GREY ORANGE INDIA PRIVATE LIMITED,GURUGRAM vs. ACIT CIRCLE-10(2), NEW DELHI

This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2022-23/1048612477(1), dated 11.01.2023 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.

Coming to the assessee’s sole substantive grievance challenging both the learned lower authorities’ action disallowing it’s provision for warranty expenses amounting to Rs.23,55,087/-; we note from a perusal of the assessment order dated 13.11.2019 at page 2 para 3 that the learned assessing authority had followed its corresponding discussion in the preceding assessment year 2016-17 rejecting the very claim which stood upheld in CIT(A)’s order as well passed on 25.07.2019.

We make it clear that the learned Assessing Officer mainly quotes the assessee’s failure to prove the corresponding historical data of the impugned provision for warranty in this regard. That being the case, we sought to know the final outcome of the assessee’s impugned warranty provisions claimed in the said preceding assessment year. Learned counsel very fairly informs us that the tribunal’s order in the assessee’s case in its for AY 2016-17, dated 10.06.2024 has restored back the same back to the Assessing Officer to be decided afresh after verification of all the relevant facts in light of Rotork Control India (P) Ltd. Vs. CIT (2009) 314 ITR 62 (SC). We thus adopt judicial consistency and restore the instant issue back to the Assessing