DCIT, New Delhi V. M/s. Delhi State Industrial Infrastructure Development Corporation Ltd., New Delhi

ITA 6353/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4320 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2017
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 21-11-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 142(1)

Judgement Text

1 ITA NO. 6353/DEL/ 2014 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI R. S. SYAL, VICE PR ESIDENT AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A .NO. 6353/D EL/2014 (A.Y 2011-12) DCIT CIRCLE-7(1) NEW DELHI (APPELLANT) VS DELHI STATE INDUSTRIAL INFRASTRUCTURE DEVELOPMENT CORPORATION LTD. 36, BOMBAY LIFE BLDG. CONNAUGHT PLACE NEW DELHI AAACD1257F (RESPONDENT) APPELLANT BY SH. ANSHU PRAKASH, SR. DR RESPONDENT BY SH. R. S. SINGHVI, CA ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 09/09/2014 PASSED BY CIT(A)-XII, NEW DELHI FOR ASSE SSMENT YEAR 2011-12. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS ERRED IN ALLOWING APPEAL OF THE ASSES SEE AND DIRECTING TO DELETE ADDITION OF RS.22,84,421/- MADE BY THE A.O ON ACCOUNT OF PRIOR PERIOD EXPENSES. DATE OF HEARING 13.09.2017 DATE OF PRONOUNCEMENT 15.09.2017 2 ITA NO. 6353/DEL/ 2014 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD.CIT(A) HAS ERRED IN ALLOWING APPEAL OF THE ASSES SEE AND DIRECTING TO DELETE ADDITION OF RS.33,79,253/- MADE BY THE A.O ON ACCOUNT OF GROUND RENT AND MAINTENANC E CHARGES. 3. THE APPELLANT CRAVES TO LEAVE, TO ADD, ALTER OR AMEND ANY GROUND OF APPEAL RAISED ABOVE AT THE TIME OF THE HE ARING. 4. THE ORDER OF THE LD.CIT(A), BEING CONTRARY TO TH E FACTS ON RECORD AND THE SETTLED POSITION OF LAW, BE SET ASID E AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. THE ASSESSEE IS A STATE GOVERNMENT CORPORATION. DURING THE YEAR UNDER CONSIDERATION, THE CORPORATION IS ACTING AS A DEVELOPING AND COLLECTING AGENCY FOR VARIOUS SCHEMES, I.E. LOW COST HOUSING SCHEME, RELOCATION SCHEME, NARELA SCHEME AND CETP S CHEME ON BEHALF OF THE GOVERNMENT OF NCT DELHI AND ALSO PROV IDING INFRASTRUCTURE SERVICES UNDER DELHI STATE INDUSTRIA L OPERATION & MAINTENANCE ACT, 2010. THE ASSESSEE FILED ORIGINAL E-RETURN ON 30/09/2011 DECLARING INCOME OF RS.22,77,90,022/-. THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS NORMS AND NOTICE U /S 143(2) WAS ISSUED AND DULY SERVED UPON THE ASSESSEE. FURTHER NOTICE U/S 142(1) ALONG WITH DETAILED QUESTIONNAIRE SECTION 14 3(2) AND 142(1) WAS SEND TO THE ASSESSEE. COPY OF PROFIT & LOSS ACC OUNT AND BALANCE SHEET AND TAX AUDIT REPORT WAS FURNISHED BY THE ASS ESSEE DURING THE COURSE OF ASSESSMENT PROCEEDINGS. THE ASSESSING OFFICER MADE VARIOUS ADDITIONS AND ALSO MADE ADDITION OF RS. 33, 79,253/- AS 3 ITA NO. 6353/DEL/ 2014 REGARDS GROUND RENT AND MAINTENANCE CHARGES AS WELL AS ADDITION OF RS.22,84,421/- RELATING TO PRIOR PERIOD EXPENSES. 5. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) UPHELD THE A DDITIONS IN RESPECT OF GROUND RENT AND MAINTENANCE CHARGES AS W ELL AS PRIOR PERIOD EXPENSES. 6. THE LD. DR RELIED UPON THE ORDER OF THE ASSESSIN G OFFICER. 7. THE LD. AR SUBMITTED THAT AS RELATED TO GROUND N O. 1 RELATING TO PRIOR PERIOD EXPENSES IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2005-06, THE SAME WAS ALLOWED BY THE TRIBUNAL IN IT A NO. 4570/DEL/2013 ORDER DATED 21/11/2014. THUS, THE SA ME ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE. AS REGARDS THE S ECOND GROUND WHICH HAVE TWO ISSUES RELATING TO MAINTENANCE CHARG ES AND GROUND RENT THE LD. AR SUBMITTED THAT THE ISSUE OF MAINTEN ANCE CHARGES IS DECIDED IN FAVOUR OF THE REVENUE BY THE HON'BLE HIG H COURT IN ASESSEES OWN CASE FOR ASSESSMENT YEAR 2007-08 VIDE ORDER DATED 6 TH AUGUST 2012 IN ITA NO. 1207/DEL/2011. AS RELATES T O ISSUE OF GROUND RENT, THE LD. AR SUBMITTED THAT THE HON'BLE HIGH COURT ORDER IN ASSESSEES OWN CASE BEING ITA NO. 375/2015 DATED 17/8/2017 REMANDED THIS ISSUE TO THE FILE OF THE AS SESSING OFFICER FOR REDETERMINATION. THUS, THE LD. AR SUBMITTED TH AT THE ISSUE RELATING TO GROUND RENT MAY BE REMANDED BACK TO THE FILE OF THE ASSESSING OFFICER. 4 ITA NO. 6353/DEL/ 2014 10. THE LD. DR DID NOT CONTROVERT ANY OF THE DECISI ONS SUBMITTED BY THE LD. AR. 11. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE DECISIONS OF THE HON'BLE HIGH COURT AS WELL AS ITAT DECISION IN ASSESSEES OWN CASE FOR PRECEDING ASSESSMENT YEARS. GROUND NO. 1 TAKEN BY THE REVENUE IN THE PRESENT APPEAL IS SQUARELY COVERED B Y THE ORDER DATED 21/11/2014 PASSED BY THE ITAT IN ASSESSEES O WN CASE IN FAVOUR OF THE ASSESSEE. HENCE, GROUND NO. 1 IS DIS MISSED. 12. AS RELATED TO GROUND NO. 2 RELATING TO MAINTENA NCE CHARGES THE SAME IS AGAINST THE ASSESSEE AND IN FAVOUR OF T HE REVENUE AS PER THE DECISION OF THE HON'BLE HIGH COURT DATED 6 TH AUGUST, 2012. THEREFORE, MAINTENANCE CHARGES MAY BE DECIDED IN FA VOUR OF THE REVENUE. IT IS FURTHER CLARIFIED THAT THE EXPENDITU RE ACTUALLY INCURRED ON THE ACCOUNT OF MAINTENANCE WOULD BE ALL OWED BY THE ASSESSING OFFICER FOR THE ASSESSMENT YEAR UNDER QUE STION. THE ISSUE IS ALLOWED IN THE ABOVE TERMS. 13. AS REGARDS TO ISSUE OF GROUND RENT AGITATED IN GROUND NO. 2, THE SAME IS REMANDED BACK BY THE HON'BLE HIGH COURT IN ASSESSMENT YEAR 2008-09 VIDE DECISION DATED 17/8/20 17. IN THE PRESENT ASSESSMENT ORDER ALSO, THERE IS NO SEPARATE VERIFICATION/EXAMINATION BY THE ASSESSING OFFICER. THEREFORE, THIS 5 ITA NO. 6353/DEL/ 2014 ISSUE IS REMITTED BACK TO THE ASSESSING OFFICER FOR FURTHER VERIFICATION. 14. IN RESULT, THE APPEAL OF THE REVENUE IS PARTY A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH SEPTEMBER 2017 . SD/- SD/- (R. S. SYAL) (SUCHITRA KAMBLE) VICE PRESIDENT JUDICIAL MEMBER DATED: 15/09/2017 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE 1. DRAFT DICTATED ON 13/09/2017 PS 2. DRAFT PLACED BEFORE AUTHOR 14/09/2017 PS 6 ITA NO. 6353/DEL/ 2014 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER .2017 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 15.09.2017 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK 15.09.2017 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.