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Income Tax Appellate Tribunal - Delhi

Holcim India Pvt. Ltd., New Delhi vs Department Of Income Tax on 6 October, 2015

       IN THE INCOME TAX APPELLATE TRIBUNAL
           DELHI BENCH : SMC-I : NEW DELHI

     BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER
                       ITA No.4509/Del/2014
                      Assessment Year : 2010-11

ACIT,                              Vs.   Holcim India Pvt. Ltd.,
Circle-12(1),                            Suite No.304, 3rd Floor,
New Delhi.                               DLF South Court,
                                         New Delhi.
                                         PAN: AABCH3635C


      (Appellant)                           (Respondent)

           Appellant by : Shri R.S. Singhvi, CA
           Respondent by: Shri S.L. Anuragi, Sr.DR

           Date of Hearing      : 01.10.2015
           Date of Pronouncement: 06.10.2015

                                ORDER

This appeal by the Revenue is directed against the order passed by the CIT(A) on 30.5.2014 in relation to the Assessment Year 2010-11.

2. The only issue raised in this appeal is against the deletion of addition of Rs.1,55,71,643/-

ITA No.4509/Del/2014 2

3. Briefly stated, the facts of the case are that the assessee declared revenue receipts of Rs.8,74,667/-. As against that, the assessee claimed deduction for expenses amounting to Rs.1,55,71,643/-. The AO opined that the business of the assessee was not set up and, hence, no deduction could be allowed. He, therefore, made disallowance of Rs.1.55 Crore. The ld. CIT(A) deleted the addition. The Revenue is aggrieved against the deletion of the addition.

4. I have heard the rival submissions and perused the relevant material on record. It is noticed that the ld. CIT(A) has deleted the addition by relying on the Tribunal order passed in the assessee's own case for earlier years deciding the issue in the assessee's favour. The ld. AR invited my attention towards a copy of the judgment rendered by the Hon'ble Delhi High Court in the assessee's own case for the AYs 2007- 08 and 2008-09 in which a categorical finding has been recorded that the business was set up and had commenced. It has further been noticed by the Hon'ble High Court that the assessee was required to incur expenses for the business in the form of investment in shares of cement companies. That is how the deduction was allowed. In view of the fact that the Hon'ble High Court has, in identical circumstances, for ITA No.4509/Del/2014 3 assessment years 2007-08 and 200-09, allowed deduction for such expenses, respectfully following the precedent, I also order for the deduction of expenses because no distinguishing facts for the year under consideration vis-à-vis those considered and examined by the Hon'ble High Court, have been brought to my notice by the ld. DR. I, therefore, uphold the impugned order.

5. In the result, the appeal filed is dismissed.

The decision was pronounced in the open court on 06th October, 2015.

Sd/-

(R.S. SYAL) ACCOUNTANT MEMBER Dated:06th October, 2015.

dk Copy forwarded to

1. Appellant

2. Respondent

3. CIT

4. CIT(A)

5. DR Dy. Registrar, ITAT, New Delhi