The Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘D’, adjudicated on the appeal filed by Inspop.com Limited against the order of DCIT, International Taxation, Gurgaon. The appeal, registered as ITA No. 350/DEL/2021, pertains to the assessment year 2017-18.
Inspop.com Limited, located at Level 8, Tower-1A, International Tech Park, Gurugram, filed an appeal against the order dated 30.01.2021 passed by the Assessing Officer (AO) under Section 143(3) read with Section 144C(13) of the Income Tax Act, 1961. The main issue in this appeal was the disallowance of a deduction claimed under Section 10AA of the Income Tax Act.
The appellant raised the following grounds of appeal:
The case was heard on 02.11.2022 and the order was pronounced on 24.01.2023. The Tribunal, comprising Dr. B. R. R. Kumar, Accountant Member, and Shri Saktijit Dey, Judicial Member, reviewed the appellant’s submission and the respondent’s stance, represented by Shri Gangadhar Panda, CIT DR.
The Tribunal considered the arguments from both sides. The key points discussed included:
The Tribunal found that the disallowance of the deduction under Section 10AA was made based on procedural non-compliance rather than a substantive evaluation of eligibility. The Tribunal noted that the substantive provisions should take precedence, and procedural lapses should not lead to denial of legitimate tax benefits. Furthermore, the Tribunal emphasized the importance of natural justice, noting that the appellant was not given sufficient time to respond to the Show Cause Notice, which was issued on a Thursday evening with a deadline for Sunday morning.
The Tribunal allowed the appeal, setting aside the impugned order and directing the AO to reconsider the deduction claim under Section 10AA substantively and provide adequate opportunity for the appellant to present their case. Thus, the grounds raised by the appellant were allowed for statistical purposes.
The appeal filed by Inspop.com Limited was allowed for statistical purposes.
Order Pronounced in the Open Court on 24.01.2023.
Signed by:
(Saktijit Dey) – Judicial Member
(Dr. B. R. R. Kumar) – Accountant Member
Date: 24.01.2023
Subodh Kumar, Sr. PS
ITA No. 350/DEL/2021 – Inspop.com Limited vs DCIT, Int. Tax, Gurgaon
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