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Income Tax Appellate Tribunal, DELHI ‘E’ BENCH,
Before: SHRI N.K. BILLAIYA, & SHRI KULDIP SINGH
PER N.K. BILLAIYA, ACCOUNTANT MEMBER:-
The above two captioned appeals by the assessee are preferred against the separate orders of the ld. CIT(A) - 30, New Delhi dated 24.11.2014 and 21.11.2014 pertaining to A.Ys 2006-07 and 2009-10 respectively. Since common issues are involved in both the appeals, they were heard together and are disposed of by this common order for the sake of convenience and brevity.
The solitary issue relates to the disallowance of Rs. 9,93,622/- made u/s 40A(3) of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short].
Facts on record show that assessment order dated 25.03.2013 is framed u/s 153A of the Act by which returned income of Rs. 5.61 lakhs was assessed at Rs. 15.55 lakhs, after making addition on account of disallowance u/s 40A(3) of the Act amounting to Rs. 9.93 lakhs.
Facts on record further show that an identical disallowance was made in assessment framed u/s 143(3) of the Act and the matter travelled upto the Tribunal and the Tribunal, vide consolidated order dated 14.09.2015 framed in the appeals of group cases where the appellant in hand was also in appeal in and the impugned issue was considered and decided by the co-ordinate bench at para 37 of its order which reads as under:
“Ground No. 4 of the assessee's appeal relates to the sustenance of disallowance u/s 40A(3) of the Act. This issue is similar to the issue involved in the case of M/s Sunglow Overseas Pvt. Ltd. (supra). Therefore in view of our findings given in the said case in the former part of this order the disallowance sustained by the ld. CIT(A) is deleted.”
Respectfully following the findings of the co-ordinate bench, we do not find any merits in the addition made by the Assessing Officer and confirmed by the ld. CIT(A). We, accordingly, direct the Assessing Officer to delete the addition made u/s 40A(3) of the Act.
In the result, the appeal is allowed.
Ground No. 1 is general in nature and needs no adjudication.
Ground 2 with its sub-grounds was not pressed and is accordingly dismissed as not pressed.
Ground No. 3 relates to disallowance of Rs. 40 lakhs made u/s 40A(3) of the Act.
Facts on record show that the assessment order dated 25.03.2013 was framed u/s 153A of the Act and the returned income was assessed at Rs. 53.41 lakhs after making, inter alia, addition on account of disallowance made u/s 40A(3) of the Act at Rs. 40 lakhs.
Similar disallowance has been considered by us in [supra] wherein, following the decision of the coordinate bench, the disallowance has been deleted. The facts being mutatis mutandis similar to those of ITA No. 1343/DEL/2015, respectfully following the same, the addition is directed to be deleted.
In the result both the appeals of the assessee in and 1344/DEL/2015 are allowed.
The order is pronounced in the open court in the presence of both the rival representatives on 09.03.2021.