ITO, New Delhi V. M/s. N.N. Agengies Pvt. Ltd., New Delhi

ITA 6476/DEL/2014

• Counselvise Citation: 647620114 RSA 2014
• Duration Of Justice: 8 month(s) 6 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: 16-07-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 27-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEVI SHARAN SINGH
• Assessee Lawyers: K SAMPATH; V RAJA KUMAR

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 . .. . 6476/DEL/2014 6476/DEL/2014 6476/DEL/2014 6476/DEL/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2010 2010 2010 2010 - -- - 11 1111 11 INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -17(3), 17(3), 17(3), 17(3), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S N.N. AGENCIES PVT.LTD., M/S N.N. AGENCIES PVT.LTD., M/S N.N. AGENCIES PVT.LTD., M/S N.N. AGENCIES PVT.LTD., 17A/10, WEA, KAROL B 17A/10, WEA, KAROL B 17A/10, WEA, KAROL B 17A/10, WEA, KAROL BAGH, AGH, AGH, AGH, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 005. 110 005. 110 005. 110 005. PAN : AAACN9429K. PAN : AAACN9429K. PAN : AAACN9429K. PAN : AAACN9429K. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DEVI SHARAN SINGH, SR.DR. RESPONDENT BY : SHRI K. SAMPATH AND SHRI V.RAJA KUMAR, ADVOCATES. DATE OF HEARING : 16.07.2015 16.07.2015 16.07.2015 16.07.2015 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 201 0-11 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XVI, N EW DELHI DATED 29 TH AUGUST, 2014. 2. THE ONLY GROUND OF APPEAL OF THE REVENUE IS AS UND ER:- WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE & IN LAW, THE LD.CIT(A) ERRED IN DELETING THE ADDITION O F RS.12,94,272/- MADE BY THE AO IN RESPECT OF RENTAL EXPENSES CLAIMED BY THE ASSESSEE. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT T HE ISSUE OF ADDITION ON ACCOUNT OF RENTAL EXPENSES TREATED AS UND ISCLOSED INCOME OF THE ASSESSEE IS COVERED IN FAVOUR OF THE ASSESSEE WITH TH E DECISION OF DELHI TRIBUNAL IN ASSESSEES OWN CASE FOR THE EARLIER ASSESSMENT ITA-6476/DEL/2014 2 YEAR 2008-09 IN ITA NO.3684/DEL/2011 DATED 9 TH NOVEMBER, 2012. LEARNED DR HAS RELIED ON THE ORDER OF THE ASSESSING OFFI CER. 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE PERU SED THE ORDER OF THE ASSESSING OFFICER AND THE LEARNED CIT(A). I FIND THAT THE ISSUE OF TREATING THE RENTAL EXPENSES AS UNACCOUNTED MON EY AND ASSESSING THE SAME BY DISALLOWING THE EXPENSES OF RENT IS C OVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE DELHI TR IBUNAL IN ASSESSEES OWN CASE FOR THE EARLIER ASSESSMENT YEAR 2008-09 C ITED SUPRA WHEREIN THE ISSUE WAS DECIDED IN FAVOUR OF THE ASSE SSEE AND THE EXPLANATION OF THE ASSESSEE THAT ALTHOUGH THE LAND AGRE EMENT WAS ENTERED INTO BY THE ASSESSEE IN OCTOBER, 2008 BUT HAD ST ARTED PAYING RENT TO THE LANDLADY WITH EFFECT FROM JULY, 2007 WA S FOUND TO BE CORRECT. IT WAS FURTHER HELD THEREIN THAT THIS FACT WAS MENTIONED IN THE AGREEMENT ALSO AND TDS HAS BEEN DEDUCTED FROM THE REN T PAID BY THE ASSESSEE. IN REPLY TO A SPECIFIC QUERY FROM THE BENCH, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE REVENUE HAS NO T PREFERRED ANY APPEAL ON THIS ISSUE IN THE IMMEDIATELY PRECEDING ASSESSMENT YEAR 2009-10. I, BEING IN AGREEMENT WITH THE DECISION OF THE COORDINATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE EARL IER ASSESSMENT YEAR 2008-09, AND THE FACTS OF THE ASSESSEES CASE BEING SIMILAR, THE ISSUE IN THE GROUND OF APPEAL OF THE REVE NUE IS DECIDED IN FAVOUR OF THE ASSESSEE AND THE GROUND OF APPEAL OF THE REVENUE IS DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED . 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-6476/DEL/2014 3 COPY FORWARDED TO: - 1. APPELLANT : INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -17(3), NEW DELHI. 17(3), NEW DELHI. 17(3), NEW DELHI. 17(3), NEW DELHI. 2. RESPONDENT : M/S N.N. AGENCIES PVT.LTD., M/S N.N. AGENCIES PVT.LTD., M/S N.N. AGENCIES PVT.LTD., M/S N.N. AGENCIES PVT.LTD., 17A/10, W 17A/10, W 17A/10, W 17A/10, WEA, KAROL BAGH, NEW DELHI EA, KAROL BAGH, NEW DELHI EA, KAROL BAGH, NEW DELHI EA, KAROL BAGH, NEW DELHI 110 005. 110 005. 110 005. 110 005. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR