VMA Infomerics Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 4407/DEL/2013

• Counselvise Citation: 440720114 RSA 2013
• Duration Of Justice: 2 year(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 04-08-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 19-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P CHANDREKAR
• Assessee Lawyers: RAMESH AGARWAL
• Keywords: Depreciation; Wrong claim; Revenue expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : H , NEW DELHI BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER I.T.A.NO S . 4406 & 4407 /DEL/20 1 3 A.Y. 20 06 - 07 AND 2004 - 05 VMA INFOMERICS PVT.LTD. (NOW KNOWN AS INFOMETRICS VALUATION & RATING PVT.LTD.) FLAT NO.104 & 108 GOLF APARTMENTS SUJAN SINGH PARK NEW DELHI 110 003 PAN: AAACV 1928 K VS. ITO, WARD 11 (4) NEW DELHI (APPELLANT) (RESPONDENT) A PPELLANT BY : SH. RAMESH AGARWAL, C.A. RESPONDENT BY : SH. J.P.CHANDREKAR, SR. DR ORDER PER J. SUDHAKAR REDDY, ACCOUNTANT MEMBER BOTH THESE APPEALS ARE FILED BY THE ASSESSEE AND ARE DIRECTED AGAINST THE ORDER OF THE LD.CIT(A) - XV, NEW DELHI DATED 26.6.2013 , FOR THE A.Y. 2004 - 05 AND 2006 - 07, WHEREIN THE FIRST APPELLATE AUTHORITY HAS CONFIRMED THE PENALTY LEVIED U/S 271(1)(C ) OF THE INCO ME TAX ACT, 1961 (THE ACT ) . 2. THE ISSUE ON WHICH THE PENALTY WAS LEVIED, IS THE DISALLOWANCE OF THE REVENUE EXPENDITURE CLAIMED BY THE ASSESSEE ON FEE PAID TO REGISTRAR OF COMPANIES , ON THE GROUND THAT THE PAYMENT IS CAPITAL IN NATURE. 3. AFTER HEARING RIVAL CONTENTIONS WE FIND THAT UNDER IDENTICAL CIRCUMSTANCES THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. BRAHMAPUTRA CONSORTIUM LTD. (2012) REPORTED IN 348 ITR 339 (DELHI), AT PARA 7 IT WAS HELD AS FOLLOWS. 2 7 . THE AFORESAID APPROACH OF THE ASSE SSING OFFICER AND CIT(A) HAS NOT FOUND FAVOUR WITH THE TRIBUNAL. ACCORDING TO IT, INSOFAR AS DISALLOWANCE OF PART DEPRECIATION ON BUILDING IS CONCERNED, IT WAS MERELY ON ACCOUNT OF ESTIMATED COST OF BUILDING WHICH DID NOT CALL FOR ANY PENALTY. IN RESPECT OF PENALTY ON THE WRONG CLAIM QUA PAYMENT OF FEE TO THE ROC, THE PENALTY HAS BEEN DELETED ON THE GROUND THAT EXPLANATION GIVEN BY THE ASSESSEE COULD NOT BE CALLED MALA FIDE AND NO PARTICULARS WERE CONCEALED IN THIS BEHALF. THE TRIBUNAL ACCEPTED THE EXPLA NATION OF THE ASSESSEE THAT IT WAS CLAIMED AS REVENUE EXPENDITURE BY PLACING RELIANCE ON SEVERAL JUDICIAL PRONOUNCEMENTS, AND THEREFORE, THE CLAIM WAS NOT MALA FIDE. THE ORDER OF THE I.T.A.T. WAS UPHELD BY THE HON BLE HIGH COURT. 3.1. RESPECTFULLY FOLLO WING THE JURISDICTIONAL HIGH COURT JUDGEMENT, WE DELETE THE PENALTIES FOR BOTH THE ASSESSMENT YEARS. 4. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 4 T H AUGUST , 2015. S D / - S D / - [ G.C.GUPTA ] [J. SUDHAKAR REDDY] VICE PRE SIDENT ACCOUNTANT MEMBER DT. THE 1 4 T H AUGUST, 2015 MANGA 3 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES