CEVA Freight (India) Pvt. Ltd., Gurgaon V. DCIT, Gurgaon

MA 12/DEL/2020

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 1968 (ITAT-DELHI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-05-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2012-2013
• Appeal Filed On: 13-05-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D S RAWAT
• Assessee Lawyers: C S AGGRAWAL
• Section: 14A; 201; 254(2); 13; 2

Judgement Text

1 M. A NO. 12/DEL/2020 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: FRIDAY NEW DELHI BEFORE SH. R. K. PANDA, ACCOUNTANT MEM BER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER MA NO. 1 2/DEL/2020 IN ( I.T.A. NO.6135/DEL/ 2016 (A.Y 2012-13) CEVA LOGISTICS INDIA PVT. LTD. (IN WHICH CEVA FREIGHT INDIA PVT. LTD. HAS MERGED W.E.F. 1/4/2016 SEWA TOWER, PLOT NO. 19, SECTOR-18, 2 ND FLOOR, BLOCK C, MARUTI INDUSTRIAL AREA, UDYOG VIHAR, GURGAON (APPLICANT) VS DCIT CIRCLE-1(1) GURGAON (RESPONDENT) PAN: AABCT7326A APPLICANT BY SH. C. S. AGGRAWAL, ADV RESPONDENT BY SH. D. S. RAWAT, JCIT ORDER PER SUCHITRA KAMBLE, JM THIS MISCELLANEOUS APPLICATION U/S 254(2) OF THE IN COME-TAX ACT, 1961 READ WITH RULES 24 & 34A OF INCOME TAX APPELLATE TR IBUNAL RULES, 1963 HAS BEEN FILED IN RESPECT OF THE ORDER DATED 12/02/2019 IN ITA NO. 6135/DEL/2016 PASSED BY THE TRIBUNAL. 2. THE LD. AR SUBMITTED THAT IN THE APPEAL FILED BY THE ASSESSEE, IT HAD RAISED THE FOLLOWING TWO GROUNDS OF APPEAL. OUT OF THE AFORESAID TWO GROUNDS OF APPEAL, ONE OF IT PERTAINED TO TP ADJUSTMENT; AND G ROUND NO. 2 OF APPEAL DATE OF HEARING 06.03.2020 DATE OF PRONOUNCEMENT ]11.05.2020 2 M. A NO. 12/DEL/2020 PERTAINED TO CORPORATE TAX ADJUSTMENT OF RS. 5,12 ,90,218/-. THE SAID GROUND OF APPEAL NO. 2 READS AS UNDER:- 2. CORPORATE TAX ADJUSTMENT RS. 5,12,90,218/- 2.1 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. AO HAS ERRED IN NOT ALLOWING THE CLAIM OF DEDUCTION OF ADDITIONAL INCOME OF RS. 5,12,90,218/- ERRONEOUSLY BOOKED IN A CCOUNTS AND OFFERED TO TAX IN RETURN OF INCOME FILED FOR SUBJEC T ASSESSMENT YEAR BY NOT APPRECIATING THAT: * DURING SUBJECT ASSESSMENT YEAR CERTAIN ERRONEOUS ACCOUNTING ENTRIES WERE PASSED AND ERRONEOUSLY CREDITED THE PR OFIT AND LOSS ACCOUNT UNDER THE HEAD NET GAIN ON FOREIGN CURRENC Y TRANSACTIONS AND TRANSACTION; * THE SAID ERROR WAS RECTIFIED DURING AY 2014-15 (O R FY 2013-14) BY DEBITING THE PROFIT AND LOSS ACCOUNT UNDER THE HEAD FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION ACCOUNT AND THE SAID A MOUNT WAS SUO- MOTO DISALLOWED BY THE APPELLANT IN THE COMPUTATION OF INCOME FOR AY 2014-15 BEING PRIOR PERIOD ITEM; * THE SAID AMOUNT PERTAINS TO AY 2012-13 AND IN AY 2014-15 IT REFLECTS REVERSAL OF ADDITIONAL INCOME ERRONEOUSLY INCLUDED IN SUBJECT ASSESSMENT YEAR I.E. AY 2012-13 AND THEREFORE NO AL LOWANCE HAS BEEN CLAIMED FOR THE SAID AMOUNT EITHER IN AY 2012- 13 OR IN AY 2014-15. 2.2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE DRP HAS ERRONEOUSLY MENTIONED CONSIGNMENT HANDLING SERVICES ACCOUNT INSTEAD OF FREIGHT EXPENSE ACCOUNT IN ITS DIRECTIONS ALTHOUGH THE APPELLANT HAS ONLY MENTIONED THE EXPE NSE ACCOUNT IN ITS SUBMISSIONS MADE BEFORE THE DRP. THE APPELLANT HAS ALSO FILED RECTIFICATION APPLICATION BEFORE THE DRP TO RECTIFY ITS DIRECTIONS TO THIS EFFECT BEING MISTAKE APPARENT FROM RECORD. 2.3 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. AO HAS ERRED IN NOT ALLOWING THE CLAIM BY NOT APPRE CIATING THAT THE 3 M. A NO. 12/DEL/2020 SAID AMOUNT OF RS. 5,12,90,218/- IS INCLUDED IN FR EIGHT ACCOUNT INSTEAD OF CONSIGNMENT HANDLING SERVICES ACCOUNT SINCE THE APPELLANT HAS PRODUCED LEDGER ACCOUNTS OF FREIGHT EXPENSE ACCOUNT AND FOREIGN CURRENCY EXCHANGE GAIN/LOSS A CCOUNT AND CORRELATED THE ENTRIES IN BOTH THE LEDGER ACCOUNTS. 3. THE LD. AR FURTHER SUBMITTED THAT THESE GROUNDS PERTAINED TO CORPORATE TAX ADJUSTMENT OF RS. 5,12,90,218/-, AND PARA 24 OF THE ORDER DATED 12.02.2019, THE TRIBUNAL HELD AS UNDER: 24. AS REGARDS TO GROUND NO. 2 THE LD. AR SUBMITTE D THAT THE ISSUES RELATING TO GROUND NO. 2 CONTESTED THEREIN MAY BE R EMANDED BACK TO THE ASSESSING OFFICER. THE LD. DR DID NOT OBJECT FOR TH E SAME. THEREFORE, WE ARE REMANDING BACK THE ISSUE OF SECTION 14A DISALLO WANCE TO THE FILE OF THE ASSESSING OFFICER. GROUND NO. 2 IN ITA NO. 1297/DEL /2016 FOR AY 2011-12 AND ITA NO. 6135/DEL/2016 FOR AY 2012-13 IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. THE LD. AR SUBMITTED THAT THE DISPUTE RAISED IN GRO UND NO. 2 OF GROUNDS OF APPEAL RAISED BY THE ASSESSEE STOOD REMANDED BACK T O THE FILE OF THE AO. HOWEVER, THE TRIBUNAL IN LINE 4 INSTEAD OF STATING ISSUE OF SECTION 14A FOR THE AY 2011-12 AND ISSUE OF CORPORATE TAX ADJUSTMENT FO R THE AY 2012-13, MERELY OBSERVED THAT THE ISSUE OF SECTION 14A DISALLOWANC E TO THE FILE OF THE ASSESSING OFFICER. THUS, THERE HAD BEEN AN INADVERTENT ERROR IN THE SAID SENTENCE TO STATE ISSUE RELATING TO CORPORATE TAX ADJUSTMENT. THE L D. AR FURTHER SUBMITTED THAT IN AY 2012-13, THERE WAS NO ISSUE OR GROUND OF APPE AL RAISED BY THE ASSESSEE IN RELATION TO 14A DISALLOWANCE, IN AS MUCH AS NO D ISALLOWANCE HAD EITHER BEEN MADE OR WAS INVOLVED IN THE APPEAL BEFORE THE TRIBU NAL AND IN GROUND NO. 2 OF GROUNDS OF APPEAL THE DISPUTE RAISED WAS IN RESPECT OF A DISALLOWANCE MADE OF RS. 5,12,90,718/- WHICH SUM ERRONEOUSLY BOOKED IN A CCOUNTS. 4. THE LD. AR FURTHER SUBMITTED THAT THE ASSESSING OFFICER ON RECEIPT OF THE ORDER OF THE TRIBUNAL DATED 12.02.2019, HOWEVER, BY ITS ORDER DATED 30.09.2019 4 M. A NO. 12/DEL/2020 INSTEAD OF EXAMINING THE CLAIM AS DIRECTED BY THE T RIBUNAL MERELY HELD IN PARA 6 AND 7 AS UNDER: 6. FOR THE GROUND NO. 2, VIDE PARA NO. 24 OF THE O RDER, HONBLE ITAT HAD HELD AS UNDER: .GROUND NO. 2 IN ITA NO. 1297/DEL/2016 FOR AY 201 1-12 AND ITA NO. 6135/DEL/2016 FOR AY 2012-13 IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. 7. ABOVE FACTS SHOWS THAT THE ITAT HAD NOT GIVEN AN Y ADVERSE FINDINGS ON THE ISSUE OF CORPORATE TAX ADJUSTMENT WORTH RS. 5,12,90,318/- AND HAD NOT ISSUED ANY SPECIFIC DIRECTIONS. ON PERU SAL OF THE FACTS OF THE CASE IN LIGHT OF THE JUDGMENT OF THE ITAT ORDER , ADDITION MADE ON THIS ACCOUNT DOES NOT NEED ANY INTERFERENCE. 5. THE LD. AR FURTHER SUBMITTED THAT THERE HAD THUS OCCURRED AN INADVERTENT TYPING MISTAKE IN LINE 4 OF PARA 24 OF THE ORDER OF THE TRIBUNAL, WHICH IS APPARENT FROM RECORD, WHEN SECTION 14A HAD BEEN STATED, INSTEAD OF STATING THE ISSUE PERTAINING TO CORPORATE ADJUSTMEN T. IN FACT, THE ASSESSING OFFICER HAS NOT CORRECTLY UNDERSTOOD THE SPIRIT OF THE ORDER OF THE TRIBUNAL. THE LD. AR SUBMITTED THAT THE ISSUE PERTAINING TO CORPO RATE TAX ADJUSTMENT, A GROUND RAISED IN GROUNDS OF APPEAL IN GROUND NO. 2, IS REMANDED BACK TO THE FILE OF THE AO AS IS PRAYED BY THE ASSESSEE. THUS, THE LD. AR PRAYED THAT THE PRESENT MISC. APPLICATION BE ALLOWED AND TYPOGRAPHI CAL ERROR BE RECTIFIED. 6. THE LD. DR DID NOT OBJECT FOR RECTIFICATION OF T HE TYPOGRAPHICAL ERROR IN PARA 24 OF THE ORDER DATED 12.02.2019. 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. FROM THE PERUSAL OF ORDER DATED 12.02.2019 PASSED BY THE TRIBUNAL AND PARA 24 THEREIN, IT APPEARS THAT THERE IS A TYP OGRAPHICAL ERROR. HENCE, THE 5 M. A NO. 12/DEL/2020 PRESENT MISC. APPLICATION IS ALLOWED. PARA 24 OF TH E ORDER DATED 12.02.2019 IS RECTIFIED AS UNDER: 24. AS REGARDS TO GROUND NO. 2 THE LD. AR SUBMITT ED THAT THE ISSUES RELATING TO GROUND NO. 2 CONTESTED THEREIN MAY BE R EMANDED BACK TO THE ASSESSING OFFICER. THE LD. DR DID NOT OBJECT FOR TH E SAME. THEREFORE, WE ARE REMANDING BACK THE ISSUE OF CORPORATE TAX ADJUSTMEN T TO THE FILE OF THE ASSESSING OFFICER. GROUND NO. 2 IN ITA NO. 1297/DEL /2016 FOR AY 2011-12 AND ITA NO. 6135/DEL/2016 FOR AY 2012-13 IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. 8. IN RESULT, MISC. APPLICATION FILED BY THE ASSESS EE IS ALLOWED. ORDER PRONOUNCED ON THIS 11 TH DAY OF MAY, 20 20 SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL M EMBER DATED: 11/05/2020 R. NAHEED COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 6 M. A NO. 12/DEL/2020 DATE OF DICTATION 06.03.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 06.03.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 1 3 . 5 . 2 0 2 0 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER