DCIT, Central Circle- II , Noida V. Newtramax Healthcare, Kurukshetra

ITA 7159/DEL/2018

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 3148 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 05-03-2024
• Assessment Year: 2015-2016
• Appeal Filed On: 08-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT GOEL
• Section: 132; 43; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E” DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.7159/DEL/2018 Assessment Year 2015-16 DCIT, Central Circle-II Noida Vs. Newtramax Healthcare C/o Radha Krishna Pharmaceuticals Near Nursing Indira Colony, Kurukshetra Haryana TAN/PAN: AAFFN5565L (Appellant) (Respondent) Appellant by: Shri Amit Goel, Chartered Accountant Shri Pranav Yadav, Advocate Respondent by: Shri Subhra Jyoti Chakraborty, CIT-DR Date of hearing: 06 03 2024 Date of pronouncement: 04 04 2024 O R D E R PER PRADIP KUMAR KEDIA-AM: T h e c a pt i o ne d a pp e a l ha s be e n f i l e d b y t he R e ve n u e a ga i n s t t he or d e r of t h e C o m m i s s i o ne r o f I n c o m e T a x (A pp e a l s ) - IV , K a n p u r (‘ C IT ( A ) ’ i n s h o r t ) da t e d 30 . 0 8. 2 0 18 a ri s in g f r o m the a s s e s s m e n t or d e r da t e d 31 . 12 . 2 01 6 p a s s e d b y t h e A s s e s s i n g O f f i c e r ( AO ) u n d e r Se c t i on 14 3 (3 ) o f t he I nc o m e T a x A c t , 1 9 6 1 (t h e A c t ) c o n c e rn i n g A Y 20 15 - 1 6 . 2. B r ie f l y s t a t e d , a s e a r c h a n d s e i z u re o pe r a t i on u n d e r Se c t i o n 1 32 o f t he A c t w a s c o n d uc t e d on 1 1 . 1 1. 2 01 4 o n t he p re m i s e s of t he a s s e s s e e . T he a s s e s s e e f i le d r e tu r n o f i nc o m e de c l a r in g t ot a l i n c o m e a t ‘ N i l ’ f o r A . Y . 20 15 - 16 . I n t h e c ou r s e o f t h e a s s e s s m e nt p r oc ee di n g s , t h e A O ob s e r ve d t ha t a s s e s s e e h a s c l a i me d d e du c t i on a m ou n ti n g t o R s . 2, 1 5 , 44 , 4 76 / - u n d e r S e c t io n 80 IC o f t h e A c t . I n t h e a bs e n c e of a ny e vi d e nc e t o c o r r o b o r a t e s uc h c l a i m of de d uc t i o n b e fo re t h e A s s e s s i n g O f f i c e r , t he d e du c t i on c l a i m e d u n d e r S e c ti o n 80 IC wa s re j e c t e d b y t he A O a n d t he i n c om e w a s a s s e s s e d t o ta x o n e n ha n c e d am o u nt . 3. A gg ri e ve d, t h e a s s e s s e e pr e f e r re d a p pe a l be f o re t h e C I T ( A ) . T h e I.T.A. No.7159/Del/2018 2 C I T ( A ) a f t e r c o n s i d e r i n g t h e s u b m i s s i o ns a nd t he r em a n d r e po rt o f t he A O d a t e d 0 6 . 0 3. 2 0 1 8 a nd th e re j o i nd e r t h e re t o b y t he a s s e s s e e , f ou nd m e ri t i n t he p l e a o f th e a s s e s s e e t o w a r d s c o r re c t n es s o f d e du c t i on a n d t hu s re ve rs e d t he a c t i on of t h e A O . T he r e le va n t o pe r a t i ve pa r a gr a p h s o f t he o r d e r of t he C I T ( A ) i s r e p r od u c e d h e r e u nd e r: “ 6 . 3 T h e u n d e r s i g n e d h a s c a r e f u l l y g o n e t h r o u g h t h e a s s e s s m e n t o rd e r , w r i t t e n s u b m i s s i o n a s w e l l a s v e r b a l a r g u m e nt s o f t h e L d . A . R . I t i s s e e n t h a t , A s s e s s i n g O f f i c e r h a s d i s a l l o w e d t h e d e d u c t i o n u / s 8 0 I C o f t h e A c t o n t h e o n l y g r o u n d t h a t , n o d e t a i l s o f t h e d e d u c t i o n s w e r e f u r n i s h e d . T h e o b s e r v a t i o n o f t h e A s s e s s i n g O f f i c e r c a n n o t b e a c c e p t e d b e c a u s e o f t h e f o l l o w i n g r e a so n s ; i ) A p p e l l a n t ' s c l a i m o f d e d u c t i o n u / s . 8 0 I C o f t h e A c t w a s b a c k e d b y t h e s p e c i f i e d a u d i t r e p o r t a n d t h e a u d i t e d f i n a n c i a l s ta t e m e n t s , w h i c h w e r e s u b m i t t e d b y t h e a p p e l l a n t , d u r i n g t h e c o u r s e o f t he a s s e s s m e n t p ro c e e d i n g s . D u r i n g t h e s e a p p e a l p r o c e e d i n g s , l d . A. R . o f t h e a p p e l l a n t h a s f i l e d t h e s p e c i f i e d a u d i t r e p o r t u / s 8 0 I C o f t he A c t a l o n g w i t h t h e a u d i t e d f i n a n c i a l s t a t e m e n t t o j u s t i f y t h e c l a i m o f d e d u c t i o n u / s 8 0 I C o f t h e A c t . ( i i ) A s s e s s i n g O f f i c e r h a s n o t p o i n t e d o u t a n y s p e ci f i c d e f e c t s i n t h e f i n a n c i a l s t a t e m e n t s a n d t h e s p e c i f i e d a u d i t r e p o r t u / s 8 0 I C o f t h e A c t , f u r n i s h e d b y t h e a p p e l l a n t , d u r i n g t h e c o u r s e o f t he a s s e s s m e n t p ro c e e d i n g s . I n f a c t , t h e A s s e s s i n g O f f i c e r h a s h i ms e l f a d m i t t e d t h e f a c t t h a t , t h e c o m p l e t e d e t a i l s , b o o k s o f a c c o u n t s a n d vo u c h e r s w e r e f u r n i s h e d w h i c h , w e r e t e s t c h e c k e d b y h i m i n t h e a s s e s s m e n t pro c e e d i n g s . ( i i i ) A s s e s s m e n t o rd e r d o e s n o t r e v e a l t h a t , t h e A ss e s s i n g O f f i c e r h a s s p e c i f i c a l l y r e q u i s i t i o n e d t h e d e t a i l s o f d e d u c t i o n u / s 8 0 I C o f t h e A c t f r o m t h e a p p e l l a n t , d u r i n g t h e c o u r s e o f p r o c e e d i n gs u / s 1 4 3 ( 3 ) o f t h e A c t . H e n c e , t h e a d d i t i o n m a d e b y A s s e s s i n g O f f i c e r i s a g a i n s t t h e e s t a b l i s h e d l a w o f j u r i s p r u d e n c e o f n a t u ra l j u s t i c e. i v ) I n t h e r e g u l a r s c r u t i n y a s s e s s m e n t m a d e u / s 1 4 3( 3 ) o f t h e A c t f o r * A . Y . 2 0 0 9 - 1 0 , 2 0 1 0 -1 1 , 2 0 1 2 - 1 3 , 2 0 1 3 - 1 4 a n d A . Y . 2 01 4 - 1 5 t h e c l a i m o f t h e d e d u c t i o n u / s 8 0 I C o f t h e A c t w a s d u l y e x a m i n e d a n d a l l o w e d b y th e A s s e s s i n g o f f i c e r . T h e f a c t s a n d c i r c u m s t a n c e s o f th e d e d u c t i o n u /s . 8 0 I C o f t h e A c t f o r t h e y e a r s u n d e r t h i s a p p e a l i s n o d if f e r e n t f r o m A . Y . 2 0 0 9 - 1 0 , 2 0 1 0 - 1 1 , 2 0 1 2 - 1 3 , 2 0 1 3 -1 4 a n d A .Y . 2 0 1 4 - 1 5 . T h us , f o l l o w i n g t h e l e g a l p r i n c i p l e o f c o n s i s t e n c y , t h e a c t i o n o f t h e A. O . i s u n j u s t i f i e d e s p e c i a l l y c o n s i d e r i n g t h e f a c t t h a t , n o t h i n g a d v e rs e w a s b r o u g h t o u t o n r e c o rd t o d i s a l l o w t h e c l a i m o f d e d u c t i o n u / s . 8 0 I C o f t h e A c t . 6 . 4 I n v i e w o f t h e a b o v e d e t a i l e d r e a s o n i n g a n d d i sc u s s i o n s , t h e a d d i t i o n m a d e b y t h e A s s e s s i n g O f f i c e r u / s . 8 0 I C o f t h e A c t c a n n o t b e su s t a i n e d . T h e s a m e i s t h e r e f o r e , d e l e t e d a n d g r o u n d s o f a p p e al o f t h e a p p e l l a n t a r e a l l o w e d . ” 4. A gg ri e ve d b y t h e r e ve r s a l of a dd i t i o n s m a de b y th e A O , t he I.T.A. No.7159/Del/2018 3 R e ve n ue p re f e rr e d a p pe a l b e f o r e t h e T r ib u na l . 6. T h e l d . D R f o r t h e R e ve nu e r e l i e d up o n t h e a s s e ss m e n t o r d e r. 7. T h e l d. c o un s e l f o r th e a s s e s s e e , o n th e o th e r ha n d, s t r on gl y de f e nd e d t h e o r d e r o f t h e C I T ( A ) a n d s u b m i tt e d t ha t t h e a s s e s s e e i s a pa r t ne r s h i p f i r m e n ga ge d i n t he bu s i n e s s o f m a n uf a ct ur i n g o f h e a l t h c a re pr o du c t s a n d c l a i m e d d e d uc t i on un de r S e c t i o n 8 0 I C fo r t he f i r s t ti m e i n A . Y . 20 0 6 - 07 a n d t he A . Y . 20 15 - 16 i n qu e s t i o n is t he l a s t ye a r f o r e l igi b i li t y of de d uc t i o n. T h e l d . c ou n s e l s ub m i t t e d t ha t i n t h e A . Y . 2 01 0 - 11 ; 2 0 1 2 - 1 3 a n d A . Y . 2 0 1 3 - 1 4, t he c l a i m o f d e d u c ti on u n d e r Se c t i o n 80 I C w a s e x a m i ne d a nd a l l o w e d i n t h e s c r ut i n y a s s e ss me n t m a d e un d e r Se c t i on 1 43 (3 ) of t h e A c t . H o w e ve r, f o r t h e A . Y . 2 01 5- 1 6 i n qu e s t i o n , t he A O di s a l l o w e d c l a i m of de d uc t i o n b y i n c or re c t l y a l l e gi n g th a t de t a i l s / e x pl a n a ti o n s w e r e n ot f i l e d b y t h e a s s e s s e e . Su c h o b s e r va t i o ns a re c on t ra r y t o p a ra gra p h 3 o f t h e a s s e s s m e nt o rd e r w her e t he A O h i m s e l f ob s e r ve d t h a t a l l d e t a i l s a nd i n f o r m a t i o n c a l l e d f or ha ve b e e n f u r n i s h e d a nd b o o k s of a c c o un t , b i l l s a n d i n vo i c e s w e re a ls o ve r i f i e d . T h e C I T ( A ) ha s a l s o c a l l e d f or r e m a n d re p o r t . T he A O , i n i t s re m a n d re p or t , ha s n ot gi v e n a n y a d ve r s e r e m a r k s a s r e ga r d s t h e a f o re s a i d c l a i m of d e d uc t i on . T he l d . c ou ns e l f u rt h e r p oi n t e d o ut t ha t a s s e s s m e n t f o r A . Y . 2 0 14 - 15 w a s re o p e n e d un d e r S e c t i o n 1 4 8 o n t h e s p e c i f i c i s s ue of c l a i m o f d e d uc t i on un d e r Se c t io n 8 0 I C . A s a c o ns e qu e nc e o f s u c h r e o p e ni n g, re - a s s e s s m e nt or d e r p a s s e d w he r e c or r e c t n e s s o f d e du c t i on s o c l a im e d w a s a c c e p t e d a n d no a d d i t i o n s w e r e m a de . I n t h i s b a c k d ro p, t he ld . co u ns e l s ub m i t t e d w h e re t he A O h a s no t po i nt e d o u t a n y s p e c i f i c no n- co m pl i a nc e o f c on d it i o ns a n d w he r e t h e R e ve n u e h a s a c c e p t e d t h e cl a i m i n r e gu l a r a s s e s s m e nt p ro c e e di n gs a s w e l l a s i n t h e r e -a s s e s s me n t pr oc e e d i n gs f o r ni n e l o n g ye a r s , t h e d e ni a l o f d e d u c ti o n i n t he l a st ye a r i n t he i d e n ti c a l f a c t s t a nt a m o un t t o w i tc h h u nt i n g a n d a n on -p e rm i s si bl e a c t i n l a w . T he l d. c o u n s e l s ub m i t t e d t ha t t he C I T ( A ) h a s r i g ht l y ap pl i e d t h e d o c t r i ne o f c on s i s t e n c y p r i nc i p l e s a n d a c c e pt e d t h e p l e a of th e a s s e s s e e . T he l d . c ou n s e l t h us s u b m i tt e d t h a t n o i n t e rf e re n c e w it h t he or de r of t h e C I T ( A ) i s c a l l e d f or . I.T.A. No.7159/Del/2018 4 8. W e h a ve c a re f ul l y c o n s i de r e d t h e r i va l s u bm i s s i on s a nd p e r us e d t he m a t e r ia l a va i l a bl e o n r e c or d . 9. T h e c l a i m of d e d uc t i on un d e r Se c t i o n 8 0 I C f o r A .Y . 2 01 5 - 1 6 i s in qu e s t i o n. A s po i n t e d ou t o n b e ha l f of t he a s s e s s e e , t h e c la i m o f d e d uc t i on w a s m a de a va i l a bl e t o t he a s s e s s e e s i n c e A . Y . 2 0 06 -0 7 . T h e i n te r ve ni n g ye a r s w e r e s ub j e c te d t o s c r ut i n y a s s e s s m e n t a s w e l l a s r e -a s s e s s m e nt . O n t he s p e c i f i c i s s u e , n o a d ve r s e f i n di n g h a s be e n g i ve n i n a n y of t he s e ye a r s . 10 . T h e C IT ( A ) a f t e r m a k in g n e c e s s a r y e n q u i ri e s a nd R e m a n d R e p o rt ha s e n do rs e d t he pl e a o f A s s e s s e e . N o c h a n ge i n f a ct s f o r A . Y . 2 0 1 5 - 1 6 ha s be e n po i nt e d ou t b y t h e R e ve n u e . W e t hu s d o n o t s e e a ny j us t i f i c a ti o n i n t he p l e a o f t h e R e ve n ue f o r re ve rsa l of t he or de r o f t he C I T ( A ). H e nc e , w e d e c l i ne t o i nt e r f e r e . 11 . I n t h e r e s ul t , t h e a p p e a l of t he R e ve n u e i s di smi s s e d. Order pronounced in the open Court on 04/04/2024 Sd/- Sd/- [CHALLA NAGENDRA PRASAD] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /04/2024 Prabhat