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Income Tax Appellate Tribunal, DELHI BENCH ‘F’, NEW DELHI
Before: Sh. Kul BharatDr. B. R. R. Kumar
ORDER
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeals have been filed by Revenue against the order of ld. CIT(A)-XXV, New Delhi dated 19.06.2018 and the order of ld. CIT(A)-38, New Delhi dated 01.03.2018.
In the Revenue has raised following grounds of appeal:
"(i) On the facts and under the circumstances of the case, the Ld.CIT(A) has erred in law in deleting the addition of Rs. 1,16,15,339/- on account of depreciation on fixed assets without appreciating the fact that the assessee company had failed to explain the basis for the ratio taken for capitalization of these assets during the year.
2 & 5588/Del/2018 Radius Infratel Pvt. Ltd. (ii) On the facts and under the circumstances of the case, the Ld. CIT(A) has erred in law in deleting the addition of Rs.2,06,07,004/- on account of various expenses without appreciating the fact that the assessee company had failed to give the exact details of the business purpose for which these expenses were incurred particularly when a major activity of the assessee was creation of capital work in progress during the year.”
In Revenue has raised following grounds of appeal:
“1. On the facts and under the circumstances of the case, the Ld.CIT(A) has erred in law and facts in deleting the addition of Rs. 7,82,12,745/- on account of addition of fixed assets which was by the way of transfer/ capitalization of telecom infrastructure of Rs. 139.25 crores from the capital work in progress after considering the appellate authorities order for AY 2013-14, without appreciating the fact that the assessee company had failed to explain the basis for the ratio taken for capitalization of these assets during the AY. 2013-14 and A.Y. 2014-15.
2. Whether on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deciding the matter for AY 2014-15 on the basis of the order of CIT(A)-38, Delhi for AY 2013-14.” : A.Y. 2013- Depreciation: 4. From the Assessment Order, we find that the Assessing Officer has disallowed depreciation on plant & machinery to the tune of Rs.1,16,15,339/- as the assessee has not complied to the notices issued by the Assessing Officer. The ld. CIT(A) obtained the remand report from the Assessing Officer wherein the AO categorically submitted that “documentary evidences in 3 & 5588/Del/2018 Radius Infratel Pvt. Ltd. the form of bills and various other supporting working and details were examined for all assets and the same was found to be satisfactory in an overall context”. Based on the remand report, the ld. CIT(A) deleted the addition. Since, the revenue authorities namely the AO and the ld. CIT(A) fairly accepted the acquisition of the capital assets after due verification, the appeal filed by the revenue is liable to be dismissed.
: A.Y. 2013-14 Disallowance of Expenses:
Owing to non-submission of details by the assessee, the Assessing Officer has disallowed 20% of employee benefit expenses, 50% of other expenses, 20% of travelling expenses and 20% of the rental expenses. The ld. CIT(A) obtained the remand report from the Assessing Officer wherein the AO categorically submitted that he has examined voluminous documentary evidences in the form of various bills and other documents. Since, the order of the ld. CIT(A) is based on the remand report of the AO, we decline to interfere with the order of the ld. CIT(A).
In the result, the appeals of the Revenue are dismissed. Order Pronounced in the Open Court on 29/09/2023.