ACIT, CIRCLE- 17(1), NEW DELHI vs. MOSER BAER SOLAR SYSTEMS PVT. LTD., NEW DELHI

ITA 3653/DEL/2018Status: DisposedITAT Delhi21 May 2025AY 2014-15Bench: SHRI SHAMIM YAHYA (Accountant Member), SHRI VIMAL KUMAR (Judicial Member)5 pages
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What did the Tribunal hold?

The Tribunal affirmed the CIT(A)'s decision regarding professional fees, relying on a Supreme Court precedent. For project system expenses, while the CIT(A) had allowed relief, the Tribunal found that the details were not fully presented to the lower authorities and remitted the issue back to the AO for fresh examination.

What were the facts?

The Revenue appealed the CIT(A)'s order deleting disallowances of professional fees and project system expenses. The CIT(A) had held these expenses to be revenue in nature, despite the AO's view that they were capital expenditure due to their exhaustive nature and enduring benefit.

What were the issues?

Whether the professional fees and project system expenses incurred by the assessee were revenue or capital in nature, and if the lower authorities' findings were legally justified.

Which sections of the Income-tax Act were involved?

Section 37(1)

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Income Tax Appellate Tribunal, DELHI ‘E’ Bench : NEW DELHI

Before: SHRI SHAMIM YAHYA & SHRI VIMAL KUMAR

For Appellant: Shri Neeraj Jain, Adv., Shri Nikunj, Adv. & Shri Saksham
Hearing: 21.05.2025Pronounced: 21.05.2025

PER SHAMIM YAHYA, AM :

This appeal by the Revenue is directed against the Order dated 11.12.2017 of Ld. CIT(A)-33, New Delhi relating to assessment year 2014-15 on the following grounds:-

1.

Whether on the facts and circumstances of the case, the Ld. CIT(A) is legally justified in deleting the disallowance of Rs. 5,67,000/- on account of professional fee to M/s Mott Mc Donald for preparing ‘project appraisal report’ by ignoring the fact that the assessee could not discharge its initial onus by not furnishing any detail and documents to prove that the expense incurred was of revenue nature?

2.

Whether on the facts and circumstances of the case, the Ld. CIT(A

The order continues below.

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