CIT v. Ansal Landmark Township (P.) Ltd.

Backbone Tarmet Ng Jv, Ahmedabad vs. The Income-Tax Officer, Ward-5(2)(2), Ahmedabad

The appeal of the assessee is allowed in above terms

Bench: Mrs. Annapurna Gupta & Shri T.R. Senthil Kumarassessment Year : 2005-06 Vs. Backbone Tarmet Ng Jv, The Income-Tax Officer, A-9, Kumud Apartment, Ward-5(2)(2), Near Stadium Five Roads, Ahmedabad Navrangpura, Ahmedabad-380009 Pan : Aaaab 3885 F अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Sakar Sharma, Ca Revenue By : Shri Vipul Chavda, Sr. Dr सुनवाई की तारीख/Date Of Hearing : 28/03/2024 घोषणा की तारीख /Date Of Pronouncement: 05/04/2024 आदेश/O R D E R Per Annapurna Guptapresent Appeal Has Been Filed By The Assessee Against Order Of The Commissioner Of Income-Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Hereinafter Referred To As "Cit(A)" For Short] Dated 20.06.2022 Passed Under Section 250 Of The Income-Tax Act, 1961 [Hereinafter Referred To As "The Act" For Short], For The Assessment Year (Ay) 2005-06. 2. Grounds Raised Are As Under :- “1. The Ld. Cit(A)-Nfac Erred On Facts & In Law In Deciding Appeal Ex- Parte Without Appreciating That Business Of The Appellant Has Been Closed Since Covid-19 & Therefore, In Absence Of Any Office, Notice(S) Claimed To Be Have Been Served Through Email Could Not Be Communicated To The Partners Of The Appellant. Without Prejudice To This It Is Submitted That No Notice(S) Came To Be Served On The Appellant At The Designated Email Stated In Form No. 35 For The Purpose Of Service Of Notice(S). Backbone Tarmet Ng Jv Vs. Ito Ay : 2005-06 2

…enses. The AO accordingly invoked the provisions of Section 40(a)(ia) of the Act and disallowed the expenses. 11. In the first appeal, the CIT(A) relied upon the decision of the Hon'ble Delhi High Court in the case of Ansal Lankmark Township (P.) Ltd. Vs. CIT 279 CTR 384 (Delhi) which hold that 2nd proviso to Section 40(a)(ia) of the Act is retrospective in nature and applicable to the AY 201112 in question. In the light of the aforesaid decision, the CIT(A) held remitted the matter back to the file of the AO to allow the aforesaid expense, if it is found that the recipients have offered the payments made by the…