Deccan Chronicle Holdings Limited, Secunderabad, Secunderabad V. ACIT, Circle-16(2), Hyderabad, Hyderabad

ITA 965/HYD/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2349 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 04-11-2020
• Assessment Year: 2008-2009
• Appeal Filed On: 06-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Assessee Lawyers: S RAMA RAO
• Keywords: Depreciation; Set aside
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING ) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 965 /HYD/2017 ASSESSMENT YEAR: 20 08 - 09 M/S DECCAN C HRONICLE HOLDINGS LIMITED 36, SAROJINI DEVI ROAD SECUNDERABAD 500 003 PAN: A A B C D6 7 37D VS. A CIT, CIRCLE 1 6 (2) HYDERABAD (APPELLANT) (RESPONDENT) A PPELLANT BY: SH. S. RAMA RAO, A DV. REVENUE BY : S H. Y.V.S.T. SAI, CIT, D.R. DATE OF HEARING: 0 4 / 11 /2020 DATE OF PRONOUNCEMENT: 24 / 11 /2020 ORDER PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y. 20 08 - 09 AGAINST TH E ORDER OF CIT(A) - 4, HYDERABAD DATED 30.03.2017 . THIS APPEAL WAS TAKEN UP FOR HEARING ON 04.11.2020 THROUGH VIDEO CONFERENCING AND BOTH THE PARTIES WERE HEARD. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY FILED ITS RETURN OF FRINGE BENEFITS FOR THE A.Y. 2008 - 09 ON 29.09.2008 ADMITTING FRINGE BENEFITS OF RS.2,46,35,094/ - . THE RETURN WAS INITIALLY ACCEPTED ITA NO.965/HYD./2017 AY 2008 - 09 M/S DECCAN CHRONICLE HOLDINGS LTD. SECBAD 2 ON 29.12.2010 AND SUBSEQUENTLY THE CASE WAS REOPENED U/S 115 WG OF THE INCOME TAX ACT, 1961. THE AO OBSERVED FROM THE COMPUTATION OF FRINGE BENEFITS THAT THERE WAS A SHORT ACCOUNTAL OF FRINGE BENEFITS AMOUNTING TO RS.2,27,37461/ - BETWEEN THE EXPENDITURE DEBITED TO PROFIT & LOSS A/C AND FBT STATEMENT ENCLOSED TO THE RETURN OF INCOME. WHEN THE ASSESSEE WAS ASKED TO FURNISH THE DETAILS IN RESPECT OF THE SHORT COMPUTATION OF FRINGE BENEFITS, THE ASSESSEE DID NOT FILE ANY DETAILS. THEREFORE, THE AO ADDED A SUM OF RS.2,27,37,461/ - TO THE RETURNED INCOME OF THE ASSESSEE AND BROUGHT IT TO TAX. AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) WHO CONFIRMED THE ORDER OF AO ON THE GROUND THAT THE ASSESSEE HAS NOT FILED ANY DETAILS BEFORE THE AO. 2.1. AGGRIEVED, THE ASSESSEE I S IN APPEAL BEFORE US BY RAISING THE FOLLOWING GROUNDS OF APPEAL. 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) ERRED IN HOLDING THAT THE ENTIRE EXPENDITURE OF RS. 5, 07, 000/ - DEBITED UNDER 'EMPLOYEES WELFARE' IS ATTRIBUTABLE TO THE FRINGE BENEFIT ASSESSABLE U/S 115 WE (3) OF THE INCOME TAX ACT. 3. THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) ERRED IN CONFIRMING THE TREATMENT OF THE DEPRECIATION CLAIMED ON MOTOR CARS OF RS.12, 79,314 / - AS FRINGE BENEFIT. 4. THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) ERRED IN CONFIRMING THE TREATMENT OF THE DEPRECIATION CLAIMED ON AIRCRAFT OF RS.2,09, 51, 147/ - AS FRINGE BENEFIT. 5. ANY OTHER GROUND OR GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING. ITA NO.965/HYD./2017 AY 2008 - 09 M/S DECCAN CHRONICLE HOLDINGS LTD. SECBAD 3 3 . THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS ALL THE DETAILS AND CAN RECONCILE THE DIFFERENCE IF GIVEN AN OPPORTUNITY. HE THEREFORE PRAYED FOR A REMAND TO THE A.O. 3.1. LD.DR, H OWEVER OBJECT ED TO THE SAME. 4. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE MATERIAL ON RECORD, WE ARE SATISFIED THAT THE ASSESSEE SHOULD BE GIVEN AN OPPORTUNITY TO PRESENT ITS CASE. THEREFORE , WE SET ASIDE THE ORDER OF CIT(A) AND REMAND THE ISSUES TO THE FILE OF AO FOR DE - NOVO CONSI DERATION IN ACCORDANCE WITH LAW. ASSESSEE IS DIRECTED TO COOPERATE WITH THE AO FOR EARLY DISPOSAL OF THE APPEAL BY FILING ALL NECESSARY AND RELEVANT DETAILS WITHIN ONE MONTH FROM THE DATE OF RECEIPT OF THIS ORDER AD THEREAFTER, THE AO SHALL COMPLETE THE ASSESSMENT IN ACCORDANCE WITH LAW. 5. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 24 TH NOVEMBER, 2020. SD/ - SD/ - ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 24 TH NOVEMBER , 2020. *GMV ITA NO.965/HYD./2017 AY 2008 - 09 M/S DECCAN CHRONICLE HOLDINGS LTD. SECBAD 4 COPY TO: 1 M/S. DECCAN CHRONICLE HOLDINGS LIMITED, 36, S.D.ROAD, SECUNDERABAD 500 003 2 A CIT, CIRCLE 1 6 (2) , HYDE RABAD 500 004 3 A CIT, RANGE 16, HYDERABAD 4 CIT(A) - 4, HYDERABAD 5. PR.CIT - 4, HYDERABAD 6 THE DR, ITAT HYDERABAD 7 GUARD FILE