Case Law Details
DCIT Vs Ebony Retail Holdings Ltd. (Delhi ITAT)
It is not in dispute that assessee has given security deposit for taking the premises on lease. Learned Counsel for the Assessee referred to various replies filed by assessee-company at assessment stage which shows that assessee-company filed all the documentary evidences and explanation before A.O. on the matter in issue. Learned Counsel for the Assessee rightly contended that the security deposit was refundable on completion of the period of the lease. The agreement to this effect was executed and was further supplemental agreements were also entered into and ultimately the assessee-company did not continue with the period of their lease and hence, the security deposit was forfeited by the owner/landlord. These facts clearly show that assessee-company filed sufficient documentary evidences before A.O, which have not been property considered and at the appellate stage the A.O. did not rebut the submissions of the assessee-company to prove that security deposit was forfeited which is a business loss as the same was arising out of the business activities of the assessee. The Ld. CIT(A), therefore, correctly following the material on record in proper perspective, rightly deleted the addition. We do not find any infirmity in the Order of the Ld. CIT(A) in deleting the addition. Ground No.1 of the appeal of the Revenue is dismissed.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-XXIII, Delhi, Dated 24.02.2014, for the A.Y. 2008-2009.
2. We have heard the Learned Representatives of both the parties through video conferencing and perused the material on record.
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