ADDL. CIT, SPL. RANGE- 9, NEW DELHI V. VIRGIN MOBILE INDIA PVT. LTD., NEW DELHI

ITA 5611/DEL/2017

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 2918 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2012-2013
• Appeal Filed On: 01-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ATIQUE AHMED
• Keywords: Additional evidence; TDS

Judgement Text

ITA NO.-5611/DEL/2017 M/S. VIRGIN MOBILE INDIA PVT. LTD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: F: NEW DELHI) (THROUGH VIDEO CONFERENCING) BEFORE SH. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBE R AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 5611/DEL/2017 ( ASSESSMENT YEAR: 2012-13) ADDL. CIT, SPECIAL RANGE - 9, NEW DELHI VS. M/S. VIRGIN MOBILE INDIA PVT. LTD., 2-A, OLD ISWAR NAGAR, MAIN MATHURA ROAD, NEW DELHI-110065 APPELLANT RESPONDENT PAN NO: AADCR5798J REVENUE BY : SH. ATIQUE AHMED, SR. DR ASSESSEE BY : SH. KAMAL ARYA, ADV. PER ANADEE NATH MISSHRA, A.M.: (A) THIS APPEAL BY THE REVENUE IS FILED AGAINST THE ORD ER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-15, NEW DELHI, [LD. CIT(A), F OR SHORT], DATED 30/03/2017 FOR ASSESSMENT YEAR 2012-13. GROUNDS TAKEN IN THIS APPE AL OF REVENUE ARE AS UNDER : 1) THAT THE LD. CIT(A) HAS ERRED IN LAW AND IN C IRCUMSTANCES BY ALLOWING RENTAL EXPENSES AS DEDUCTION AS THE CLAIM DOES NOT PERTAIN TO THE INSTANT YEAR AND ALSO BECAUSE OF THE REASON THA T THE AMOUNT WAS SHOWN AS SERVICE TAX AND ONLY WHEN THE ASSESSEE COU LD NOT CLAIM THE SAME AS INPUT CENVAT CREDIT, THE SAME WAS SHOWN AS RENT EXPENSES. ITA NO.-5611/DEL/2017 M/S. VIRGIN MOBILE INDIA PVT. LTD. PAGE 2 OF 4 2) THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON F ACTS BY ALLOWING RS.47,90,656/- AS DIRECT EXPENSES IN THE CASE BY AD MITTING ADDITIONAL EVIDENCES AS WELL AS RELYING ON SUCH EVIDENCES WITH OUT APPRECIATION THE FACT THAT THE EVIDENCES WERE NOT FILED DURING THE A SSESSMENT STAGE EVEN AFTER PROVIDING SUFFICIENT OPPORTUNITY TO THE ASSES SEE. 3) THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON FACT S BY ALLOWING RS. 64,49,025/- TDS DEDUCTIONS IN THE CASE BY ADMITTING ADDITIONAL EVIDENCES AS WELL AS RELYING ON SUCH EVIDENCES WITHOUT APPREC IATION THE FACT THAT THE EVIDENCES WERE NOT FILED DURING THE ASSESSMENT STAGE EVEN AFTER PROVIDING SUFFICIENT OPPORTUNITY TO THE ASSESSEE. 4) THE ORDER OF THE LD. CIT(A) IS ERRONEOUS ANDNOT TENABLE IN LAW AND ON FACTS. THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEND ANY/ALL OF THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF TH E HEARING OF THE APPEAL. (B) AT THE TIME OF HEARING, AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE INFORMED US THAT THE ASSESSEE HAS OPTED FOR VIVAD SE VISHWAS SCHEME, 2020 (VSVS, FOR SHORT) FOR THE SETTLEMENT OF SUBJECT MATTER OF THE DISPUTE S IN THIS APPEAL. HE DREW OUR ATTENTION TO LETTER DATED FEBRUARY 20 TH , 2021 SENT FROM ASSESSEES SIDE IN INCOME TAX APPE LLATE TRIBUNAL (ITAT, FOR SHORT) GIVING INTIMATION OF T HE SAME. THE LD. COUNSEL FURTHER INFORMED THAT FORM-3 HAS BEEN ISSUED BY COMPETENT A UTHORITY; IMPLYING THAT THE DISPUTES HAVE BEEN SETTLED UNDER AFORESAID VSVS. AT THE TIM E OF HEARING BEFORE US, THE LD. COUNSEL FOR ASSESSEE SUBMITTED BEFORE US THAT THIS APPEAL MAY BE DISMISSED ON ACCOUNT OF THE AFORESAID VSVS. THE LEARNED DEPARTMENTAL REPRES ENTATIVE DID NOT EXPRESS ANY OBJECTION TO THIS. AFTER DUE CONSIDERATION, AND IN VIEW OF THE FOREGOING; WE ARE OF THE OPINION THAT THIS APPEAL HAS BECOME INFRUCTUOUS ON ACCOUNT OF AFORESAID VSVS, AND THAT THIS APPEAL MAY BE TREATED AS WITHDRAWN BY REVENUE ON ACCOUNT OF THE AFORESAID VSVS. ACCORDINGLY, THE APPEAL HAVING BECOME INFRUCTUOUS, IS TREATED AS WITHDRAWN AND, IS HEREBY DISMISSED. ITA NO.-5611/DEL/2017 M/S. VIRGIN MOBILE INDIA PVT. LTD. PAGE 3 OF 4 (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 R EVENUE IS DISMISSED, BEING TREATED AS WITHDRAWN. (C) FOR STATISTICAL PURPOSES, THIS APPEAL IS DISMISSED. THIS ORDER WAS ALREADY PRONOUNCED ON 23 RD FEBRUARY, 2021 IN OPEN COURT, IN THE PRESENCE OF REPRESENTATIVES OF BOTH SIDES; AFTE R CONCLUSION OF THE HEARING. SD/- SD/- (SUDHANSHU SRIVASTAVA) (ANAD EE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTA NT MEMBER DATED: 23/02/2021 *BINITA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5.DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI