ACIT, Circle-9(1), New Delhi V. Ferrous Township Pvt. Ltd., New Delhi

ITA 7198/DEL/2017

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 4318 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 01-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAGDISH SINGH

Judgement Text

1 ITA NO. 7198/DEL/2017 IN THE INCOME TAX APPELLAT E TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBE R AND MS SUCHITRA KAMBLE, JUDIC IAL MEMBER ITA NO. 7198/DEL/2017 ( A.Y 2014-15) (THROUGH VIDEO CONFERE NCING) ACIT ROOM NO. 403, C. R. BUILDING, NEW DELHI (APPELLANT) VS FERROUS TOWNSHIP PVT. LTD. KHASRA NO. 41,42, 44, 45, SETH FARMS, M. G. ROAD, GHITORNI, NEW DELHI PAN: AAACM2207Q (RESPONDENT) APPELLANT BY SH. JAGDISH SINGH, SR. DR RESPONDENT BY SH. RAJAN SACHDEVA, CA ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER DATED 01/08/2017 PASSED BY CIT(A)- DELHI-29, NEW DELHI FOR ASSESSMEN T YEAR 2014-15. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. LD. COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN LAW AND ON THE FACTS OF THE CASE IN DELETING THE ADDITION OF RS. 5,31,80,00 0/- MADE BY THE A.O ON ACCOUNT OF DISALLOWING THE INTEREST EXPENSES BY THE ASSESSEE ON DELAYED PAYMENT OF EXTERNAL DEVELOPMENT CHARGES TO HUDA. DATE OF HEARING 09.02.2021 DATE OF PRONOUNCEMENT 09.02.2021 2 ITA NO. 7198/DEL/2017 3. THE ORIGINAL RETURN OF INCOME DECLARING LOSS OF RS. 22,43,34,901/- WAS E- FILED BY THE ASSESSEE COMPANY ON 26/09/2014. THE A SSESSING OFFICER OBSERVED THAT DURING THE PRESENT ASSESSMENT YEAR IN THE PROF IT AND LOSS ACCOUNT OF THE ASSESSEE COMPANY DEBITED INTEREST EXPENSES AMOUNTIN G TO RS. 5,91,32,000/- TOWARDS DELAYED PAYMENT OF EDC CHARGES TO THE HARY ANA GOVERNMENT. THE ASSESSING OFFICER AFTER GOING THROUGH THE REPLY OF THE ASSESSEE AND THE EVIDENCE MADE AN ADDITION OF RS. 5,91,32,000/-. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED BEFORE THE CIT(A). THE CIT(A) PARTLY ALLOWED THE APPEAL OF TH E ASSESSEE. 4. THE LD. DR RELIED UPON THE ASSESSMENT ORDER, AND SUBMITTED THAT THE ADDITION WAS PROPERLY MADE AND THE PART DELETION OF THE ADDITION WAS NOT JUST AND PROPER ON PART OF THE CIT(A). 5. THE LD. AR SUBMITTED THAT THE ASSESSEE CASE IS C OVERED IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2012-13 AS THE FACTS OF TH E CASE ARE IDENTICAL. 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED ALL T HE RELEVANT MATERIAL AVAILABLE ON RECORD. ON THE PERUSAL OF THE ORDER OF THE CIT(A), IT CAN BE SEEN THAT THE CIT(A) HAS RELIED UPON THE DECISION OF THE EARLIER ORDER IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2012-13 AND OBSERV ED THAT THE SAME IS HAVING IDENTICAL FACTS. AFTER PERUSING THE TRIBUNAL S DECISION IN ASSESSMENT YEAR 2012-13, IT CAN BE SEEN THAT THE FACTUAL ASPEC TS RELATED TO PAYMENT OF EDC CHARGES OVER A PERIOD IN INSTALMENTS WITH INTER EST AT 12% PER ANNUM AND ADDITIONAL INTEREST IN CASE OF OVER DUES AT 3% PER ANNUM WAS ALSO DEALT IN ASSESSMENT YEAR 2012-13 WHICH IS IN FAVOUR OF THE A SSESSEE. HENCE, THE APPEAL OF THE REVENUE IS DISMISSED. 3 ITA NO. 7198/DEL/2017 7. IN RESULT, THE APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 09 TH DAY OF FEBRUARY, 2021 IN PRESENCE OF BOTH THE PARTIES. SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL M EMBER DATED: 09/02/2021 R. NAHEED COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI