The Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘E’ reviewed an appeal by ACIT Circle-52(1), New Delhi against New Delhi Tyre House concerning the assessment year 2013-14. The case revolves around a substantial addition made by the Assessing Officer under a Marketing Assistance Programme (MAP) which was later deleted by the CIT(A).
The Assessing Officer initially assessed taxable income significantly higher than what was returned by New Delhi Tyre House, due to an addition of Rs.3,95,86,272 attributed to profits from MAP. This addition was deleted by the CIT(A) following precedents set in the assessee’s own cases for previous years.
The Revenue challenged this deletion, bringing the matter to the ITAT. During the proceedings, both parties agreed that the issue was similar to earlier years and that the appeal should be admitted based on the substantial similarity to those cases. The tribunal referred to ITAT’s own earlier decisions which supported the assessee’s position.
The ITAT upheld the CIT(A)’s order, agreeing that the addition made under the MAP agreement was rightfully deleted. They found no new evidence or legal precedents that would warrant a reversal of the decision. Thus, the tribunal dismissed the Revenue’s appeal and confirmed the CIT(A)’s order.
This case underlines the importance of consistency in judicial decisions and reinforces the approach of the income tax authorities in dealing with repeat issues under similar facts across assessment years.
ITA No. 317/DEL/2021 – ACIT Circle-52(1) vs. New Delhi Tyre House for AY 2013-14
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