Case Number: ITA 5574/DEL/2019
Appellant: GE Packaged Power Inc., Gurgaon
Respondent: Deputy Commissioner of Income Tax (International Taxation), Circle-1(3)(1), New Delhi
Assessment Year: 2005-06
Result: Allowed
Case Filed on: 2019-06-26
Order Type: Final Tribunal Order
Date of Order: 2021-03-31
Pronounced on: 2021-03-31
The case involves an appeal filed by GE Packaged Power Inc., Gurgaon against the order of the Deputy Commissioner of Income Tax (International Taxation), Circle-1(3)(1), New Delhi. The appeal pertains to the assessment year 2005-06 and challenges various disallowances made by the Assessing Officer (AO) and upheld by the Commissioner of Income Tax (Appeals) [CIT(A)].
The appeal was filed by GE Packaged Power Inc. against the order of the Commissioner of Income Tax (Appeals)-42, New Delhi dated 4th June 2019. The primary issues in the appeal were the disallowances made by the AO on account of various provisions for expenses and other tax-related disputes.
The appellant raised several grounds of appeal, contesting the disallowances made by the AO and sustained by the CIT(A). The grounds of appeal included issues related to disallowance of expenses, tax arrears, and other financial adjustments.
The case was heard before the Income Tax Appellate Tribunal (Delhi Bench ‘A’) in New Delhi on 31st March 2021. The bench comprised Shri G.S. Pannu, Vice President, and Shri Kul Bharat, Judicial Member. The hearing was conducted through video conferencing.
GE Packaged Power Inc. was represented by Ms. Disha Jham, Advocate, and Ms. Mehak Sachdeva, Advocate, while the respondent was represented by Sh. M. Baranwal, Senior DR. The appeal challenged the disallowances made by the AO and sustained by the CIT(A) on various grounds.
The appellant’s counsel argued that the disallowances made by the AO were incorrect and that the provisions for expenses were made on a reasonable basis and in line with the mercantile system of accounting followed by the appellant. The counsel further argued that the tax arrears and other adjustments should be reconsidered in light of the Vivad Se Vishwas Scheme, 2020.
The respondent’s representative, Sh. M. Baranwal, Senior DR, argued that the disallowances made by the AO were justified as the provisions for expenses were contingent in nature and the tax arrears were appropriately calculated.
The Tribunal considered the details and arguments presented by both parties. The Tribunal held that the provisions for expenses made by the appellant were on a reasonable basis and should be allowed as business expenditure under Section 37(1) of the Income Tax Act, 1961. The Tribunal also held that the tax arrears and other adjustments should be reconsidered under the Vivad Se Vishwas Scheme, 2020.
The Tribunal allowed the appeal filed by GE Packaged Power Inc., directing the AO to delete the disallowances made on account of provisions for expenses and reconsider the tax arrears and other adjustments under the Vivad Se Vishwas Scheme, 2020. The final order was pronounced on 31st March 2021 by Shri G.S. Pannu, Vice President, and Shri Kul Bharat, Judicial Member.
Members Present:
Shri G.S. Pannu, Vice President
Shri Kul Bharat, Judicial Member
Document Reference:
Copy forwarded to:
1. Appellant: GE Packaged Power Inc., C/O 6th Floor, Building, 7A, Standard Chartered Building, DLF Cyber City, Phase-III, Gurgaon, Haryana – 122002
2. Respondent: DCIT (International Taxation), Circle-1(3)(1), New Delhi
3. CIT
4. CIT(A)
5. DR: ITAT
Assistant Registrar, ITAT, New Delhi
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