Dcit, New Delhi vs M/S. Delhi State Industrial … on 15 September, 2017

1 ITA No. 6353/Del/ 2014

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: ‘B’ NEW DELHI

BEFORE SHRI R. S. SYAL, VICE PRESIDENT
AND
MS SUCHITRA KAMBLE, JUDICIAL MEMBER

I.T.A .No. 6353/DEL/2014 (A.Y 2011-12)

DCIT Vs Delhi State Industrial
Circle-7(1) Infrastructure Development
New Delhi Corporation Ltd.
36, Bombay Life Bldg.
Connaught Place
New Delhi
AAACD1257F
(APPELLANT) (RESPONDENT)

Appellant by Sh. Anshu Prakash, Sr. DR
Respondent by Sh. R. S. Singhvi, CA

Date of Hearing 13.09.2017
Date of Pronouncement 15.09.2017

ORDER

PER SUCHITRA KAMBLE, JM

This appeal is filed by the assessee against the order dated
09/09/2014 passed by CIT(A)-XII, New Delhi for Assessment Year
2011-12.

2. The grounds of appeal are as under:-

“1. On the facts and in the circumstances of the case, the
Ld.CIT(A) has erred in allowing appeal of the assessee
and directing to delete addition of Rs.22,84,421/- made
by the A.O on account of prior period expenses.

2 ITA No. 6353/Del/ 2014

2. On the facts and in the circumstances of the case, the
Ld.CIT(A) has erred in allowing appeal of the assessee
and directing to delete addition of Rs.33,79,253/- made
by the A.O on account of ground rent and maintenance
charges.

3. The appellant craves to leave, to add, alter or amend any
ground of appeal raised above at the time of the hearing.

4. The order of the Ld.CIT(A), being contrary to the facts on
record and the settled position of law, be set aside and
that of the Assessing Officer be restored.”

3. The assessee is a State Government Corporation. During the
year under consideration, the corporation is acting as a developing
and collecting agency for various schemes, i.e. low cost housing
scheme, Relocation scheme, Narela scheme and CETP Scheme on
behalf of the Government of NCT Delhi and also providing
infrastructure services under Delhi State Industrial Operation
Maintenance Act, 2010. The assessee filed original e-Return on
30/09/2011 declaring Income of Rs.22,77,90,022/-. The case was
selected for scrutiny under CASS norms and notice u/s 143(2) was
issued and duly served upon the assessee. Further notice u/s
142(1) along with detailed questionnaire section 143(2) and 142(1)
was send to the assessee. Copy of Profit loss account and balance
sheet and Tax Audit Report was furnished by the assessee during
the course of assessment proceedings. The Assessing Officer made
various additions and also made addition of Rs. 33,79,253/- as
3 ITA No. 6353/Del/ 2014

regards ground rent and maintenance charges as well as addition of
Rs.22,84,421/- relating to prior period expenses.

5. Being aggrieved by the assessment order, the assessee filed
appeal before the CIT(A). The CIT(A) upheld the additions in
respect of ground rent and maintenance charges as well as prior
period expenses.

6. The Ld. DR relied upon the order of the Assessing Officer.

7. The Ld. AR submitted that as related to Ground No. 1 relating
to prior period expenses in assessee’s own case for Assessment Year
2005-06, the same was allowed by the Tribunal in ITA No.
4570/Del/2013 order dated 21/11/2014. Thus, the same issue is
covered in favour of the assessee. As regards the second ground
which have two issues relating to maintenance charges and ground
rent the Ld. AR submitted that the issue of maintenance charges is
decided in favour of the Revenue by the Hon’ble High Court in
asessee’s own case for Assessment Year 2007-08 vide order dated
6th August 2012 in ITA No. 1207/Del/2011. As relates to issue of
ground rent, the Ld. AR submitted that the Hon’ble High Court
order in assessee’s own case being ITA No. 375/2015 dated
17/8/2017 remanded this issue to the file of the Assessing Officer
for redetermination. Thus, the Ld. AR submitted that the issue
relating to ground rent may be remanded back to the file of the
Assessing Officer.

4 ITA No. 6353/Del/ 2014

10. The Ld. DR did not controvert any of the decisions submitted
by the Ld. AR.

11. We have heard both the parties and perused the decisions of
the Hon’ble High Court as well as ITAT decision in assessee’s own
case for preceding Assessment Years. Ground No. 1 taken by the
Revenue in the present appeal is squarely covered by the order
dated 21/11/2014 passed by the ITAT in assessee’s own case in
favour of the assessee. Hence, Ground No. 1 is dismissed.

12. As related to Ground No. 2 relating to maintenance charges
the same is against the assessee and in favour of the Revenue as
per the decision of the Hon’ble High Court dated 6th August, 2012.
Therefore, maintenance charges may be decided in favour of the
Revenue. It is further clarified that the expenditure actually
incurred on the account of maintenance would be allowed by the
Assessing Officer for the assessment year under question. The issue
is allowed in the above terms.

13. As regards to issue of ground rent agitated in Ground No. 2,
the same is remanded back by the Hon’ble High Court in
Assessment Year 2008-09 vide decision dated 17/8/2017. In the
present assessment order also, there is no separate
verification/examination by the Assessing Officer. Therefore, this
5 ITA No. 6353/Del/ 2014

issue is remitted back to the Assessing Officer for further
verification.

14. In result, the appeal of the Revenue is party allowed for
statistical purposes.

Order pronounced in the Open Court on 15th September 2017.

Sd/- Sd/-
(R. S. SYAL) (SUCHITRA KAMBLE)
VICE PRESIDENT JUDICIAL MEMBER

Dated: 15/09/2017
R. Naheed *

Copy forwarded to:

1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR: ITAT

ASSISTANT REGISTRAR

ITAT NEW DELHI

Date

1. Draft dictated on PS
13/09/2017

2. Draft placed before author PS
14/09/2017
6 ITA No. 6353/Del/ 2014

3. Draft proposed placed before .2017 JM/AM
the second member

4. Draft discussed/approved by JM/AM
Second Member.

5. Approved Draft comes to the PS/PS
Sr.PS/PS 15.09.2017

6. Kept for pronouncement on PS

7. File sent to the Bench Clerk PS
15.09.2017

8. Date on which file goes to the AR

9. Date on which file goes to the
Head Clerk.

10. Date of dispatch of Order.

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