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Income Tax Appellate Tribunal, DELHI BENCHES: “SMC”: NEW DELHI
Before: SHRI R.S. SYAL
DCIT Circle-3(2), Vs. M/s Augere Wireless New Delhi Broadband India Private Limited, Plot No. 16, Udyog Vihar, Phase-IV, Gurgaon- 122015 PAN: AAICA7528G (Appellant) (Respondent) Department By : Sh. B.R. Mishra, Sr. DR Assessee By : Sh. Alok Vasant, CA & Ms. Richa Soni, CA Date of Hearing : 21.06.2018 Date of Pronouncement : 22.06.2018 ORDER PER R.S. SYAL, VP: This appeal by the Revenue is directed against the order passed by the learned CIT(A)-I, New Delhi on 6.6.2017 in relation to assessment year 2012-13.
Briefly stated facts of the case are that the assessee filed the return declaring loss of Rs.13,95,00,406/-. Since the business activity had not commenced, the assessee, at the instance of the Assessing Officer, surrendered the expenses claimed in the Profit and loss account. As a result of that, the Assessing Officer initiated the process of computation of total income with Nil income as against loss declared by the assessee in its return at Rs.13,95,00,406/-. Thereafter, the Assessing Officer made a further addition of Rs.45,35,050/-, which amount was credited by the assessee in its Profit and loss accounts. The learned CIT(A) deleted the addition.
3. I have heard both the sides and perused the relevant material on record. It is observed that the addition made by the Assessing Officer simply represents reimbursement of certain expenses incurred by the assessee out of the total expenses debited to the Profit and loss account to the tune of Rs.13,78,53,255/-. Once the entire expenses have been surrendered by the assessee and disallowed by the AO, the Assessing Officer could not have separately taxed reimbursement of expenses to the tune of Rs.45,35,050/-. The situation would have been different if the assessee had claimed such expenses and deduction had been allowed. In that case, the reimbursement of 2 such expenses would have merited inclusion in the total income. In view of the foregoing facts, I am of the considered opinion that the learned CIT(A) was justified in deleting the addition.
In the result, the appeal is dismissed.
The order pronounced in the open court on 22nd June, 2018.