Income Tax Appellate Tribunal - Delhi
Splendor Landbase Ltd., New Delhi vs Department Of Income Tax on 28 August, 2014
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "G" NEW DELHI
BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER
AND
SHRI H.S. SIDHU : JUDICIAL MEMBER
ITA No. 4425/Del/2012
Asstt. Yr: 2009-10
ACIT, Circle 9(1), Vs. M/s Splendor Landbase Ltd.,
New Delhi. F-38/2, Splendor House, Okhla
Industrial Area, Phase-II,
New Delhi.
PAN: AAECA 3986 E
( Appellant ) ( Respondent )
Appellant by : Shri Rakesh Kumar DR
Respondent by : Shri S.M. Mathur CA
Date of hearing : 20-08-2014
Date of order : 28-08-2014.
ORDER
PER S.V. MEHROTRA, A.M:-
This appeal, by the assessee, is directed against the order dated 8-5- 2012 passed by the ld. CIT(A)-XII, New Delhi, in appeal no. 453/11-12, relating to A.Y. 2009-10.
2. Brief facts of the case are that the assessee in the relevant assessment year was engaged in the business of real estate development and space management services. It had filed its return of income declaring total income 2 ITA no. 4425/Del/2012 ACIT Vs. Splender Landbase Ltd.
of Rs. 7,53.58,547/-. The assessing officer observed that utility charges of Rs. 25,07,045/- in AY 2007-08 increased to Rs. 61,03,931/- in AY 2008-09; and conveyance & traveling expenses of Rs. 44,42,802/- in AY 2008-09 increased to Rs. 71,62,160/- in AY 2009-10. The assessee failed to justify the steep increase in these expenses. The assessing officer made a disallowance of Rs. 9 lacs, inter alia, observing that perusal of details filed showed that certain payments were made in cash. He pointed out that personal element in these expenses also could not be ruled out. 2.1. Ld. CIT(A) deleted the disallowance, inter alia, observing that assessing officer had made addition of Rs. 9 lacs on ad hoc basis without pointing out any particular defect with respect to such expenses. The assessing officer had also not given any concrete evidence for disallowance. Ld. CIT(A) relied on following decisions:
(i) Friends Clearing Agency (P) Ltd. Vs. cIAT 332 ITR 269(Del.);
(ii) Birlasoft (India) Ltd. Vs. DCIT 136 TTJ 505 Delhi (2011)
3. Having heard both the parties we do not find any reason to interfere with the order of ld. CIT(A) because in the case of company ad hoc disallowance could not be made on the ground of personal expenses. Further, assessing officer has not pointed out any defect for making the disallowance. Accordingly, order of ld. CIT(A) is upheld.
3 ITA no. 4425/Del/2012 ACIT Vs. Splender Landbase Ltd.
4. In the result, revenue's appeal is dismissed.
Order pronounced in open court on 28-08-2014.
Sd/- Sd/- ( H.S. SIDHU ) ( S.V. MEHROTRA ) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 28-08-2014. MP Copy to : 1. Assessee 2. AO 3. CIT 4. CIT(A) 5. DR