DCIT, CIRCLE- 12(1), NEW DELHI vs. INDIAN STRATEGIC PETROLEUM RESERVES LTD., NOIDA

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ITA 3893/DEL/2019Status: DisposedITAT Delhi23 November 2022AY 2015-162 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the impugned tax demand had been settled under the Vivad Se Vishwas Scheme, 2020. Consequently, the appeal filed by the Revenue was rendered infructuous.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order for AY 2015-16, challenging the deletion of disallowances related to depreciation, other expenses, and interest income. The assessee's business was considered pre-operational by the Revenue.

What were the issues?

Whether the appeal is infructuous due to settlement under the Vivad Se Vishwas Scheme. Whether expenses and depreciation are allowable during the pre-operative stage of business.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI “H” BENCH: NEW DELHI

Before: SHRI N.K.BILLAIYA & SHRI KUL BHARAT

For Appellant: Ms. Shweta Yadav, Sr. DR
For Respondent: Shri Rahul Tyagi, CA
Hearing: 23.11.2022Pronounced: 23.11.2022

ORDER

PER KUL BHARAT, JM :

1.

This appeal filed by the Revenue for the assessment year 2015-16 is directed against the order of Ld. CIT(A)-4, New Delhi dated 04.02.2019.

2.

The Revenue has raised following grounds of appeal:- 1. “Whether on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the disallowance of depreciation on office equipment, furniture and fixture and computer, amounting to Rs 11,78,296/- disregarding the fact that the business of the assessee company cannot be considered as operational and expenses cannot be allowed being related to pre-operative stage.

2. Whether on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the disallowance of other expenses, amounting to Rs 36,82,742/- disregarding the fact that the business of the assessee company cannot be considered as operational and expenses cannot be allowed being related to pre-operative stage.

3. Whether on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the interest income, amounting to Rs 3,87,75,667/- and capitalizing the interest alongwith the project resulting into reduction of project cost.

4. The appellant craves leave for reserving the right to amend, modify, add or forego any ground(s) of appeal at any time before or during the hearing of appeal. 3. At the outset, Ld. Counsel for the assessee submitted that impugned tax demand has been settled under “Vivad Se Vishwas Scheme, 2020”. Form No.5 issued by the designated authority has been placed on record. As per Form No.5, it is stated that the dispute related to Assessment Year 2015-16 being the subject matter of has been settled.

4.

We have heard Ld. Authorized Representatives of the parties and perused the material available on record. In view of the certificate issued by the designated authority, the present appeal in has become infructuous. We hold accordingly.

5.

In the result, the appeal of the Revenue is dismissed being infructuous.

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