ITO, Ward- 18(1), New Delhi V. NCR Vehicles Pvt. Ltd., New Delhi

ITA 7122/DEL/2017

AI Insights

The case involves the Income Tax Officer, Ward-18(1), New Delhi as the appellant and NCR Vehicles Pvt. Ltd. as the respondent. The core issue was the addition of Rs. 13,61,47,346 to the income of NCR Vehicles Pvt. Ltd., which was initially recorded as a difference between sales figures in the sales ledger and the profit & loss account. The CIT(A) examined the reconciliation provided by the assessee, which detailed various income sources and tax treatments that explained the discrepancies. The Tribunal upheld the CIT(A)'s decision, dismissing the Revenue's appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131628 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 07-06-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 26-11-2017
• Laws Referred To: Income Tax Act, Income Tax Rules, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Sh. Yogesh Kumar US, Judicial Member ITA No. 7122/Del/2017 : Asstt. Year: 2011-12 Income Tax Officer, Ward-18(1), New Delhi-110002 Vs. NCR Vehicles Pvt. Ltd., A-2/8, Ground Floor, Safdarjung Enclave, African Avenue Road, New Delhi-110024 (APPELLANT) (RESPONDENT) PAN No. AACCN5816G Assessee by : Sh. Sumeet Singh, CA Revenue by : Ms. Sarita Kumari, CIT DR Date of Hearing: 08.06.2023 Date of Pronouncement: 30.06.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the Revenue against the order of ld. CIT(A)-6, New Delhi dated 06.09.2017. 2. Following grounds have been raised by the Revenue: “1. Whether on facts and in circumstances of the case, the Ld. CIT(A) is legally justified in deleting addition of Rs. 13,61,47,346/- on account of difference in sales registered as per sales ledger and declared in profit & loss account by admitting additional evidence under Rule 46A of the Income Tax Rules , 1961 (the Rules) even when t he case of the assessee did not fall in clause (a) to (d) of Rule 46A of the Rule? 2. Whether on facts and in circumstances of the case, the Ld. CIT(A) is legally justified in deleting addition of Rs. 13,61,47,346/- on account of difference in sales registered as per sales ledger and declared in profit & loss account by admitting additional evidence under Rule 46A of the Rule even after specific denial of the Assessing Officer ITA No. 7122/Del/2017 NCR Vehicles Pvt. Ltd. 2 (the AO) i n remand report and without appreci ating the fact that the assessee was provided suffic ient opportunity to produce necessary reconciliation in this regard during assessment proceedings ? 3. Whether on facts and in circumstances of the case, the Ld. CIT(A) is legally justified in deleting addition of Rs. 5,00,000/- u/s 68 of the Income Tax Act (the Act) on account of difference in credit balance of the parties shown in the books of accounts by admitting additional evidence under Rule 46A of the Rules even when the case of the assessee did not fall in clause (a) to (d) of Rule 46A of the Rules and without appreciating the fact the assessee failed to produce reconciliation statement during assessment proceedings even after providing sufficient opportunity?” 3. Brief facts of the case are that the assessee company is engaged in the business of retail trading of cars & operating as authorized service centre of Ford cars. The assessee filed return of income on 14.09.2011 declaring an income of Rs.27,95,262/. The AO made addition of Rs.13.61 Cr. Being the difference in the sales as per the sales ledger of Rs.97.24 Cr. and sales as per the profits and loss account of Rs.83.62 Cr. 4. The reconciliation of the same has been examined in detail by the ld. CIT(A) and deleted the addition. We have examined and found that the difference is on account of: Claims/Schemes 1,02,84,421 Shown as income in Schedule-8 ‘Other Income’ of Audited Financials Labour Receipts 1,97,10,422 Customer Insurance 34,45,909 Logistics Receipts 43,17,075 Service Tax 24,49,431 Service Tax charged & deposited [As per Service Tax Returns filed] VAT 9,59,40,087 VAT charged by the assessee on sales [As per VAT Returns] Difference 13,61,47,346 ITA No. 7122/Del/2017 NCR Vehicles Pvt. Ltd. 3 5. Therefore, the decision of the ld. CIT(A) to delete the addition made by the AO is hereby affirmed. 6. In the result, the appeal of the Revenue is dismissed. Order Pronounced in the Open Court on 30/06/2023. Sd/- Sd/- (Yogesh Kumar US) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 30/06/2023 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR