Deep & Veer Pvt. Ltd., New Delhi vs Department Of Income Tax

Income Tax Officer vs. M/s. Deep & Veer Pvt. Ltd. Ward-10(1), C.R. Bldg. 21/4, Indira Vikas Colony, New Delhi. New Delhi. (Appellant) (Respondent

Appellant by :Shri Parwinder Kaur, Sr. DR Respondent by :None

Date of Hearing :30.6.2015 Date of pronouncement : 30.6.2015

ORDER

PER INTURI RAMA RAO, AM

This is an appeal filed by the revenue against the order of

Commissioner of Income Tax (Appeals) -XVII, New Delhi dated 27th

May, 2013 for the asstt. year 2006-07. The revenue raised the following

grounds of appeal:-

1. " On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition made by AO of Rs.

ITA No. 4596/Del/2013 ITO Vs. M/S. Deep & Veer Pvt. Ltd.

22,63,500/- on account of non-verifiable hire charge expenses, by admitting additional evidence and without considering the genuineness of the expenditure as well as applicability of TDS provisions in totality.

2. On the facts and circumstances of the case and in law, the CIT(A) has erred in deleting addition on account of unexplained advance to the extent of Rs. 3,80,365/- by relying on additional evidences and without allowing an opportunity to the Department to examine these evidences."

2. Brief facts of the case are that the appellant is a civil contractor

and also involved in hiring of goods vehicles. The return of income for

asstt. Year 2006-07 was e-filed on 27.11.2006 at a total income of Rs.

2,50,710/-. The assessment was completed u/s 144 on 26.12.2008 at a

total income of Rs. 1,00,12,410/-. The AO had added Rs. 73,656/- being

employees contribution to PF Rs. 73,656/- being employer's contribution

to PF. The AO also disallowed Rs. 2,56,022/- being the interest paid on

loans as no evidence was submitted to substantiate the expense debited

in the P & L A/c. The other disallowance was Rs. 75,395/- being 1% of

diesel expenses and disallowance of depreciation amounting to Rs.

3,37,500/- as bills/vouchers regarding the addition of Rs. 22,50,000/- to

fixed assets were not produced before the AO. The AO had also

disallowed Rs. 2,01,490/- being 10% of the total sundry creditors as no

details were filed during the assessment proceedings. The AO further

2 ITA No. 4596/Del/2013 ITO Vs. M/S. Deep & Veer Pvt. Ltd.

disallowed Rs. 8,13,893/- out of advances received by the appellant as

the appellant did not file confirmation from M/s. Orient Structure

Engineers (P) Ltd. For Rs. 4,13,893/- and from M/s. Nav Bharat Nirman

for Rs. 4,00,000/-. The major disallowance made was for non deduction

of TDS on hire charges amounting to Rs. 79,32,092/-.

3. Being aggrieved the appeal was filed before CIT(A)-XVII, New

Delhi who vide order dated 27.5.2013 granted relief on the payment of

Rs. 22,63,500/- on the ground that the TDS provisions are not

applicable since the payments made were less than Rs. 20,000/- and as

regards balance payment of Rs. 56,68,592/- the matter was sent back

to the AO for fresh verification as to applicability of TDS provisions and

with regard to the addition of unexplained advances received from two

parties namely M/s. Orient Structure Engineers (P) Ltd. and M/s. Nav

Bharat Nirman. The CIT(A) concurred with the following submissions :-

"It is further submitted that on perusal of account statement of M/s. Orient Structure Engineers(P) Ltd. it reveals that they have shown a debit balance (Recovery) of Rs. 3,80,365/- whereas the appellant company has shown advance of Rs. 4,13,893/- thus there is a difference of Rs. 33,528/- therefore the same amount of Rs. 33,528/- is offered as upheld addition."

Therefore granted the relief of Rs. 3,80,365/- and balance of Rs.

33,528/- stated to have been received from M/s. Orient Structure

Engineers (P) Ltd. was confirmed and the amount of Rs. 4 lacs received

3 ITA No. 4596/Del/2013 ITO Vs. M/S. Deep & Veer Pvt. Ltd.

from M/s. Nav Bharat Nirman was also confirmed for non production of

any confirmation letter:-

4. Being aggrieved, the revenue had come up with the present

appeal.

5. None present on behalf of the respondent-assessee company

before us. The Ld. Sr DR. submitted that the matter may be sent back

to the file of the AO for verification of details filed before the CIT(A).

Accordingly, we remit the matter back to the file of AO for de novo

assessment after affording a reasonable opportunity of being heard in

this regard to the assesee.

In the result , the appeal is partly allowed for statistical purpose.

Order pronounced in the open court on 30th June, 2015.

Sd/- sd/- (DIVA SINGH) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER

Dated: the 30th June, 2015

'veena'

Copy of the Order forwarded to:

1. Appellant 2. Respondent 3. CIT

4 ITA No. 4596/Del/2013 ITO Vs. M/S. Deep & Veer Pvt. Ltd.

4. CIT(A) 5. DR 6. Guard File By order Dy. Registrar

5