South West Pinnacle Exploration Ltd. , Gurgaon V. ACIT Circle-24(1), New Delhi

ITA 5763/DEL/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 1051 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Appeal Filed On: 01-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 54; 10; 154; 15; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.5763/DEL/2019 Assessment Year 2012-13 South West Pinnacle Exploration Ltd., Plot No.6, Siddhartha House Sector- 44, Gurgaon. v. ACIT, Circle-24(1), New Delhi. TAN/PAN: AAKCS3608R (Appellant) (Respondent) Appellant by: Shri I.P. Bansal, Adv. Respondent by: Shri Sanjay Kumar Nargas, Sr.DR Date of hearing: 18 05 2022 Date of pronouncement: 26 05 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The c apt io ne d ap p eal ha s be en f i le d at th e i ns ta nc e o f the ass es se e a ga in st t he or der of t he Co mmi s si on er of Inc o me Ta x (Ap pe al s) -V III , N e w De lh i (‘CIT(A)’ in sh o rt) d ated 12 .0 6 .2 018 p assed u n d er Secti o n 15 4 o f th e In co me Tax Act , 1 9 61 (th e Act) co n cern in g AY 201 2 -13 . 2 . As p er th e c ap t io n ed ap p eal, th e ass e ssee h as chal len g e d ; (i) the a dj us t ment t o war ds p ri or pe ri o d e xp en di tu re of Rs .3, 81 ,7 16 /- b y w a y of rec tif i cat io n res ul ti ng i n in cr ea s e in t he ass es se d in co me. (ii ) inc re as e i n t he as ses se d i nc o me b y Rs .3 ,3 2, 35 0/- o n I.T.A. No.5763/Del/2019 2 acc ou nt of pr ovi si o n f or lea ve en ca sh me nt ou ts ta nd in g a s on da te of f ili ng of r et ur n. 3. W h en th e mat te r w as cal le d f or h ear in g, th e l d. co un se l f or th e ass es se e s ub mi tt ed tha t n on e of t h e af or es aid ad ju st me nts ar e per mi ss ib le un de r Se cti on 1 54 of t he Ac t. I t wa s a sser te d t ha t Sec ti on 1 54 op er at es to co rr ec t o nl y mi sta ke a ppa rent f ro m r ec or d and t hu s sc op e of r ect if ica ti on i s ver y li mit ed . 4. W it h th e a ss is tan c e of t he ld . c ou ns el f or t he as se sse e , w e not ic e tha t th e As s ess in g Of f icer h as enh an ce d t he a ss es sed i nc o me on a cc ou nt of cl ai m of p rio r p er io d exp en se s of R s.3, 8 1,7 16 /- b y inv ok in g Se cti on 1 54 of th e A ct . I n t his c ont ex t, we f in d p al pab le mer it in th e p lea of the as se ss ee t ha t t her e i s n o b ar per s e f or c lai m of pr io r per io d e xpe ns es a s re ven u e e xp en di tu re in app ro pr ia te f actu al ma tr ix in t he lig ht of t he de c isi on of t he Ho n’ b le Su pre me Co urt i n t he ca se of CI T v s. H er o C yc l es Pv t. Lt d. (1 99 7 ) 94 Ta xm an 27 1 (SC ). T he H on ’ ble D el hi H ig h Co u rt in t he ca se of CI T v s. J ag ji t Ind us tr ie s L td . (20 10 ) 19 4 T ax ma n 1 5 8 (D el . ) ha s he ld th at t he cla i m of pr io r pe rio d ex p ens es i s pe r mis si bl e i n th e gi ven f ac t ual mat ri x. The Ho n’ bl e Gu ja rat Hi gh C ou rt i n the c as e of CI T vs. I nd ia n Pet ro ch em ic al C or po rat io n Lt d. (20 1 6 ) 7 4 tax m an n.c om 163 (Gu j ) hav e e xp re ss ed th e ir vie w in f a vo ur o f the as ses se e wit h res pe ct to pri or pe ri od ex pe nse s all ow ab le as bu si ne ss ex pe nd itur e i n the rel ev an t as ses s men t yea r in t he f act ual mat ri x. T heref ore , on a bro ad er re ck on in g, it is pl ai n a nd s i mp le th at me re cl a i m of pr io r per io d ex pen se s in a r ele va nt a ss es s ment ye ar c an not b e dis al lo we d out ri gh t wi th ou t e xa min in g t he f act u al matr ix . T he H o n’b le Hi gh Co urt i n t he cas e of He ro Cy cle (s up ra ) ha s i nt er al ia ob ser ve d i n par ag ra ph 3 of th e jud g men t th at “ Re c tif ic at io n un de r sec tio n 15 4 of the Ac t c an on ly b e m ade w hen gl ar i ng mi sta ke of fact or l a w h as I.T.A. No.5763/Del/2019 3 bee n c o mm itt ed by th e o ff ice r pa ssi n g t he or de r b ecom es ap pa re nt fro m t he r ec or d. Rec ti fi cat io n i s no t po ss ib le i f th e que st io n i s deb at ab le . M or eov er, th e po in t w hi ch was no t ex am ined on f ac ts o r in la w ca nn ot be dea lt a s mi sta ke ap pa ren t on t he reco rd . Th e dis pu te r ai se d a m i xed q ue st io n o f fa ct an d la w. ” 5. In t he li gh t of t he l ega l p os it io n n ot ed ab ove , t he ac ti on of the As ses si ng Of f ice r is cl ear l y w it ho ut jur is di ct io n to in v oke S ec ti on 15 4 of the Ac t wi th a view t o en ga ge i n ma ki ng a djust me nts on s uch deb at ab le i ss ue s in an ab st rac t man ne r. T he a cti on of th e As se ss in g Of f icer is t hu s wi th out s an ct io n of la w and r eq ui res t o be r eve rs ed . 6. The sec on d i ss ue per ta in s to a dj us t me nt of Rs .3 ,3 2, 35 0/- on acc ou nt of pro vi si o n f or l ea ve en ca sh me nt un de r Se ct io n 15 4 of t he Act . In t hi s re ga rd , it is t he ca se of the ass es se e th at a t t he ti me of pas si ng of rec tif ic a tio n o rd er d at ed 1 2 .06 .2 01 8, a vi ew ex pre ss ed b y Ho n’ ble C al cu tta H igh C ou rt i n t he ca se of Ex id e In du st r ies L td . v s. Un io n of I nd ia (20 07 ) 29 2 IT R 4 70 (Ca l ) t ha t Se c tio n 4 3B (f ) go ver ni ng a ll ow ab i lit y of lea ve e nca sh me nt is no t a go od law a nd i s to b e s tr uck d ow n b ein g a rb itr ar y a nd unc on sc io na bl e w a s in vo gu e. It i s c on te nd ed t hat no t wit hs ta nd in g t he f ac t t ha t t he Ho n’ ble Su pre me C ou rt in Un io n o f I nd ia v s. Ex id e I nd us tr ie s Lt d. (2 02 0 ) 11 6 ta xm an n. co m 37 8 (S C ) up he ld t he c on st it ut io nal val id it y of cla us e (f ) of Sect ion 4 3 B, th e As se ssi ng Of f icer at t he ti me of rec tif ic at io n ca rr ie d ou t, c ou ld no t h ave ta ken a vi ew i nco ns is te nt wit h j ud g men t of t he C al cu tta Hi gh Co urt mo re par ticu lar l y un der the n ar ro w sco pe of Se ct io n 15 4 of th e Act . 7. W e c on cu r w it h t h e af or es aid co nt en t ion s r ai se d o n b eh alf of the as se ss ee wi th o ut a n y d e mur . T he As se ss in g Of f ice r co ul d n ot hav e en ha nc ed th e as se ss ed i nc o me to war ds p ro vi si on f or le av e enc as h men t b y w a y of re ctif i ca tio n un der S ect io n 154 of the A ct at I.T.A. No.5763/Del/2019 4 the r ele va nt t i me c ont ra r y t o j ud g men t r en de red b y H o n’ ble C al cu tta Hi gh C ou rt u nd er Sec tio n 1 54 of the Act . T he a cti on of th e As ses si ng Of f icer is t hu s re ver se d a nd p os iti on of the asse ss ee i s res to re d. 8. In t he re su lt , the a ppe al of t he a ss es se e i s all o wed . Order pronounced in the open Court on 26/05/2022. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /05/2022 Prabhat