DCIT, Circle- 3(2), New Delhi V. Augere Wireless Broadband India Pvt. Ltd., Gurgaon

ITA 5615/DEL/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5740 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 01-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R MISHRA
• Assessee Lawyers: ALOK VASANT; RICHA SONI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: SMC : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA NO . 5615 /DEL/ 20 1 7 ASSESSMENT YEAR: 20 12 - 1 3 DCIT CIRCLE - 3(2), NEW DELHI VS. M/S AUGERE WIRELESS BROADBAND INDIA PRIVATE LIMITED, PLOT NO. 16, UDYOG VIHAR, PHASE - IV, GURGAON - 122015 PAN: AAICA7528G ( APPELLANT ) ( RESPONDENT ) DEPARTMENT BY : SH. B.R. MISHRA, SR. DR ASSESSEE BY : SH. ALOK VASANT, CA & MS. RICHA SONI, CA DATE OF HEARING : 21 .0 6 . 201 8 DATE OF PRONOUNCEMENT : 22 . 0 6 . 201 8 ORDER PER R.S. SYAL, VP: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDE R PASSED BY THE LEARNED CIT(A) - I, NEW DELHI ON 6.6.2017 IN RELATION TO ASSESSMENT YEAR 20 1 2 - 1 3 . ITA NO. 5615/DEL/2017 2 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE ASSESSEE FILED THE RETURN DECLARING LOSS OF RS. 13,95,00,406/ - . SINCE THE BUSINESS ACTIVITY HAD NOT COMMENCED, THE ASSESSEE, AT THE INSTANCE OF THE ASSESSING OFFICER , SURRENDERED THE EXPENSES CLAIMED IN THE P ROFIT AND LOSS ACCOUNT. AS A RESULT OF THAT , THE ASSESSING OFFICER INITIATED THE PROCESS OF COMPUTATION OF TOTAL INCOME WITH N IL INCOME AS AGAINST LOSS DECLARED BY THE ASSESSEE IN ITS RETURN AT RS. 13,95,00,406/ - . THEREAFTER , THE ASSESSING OFFICER MADE A FURTHER ADDITION OF RS.45,35,050/ - , WHICH AMOUNT WAS CREDITED BY THE ASSESSEE IN ITS P ROFIT AND LOSS ACCOUNTS. THE LEARNED CIT(A) DELETED THE ADDITION. 3. I HAVE HEARD BOTH THE SIDES AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS OBSERVED THAT THE ADDITION MADE BY THE ASSESSING OFFICER SIMPLY REPRESENTS REIMBURSEMENT OF CERTAIN EXPENSES INCURRED BY THE ASSESSEE OUT OF THE TOTAL EXPENSES DEBITED TO T HE P ROFIT AND LOSS ACCOUNT TO THE TUNE OF RS. 13,78,53,255/ - . ONCE THE ENTIRE EXPENSES HAVE BEEN SURRENDERED BY THE ASSESSEE AND DISALLOWED BY THE AO, THE ASSESSING OFFICER COULD NOT HAVE SEPARATELY TAXED REIMBURSEMENT OF EXPENSES TO THE TUNE OF RS. 45,35,050/ - . THE SITUATION WOULD HAVE BEEN DIFFERENT IF THE ASSESSEE HAD CLAIMED SUC H EXPENSES AND DEDUCTION HAD BEEN ALLOWED . IN THAT CASE , THE REIMBURSEMENT OF ITA NO. 5615/DEL/2017 3 SUCH EXPENSES WOULD HAVE MERITED INCLUSION IN THE TOTAL INCOME. IN VIEW OF THE FOREGOING FACTS, I AM OF THE CONSIDERED OPINION THAT THE LEARNED CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION. 3. IN THE RESULT, THE APPEAL IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND JUNE , 2018. SD/ - [ R.S. SYAL ] VICE PRESIDENT DATED, 22 ND JUNE , 201 8 . SH ITA NO. 5615/DEL/2017 4 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR, ITAT AR, ITAT, NEW DELHI. DATE INITIAL 1. DATE OF DICTATION 21 .6.2018 PS 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 21 .6.2018 PS 3. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER JM/AM 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S. / P.S. JM/AM 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT PS/PS 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S. / P.S. PS 7. DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT PS 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 9. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER 11. DATE OF DISPATCH OF THE ORDER *