DCIT, New Delhi V. M/s. AES (India) Pvt. Ltd., New Delhi

ITA 6145/DEL/2014

• Counselvise Citation: 614520114 RSA 2014
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 1
• Next Hearing Date: 13-07-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 10-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEVI SHARAN SINGH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH SMC SMC SMC SMC : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT PRESIDENT PRESIDENT PRESIDENT ITA NO ITA NO ITA NO ITA NO . .. . 6145/DEL/2014 6145/DEL/2014 6145/DEL/2014 6145/DEL/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2010 2010 2010 2010 - -- - 11 1111 11 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -1(1), 1(1), 1(1), 1(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S AES (INDIA) PVT.LTD., M/S AES (INDIA) PVT.LTD., M/S AES (INDIA) PVT.LTD., M/S AES (INDIA) PVT.LTD., 2/11B 2/11B 2/11B 2/11B, BASEMENT, , BASEMENT, , BASEMENT, , BASEMENT, JANGPURA A, JANGPURA A, JANGPURA A, JANGPURA A, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 014. 110 014. 110 014. 110 014. PAN : AACCA3059J. PAN : AACCA3059J. PAN : AACCA3059J. PAN : AACCA3059J. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DEVI SHARAN SINGH, SR.DR. RESPONDENT BY : NONE. DATE OF HEARING : 13.07.2015 13.07.2015 13.07.2015 13.07.2015 DATE OF PRONOUNCEMENT : 03.08.2015 03.08.2015 03.08.2015 03.08.2015 ORDER ORDER ORDER ORDER THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 2010-11 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-IV, NE W DELHI DATED 27 TH AUGUST, 2014. 2. AT THE TIME OF HEARING BEFORE ME, NONE APPEARED ON BEHALF OF THE ASSESSEE-RESPONDENT AND, THEREFORE, THE APPEAL OF T HE REVENUE IS BEING DECIDED EX PARTE QUA THE ASSESSEE-RESPONDENT ON MERITS AFTER HEARING THE ARGUMENTS OF LEARNED DR. 3. THE ONLY GROUND OF APPEAL OF THE REVENUE IS AS U NDER:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS ERRED IN HOLDING THAT THE ASSESSEE HA D DONE BUSINESS AND THEREBY ALLOWING THE ENTIRE EXPENDITUR E WITHOUT APPRECIATING THE DIRECTION OF HONBLE ITAT IN ASSESSEES OWN CASE WHERE THE HONBLE ITAT HAS REST ORED THE MATTER TO THE FILE OF AO FOR ALLOCATING THE EXP ENSES ATTRIBUTABLE TO THE BUSINESS. ITA-6145/DEL/2014 2 4. LEARNED DR HAS REFERRED TO THE ORDER OF THE ASSE SSING OFFICER IN SUPPORT OF THE CASE OF THE REVENUE. 5. I HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNED DR AND HAVE PERUSED THE ORDER OF THE ASSESSING OFFICER AND THE LEARNED CIT(A). I FIND THAT THE LEARNED CIT(A) HAS PASSED A SPEAKING ORDER ON THE ISSUE. THE ISSUE IN THIS APPEAL OF THE REVENUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE COORDINATE BENCH OF THE TRIBUNAL FOR THE EARLIER ASSESSMENT YEARS 2003-04 & 2005-06 IN A SSESSEES OWN CASE. THE CIT(A) HAS RECORDED THAT ASSESSING OFFIC ER HAS NOT GIVEN ANY REASON FOR NOT FOLLOWING THE DECISION OF THE TRIBUN AL FOR THE ASSESSMENT YEARS 2003-04 & 2005-06 WHEREIN IT WAS HELD THAT TH E ASSESSEE WAS ENGAGED IN THE BUSINESS. THE CIT(A) HAS OBSERVED T HAT JUDICIAL DISCIPLINE DEMANDS THAT THE ORDERS OF THE HIGHER JU DICIAL FORUM MUST BE FOLLOWED BY THE LOWER AUTHORITIES IF THAT DECISION HAS NOT BEEN REVERSED BY A HIGHER JUDICIAL FORUM. THE ASSESSING OFFICER HAS NOT GIVEN ANY SUCH FINDING THAT THE DECISION OF THE TRIBUNAL WAS REVERSED BY THE HIGH COURT. I FIND THAT THE CIT(A) HAS FOLLOWED THE DEC ISION OF THE TRIBUNAL IN ASSESSEES OWN CASE AND HELD THAT THE ASSESSEE HAS DONE BUSINESS DURING THE YEAR AND, THEREFORE, THE DISALLOWANCE MA DE BY THE ASSESSING OFFICER COULD NOT BE SUSTAINED. I, BEING IN AGREEMENT WITH THE DECISION OF THE LEARNED CIT(A), HOLD THAT NO IN TERFERENCE IN HIS ORDER IS CALLED FOR, WHICH IS CONFIRMED AND, THE GROUND O F APPEAL OF THE REVENUE IS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 3 RD AUGUST, 2015. SD/- (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. ITA-6145/DEL/2014 3 COPY FORWARDED TO: - 1. APPELLANT : DEPUTY COMMISSIONER OF INCOME TA X, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -1(1), NEW DELHI. 1(1), NEW DELHI. 1(1), NEW DELHI. 1(1), NEW DELHI. 2. RESPONDENT : M/S AES (INDIA) PVT.LTD., M/S AES (INDIA) PVT.LTD., M/S AES (INDIA) PVT.LTD., M/S AES (INDIA) PVT.LTD., 2/11B, BASEMENT, JANGPURA A, 2/11B, BASEMENT, JANGPURA A, 2/11B, BASEMENT, JANGPURA A, 2/11B, BASEMENT, JANGPURA A, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 014. 110 014. 110 014. 110 014. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR