ITO, New Delhi V. M/s. Bhartiya Rail Bijalee Co. Ltd., New Delhi

ITA 5407/DEL/2014

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0302 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 07-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAKASH DUBE
• Keywords: Capital receipt

Judgement Text

ITA NO.- 5407/DEL/2014. BHARTIYA RAIL BIJALEE CO. LTD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: A: NEW DELHI) (THROUGH VIDEO CONFERENCING) BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 5407/DEL/2014 ( ASSESSMENT YEAR: 2011-12) INCOME TAX OFFICER, WARD 2(4), ROOM NO. 381, C. R. BUILDING, NEW DELHI. VS. M/S BHARTIYA RAIL BIJALEE CO. LTD., NTPC BHAWAN CORE-7, SCOPE COMPLEX, 7, INDUSTRIAL AREA, LODHI ROAD, NEW DELHI-110003. APPELLANT RESPONDENT PAN NO: AADCB3805A REVENUE BY : SHRI PRAKASH DUBE, SR. DR ASSESSEE BY : SHRI DEEPAK SUNEJA, CA PER ANADEE NATH MISSHRA, AM (A) THIS APPEAL BY REVENUE IS FILED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-V, NEW DELHI, [LD. CIT(A), F OR SHORT], DATED 08.08.2014 FOR ASSESSMENT YEAR 2011-12. GROUNDS TAKEN IN THIS APP EAL OF REVENUE ARE AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) ERRED IN: (A) DELETING THE ADDITION OF RS. 1,06,86,901/- MADE BY THE AO AS INCOME FROM OTHER SOURCES BEING INTEREST FROM INDIAN BANKS BY IGNORING THE FACT THAT THE ASSESSEE HAD SURPLUS FUNDS WHICH WERE DEPO SITED IN THE BANK TO EARN INTEREST INCOME, HOLDING THE SAME AS CAPITAL R ECEIPT BEING INEXTRICABLY LINKED WITH THE CONSTRUCTION ACTIVITY OF THE PROJECT. ITA NO.- 5407/DEL/2014. BHARTIYA RAIL BIJALEE CO. LTD. PAGE 2 OF 4 (B) DELETING THE ADDITION OF RS. 1,11,07,211/- MADE BY THE AO AS INCOME FROM OTHER SOURCES BEING INTEREST FROM CONTRACTORS BY IGNORING THE FACT THAT THE ASSESSEE ITSELF HAD SHOWN IT AS INCOME FRO M OTHER SOURCES AS PER DETAILS FILED WITH THE P&L A/C, HOLDING THE SAM E AS CAPITA! RECEIPT BEING INEXTRICABLY LINKED WITH THE CONSTRUCTION ACT IVITY OF THE PROJECT. (C) DELETING THE ADDITION OF RS 3,03,582/- MADE BY THE AO AS INCOME FROM OTHER SOURCES BEING LIQUIDATED DAMAGES RECOVERED WH EN THE ASSESSEE ITSELF HAD SHOWN IT AS INCOME FROM OTHER SOURCES AS PER DETAILS FILED WITH P&L A/C., HOLDING THE SAME AS CAPITAL RECEIPT BEING INEXTRICABLY LINKED WITH THE CONSTRUCTION ACTIVITY OF THE PROJECT. (D) DELETING THE ADDITION OF RS. 4,89,770/- MADE BY THE AO BEING OTHER MISC. RECEIPTS WHEN THE ASSESSEE ITSELF HAD SHOWN IT AS I NCOME FROM OTHER SOURCES IN DETAILS FILED BY IT WITH THE P&L A/C., H OLDING THE SAME AS CAPITAL RECEIPT BEING INEXTRICABLY LINKED WITH THE CONSTRUCTION ACTIVITY OF THE PROJECT 2. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIG HT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. (B) AT THE TIME OF HEARING, AT THE OUTSET, THE LD. AUT HORIZED REPRESENTATIVE (LD. AR, FOR SHORT) FOR THE ASSESSEE INFORMED US THAT THE AS SESSEE HAS OPTED FOR VIVAD SE VISHWAS SCHEME, 2020 (VSVS, FOR SHORT) FOR THE SETTLEMEN T OF SUBJECT MATTER OF THE DISPUTES IN THIS APPEAL. HE ALSO INFORMED THAT FORM 3 HAS BEEN ISSUED BY THE PRINCIPAL COMMISSIONER OF INCOME-TAX, DELHI-1, IMPLYING THAT THE AFORESAID DECLARATION FILED BY ASSESSEE HAS BEEN ACCEPTED BY REVENUE; AND THAT ACCORDINGLY FORM-3 HA S BEEN ISSUED. HE DREW OUR ATTENTION TO LETTER DATED 22/12/20 FILED FROM ASSES SEES SIDE IN INCOME TAX APPELLATE TRIBUNAL (ITAT, FOR SHORT) GIVING INTIMATION OF T HE SAME. AT THE TIME OF HEARING BEFORE US, THE LD. AR FOR ASSESSEE SUBMITTED BEFORE US THA T THIS APPEAL MAY BE DISMISSED ON ACCOUNT OF THE AFORESAID VSVS. THE LEARNED SENIOR D EPARTMENTAL REPRESENTATIVE (LD. SR. DR, FOR SHORT) DID NOT EXPRESS ANY OBJECTION TO TH IS. AFTER DUE CONSIDERATION, AND IN VIEW ITA NO.- 5407/DEL/2014. BHARTIYA RAIL BIJALEE CO. LTD. PAGE 3 OF 4 OF THE FOREGOING; WE TREAT THIS APPEAL AS WITHDRAWN BY REVENUE ON ACCOUNT OF THE AFORESAID VSVS. ACCORDINGLY, THE APPEAL IS DISMIS SED BEING TREATED AS WITHDRAWN. (B.1) BEFORE WE PART, WE HEREBY CLARIFY, BY WAY OF ABUNDA NT CAUTION, THAT IF FOR SOME REASON IT IS FOUND BY REVENUE THAT THE DISPUTE S UNDER THIS APPEAL BEFORE US ARE NOT FULLY SETTLED UNDER THE AFORESAID VSVS, THEN REVENUE WILL BE AT LIBERTY TO APPROACH ITAT FOR RESTORATION OF THIS AP PEAL, IN ACCORDANCE WITH LAW. (B.2) WITH THESE DIRECTIONS, THE AFORESAID APPEAL OF REV ENUE IS DISMISSED, BEING TREATED AS WITHDRAWN. (C) FOR STATISTICAL PURPOSES, THIS APPEAL IS DISMISSED. THIS ORDER WAS ALREADY PRONOUNCED ON 29 TH DECEMBER, 2020 IN OPEN COURT, IN THE PRESENCE OF REPRESENTATIVES OF BOTH SIDES; AFTE R CONCLUSION OF THE HEARING. SD/- SD/- (H.S. SIDHU) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: 29/12/2020 POOJA/- COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO.- 5407/DEL/2014. BHARTIYA RAIL BIJALEE CO. LTD. PAGE 4 OF 4 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 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