ITO, New Delhi V. M/s Modipon Limited, Uttar Pradesh

ITA 560/DEL/2015

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9765 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: misc
• Appeal Filed On: 28-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SANTOSH AGGARWAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO.560/DEL/2015 ASSESSMENT YEAR: 1986-87 INCOME TAX OFFICER, WARD 17 (1), NEW DELHI VS M/S. MODIPON LIMITED HAPUR ROAD, OPP. NAGAR, PALIKA, MODINAGAR, UP - 201204 (APPELLANT) (RESPONDENT) APPELLANT BY MS. RINKU SINGH, SR. DR RESPONDENT BY SH. SANTOSH AGGARWAL, ADVOCATE DATE OF HEARING: 01/07/2019 DATE OF PRONOUNCEMENT: 02/07/2019 ORDER PER N. K. BILLAIYA, AM: THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE CIT(A)-VIII, NEW DELHI DATED 14.11.2014 PERTAIN ING TO A. Y. 1986-87. 2. THE GRIEVANCE OF THE REVENUE READ :- 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE & IN LAW, THE LD. CIT(A) HAS ERRED IN DIRECTING TO AL LOW THE DEDUCTION UNDER SECTION 80VVA OF THE I. T. ACT, 196 1? 2 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE & IN LAW, THE LD. CIT(A) HAS ERRED IN IGNORING THAT THE DEDUCTION WAS NOT ALLOWED BY THE AO WHEN THE APPEAL EFFECT WA S GIVEN IN BOTH THE A. Y. I.E. 1985-86 DATED 31.07.2001 ? 3. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE & IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDIT ION MADE ON ACCOUNT OF GUEST HOUSE EXPENSES IN CONTEXT OF HONB LE HIGH COURT ORDER? 4. WHETHER ON THE FACT AND CIRCUMSTANCES OF THE CASE & IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING CHARGE OF INTEREST UNDER SECTION 217 OF THE ACT ? 5. WHETHER ON THE FACT AND CIRCUMSTANCES OF THE CASE & IN LAW, THE LD. CIT(A) HAS ERRED IN IGNORING THAT THE INTEREST WAS CHARGED AT THE TIME OF COMPLETING OF ASSESSMENT U/S . 143 (3) OF THE IT ACT, 1961 ? 6. THAT THE ORDER OF THE LD. CIT(A) IS ERRONEOUS AND I S NOT TENABLE ON FACTS AND IN LAW. 3. THE BONE OF CONTENTION IS THE ORDER GIVING APPEA L EFFECT TO THE APPELLATE ORDERS BY THE ASSESSING OFFICER. WHIL E GIVING THE APPEAL EFFECT THE ASSESSING OFFICER DID NOT CONSIDE R THE RELIEF GIVEN BY THE APPELLATE AUTHORITIES WHICH PROMPTED THE ASS ESSEE TO CARRY THE MATTER BEFORE THE CIT(A). 4. THE CIT(A) AFTER CONSIDERING THE APPELLATE ORDER S WHICH WERE SUBJECT MATTER OF APPEAL EFFECT FOUND THAT THE CLAI M OF DEDUCTION U/S. 80 VVA OF THE ACT NEEDS TO BE ALLOWED ON THE C ORRECT AMOUNT 3 OF INCENTIVES. SIMILAR DIRECTIONS WERE GIVEN FOR TH E ALLOWABILITY OF GUEST HOUSE EXPENSES. 5. WE DO NOT FIND ANY ERROR OR INFIRMITY IN THE SUC H DIRECTIONS OF THE CIT(A) BECAUSE IN ANY CASE THE ASSESSING OFF ICER OUGHT TO HAVE GIVEN APPEAL EFFECT CORRECTLY AS PER THE FINDI NGS OF THE APPELLATE AUTHORITY. GROUNDS NO.1 TO 3 TAKEN TOGETH ER ARE DISMISSED. 6. IN SO FAR AS CHARGING OF INTEREST U/S. 217 IS CO NCERNED, ORDER U/S. 273 OF THE ACT FOR THE ASSESSMENT YEAR 1986-87 WHICH IS PLACED AT PAGE 68 OF THE PAPER BOOK CLEARLY SHOW TH AT THE ASSESSING OFFICER HAS DROPPED THE PENALTY PROCEEDIN GS CLEARLY HOLDING THAT NO ADVANCE TAX WAS PAYABLE AS PER PROV ISIONS OF SECTION 209 OF THE ACT. AS THE ASSESSING OFFICER HI MSELF HAS ACCEPTED THAT THERE WAS NO LIABILITY TO PAY ADVANCE TAX, WE ARE OF THE CONSIDERED VIEW THAT THERE IS NO CASE FOR CHARG ING INTEREST U/S. 217 OF THE ACT. GROUND NO.4 IS ACCORDINGLY DI SMISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 02.07.2019. SD/- SD/- (SUCHITRA KAMBLE) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNT ANT MEMBER *NEHA* DATE:- 02.07.2019 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGI STRAR ITAT NEW DELHI 4 DATE OF DICTATION 01.07.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 01.07.2019 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 02.07.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGIST RAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER