ROCKWELL AUTOMATION INDIA PVT. LTD. ,DELHI V. ACIT, DELHI

ITA 232/DEL/2022

AI Insights

The case involves Rockwell Automation India Pvt. Ltd, the appellant, contesting an order from the National Faceless Appeal Centre (NFAC), which upheld a disallowance made by the AO regarding loans and advances written off amounting to Rs. 1,08,78,832 for the Assessment Year 2016-17. The primary legal contention revolves around the proper assessment and allowance of deductions claimed by the assessee under the Income-tax Act, 1961. The Tribunal had initially disposed of the appeal but later reopened the specific ground concerning the disallowance following a miscellaneous application by the assessee. The Tribunal found that the lower authorities had not adequately appreciated the details provided by the assessee and thus restored the matter to the AO for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470157 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: I
• Assessment Year: 2016-2017
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHISH TRIPATHI
• Assessee Lawyers: AJIT JAIN
• Section: 143(3); 22

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER ITA No. 232/Del/2022 (Assessment Year: 2016-17) Rockwell Automation India Pvt. Ltd, 131, Functional Industrial Area, Patparganj, Delhi-110092 Vs. ACIT, Delhi (Appellant) (Respondent) PAN: AACCR3791A Assessee by : Shri Ajit Jain, Adv Ms Pooja Agarwal, Adv Revenue by: Shri Ashish Tripathi Date of Hearing 21/02/2025 Date of pronouncement 21/02/2025 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.232/Del/2022 for AY 2016-17, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. AO’, in short] in Appeal No. ITBA/AST/S/143(3)/2020- 21/1032058955(1) dated 31.03.2021 against the order of assessment passed u/s 143(3) r.w.s 144C(13) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. This appeal was originally disposed of by this Tribunal vide its order dated 10.05.2024. Later a miscellaneous application was preferred by the assessee in ITA No. 323/Del/2024. This MA was allowed by this Tribunal qua ground No. 4. Accordingly, ground No. 4 was sought to be re-adjudicated by the Tribunal. Both the parties expressed their willingness to dispose of the appeal qua Ground No. 4 at the time of hearing of MA proceedings itself. ITA No. 232/Del/2022 Rockwell Automation India Pvt. Ltd Page | 2 3. Ground No. 4 raised by the assessee is challenging the disallowance of Rs. 1,08,78,832/- with regard to loans and advances written off. 4. We have heard the rival submissions and perused the material available on record. The ld AO noticed that the assessee company had claimed deduction for loans and advances written off amounting to Rs. 1,08,78,832/- by debiting the same in the profit and loss account. The assessee was asked to provide the details along with supporting documents in order to substantiate its claim. The ld AO observed that no submissions were made by the assessee and accordingly proceeded to disallow the same while completing the assessment in the draft assessment proceedings. The assessee furnished the details of the same before the ld DRP as under:- a Retention money not recoverable written off 98,40,773/- b purchase of goods inadvertently classified as loans and advances written off- 10,44,322/- c Inter company payment written back - (-) 62,62/- Total 1,08,78,832/- 5. The ld DRP observed that in respect of retention money irrecoverable written off amount to Rs. 98,40,773/-, the assessee had stated that it had offered to tax in earlier years and since the said sum was not received from the party, it was duly written off in the books of account and claimed as deduction. Accordingly, the ld DRP directed the ld AO to verify the claim of the assessee and decide in accordance with law. With regard to another item of purchase of goods wrongly treated as loans and advances in the sum of Rs. 10,44,322/-, the ld DRP directed the ld AO to verify the claim of the assessee and decide in accordance with law. 6. We find that assessee during the original assessment proceedings itself had furnished the details vide its letter dated 20.12.2019 in respect of claim of deduction on account of loans and advances written off in the sum of Rs. 1,08,78,832/-. The assessee had also furnished the details together with the break up theorem in page 383 to 384 of the Paper Book and page 390 of the ITA No. 232/Del/2022 Rockwell Automation India Pvt. Ltd Page | 3 Paper Book. These facts were not properly appreciated by the lower authorities. Hence, we deem it fit and appropriate, in the interest of justice and fair play, to restore this issue to the file of ld AO for de novo adjudication of this issue in the light of the details already filed by the assessee on 20.12.2019. The assessee is also given further liberty to file fresh evidences, if any, in support of its contentions. The ld AO is directed accordingly. The ground No. 4 raised by the assessee is allowed for statistical purposes. 7. All other contents of the earlier order dated 10.05.2024 except para 22 to 24 thereon shall remain unchanged. 8. In the result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 21/02/2025. -Sd/- -Sd/- (YOGESH KUMAR U.S.) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 21/02/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "