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Income Tax Appellate Tribunal, DELHI BENCH: ‘A’ NEW DELHI
Before: SHRI H. S. SIDHU & SHRI L.P. SAHU
ORDER PER H.S. SIDHU, JM This appeal is filed by assessee against the Order dated 9.11.2015 passed by the Ld. CIT(A)-44, New Delhi relating to Assessment Year 2007-08 on the following grounds:-
On the facts and circumstances of the case and in law,
the Ld. CIT(A) has erred in confirming the disallowance of Rs. 16,87,415/- made by the AO on account of prior period expenses claimed in the P&L account without appreciating the nature of expenses, method of accounting regularly employed and explanation given in support of the claim.
2. On the facts and circumstances of the case and in law,
the Ld. CIT(A) has erred in restoring back the issue of claim of depreciation of Rs. 93,60,000/- to the file of the AO when complete details of the claim alongwith supporting documents were avaibale before him and the AO did not rebut the claim in the remand report received from him.
3. The appellant reserves to itself, the right to add, alter,
amend, substitute and / or withdraw any ground(s) of appeal on or before the date of hearing.
Facts narrated by the revenue authorities are not disputed by both the parties, hence, the same are not repeated here for the sake of brevity.
At the time of hearing, Ld. Counsel for the Assessee did not press the ground no. 2 and endorsed the same on the original grounds of appeal, hence, the same is dismissed as not pressed.
3.1 As regards ground no. 1 relating to confirming the disallowance of Rs. 16,87,415/- made by the AO on account of prior period expenses claimed in the P&L account without appreciating the nature of expenses, method of accounting regularly employed and explanation given in support of the claim is concerned. Ld. counsel for the assessee stated that assessee has filed all the necessary evidences supporting the claim in dispute, but the same has not been considered by the revenue authorities. He further stated that in the earlier years exactly the similar claim has been allowed by the revenue authorities and decided the issue in favour of the assessee. He further submitted that in the assessment year 2005-06 exactly similar issue has been decided in favour of the assessee by the ITAT in assessee’s own case in (AY 2005-06) vide order dated 09.03.2018 and this Order of the ITAT has been affirmed by the Hon’ble Delhi High Court by dismissing the ITA No. 961/2018 vide order dated 04.09.2018 filed by the Revenue. In this behalf, he filed the copy of the ITAT order dated 9.3.2018 as well as Hon’ble Delhi High Court Order dated 04.09.2018. Hence, he requested that the issue in dispute may be set aside to the file of the AO for fresh consideration in view of the aforesaid orders of the ITAT and the Hon’ble High Court, with the liberty to the assessee to file all the necessary evidences substantiating the claim of the assessee.
On the contrary, Ld. DR relied upon the orders of the authorities below, but has not raised any serious objection to the request of the Ld. Counsel for the assessee.
We have heard both the parties and perused the records especially the orders of the authorities below. We find that Ld. CIT(A) confirmed the disallowance of Rs. 16,87,415/- made by the AO on account of prior period expenses claimed in the P&L account. We further find considerable cogency in the contention of the Ld. Counsel for the assessee that assessee has filed all the necessary evidences supporting the claim in dispute, but the same has not been considered by the revenue authorities. We further find that in earlier years exactly the similar claim has been allowed by the revenue authorities and decided the issue in favour of the assessee. Even though in the assessment year 2005-06 exactly similar issue has been decided in favour of the assessee by the ITAT in assessee’s own case in (AY 2005-06) vide order dated 09.03.2018 and later the Hon’ble Delhi High Court in Revenue’s ITA No. 961/2018 vide its order dated 04.09.2018 has dismissed the appeal of the Revenue in limine, which was filed against the Tribunal’s order dated 09.3.2018, as aforesaid. Keeping in view of the facts and circumstances of the case, we are of the considered opinion that the issue raised in ground no. 1 needs to be set aside to the file of the AO with the directions to decide the same afresh, in view of ITAT order dated 09.3.2018 passed in ITA No. 4235/Del/2004 (AY 2005-06) as well as the order dated 04.09.2018 of the Hon’ble Delhi High Court in assessee’s own in ITA No. 961/2018. However, the assessee is directed to file all the necessary evidences to substantiate its claim and fully cooperate with the AO in the proceedings and did not take any unnecessary adjournment. We hold and direct accordingly.
In the result, the appeal filed by the assessee stands partly allowed for statistical purposes.
Order pronounced on 31/12/2018.