TaxTMI 
TaxTMI 
2018 (1) TMI 142
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....he facts and circumstances of the case and in law, the Assessing Officer erred in completing the assessment U/S 143(3) of the Income Tax Act, 1961 without taking the account of facts available, and detailed explanations submitted duly placed on records by the appellant, in the course of assessment proceedings. The assessing officer has also made presumptive and arbitrary disallowances/ additions. 2. The learned assessing officer had made disallowances for loss on sale of motor car of Rs. 26686/-stated to have wrongly debited to profit and loss Account even the block of motor cars does not ceased to exists as on 31/03/2009, which is added back to assessee income, however the assessing officer did not allowed mandatory depreciation as per revised calculation which is available to the appellant at the time of sale of motor car in such circumstances. 3. Further the assessing officer has disallowed the expenses of Rs. 95,94,810/- claimed by the appellant as in the nature of revenue expenditure for renovation /restoration expenses treating as capital expenditure and is added back without correctly analyzing the commercial expediency involved without giving opportunity t....
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....ng after the affairs of the assessee could not file an appeal in time because he was busy in scrutiny assessments conducted by Revenue and also he was busy in audits. The said Chartered Accountant has given an affidavit to that effect which is placed in file. The Director of the assessee company has also filed an affidavit confirming that the delay in filing an appeal with the tribunal was mainly on account of negligence of the assessee's counsel CA Shri. V.A Mishra, being occupied in other professional engagements. The affidavit of Director is also placed in file. The learned DR objected to condonation of delay in filing of this appeal late by 42 days beyond the time stipulated u/s 253(3) of the 1961 Act. Thus, keeping in view interest of substantial justice vis-a-vis technicalities and in the light of decision of Hon'ble Supreme Court in the case of Collector , Land Acquisition v. Mst. Katiji & Ors. (1987) 167 ITR 0471(SC) , we are inclined to condone the delay of 42 days in filing this appeal late with the tribunal by the assessee beyond the time stipulated u/s 253(3) of the 1961 Act. 4. The assessee is engaged in the business of Cargo handling services. During the course of ....
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....ssary verifications and examination. Needless to say that the AO shall provide proper and adequate opportunity of being heard to the assessee in denovo proceedings in accordance with principles of natural justice in accordance with law. We order accordingly. 5.1. The next issue is w.r.t. disallowance of Renovation expenses. The A.O observed that the assessee has debited Rs. 95,94,810/- in Profit and Loss account on account of office renovation expenses . The assessee was asked to explain the same and the assessee submitted as under:- "Renovation expense amounting to Rs. 95,94,810 was incurred for hospitality business which the company intended to start as a diversification of business. The company undertook the renovation of a premises taken on lease under the name and style of "Pearl Hospitality" as a brand name to denote the hospitality business. The assessee company could not manage the start of the business because of local problems and other non-approval/non-sanctioning of various licenses and therefore its directors were of the view that the Company will be unable to take up this business in near future. Sir, the expenses on account of renovation on a ren....
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....er submitted before learned CIT-A but learned CIT-A did not admitted those additional evidences. 5.6 The Ld. DR fairly submitted that if the evidences are allowed to be admitted by tribunal then the matter can be restored to the file of the A.O for verification of these evidences and re-determination of the issue on merits after verification of the evidences. 5.7 We have considered rival contention and perused the material on record . We have observed that the assessee has incurred expenses of Rs. 95,94,810/- on account of renovation expenses of the premises for his hospitality business wherein renovation was carried out by the assessee . The assessee could not file the evidences before the A.O to substantiate its claim that these are revenue expenses allowable under the Act. The assessee has furnished additional evidences before learned CIT-A who has refused to admit the same . After considering the material on record and hearing the parties , We are of the considered view that evidences which were filed before the learned CIT-A need to be admitted and adjudicated on merits in accordance with law to sub-serve the interest of substantial justice. Thus , we hereby direct to ad....
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....earned CIT-A that assessee has claimed these expenses on which income-tax was deducted at source which was paid late beyond the period prescribed u/s 40(a)(ia) , in AY 2010-11 and thus, the claim of expenses can be allowed in A.Y 2010-11 after verification by the AO . The learned CIT-A has dismissed this ground on the basis of submissions made by the assessee. We do not find any infirmity in the decision of learned CIT-A in dismissing this ground as in any case there will be no prejudice to the assessee as the same expenses shall be allowed in the subsequent year i.e. 2010-11 in which assessee has paid the TDS to the credit of Central Government , after due verification and examination by the AO. We dismiss this ground. 8.1 The next ground raised by the assessee was w.r.t. non granting of total TDS receivable by the assessee, wherein the assessee has been allowed credit of prepaid taxes to the tune of Rs. 44,04,422/- by Revenue as against the claim of TDS of Rs. 54,75,552/- on the grounds that the same was not reflected in 26AS. The learned CIT-A has already appreciated the grievance of the assessee and directed the A.O to verify the claim of the assessee and allow the credit of....