TaxTMI 
TaxTMI 
TaxTMI 
2019 (9) TMI 89
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....allowed by the AO u/s 43B of the I.T. Act on account of advance excise duty. 2. Ld. CIT(A) erred in law and on facts of the case in directing the AO to allow the assessee deduction of Rs. 1,43,34,019/- which was disallowed by the AO on account of provision for leave encashment. 3. Ld. CIT(A) erred in law and on facts of the case in directing the AO to allow the assessee loss of Rs. 44,65,663/- pertaining to DITTM. 4. The appellant craves leave, modify, add or forego and ground(s) of appeal at any time before or during the hearing of this appeal. ITA No.- 2489/Del/2015 "1. Ld. CIT(A) erred both in law and on facts of case by failing to treat the assessment order passed by Ld. AO to be infructuous and void being based on original return when revised return is duly filed. 2. Ld. CIT(A) erred both in law and on facts of case by: 2.1 directing the Ld. AO to consider the revised return 2.2. allowing another opportunity to the Ld. AO for adjudicating upon the revised return through remand report when time period allowed by section 153(1) for concluding the assessment u/s 143(3) had already lapsed. 2.3 failing to appreciate that the remand report issued by the Ld.....
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....ome as against the claim of the assessee to treat the same as income from business. 2.3 Restricting the claim of expenses to 30% of receipts from "Dilli Haat". 3. Without prejudice to Ground No. 2, Ld. CIT(A) erred in confirming the arbitrary disallowance of expenditure by the Ld. AO, while determining the income from Dilli Haat, as: 3.1 proportionately attributable expenses w.r.t. rental income amounting to Rs. 1,15,41,687/- 3.2 50% of other remaining expenses on account of NDMC share amounting to Rs. 1,15,33,415/- 4. Ld. CIT(A) erred in law and on facts of the case by confirming the rejection of claim of 4.1 Provision for Doubtful Debts amounting to Rs. 4,15,593/-. 4.2 Deduction of Rs. 32,59,477/- being revenue booked under damage charges not representing real income of assessee." ITA No. 2792/Del/2015 "1. Whether on the facts and in the circumstances of the case and in law, Ld. CIT(A) has erred in deleting addition on account of deduction claimed u/s 43B of Rs. 7,50,48,000/- being advance excise duty payment / deposit? 2. Whether the CIT(A) was correct in allowing deduction of advance excise duty paid u/s 43B of the Act. Even though the liability to ....
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....2 (Deptt): order of Hon'ble Delhi High Court in assessee's case in AY 2008-09 and AY 2009-10. 12. Re. Ground No. 3(Deptt): Order of Ld. AO in assessee's case for AY 2005-06. 13. Re. Ground No. 4(Deptt). Notification no. 53/2011, dt. 30.09.2011 in relation to section 35(1)(ii) and names of institutes covered under CSIR. 14. Re. Ground No. 4 (Deptt): Confirmation by CRRI for receipts of payment from DTTDC 15. Re. Ground No. 4 (Deptt): order of DCIT (Exemption) New Delhi u/s 10(23C)(iv) regarding exemption to CSIR. 16. Re. Ground No. 5 (Deptt): Order of Ld. CIT(S) dt. 30.01.2019 in assessee's case in AY 2013-14. 17. Re. Ground No. 5 (Deptt): MOU issued in 1993 by Ministry of Tourism, GOI and renewal letter dt. 08.09.2005. 18. Re. Ground No. 5 (Deptt) : Abstract of DOD minutes held in Sept. 2007 related to taken over of DITTM by DTTDC. 19. Re. Ground No. 6(Deptt): Invoices for tourism promotion expenses 20. Re. General Ground: submission to Ld. CIT(A) Dt. 20.06.2014 21. Re. Ground 1 & 2: Original and revised computation 22. Re. Ground NO. 2 & 3 : Copy of memorandum of association and licence deed. 23. Re. Ground No. 2 & 3 : Balance sheet and profit &....
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....raftsmen. In the above hue, we have absolutely no doubt in our mind that income of Rs. 1.82 crore earned by the assessee from use of craft stalls on 15 days basis is 'Business income' and has been considered by the authorities below as 'Income from house property'. The impugned order is pro tanto vacated. 22. Turning to the remaining amount of Rs. 54.00 lac, we find that the same consists of Rs. 41.00 lac, being, income from space rented on regular basis and Rs. 12.99 lac, being, licence fee for allowing activities of food court, souvenir shops, bank and PCO. This amount of Rs. 54 lac has been earned by the assessee from the letting out of its permanent structures. The same cannot be equated with income of Rs. 1.82 crore discussed above, being, licence fee for use of craft stalls on 15 day basis. The Id. AR was fair enough not to contest the taxability of Rs. 54.00 lac as income held by the lower authorities to be falling under the head 'Income from house property." The AR of the Assessee submitted that same view may be taken for A.Y. 2010-11 and A.Y. 2012-13 also. (2.2) The Ld. Departmental Representative ("DR", for short) fairly conceded that the iss....
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....ense fees allowing activities of food court, souvenir shops, 3,38,54,654 Bank and PCO Total (A) 3,51,47,456 c. Other receipts (brand exhibition stage) 78,82,381 d Entry Ticket Charges 1,60,16,025 e Misc. Receipts 7,71,526 Total (B) 2,46,69,932 Total Gross receipts (C ) 5,98,17,388 As against the total receipts at "Dilli Haat" amounting to aforesaid Rs. 5,98,17,388/- the total expenses incurred by the assessee at "Dilli Haat" was Rs. 3,03,00,709/-; and the net income of Rs. 2,95,16,679/- has been shown by the assessee as business income from "Dilli Haat". The Ld. AO at Page No. 10 of his order held that out of the total receipts of Rs. 5,98,17,388/- from "Dilli Haat", Rs. 3,38,54,653/- has been earned on account of rental income being the aggregate of following: Income from space rented on regular basis 98,87,917/- Craft stall 2,39,66,739/- Total 3,38,54,653/- While computing Income under the head House Property, the Ld. AO allowed expenses @ 30 % of the rental income, i.e. he allowed only Rs. 1,01,56,396/- as expenses against rental income of Rs. 3,38,54,653/-; and disallowed the balance expenses of Rs. 1,01,03,121....
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.... and Gains of Business or Profession" and the balance amount of Rs. 98,87,914/- for A.Y. 2010-11 and Rs. 1,98,51,494/- for A.Y. 2012-13 is to be assessed as "Income from House Property". Again, respectfully following aforesaid order dated 28.03.2018 of Co-ordinate Bench of ITAT, Delhi in Assessee's own case, for A.Y. 2004-05 to A.Y. 2009-10, we also direct the AO to allow necessary deductions against these incomes as per law, after allowing opportunity of being heard to the assessee. Grounds 5 and 6 in Assessee's appeal for A. Y. 2010-11 and Grounds 2 and 3 in Assessee's appeal for A. Y. 2012-13 are accordingly disposed off with the aforesaid directions. (3) Ground 7 in Assessee's appeal for A.Y. 2010-11 pertains to the addition of Rs. 61,81,344/- to the income of the assessee on account of understatement of bank interest. The AO had initially made addition of Rs. 6,79,78,189/- in the original Assessment Order, but later revised the same to Rs. 61,81,344/-. The addition was made by the AO on the ground that although the assessee had claimed credit for Tax Deducted at Source ("TDS", for short) on the interest income from the bank, corresponding interest income was not offered to t....
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....ully with the proposition that income of a taxpayer is not required to be computed merely with reference to the TDS Certificate, but assessment of an income is an altogether independent exercise. We wish to add that income of an Assessee under the head "Profits and Gains of Business or Profession" and "Income from other sources" is to be determined regardless of whether tax was deducted at source in respect of amounts received or accrued to the assessee. What is relevant is the system of accounting regularly employed by the assessee - whether it is cash system or mercantile system. The assessee is not permitted to use mixed or hybrid system of accounting under which some items of income / expenditure are accounted for under cash system and the remaining items of income / expenditure are accounted for under mercantile. In this context, it is useful to refer to statutory provisions regarding method of accounting contained in Section 145 of Income Tax Act, ("I.T. Act", for short); relevant portion of which is reproduced below:- "145 (1) Income chargeable under the head "Profits and gains of business or profession" or "Income from other sources" shall, subject to the provisions of s....
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....sector undertaking. Unless specifically provided under law or intended by necessary implication under specific provisions of law, or held in binding judicial precedents; a public sector undertaking cannot legitimately claim a preferential treatment in determination of its tax liabilities. Therefore, we hold that the facts that assessee is a public sector undertaking is irrelevant. It is also immaterial whether the assessee was facing liquidity crunch. When the income has to be assessed during the year and when tax is to be paid in accordance with law on such income, the assessee cannot postpone the year in which the income will be offered to tax merely because the assessee has a liquidity crunch. Requirement of liquid funds by an assessee, howsoever genuine the requirement may be, cannot be accepted as a legitimate justification for postponement of the year in which income will be offered by the assessee. Therefore, in the facts of the case before us, the exercise of determining assessee's income lead us to the conclusion that the aforesaid income amounting to Rs. 61,81,344/- by way of interest on Fixed Deposits in Bank is to be assessed during the year. Accordingly, we confirm the....
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....d 3 in Revenue's appeal for A.Y. 2010-11 and Ground 2 in Revenue's appeal for A.Y. 2012-13 pertain to disallowance of the provision for the Leave Encashment. The AO invoked Section 43B(f) of I.T. Act and made additions amounting to Rs. 1,80,75,136/- for A.Y. 2010-11 and Rs. 1,43,34,019/- for A.Y. 2012-13; on the ground that these amounts were not actually paid by the assessee till the due dates of filing of return. At the time of hearing before us, the Ld. DR submitted that this issue is covered in favour of Revenue by aforesaid order dated 28.03.2018 of Co-ordinate Bench of ITAT, Delhi in assessee's own case for A.Y. 2004-05 to A.Y. 2009-10. The Ld. AR of the assessee agreed that this issue is covered against the assessee vide aforesaid order dated 28.03.2018 of Co-ordinate Bench of ITAT, Delhi in assessee's own case. Respectfully following the aforesaid decision of Co-ordinate Bench of ITAT, Delhi vide order dated 28.03.2018; we also decide this issue in favour of Revenue and against the assessee. Accordingly, the aforesaid additions amounting to Rs. 1,80,75,136/- for A.Y. 2010-11 and Rs. 1,43,34,019/- for A.Y. 2012-13 are confirmed. (7) Ground 4 in Revenue's appeal for A.Y. 20....
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.... issue is confirmed and Ground 4 of Revenue's appeal for A.Y. 2010-11 is accordingly dismissed. (8) Ground 5 of Revenue's appeal for A.Y. 2010-11 and Ground 3 of Revenue's appeal for A.Y. 2012-13 pertain to the disallowances of loss claimed by the assessee, amounting to Rs. 32,79,998/- for A.Y. 2010-11 and Rs. 44,65,663/- for A.Y. 2012-13, On the running of Delhi Institute of Tourism and Travel Management ("DITTM", for short). In A.Y. 2010-11 the disallowance was made by the AO, stating as under: "The assessee had claimed a loss of Rs. 32,79,998/- in respect of Delhi Institute of Tourism and Travel Management. The assessee was asked to submit the details in respect of above said loss. The assessee in its reply stated that "For these please refer to Profit & Loss Accounts of DITTM filed in the Annual report. The Net loss as appearing in P/L A/c and certified by the auditors have been claimed" and filed annual accounts for the year 2010-11 along with Note No. 1 Notes to accounts forming part of Annual accounts states that "The Management of Delhi chapter of the Institute of Tourism and Travel Management was given to the corporation of 1st January, 1993 initially for a period of ....