ITO, New Delhi V. M/s. Deep & Veer Pvt. Ltd., New Delhi

ITA 4596/DEL/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0131 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2015
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 05-08-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PARWINDER KAUR
• Keywords: Depreciation; Opportunity of being heard; Additional evidence
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : B NEW DELHI BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO: 4596/DEL/2013 ASSTT. YEAR : - 2006-07 INCOME TAX OFFICER VS. M/S. DEEP & VEER PVT. LTD. WARD-10(1), C.R. BLDG. 21/4, INDIRA VIKAS COLONY, NEW DELHI. NEW DELHI. (APPELLANT) (RES PONDENT APPELLANT BY :SHRI PARWINDER KAUR, SR. DR RESPONDENT BY :NONE DATE OF HEARING :30.6.2015 DATE OF PRONOUNCEMENT : 30 .6.2015 O R D E R PER INTURI RAMA RAO, AM THIS IS AN APPEAL FILED BY THE REVENUE AGAIN ST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) XVII, NEW DEL HI DATED 27 TH MAY, 2013 FOR THE ASSTT. YEAR 2006-07. THE REVENUE RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION MADE BY A O OF RS. ITA NO. 4596/DEL/2013 ITO VS. M/S. DEEP & VEER PVT. LTD. 2 22,63,500/- ON ACCOUNT OF NON-VERIFIABLE HIRE CHARG E EXPENSES, BY ADMITTING ADDITIONAL EVIDENCE AND WITHOUT CONSIDERI NG THE GENUINENESS OF THE EXPENDITURE AS WELL AS APPLICABI LITY OF TDS PROVISIONS IN TOTALITY. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE CIT(A) HAS ERRED IN DELETING ADDITION ON ACCOUNT OF UNEXPL AINED ADVANCE TO THE EXTENT OF RS. 3,80,365/- BY RELYING ON ADDIT IONAL EVIDENCES AND WITHOUT ALLOWING AN OPPORTUNITY TO THE DEPARTME NT TO EXAMINE THESE EVIDENCES. 2. BRIEF FACTS OF THE CASE ARE THAT THE APPELLANT IS A CIVIL CONTRACTOR AND ALSO INVOLVED IN HIRING OF GOODS VEHICLES. THE RETURN OF INCOME FOR ASSTT. YEAR 2006-07 WAS E-FILED ON 27.11.2006 AT A TOTAL INCOME OF RS. 2,50,710/-. THE ASSESSMENT WAS COMPLETED U/S 144 ON 26.12.2008 AT A TOTAL INCOME OF RS. 1,00,12,410/-. THE AO HAD ADDED RS. 73,656/- BEING EMPLOYEES CONTRIBUTION TO PF RS. 73,656/- BEING EMP LOYERS CONTRIBUTION TO PF. THE AO ALSO DISALLOWED RS. 2,56,022/- BEING THE INTEREST PAID ON LOANS AS NO EVIDENCE WAS SUBMITTED TO SUBSTANTIATE THE EXPENSE DEBITED IN THE P & L A/C. THE OTHER DISALLOWANCE WAS RS. 75 ,395/- BEING 1% OF DIESEL EXPENSES AND DISALLOWANCE OF DEPRECIATION AM OUNTING TO RS. 3,37,500/- AS BILLS/VOUCHERS REGARDING THE ADDITION OF RS. 22,50,000/- TO FIXED ASSETS WERE NOT PRODUCED BEFORE THE AO. THE A O HAD ALSO DISALLOWED RS. 2,01,490/- BEING 10% OF THE TOTAL SU NDRY CREDITORS AS NO DETAILS WERE FILED DURING THE ASSESSMENT PROCEEDING S. THE AO FURTHER ITA NO. 4596/DEL/2013 ITO VS. M/S. DEEP & VEER PVT. LTD. 3 DISALLOWED RS. 8,13,893/- OUT OF ADVANCES RECEIVED BY THE APPELLANT AS THE APPELLANT DID NOT FILE CONFIRMATION FROM M/S. ORIENT STRUCTURE ENGINEERS (P) LTD. FOR RS. 4,13,893/- AND FROM M/S. NAV BHARAT NIRMAN FOR RS. 4,00,000/-. THE MAJOR DISALLOWANCE MADE WAS FOR NON DEDUCTION OF TDS ON HIRE CHARGES AMOUNTING TO RS. 79,32,092/- . 3. BEING AGGRIEVED THE APPEAL WAS FILED BEF ORE CIT(A)-XVII, NEW DELHI WHO VIDE ORDER DATED 27.5.2013 GRANTED RELIEF ON THE PAYMENT OF RS. 22,63,500/- ON THE GROUND THAT THE TDS PROVISIO NS ARE NOT APPLICABLE SINCE THE PAYMENTS MADE WERE LESS THAN R S. 20,000/- AND AS REGARDS BALANCE PAYMENT OF RS. 56,68,592/- THE MAT TER WAS SENT BACK TO THE AO FOR FRESH VERIFICATION AS TO APPLICABILI TY OF TDS PROVISIONS AND WITH REGARD TO THE ADDITION OF UNEXPLAINED ADVANCES RECEIVED FROM TWO PARTIES NAMELY M/S. ORIENT STRUCTURE ENGINEERS (P) LTD. AND M/S. NAV BHARAT NIRMAN. THE CIT(A) CONCURRED WITH THE FOLLOW ING SUBMISSIONS :- IT IS FURTHER SUBMITTED THAT ON PERUSAL OF ACCOUNT STATEMENT OF M/S. ORIENT STRUCTURE ENGINEERS(P) LTD. IT REVEALS THAT THEY HAVE SHOWN A DEBIT BALANCE (RECOVERY) OF RS. 3,80,365/- WHEREAS THE APPELLANT COMPANY HAS SHOWN ADVANCE OF RS. 4,13,893 /- THUS THERE IS A DIFFERENCE OF RS. 33,528/- THEREFORE THE SAME AMOUNT OF RS. 33,528/- IS OFFERED AS UPHELD ADDITION. THEREFORE GRANTED THE RELIEF OF RS. 3,80,365/- AND BALANCE OF RS. 33,528/- STATED TO HAVE BEEN RECEIVED FROM M/S. ORI ENT STRUCTURE ENGINEERS (P) LTD. WAS CONFIRMED AND THE AMOUNT OF RS. 4 LACS RECEIVED ITA NO. 4596/DEL/2013 ITO VS. M/S. DEEP & VEER PVT. LTD. 4 FROM M/S. NAV BHARAT NIRMAN WAS ALSO CONFIRMED FOR NON PRODUCTION OF ANY CONFIRMATION LETTER:- 4. BEING AGGRIEVED, THE REVENUE HAD COME UP WIT H THE PRESENT APPEAL. 5. NONE PRESENT ON BEHALF OF THE RESPONDENT-AS SESSEE COMPANY BEFORE US. THE LD. SR DR. SUBMITTED THAT THE MATT ER MAY BE SENT BACK TO THE FILE OF THE AO FOR VERIFICATION OF DETAILS FILED BEFORE THE CIT(A). ACCORDINGLY, WE REMIT THE MATTER BACK TO THE FILE O F AO FOR DE NOVO ASSESSMENT AFTER AFFORDING A REASONABLE OPPORTUNITY OF BEING HEARD IN THIS REGARD TO THE ASSESEE. IN THE RESULT , THE APPEAL IS PARTLY ALLOWED FOR ST ATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH JUNE, 2015. SD/- SD/- (DIVA SINGH) (INTURI RAMA RAO ) JUDICIAL MEMBER A CCOUNTANT MEMBER DATED: THE 30 TH JUNE, 2015 VEENA COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT ITA NO. 4596/DEL/2013 ITO VS. M/S. DEEP & VEER PVT. LTD. 5 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER DY. REGISTRAR