DCIT, New Delhi V. M/s. Wal-Mart Pvt. Ltd., New Delhi

ITA 5208/DEL/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6630 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 9 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2010-2011
• Appeal Filed On: 23-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Capital expenditure

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI D BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA , ACCOUNTANT MEMBER, AND S HRI KULDIP SINGH , JUDICIAL MEMBER ITA NO. 5208 /DEL/201 4 [A.Y 20 1 0 - 11 ] THE A . C . I . T VS. M/S WAL - MART PVT. LTD CIRCLE - (2) 1 NO. 1, ARAVALI CRESCENT, NEW DELHI NEKSON MANDELA ROAD VASANT KUNJ, PHASE - III NEW DELHI PAN : AADCB 2110 L [APPELLANT] [RESPONDENT] DATE OF HEARING : 1 9 . 0 7 .201 8 DATE OF PRONOUNCEMENT : 19 .0 7 .2018 ASSESSEE BY : SHRI K.M. GUPTA , ADV REVENUE BY : SHRI AMIT JAIN, SR. DR ORDER PER N.K. BILLAIYA , ACCOUNTANT MEMBER, T HIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) - XXXIII , NEW DELHI DATED 02.08.2013 PERTAINING TO A.Y 20 1 0 - 11 . 2 2. THE ONLY GRIEVANCE OF THE REVENUE IS THAT T HE CIT(A) ERRED IN DELETING THE ADDITION OF RS. 7 , 72 , 46 , 835/ - , BEING 10% OF OPERATIONAL EXPENSES DISALLOWED , WHEN DESPITE AMPLE OPPORTUNITIES , THE ASSESSEE HAD FAILED TO FURNISH DETAILS CALLED FOR BY THE ASSESSING OFFICER. 3. AT THE VERY OUTSET, THE LD. AR POINTED OUT THAT ON IDENTICAL FACTS IN ASSESSMENT YEAR 2009 - 10, THE MATTER HAD TRAVELLED UPTO THE TRIBUNAL AND THE TRIBUNAL VIDE ORDER DATED 07.01.2016 HAS CONFIRMED THE DELETION BY THE LD. CIT(A) . THE LD. COUNSEL SUPPLIED COPY OF THE O RDER OF THE TRIBUNAL. 5. PER CONTRA, THE LD. DR COULD NOT BRING ANY DISTINGUISHING DECISION IN FAVOUR OF THE REVENUE. 6. WE HAVE CAREFULLY CONSIDERED THE ORDERS OF THE AUTHORITIES BELOW. WE FIND FORCE IN THE CONTENTION OF THE LD. COUNSEL. THE CO - ORDINA TE BENCH OF THE TRIBUNAL IN ITA NO. 5 15 /DEL/201 4 HAD OCCASION TO CONSIDER A SIMILAR GROUND OF APPEAL AND HELD AS UNDER: WE HAVE PERUSED ALL THE RECORDS AND HEARD BOTH THE PARTIES. IT IS PERTINENT TO NOTE THAT THE EXPENDITURE WERE NORMAL OPERATING 3 EXPENSE S AND THERE IS NO BASIS FOR TREATING A CERTAIN PERCENTAGE OF THE SAID EXPENSES AS CAPITAL EXPENDITURE AS THERE IS NO SPECIFIC FINDING OR JUSTIFICATION GIVEN BY THE ASSESSING OFFICER TO THAT EFFECT. MERELY ESTIMATING THE SAME IS NOT PROPER ON PART OF THE AS SESSING OFFICER. THE ASSESSEE MAINTAINED ITS FINANCIAL STATEMENTS AND IT WAS PROPERLY TAKEN COGNIZANCE BY THE CIT(A) AND OVERLOOKED BY THE ASSESSING OFFICER. THEREFORE, THE LD. CIT(A) HAS RIGHTLY ALLOWED THE APPEAL OF THE ASSESSEE. 7. RESPECTFULLY FOLLO WING THE FINDINGS OF T HE CO - ORDINATE BENCH, WE DECLINE TO INTERFERE. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IN ITA NO. 5208 /DEL/201 4 IS D I S M I S S E D . THE ORDER IS PRON OUNCED IN THE OPEN COURT ON 19 .0 7 .2018. SD/ - SD/ - [ KULDIP SINGH] [ N.K. BILLAIYA ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 19 TH JU LY , 2018 VL/ 4 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI DATE OF DICTATION 1 9 .07.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 1 9 .07.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER