DCIT, New Delhi V. M/s Bharti Enterprises, New Delhi

ITA 4828/DEL/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65339 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 05-09-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 03-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PIRTHI LAL
• Keywords: Earning of tax free income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: A NEW DELHI BEFORE SHRI AD JAIN, JUDICIAL MEMBER AND SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO: 4828/DEL/2010 ASSESSMENT YEAR : - 2007-08 ACIT, CIRCLE 24(1) VS. M/S BHARTI ENTERPRISES NEW DELHI H 5/12, QUTAB AMBIENCE MEHRAULI ROAD, NEW DELHI PAN: : AAAFB 2416 M (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PIRTHI LAL, SR.D.R. RESPONDENT BY : SHRI ANIL BHALLA, C.A. O R D E R PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE DIRECTED AG AINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-XXIII, NEW DELHI DT. 30.8.2010 PERTAINING TO THE ASSESSMENT YEAR 2007-0 8 ON THE FOLLOWING GROUNDS. 1. ON THE FACTS AND ON CIRCUMSTANCES OF THE CASE, LD.CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.33,05,662/- BE ING EXPENDITURE INCURRED IN RELATION TO EXEMPT INCOME UNDER SECTION 10(34). 2. WE HAVE HEARD SHRI PIRTHI LAL, SR.D.R. ON BEHALF OF THE REVENUE AND SHRI ANIL BHALLA, C.A. ON BEHALF OF THE ASSESS EE. THE COMMISSIONER OF INCOME TAX (APPEALS) AT PARA 4 HELD AS FOLLOWS:- 4. THE FACTS OF THE CASE OF THE APPELLANT ARE VERY SIMPLE IN THE SENSE THAT THE ASSESSEE FIRM HAS DEBITED A TOTA L OF RS.8,21,885/- TO ITS PROFIT & LOSS A/C WHICH ARE RO UTINE ITA NO. 4828/DEL/2010 PAGE 2 OF 3 ASSESSMENT YEAR: 2007-08 M/S BHARTI ENTERPRISES, NEW DELHI EXPENSES LIKE EXPENDITURE FOR INCOME TAX ASSESSMENT S, TRADE MARKS, AND OTHER LEGAL CASES ETC. THE MAXIMUM THAT ASSESSING OFFICER COULD HAVE DISALLOWED IS RS.8,21,855/- AND THAT TOO AFTER GIVING A FINDING OF FACT THAT THE EXPENDITUR E SO DISALLOWED WAS INCURRED FOR EARNING THE EXEMPT INCOME. HOWEVE R, THE LD.AO PROCEEDED TO APPLY RUE 8D AND ARRIVED AT AN A RITHMETICAL FIGURE OF RS.33,05,662/-, WHICH TO MY MIND IS TRAVE STY OF JUSTICE. IT IS ILLOGICALLY TO MAKE DISALLOWANCE ON WEIGHTED BASIS. THE OBSERVATION OF MY LD.PREDECESSOR IN ASSESSEES OWN CASE FOR PRECEDING ASSESSMENT YEAR THAT THERE IS NO EQUI TY IN TAX LAWS IS RESPECTFULLY DISAGREED. THEREFORE, THE ADD ITION MADE BY THE ASSESSING OFFICER TO THE TUNE OF RS.33,05,662/- IS DELETED. 3. THE ASSESSEE HIMSELF HAD DISALLOWED 1/10 TH OF THE TOTAL EXPENSES DEBITED TO PROFIT AND LOSS A/C. UNDER THE CIRCUMST ANCES. WE UPHOLD THE ORDER OF THE FIRST APPELLATE AUTHORITY AND DISMISS THIS APPEAL OF THE REVENUE. 4. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMI SSED . ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH SEPTEMBER, 2012. SD/- SD/- (A.D. JAIN) (J.SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: THE 5 TH SEPTEMBER, 2012 *MANGAVATHY ITA NO. 4828/DEL/2010 PAGE 3 OF 3 ASSESSMENT YEAR: 2007-08 M/S BHARTI ENTERPRISES, NEW DELHI COPY OF THE ORDER IN ITA NO. 4828/DEL/2010 FOR THE ASSESSMENT YEAR 2007-08 FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT (A); 5.DR; 6.GUARD FILE BY ORDER DY. REGISTRAR // C O P Y // 1. DATE OF DICTATION: 06/09 2. DRAFT PLACED BEFORE THE AUTHOR ON: 06/09 3. DRAFT PROPOSED AND PLACED BEFORE SECOND MEMBER ON: 4. DRAFT DISCUSSED/APPROVED BY THE SECOND MEMBER ON: 5. APPROVED DRAFT CAME TO SR.P.S. ON: 6. DATE OF PRONOUNCEMENT : 7. FILE SENT TO BENCH CLERK ON : 8. DATE ON WHICH FILE GIVEN TO HEAD CLERK ON: 9. DATE OF DISPATCHING THE ORDER ON :