TDS

Judgement Text

ITA NO.-4396/DEL/2018 CEC-SOM A JV PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: B: NEW DELHI) (THROUGH VIDEO CONFERENCING) BEFORE SH. KUL BHARAT, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 4396/DEL/2018 ( ASSESSMENT YEAR: 2012-13) M/S. CEC - SOMA JV, B4/45, SAFDARJUNG ENCLAVE, NEW DELHI-110029 VS. ACIT, CIRCLE 62(1), NEW DELHI APPELLANT RESPONDENT PAN NO: AAAAC4669E REVENUE BY : SH. SAGAR MALHOTRA, CA ASSESSEE BY : MS. NIDHI SRIVASTAVA, CIT-DR PER ANADEE NATH MISSHRA, A.M.: THIS APPEAL BY ASSESSEE IS FILED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-20, NEW DELHI, [LD. CIT(A), FOR SHORT], DATED 28.03.2018 FOR ASSESSMENT YEAR 2012-13. GROUNDS TAKEN IN THIS APP EAL OF ASSESSEE ARE AS UNDER: 1. THAT THE LD. AO HAS ERRED BOTH IN LAW AND ON FACTS IN DETERMINING THE ASSESSED LOSS AMOUNTING TO INR 73,553,150/- AS AGAINST THE RETURNED LOSS OF INR 91,182,520/-. THE LD. CIT(A) H AS FURTHER ERRED IN CONFORMING THE ADDITIONS/DISALLOWANCES MADE BY THE LD. AO. 2. (A) THAT THE LD. CIT(A) HAS ERRED BOTH ON FACT S AND IN LAW IN CONFIRMING THE DISALLOWANCE MADE BY LD. AO AMOUNTIN G TO INR 16,049,707/-, BEING THE SALARY OF PROJECT LEADER (D EPUTED BY CEC FOR THE ITA NO.-4396/DEL/2018 CEC-SOM A JV PAGE 2 OF 4 WORK OF THE APPELLANT) REIMBURSED BY THE APPELLANT TO CEC, ON THE ALLEGED CONTENTION THAT THE ACT OF DEPUTATION OF PR OJECT LEADER BY CEC FOR THE WORK OF APPELLANT WAS NOT AUTHORIZED BY THE JOINT VENTURE AGREEMENT. (B) THAT THE LD. CIT(A) FAILED TO APPRECIATE THE E XPLANATION OF THE APPELLANT THAT THERE WAS IN UNDERSTANDING BETWEEN T HE APPELLANT AND CEC TO REIMBURSE THE SALARY EXPENSE OF THE PROJECT L EADER ON ACCOUNT OF DEPUTATION OF PROJECT LEADER BY CEC FOR THE WORK OF THE APPELLANT. (B) THAT THE LD. CIT(A) FAILED TO UNDERSTAND THAT AGREEMENT CAN BE ORAL OR IN WRITING. THE LD. CIT(A) ERRED IN UNDERST ANDING THE CONCEPT OF SUBSTANCE OVER FORM WHEREIN ACTUAL CONDUCT IS GIV EN MORE IMPORTANCE THAN WHAT HAS BEEN WRITTEN IN THE AGREEMENT. 3. THAT THE LD. CIT(A)/ AO HAS ERRED BOTH ON FACTS AND IN LAW IN IGNORING THE CURRENT YEARS LOSS AMOUNTING TO INR 9 1,182,520/- WHILE COMPUTING THE ASSESSED INCOME OF THE APPELLANT. 4. THE LD. CIT(A) GROSSLY ERRED IN PASSING ORDER W ITHOUT FOLLOWING THE PRINCIPLE OF NATURAL JUSTICE. THE ASSESSEE HAS NOT BEEN GIVEN ANY OPPORTUNITY TO PRODUCE DOCUMENTS IN RELATION TO THE APPEAL FILED BEFORE THE LD. CIT(A). THE LD. CIT(A) HAS ERRED IN PASSING ORDER IN HASTE. 5. THAT THE LD. CIT(A)/AO FAILED TO GIVE THE CREDI T OF TDS AMOUNTING TO INR 94,234 AS DEDUCTED BY DMRCL AND THE SAME WAS ALSO CLAIMED BY THE APPELLANT IN ITS RETURN OF INCOME. (B) AT THE TIME OF HEARING, AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE INFORMED US THAT THE ASSESSEE HAS OPTED TO SETTLE T HE APPEAL UNDER VIVAD SE VISHWAS SCHEME, 2020 (VSVS, FOR SHORT) AND THAT T HE ASSESSEE HAS ALREADY FILED THE RELEVANT FORMS. THE LD. COUNSEL FOR ASSESSEE ALSO DREW OUR ATTENTION TO LETTER DATED 17TH FEBRUARY, 2021 FILED IN INCOME TAX APPEL LATE TRIBUNAL (ITAT, FOR SHORT) GIVING INTIMATION FOR THE SAME, AND REQUESTING TO W ITHDRAW THE APPEAL. (B.1) AT THE TIME OF HEARING BEFORE US, THE LD. COUNSEL F OR ASSESSEE SUBMITTED BEFORE US THAT THIS APPEAL MAY BE TREATED AS WITHDR AWN AND MAY BE DISMISSED ON ITA NO.-4396/DEL/2018 CEC-SOM A JV PAGE 3 OF 4 ACCOUNT OF THE AFORESAID VSVS. AFTER DUE CONSIDER ATION, AND IN VIEW OF THE FOREGOING; WE ARE OF THE VIEW THAT THIS APPEAL HAS BECOME INFRUCTUOUS, AND WE TREAT THIS APPEAL AS WITHDRAWN ON ACCOUNT OF THE AFORESAI D VSVS. ACCORDINGLY, THIS APPEAL HAVING BECOME INFRUCTUOUS, ARE HEREBY DISMISSED AS WITHDRAWN, SUBJECT TO SETTLEMENT OF THE DISPUTES IN THE APPEAL UNDER THE AFORESAID VSVS. (C) BEFORE WE PART, WE HEREBY CLARIFY, BY WAY OF ABUN DANT CAUTION, THAT IF FOR SOME REASON THE DISPUTES UNDER THIS APP EAL BEFORE US ARE NOT SETTLED UNDER THE AFORESAID VSVS, THEN THE ASSESSEE WILL BE AT LIBERTY TO APPROACH ITAT FOR RESTORATION OF THIS APPEAL, IN AC CORDANCE WITH LAW. (D) IN THE RESULT, THIS APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 02/03/2021 SD/- SD/- (KUL BHARAT) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTA NT MEMBER DATED: 02/03/2021 *BINITA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5.DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI