Income Tax Appellate Tribunal - Chandigarh
Dcit, Chandigarh vs Sed Engineers & Fabricators (P) Ltd., ... on 12 January, 2017
I N T H E I N C O M E T A X AP P EL L AT E T R I BU N A L
' S M C ' BEN C H , C H AN D I G AR H
BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER
ITA No. 1119/CHD/2016
Assessment Year: 2011-12
The DCIT, Vs M/s SED Engineers &
Circle 1(1), Fabricators Pvt. Ltd.,
Chandigarh. Plot No. 25, Indl Area, .
Phase-2, Chandigarh.
PAN: AAJCS8554R
(Appellant) (Respondent)
Appellant by : Shri Manjit Singh
Respondent by : Shri Vineet Aggarwal
Date of Hearing : 12.01.2017
Date of Pronouncement : 12.01.2017
O R D E R
This appeal by revenue has been directed against the order of ld. CIT(Appeals)-1 Chandigarh dated 31.08.2016 for assessment year 2011-2012 challenging the deletion of addition of Rs. 49,73,708/- made on account of excess expenses claimed under the head 'Erection & Commissioning'.
2. The Assessing Officer made the above addition under section 40(A)(2) of Income Tax Act considering the expenses to be excessive under the head 'Erection & 2 Commissioning. The Assessing Officer compared these expenses with the preceding assessment years. The assessee challenged the addition before ld. CIT(Appeals) and submitted that addition is wholly unjustified. It was also submitted that ITAT Chandigarh Bench in assessee's own case for assessment year 2010-11 in appeal No. 138/CHD/2015 vide order dated 11.08.2016 deleted the identical addition.
3. The ld. CIT(Appeals) reproduced the order of the Tribunal in his findings and considering the identical issue, deleted the entire addition.
4. The ld. counsel for the assessee submitted that issue is covered in favour of the assessee by order of the ITAT Chandigarh Bench in the case of the assessee for preceding assessment year 2010-11 dated 11.08.2016 (supra) whereby the Tribunal deleted the addition on identical facts, copy of the order is placed on record. The ld. DR did not dispute the above contention of ld. counsel for the assessee and stated that issue is covered by above order of the Tribunal.
5. In this view of the matter, I am of the view ld. CIT(Appeals) correctly deleted the addition because on identical facts, the Division Bench of ITAT Chandigarh Bench in the case of the assessee itself, deleted the entire addition on identical issue vide order dated 3 11.08.2016. The departmental appeal has no merit, same is accordingly dismissed.
Order pronounced in the Open Court.
Sd/-
(BHAVNESH SAINI)
JUDICIAL MEMBER
Dated: 12th January,2017.
'Poonam'
Copy to:
1. The Appellant
2. The Respondent
3. The CIT(A)
4. The CIT,DR
Assistant Registrar,
ITAT/CHD