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Tarika Agrotech India Ltd.,LG-1 & 3, R-23 Nehru Enclave New Delhi-110019. vs. ITO, Ward 25(1), New Delhi.
October, 09th 2018
            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




                                           Page 2 of 8
                                                                          ITA No.-6748/Del/2015.
                                                                     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




                                            Page 3 of 8
                                                              ITA No.-6748/Del/2015.
                                                         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




                                   Page 4 of 8
                                                              ITA No.-6748/Del/2015.
                                                         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




                                    Page 5 of 8
                                                                  ITA No.-6748/Del/2015.
                                                             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/-




                                       Page 6 of 8
                                              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




                       Page 7 of 8
                                                           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




                                Page 8 of 8

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