DCIT, New Delhi V. M/s. Escorts Construction Equipment Ltd., Ballabgarh

ITA 5463/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 91030 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 05-05-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 04-10-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K K JAISWAL
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SH. T.S.KAPOOR, ACCOUNTANT MEMBER I.T.A .NO.-5463/DEL/2013 (ASSESSMENT YEAR- 2010-11) DCIT, CENTRAL CIRCLE-12, ROOM NO.-330, ARA CENTRE, JHANDEWALAN EXTN., NEW DELHI (APPELLANT) VS ESCORTS CONSTRUCTION EQUIPMENT LTD., PLOT NO.-219, SECTOR-58, BALLABGARH-121004. PAN-AAACE2339R (RESPONDENT) APPELLANT BY SH.K.K.JAISWAL, SR. DR RESPONDENT BY SH.PARDEEP KUMAR, CA ORDER PER DIVA SINGH, JM BY THE PRESENT APPEAL, THE REVENUE ASSAILS THE CORR ECTNESS OF THE ORDER DATED 31.07.2013 OF CIT(A)-XIII, DELHI PERTAINING TO 2010-11 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.28,31,000/ - ON ACCOUNT OF THE PRIOR PERIOD EXPENSES. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE CIT(A) HAS ERRED IN MERELY RELYING ON THE STATEMENT OF THE ASSESSEE THAT THE PRIOR PERIOD EXPENSES HAD CRYSTALLIZED DURING T HE YEAR, WITHOUT SUBMISSION OF ANY EVIDENCE FOR CRYSTALLIZATION OF T HESE EXPENSES DURING THE YEAR. 2. THE SUBJECT MATTER OF DISPUTE IN THE PRESENT APP EAL IS THE ADDITION MADE BY WAY OF REJECTING THE CLAIM OF PRIOR PERIOD EXPENSES PUT FORTH BY THE ASSESSEE. THE AO REQUIRED THE ASSESSEE TO JUSTIFY THE CLAIM PUT F ORTH STATED TO BE ON ACCOUNT OF MATERIAL; MANUFACTURING; OPERATING SALES; AND ADMIN ISTRATION. REJECTING THE EXPLANATION IN VIEW OF THE FACT THAT THE ASSESSEE F OLLOWING MERCANTILE SYSTEM OF ACCOUNTING WAS REQUIRED TO ACCOUNT FOR CURRENT YEAR S INCOME /EXPENSES ONLY AS PER LAW, ADDITION OF THE SAID AMOUNT WAS MADE. DATE OF HEARING 05.05.2015 DATE OF PRONOUNCEMENT 15 .05.2015 I.T.A .NO.-5463/DEL/2013 ~ 2 ~ 3. IN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY, CONSIDERING THE EXPLANATION WHERE THE EXPENSES WERE STATED TO BE ON ACCOUNT OF RENT, ERECTION AND COMMISSIONING CHARGES, REPAIR AND MAINTENANCE CONSU LTANCY/PROFESSIONAL CHARGES, REBOOK CHARGES ETC. THE CLAIM WAS ALLOWED RELYING ON SAURASHTRA CEMENT AND CHEMICAL INDUSTRIAL LTD. VS. CIT 213 ITR 523 (G UJ.) ETC. AGGRIEVED BY WHICH THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 4. BOTH THE PARTIES HAVE BEEN HEARD WHEREAS THE LD. SR. DR SUBMITS THAT NO EVIDENCE IN SUPPORT OF THE CLAIM HAS BEEN REFERRED TO IN THE IMPUGNED ORDER AND THERE IS NO DISCUSSION THEREON WHILE GRANTING RELIE F. THE LD. AR ON THE OTHER HAND APART FROM RELYING UPON THE IMPUGNED ORDER, SU BMITTED THAT IN THE ALTERNATE THE ISSUE MAY BE RESTORED TO THE AO WHO H AS NOT CARED TO DISCUSS THE FACTS ON RECORD. THE ALTERNATE SUBMISSION OF THE L D. AR WAS AGREED TO BY THE DEPARTMENT. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON A CONSIDERATION OF THE PECULIAR FACTS A ND CIRCUMSTANCES OF THE CASE, WE ARE OF THE VIEW THAT FOR WANT OF NECESSARY DISCU SSION ON FACTS BOTH THE IMPUGNED ORDER AND THE ASSESSMENT ORDER DESERVE TO BE SET ASIDE. THE ISSUE IN THE CIRCUMSTANCES IS REQUIRED TO BE CONSIDERED AFRE SH CONSIDERING THE FACTS ON RECORD. ACCORDINGLY, AGREEING WITH THE ALTERNATE S UBMISSION OF THE LD. AR THE ISSUE IS RESTORED BACK TO THE FILE OF THE AO WITH T HE DIRECTION TO PASS A SPEAKING ORDER IN ACCORDANCE WITH LAW AFTER GIVING THE ASSES SEE A REASONABLE OPPORTUNITY OF BEING HEARD. 6. IN THE RESULT THE APPEAL OF THE REVENUE IS ALLOW ED FOR STATISTICAL PURPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 15 TH OF MAY 2015. SD/- SD/- (T.S.KAPOOR) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 15/05/2015 *AMIT KUMAR/R.NAHEED* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT I.T.A .NO.-5463/DEL/2013 ~ 3 ~ ASSIST ANT REGISTRAR ITAT NEW DELHI DATE 1. DRAFT DICTATED ON 05.05.2015 PS 2. DRAFT PLACED BEFORE AUTHOR 05.05.2015 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS .05.2015 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK .05.2015 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.