BRACE IRON & STEEL P.LTD,NEW DELHI vs. ADDL.CIT, SPECIAL RANGE-2, NEW DELHI

ITA 8617/DEL/2019Status: DisposedITAT Delhi03 August 2021AY 2015-16188 pages
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What did the Tribunal hold?

The Tribunal held that the transaction between the assessee and M/s. Bhushan Steel Limited was genuine, not a sham or paper transaction, as supported by documentation and a High Court decision. Consequently, the assessee was entitled to claim depreciation, upfront fee, and interest expenditure.

What were the facts?

The assessee claimed depreciation on plant and machinery purchased from M/s. Bhushan Steel Limited. The Assessing Officer (AO) noted that the asset was put to use much later and questioned the genuineness of the transaction due to the assessee's lack of financial worth and prior business activity. The AO also observed a significant difference between the book value and the purchase price of the assets.

What were the issues?

Whether the transaction for the purchase of plant and machinery was genuine, and if so, whether the assessee was entitled to claim depreciation, upfront fee, and interest expenditure.

Which sections of the Income-tax Act were involved?

Section 32,Section 43(1)

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Income Tax Appellate Tribunal, DELHI BENCHES “A” : DELHI

Before: SHRI R.K. PANDA & Ms. SUCHITRA KAMBLE

Hearing: 01.06.2021Pronounced: 03.08.2021

PER R.K. PANDA, A.M. This appeal filed by the Assessee is directed against the Order Dated 13.09.2019 of the Ld. CIT(A)-2, New Delhi, relating to A.Y. 2015-2016. 2 ITA.No.8617/Del./2019 M/s. Brace Iron & Steel Pvt. Ltd., New Delhi.

2.

Facts of the case, in brief, are that the assessee is a Company engaged in the business of Service Sector. It filed its return of income on 30.09.2015 declaring loss of Rs.72,10,52,562/-. During the course of assessment proceedings, the A.O. noted that assessee has claimed

The order continues below.

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