IN THE INCOME TAX APPELLATE TRIBUNAL
                        DELHI BENCH: `B' NEW DELHI

                BEFORE SMT DIVA SINGH, JUDICIAL MEMBER
                                   AND
                  SH. T.S.KAPOOR, ACCOUNTANT MEMBER

                             I.T.A .No.-5463/Del/2013
                          (ASSESSMENT YEAR- 2010-11)

DCIT,                                 vs Escorts Construction Equipment Ltd.,
Central Circle-12, Room No.-330,         Plot No.-219, Sector-58,
ARA Centre, Jhandewalan Extn.,           Ballabgarh-121004.
New Delhi                                PAN-AAACE2339R
(APPELLANT)                              (RESPONDENT)

                  Appellant by        Sh.K.K.Jaiswal, Sr. DR
                  Respondent by       Sh.Pardeep Kumar, CA

                        Date of Hearing             05.05.2015
                     Date of Pronouncement           15
                                                   .05.2015

                                       ORDER
PER DIVA SINGH, JM

      By the present appeal, the Revenue assails the correctness of the order
dated 31.07.2013 of CIT(A)-XIII, Delhi pertaining to 2010-11 assessment year on
the following grounds:-






      1. "On the facts and circumstances of the case and in law, the CIT(A)
         has erred in deleting the addition of Rs.28,31,000/- on account of
         the prior period expenses.
      2. On the facts and circumstances of the case and in law, the CIT(A)
         has erred in merely relying on the statement of the assessee that
         the prior period expenses had crystallized during the year, without
         submission of any evidence for crystallization of these expenses
         during the year."

2.    The subject matter of dispute in the present appeal is the addition made by
way of rejecting the claim of prior period expenses put forth by the assessee. The
AO required the assessee to justify the claim put forth stated to be on account of
material; manufacturing; operating sales; and administration.            Rejecting the
explanation in view of the fact that the assessee following mercantile system of
accounting was required to account for current year's income /expenses only as
per law, addition of the said amount was made.
                                                              I.T.A .No.-5463/Del/2013


3.     In appeal before the First Appellate Authority, considering the explanation
where the      expenses were stated to be on account of rent, erection and
commissioning     charges,   repair   and   maintenance    consultancy/professional
charges, rebook charges etc. the claim was allowed relying on Saurashtra Cement
and Chemical Industrial Ltd. vs. CIT 213 ITR 523 (Guj.) etc. Aggrieved by which
the Revenue is in appeal before the Tribunal.
4.     Both the parties have been heard whereas the ld. Sr. DR submits that no
evidence in support of the claim has been referred to in the impugned order and
there is no discussion thereon while granting relief.     The Ld. AR on the other
hand apart from relying upon the impugned order, submitted that in the
alternate the issue may be restored to the AO who has not cared to discuss the
facts on record. The alternate submission of the Ld. AR was agreed to by the
department.






5.     We have heard the rival submissions and perused the material available on
record. On a consideration of the peculiar facts and circumstances of the case,
we are of the view that for want of necessary discussion on facts both the
impugned order and the assessment order deserve to be set aside. The issue in
the circumstances is required to be considered afresh considering the facts on
record.   Accordingly, agreeing with the alternate submission of the Ld. AR the
issue is restored back to the file of the AO with the direction to pass a speaking
order in accordance with law after giving the assessee a reasonable opportunity of
being heard.
6.     In the result the appeal of the Revenue is allowed for statistical purposes.
       The order is pronounced in the open court on        15th   of May 2015.

        Sd/-                                                        Sd/-
 (T.S.KAPOOR)                                                     (DIVA SINGH)
ACCOUNTANT MEMBER                                            JUDICIAL MEMBER
Dated:   15/05/2015
*Amit Kumar/R.Naheed*

Copy   forwarded to:
1.      Appellant
2.      Respondent
3.      CIT
4.      CIT(Appeals)
5.      DR: ITAT

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                                                                I.T.A .No.-5463/Del/2013


                                                           ASSISTANT REGISTRAR
                                                                 ITAT NEW DELHI
                                                 Date

1.    Draft dictated on                     05.05.2015 PS

2.    Draft placed before author            05.05.2015 PS

3.    Draft proposed & placed before the                   JM/AM
      second member

4.    Draft  discussed/approved       by                   JM/AM
      Second Member.

5.    Approved Draft comes to        the        .05.2015   PS/PS
      Sr.PS/PS
6.    Kept for pronouncement on                            PS

7.    File sent to the Bench Clerk              .05.2015   PS

8.    Date on which file goes to the AR

9.    Date on which file goes to the
      Head Clerk.
10.   Date of dispatch of Order.




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