ITO, NEW DELHI vs. M/S. NIRVAN CLOTHING COMPANY LIMITED, NEW DELHI

Date of Hearing 02.05.2016 Date of Pronouncement 05.05.2016 ORDER

PER DIVA SINGH, JM

– 1. “On the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the addition of Rs.1,27,856/- made by the AO on account of ‘product development expenses’ by treating the same as revenue in nature ignoring the fact that the expenses are of enduring nature and assessee would take benefit of these expenses in subsequent years. 2. “On the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the addition of Rs.4,98,439/- made by the AO on account of disallowance of setting off b/f losses with interest income on FDR ignoring the fact that interest on FDR comes under the head “income from other sources”.

3. The appellant craves to be allowed to add any fresh grounds of appeal and/or delete or amend any of the grounds of appeal.”

2. Considering the amount at stake for the Revenue, both the parties were required to address Circular No.21/2015 dated 10th December, 2015 of CBDT. Considering the same in the facts on record, the Ld. Sr. DR fairly conceded that I.T.A .No.-3641/Del/2014 the departmental appeal has been filed wherein the tax effect involved is much less than Rs.10 lakh.