The Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘B’ delivered its judgment on the appeal filed by Delhi Tourism Transportation and Development Corporation Ltd. against the order of the Commissioner of Income Tax (Appeals), New Delhi. The case was heard by Shri N. K. Billaiya, Accountant Member, and Shri Yogesh Kumar U.S., Judicial Member.
The appeal was filed challenging the order passed by the CIT (A)-1, New Delhi, which confirmed the addition made by the Assessing Officer (AO) of Rs. 8,02,16,000/- out of the amount under capital reserve as on 31st March, 2015. Additionally, disallowances were made on expenses claimed as contingent liability booked for rent to be paid to DSIDC.
During the appellate proceedings, the appellant argued that out of the total amount of Rs. 8,02,16,000/-, only Rs. 1,69,78,655 related to the assessment year 2015-16, and the remaining amount had already been added in the assessment year 2014-15. The appellant contended that the addition resulted in double taxation.
The Tribunal noted that the appellant failed to provide sufficient evidence to substantiate their claim that the addition resulted in double taxation. The appellant’s argument was not supported by any documentary evidence that could convince the Tribunal to overturn the CIT (A)’s decision.
The CIT (A) confirmed the addition made by the AO, stating that the appellant had not provided adequate justification for excluding the amount from the assessment year 2015-16. The CIT (A) also disallowed the expenses of Rs. 12,00,000 claimed as contingent liability, as the appellant failed to substantiate the claim with relevant documents.
The Tribunal upheld the findings of the CIT (A) and dismissed the appeal. The Tribunal concluded that the appellant did not provide sufficient evidence to challenge the additions and disallowances made by the AO and confirmed by the CIT (A).
The appeal filed by Delhi Tourism Transportation and Development Corporation Ltd. was dismissed due to the inability to substantiate the claims regarding the capital reserve and the contingent liability expenses. The Tribunal upheld the additions and disallowances made by the AO and confirmed by the CIT (A).
Order pronounced in open court on this 14th day of September, 2023.
sd/- (N. K. BILLAIYA) ACCOUNTANT MEMBER
sd/- (YOGESH KUMAR U.S.) JUDICIAL MEMBER
Dated the 14th day of September, 2023
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