MACE PROJECT AND COST MANAGEMENT PRIVATE LIMITED,GURGAON V. DCIT, CIRCLE 16(1), DELHI

ITA 955/DEL/2023

AI Insights

The case involves an appeal by Mace Project and Cost Management Private Limited against the orders of the Learned Commissioner of Income-Tax (Appeals) and the Learned Assessing Officer concerning the assessment year 2017-18. The primary contention was regarding the additions made under Section 40(1)(i) of the Income Tax Act, 1961, which the assessee argued were made without proper verification of TDS deductions and reconciliation of payments to employees. The Tribunal found merit in the assessee's arguments and decided to set aside the previous orders and remand the case back to the Assessing Officer for a thorough re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 361214 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHOUDHARY
• Assessee Lawyers: MANISH GARG
• Keywords: Set aside; TDS
• Section: 143(3); 142(1)

Judgement Text

" INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”: NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA No.955/DEL/2023 Assessment Year: 2017-18 O R D E R PER VIMAL KUMAR, JUDICIAL MEMBER: The appeal filed by the assessee is against order dated 30.01.2023 of the Learned Commissioner of Income- Tax(Appeals)/National Faceless Appeal Centre(NFAC), Delhi (hereinafter referred as ‘Ld. CIT(A)’) under Section 250 of the Income-Tax Act, 1961 (hereinafter referred as “the Act”) arising out of order dated 11.12.2019 by the of the DCIT, Central Circle Mace Project and Cost Management Private Limited, 01A171 & 01A172, Platina Tower, M.G. Road, Sector 28, Gurgaon-122002 Haryana PIN 122002 PAN No. AAHCM0132D Vs. DCIT, Circle 16(1), New Delhi (Appellant) (Respondent) Assessee by: Shri Manish Garg, CA Department by: Shri Choudhary, Sr. DR Date of Hearing: 21.05.2025 Date of pronouncement: 21.05.2025 ITA No.955/Del/2023 2 16(1), New Delhi (hereinafter referred as “Ld. AO”) under Section 143(3) of the Act for assessment year 2017-18. 2. Brief facts of the case are that the assessee filed original e- return of income on 30.11.2017 declaring total income of Rs.12,19,32,050/-. The case was selected for scrutiny under CASS. Notice under Section 143(2) of the Act was issued on 20.08.2018 was issued. Notices under Section 142(1) along with questionnaire relating to complete scrutiny were issued to the assessee. The assessee furnished relevant details/documents through e-filing portal and the case was completed under e- proceedings. On completion of proceedings, Ld. AO vide order dated 11.12.2019 made various additions under Section 40(1)(i) of the Act. The assessee against order dated 11.12.2019 filed appeal before the Ld. CIT(A), which was dismissed vide order dated 30.01.2023. 3. Being aggrieved, appellant has preferred present appeal. 4. Learned Authorised Representative for the appellant/assessee submitted that Ld. AO erred in making additions without verification of deduction of TDS and reconciliation of payment made to employees despite filing of ITA No.955/Del/2023 3 supporting documents. So, the matter may be restored to the Ld. AO for fresh decision. 5. Learned Authorised Representative for the Revenue relied on orders of departmental authorities. 6. From examination of record in the light of light of aforesaid rival contentions, it is crystal clear that the Ld. CIT(A) through order dated 30.01.2023 upheld the order dated 11.12.2019 of Ld. AO. Appellant/assessee has submitted that Ld. AO erred in not considering various documents regarding payment of stipend paid to trainees, payment made to employees, deduction of TDS and reimbursement of expenses etc. and prayed for restoration of the matter to the file of the Ld. AO for fresh decision. 7. In view of above material facts in the interest of substantial justice, it is considered expedient to set aside the orders dated 30.01.2023 of Ld. CIT(A) and 11.12.2019 of Ld. AO and to restore the matter to the file of Ld. AO for fresh decision in accordance with law after affording fair and reasonable opportunity of hearing to appellant/assessee. 8. In the result, the appeal of the assessee is allowed for statistical purposes. ITA No.955/Del/2023 4 Order pronounced in the open court on 21/05/2025. Sd/- Sd/- ( SHAMIM YAHYA ) (VIMAL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 26/05/2025 Mohan Lal Copy forwarded to - 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "