IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH: `C': NEW DELHI)
BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER
AND
SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER
ITA No:- 6748/Del/2015
(Assessment Year: 2012-13)
Tarika Agrotech India Ltd., ITO,
LG-1 & 3, R-23 Nehru Vs. Ward 25(1),
Enclave New Delhi-110019. New Delhi.
PAN No: AAACT6013B
APPELLANT RESPONDENT
Assessee by : Sh. B.L Gupta, ITP/AR
Revenue by : Sh. K. Hauthang, Sr. DR,
ORDER
PER: ANADEE NATH MISSHRA, AM
This appeal by the Assessee is filed against the order of Ld. CIT(A)-9, New
Delhi, dated 23.10.2015 for Assessment Year 2012-13. In the Assessment Order
dated 16.01.2015 U/s 143(3) of Income Tax Act, 1961 (for short, "The I.T. Act");
the Assessing officer disallowed the claim of business expenses amounting to
total of Rs. 22,47,363/- and also further disallowed assessee's claim of
ITA No.-6748/Del/2015.
M/s Tarika Agrotech India Ltd.
depreciation amounting to Rs. 9,68,237/-. The Assessee filed appeal before the
Ld. CIT(A), who, vide order dated 23.10.2015, confirmed the above
disallowances, upholding the view of the Assessing Officer that the Assessee has
not carried out business activities. The Ld. CIT(A) also rejected the assessee's
alternate claim that the expenses were allowable U/s 57(iii) of I.T. Act.
Aggrieved, the Assessee filed this present appeal before the Income Tax
Appellate Tribunal (ITAT) with the following grounds of appeal:-
"On the facts and in the circumstances of the case and in law, the Ld. CIT(A)
was incorrect and unjustified in
i. Confirming the addition of Rs. 22,47,363/- incorrectly made by the
AO.
ii. Disallowing the claim of expenses of Rs. 22,47,363/-
iii. Confirming the disallowance of depreciation of Rs. 9,68,237/- by
olding that there was no business carried on by the Assessee.
iv. Holding that the expenses and depreciation cannot be allowed in this
year only because there was no business activity during this year
even when the business activity during this year even when the
business had not closed of the company wind up which continued to
be in existence as also in the earlier."
(2) At the time of hearing before us, the Appellant filed following written
submissions:
i. The assessee had earned generator hire charges of Rs 1,02,000/-. The assessing
officer held that such charges should be treated as income from other sources.
Besides the AO disallowed the deprecation as claimed as per the deprecation
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M/s Tarika Agrotech India Ltd.
chart. Expenses as per the Profit and Loss account were also disallowed. In the
first appeal the CIT(A) had confirmed the order of the AO in respect of these
disallowances. We are in appeal now before the Hon'ble ITAT.
ii. Exactly similar point was involved in for the Assessment Year 2013-14 before the
CIT(A) where also the assessee has declared the same amount of income from
generator hire charges. The CIT(A) held that it was a business income. CIT(A)
also held that expenses as per the Profit and Loss account claimed by the
assessee were also allowable. Deprecation claimed was also allowed. There is no
further appeal by the Revenue again this CIT(A) Order.
iii. In the Assessment Order for the year 2014-15 the assessing officer allowed the
depreciation as claimed as per the depreciation chart. The assessing officer also
allowed the expenses as claimed in Profit and Loss account. Reference to the
ITAT Order for the Assessment Year 2001-02 and 2002-03 have been made in
the Order of the CIT(A) for the Assessment Year 2013-14. In these appeals the
Hon'ble Tribunal held that income from vehicle charges was assessable for
deduction on account of expenses as claimed in profit and loss account.
Deprecation was also allowed. In the circumstances it is submitted that appeal of
the assessee may kindly be allowed."
The Appellant also filed a Paper Book of 27 pages containing following
particulars:
a) Copy of CIT(A) Order for the Assessment Year 2013-14
b) Copy of The AO Order for the Assessment Year 2014-15
c) Copy of the Return for Assessment Year 2014-15
d) Copy of the ITAT Order for the Assessment Year 2001-02 and 2002-03.
(2.1) At the time of hearing before us, the Ld. Counsel for Assessee submitted
that the Ld. CIT(A) had decided the identical issues regarding allowability of
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M/s Tarika Agrotech India Ltd.
business expenses and regarding allowability of depreciation in favour of the
assessee for Assessment Year 2013-14; which was accepted by Revenue and no
appeal was filed by Revenue. The Ld. Counsel for Assessee further submitted
that in Assessment Year 2014-15, the Assessing Officer himself allowed the
business expenses as well as depreciation on the aforesaid issues. It was further
submitted by the Ld. Counsel for Assessee that the disputed issues in the present
appeal before us, in ITAT, are squarely covered in favour of the assessee by
virtue of order of ITAT, Delhi Benches, Delhi in assessee's own case for
Assessment Years 2001-02 & 2002-03 vide consolidated order dated 29.08.2008
of ITAT in ITA Nos. 1808 & 1809/Del/2006. The Ld. Counsel for Assessee further
submitted that the Ld. CIT(A) had referred to the aforesaid ITAT order dated
29.08.2008 in deciding the assessee's appeal for Assessment Year 2013-14.
However, the Ld. CIT(A) has not followed the aforesaid ITAT order dated
29.08.2008 in deciding the assessee's appeal for this year i.e. for Assessment
Year 2013-14. In view of these submissions, the Ld. Counsel for Assessee
contended that the Assessee's appeal should be allowed, being squarely covered
in favour of the assessee by aforesaid order dated 29.08.2008 of ITAT in
assessee's own case. The Ld. Departmental Representative ("DR", for short) on
whose request the hearing was adjourned to 03/10/2018 to enable him to peruse
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M/s Tarika Agrotech India Ltd.
the written submissions and Paper Book filed by the Appellant; relied on the
orders of the lower authorities namely aforesaid Assessment Order dated
16.01.2015 and aforesaid Order dated 23.10.2015 of Ld. CIT(A). However, the
Ld. DR failed to distinguish the facts of this year with facts of Assessment Year
2014-15 in which Revenue had allowed assessee's claim for business expenses
and depreciation and no addition was made by the Assessing Officer on these
issues. The Ld. DR also failed to distinguish facts of this year with the facts of
Assessment Year 2013-14 in which the Ld. CIT(A) deleted the additions made by
the Assessing Officer on account of disallowance of business expenses and
depreciation in Assessment Year 2013-14; and Revenue had accepted the order
of Ld. CIT(A) and did not file any appeal in A.Y. 2013-14. The Ld. DR further
failed to distinguish the facts of this year with the facts of Assessment Years
2001-02 and A.Y. 2002-03, in which; ITAT dismissed Revenue's appeal and
allowed the Assessee's claim for deduction on account of business expenses and
depreciation. We find that the issues regarding allowability of business expenses
and depreciation were decided in favour of the Appellant by the order of ITAT in
assessee's own case for A.Ys. 2001-02 & 2002-03, vide consolidated order dated
29.08.2008 in ITA Nos. 1808/Del/2006 & 1809/Del/2006. As the Ld. DR failed to
distinguish the facts of this year with the facts of A.Y. 2001-02 & 2002-03 and
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M/s Tarika Agrotech India Ltd.
further, as the Ld. DR failed to distinguish the facts of this year with facts of
Assessment Year 2014-15 in which no such additions were made and
furthermore, as the Ld. DR failed to distinguish the facts of this year with facts of
A.Y. 2013-14, in which order of Ld. CIT(A) deleting the disallowances of business
expenses and depreciation was accepted by Revenue; we delete the aforesaid
addition of Rs. 22,47,363/- (on account of disallowance of business expenses)
and the aforesaid addition of Rs. 9,68,237/- (on account of disallowance of
depreciation); respectfully following the order of ITAT wherein claim for business
expenses and depreciation was accepted in assessee's own case for Assessment
Years 2001-02 & 2002-03 by consolidated order dated 29.08.2008 in Appellant's
own case in ITA Nos. 1808 & 1809/Del/2006.
(3) In the result, appeal of the Assessee is allowed for statistical purposes.
Order pronounced in the open court on 09/10/2018-
Sd/- Sd/-
(H.S. SIDHU) (ANADEE NATH MISSHRA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated: 09.10.2018
Pooja/-
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ITA No.-6748/Del/2015.
M/s Tarika Agrotech India Ltd.
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR: ITAT
ASSISTANT REGISTRAR
ITAT NEW DELHI
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ITA No.-6748/Del/2015.
M/s Tarika Agrotech India Ltd.
Date of dictation
3-8/10/2018
Date on which the typed draft is placed before the
dictating Member 8.10.2018
Date on which the typed draft is placed before the
Other Member
Date on which the approved draft comes to the Sr.
PS/PS
Date on which the fair order is placed before the 8.10.18
Dictating Member for pronouncement
Date on which the fair order comes back to the Sr. 9.10.18
PS/PS
Date on which the final order is uploaded on the 9.10.18
website of ITAT
Date on which the file goes to the Bench Clerk
Date on which the file goes to the Head Clerk
The date on which the file goes to the Assistant
Registrar for signature on the order
Date of dispatch of the Order
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