M/S K.M.MEMORIAL HOSPITAL AND RESEARCH CENTRE PVT LTD , HZB V. ACIT CIRCLE-1 , HAZARIBAG

ITA 106/RAN/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2379 (ITAT-RANCHI)
• Duration Of Justice: 2 year(s) 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 20-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DEVESH CHAND AGARWAL; PRIYESH ANAND
• Keywords: Revision of order; TDS; FORM 26AS
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH E COURT AT KOLKATA BEFORE SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO. 106 &364 / RAN / 2018 ASSESSMENT YEARS :2013-14 &2015-16 M/S K.M.MEMORIAL HOSPITAL &RESEARCH CENTRE (P) LTD., BYE PASS ROAD, CHAS, DIST. BOKARO- 837013 [ PAN NO.AACCK 3476 B ] V/S . ACIT, CIRCLE-1, HAZARIBAG, AAYKAR BHAWAN-HAZARIBAG- 825301 /APPELLANT .. / RESPONDENT /BY ASSESSEE SHRI PRIYESH ANAND & SHRI DEVESH CHAND AGARWAL, AR /BY RESPONDENT SHRI INDERJIT SINGH, CIT-DR /DATE OF HEARING 25.11.2020 /DATE OF PRONOUNCEMENT 25.11.2020 / O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THESE TWO ASSESSEES APPEALS FOR ASSESSMENT YEAR(S ) 2013-14 & 2015- 16 ARISE AGAINST THE PRINCIPAL COMMISSIONER OF INCO ME TAX & COMMISSIONER OF INCOME TAX (APPEALS)-HAZARIBAGS ORDER(S) DATED 28.06.2016 AND 27.09.2018; PASSED IN CASE NO.51/HZB/2015-16/1129-3 3 &10331/HZB/2017- 18, INVOLVING PROCEEDINGS U/S 263 AND 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT, RESPECTIVELY. HEARD BOTH THE PARTIES. CASE FILE(S) PERUSED. 2. COMING TO THE ASSESSEES FORMER APPEAL ITA NO.10 6/RAN/2018, LEARNED AUTHORIZED REPRESENTATIVE INVITED OUR ATTENTION TO ASSESSEES LETTER DATED 18.11.2020 SEEKING TO WITHDRAW THE SAME IN VIEW OF THE FACT THAT IT HAS ALREADY ITA NO.106 & 364/RAN/2018 A.YS.13-14 & 15-16 M/S K.M.MEMORIAL HOSPITAL & RESEARCH CENTRE (P) LTD . VS. ACIT, CIR-1, HZB PAGE 2 SUCCEEDED BEFORE THE CIT(A) IN APPEAL PREFERRED AGA INST THE CONSEQUENTIAL ASSESSMENT U/S. 143(3) R.W.S. 263 OF THE ACT. MR. S INGH IS VERY FAIR IS NOT DISPUTING ALL THESE INTERVENING DEVELOPMENTS. WE AL LOW THE ASSESSEE TO WITHDRAW THE INSTANT FORMER APPEAL ITA NO.106/RAN/2 018 THEREOF. 3. THIS LEAVES US WITH ASSESSEES LATTER APPEAL ITA NO.364/RAN/2018 FOR ASSESSMENT YEAR 2015-16. ITS FIRST AND FOREMOST SUB STANTIVE GROUND SEEKS TO REVERSE BOTH THE LOWER AUTHORITIES ACTION DISALLOWI NG DRIVERS COMMISSION PAYMENT OF 25,27,850/- DURING THE COURSE OF ASSESSMENT AND UPH ELD IN THE CIT(A)S ORDER. LEARNED AUTHORIZED REPRESENTATIVE I NVITED OUR ATTENTION TO THE TRIBUNALS ORDER IN ITA NO. 264/RAN/2018 DATED 29.05.2018 FOR ASSESSMENT YEAR 2013-14 DELETING SIMILAR DISALLOWANCE IN IDENT ICAL CIRCUMSTANCES. WE THEREFORE FOLLOW JUDICIAL CONSISTENCY TO DELETE THE IMPUGNED DRIVER COMMISSION PAYMENT DISALLOWANCE OF 25,27,850/- AS WELL. THE ASSESSEE SUCCEEDS IN ITS FIRST SUBSTANTIVE GRIEVANCE. 4. NEXT COME THE ASSESSEE FIVE FOLDED GRIEVANCE(S) THAT ITS SEMINAR EXPENSES, ANNUAL DAY CELEBRATIONS, LIFTS MAINTENANC E, CLEANING, WASHING & MACHINE MAINTENANCE EXPENSES OF 7,13,142, 2,,35,411, 1,46,461/-, 21,24,560/- & 8,43,065/-; RESPECTIVELY HAD BEEN WRONGLY DISALLOWE D IN THE COURSE OF ASSESSMENT AND UPHELD TO THE TUNE OF 50% IN FORMER TWO AND 30% IN LATTER THREE CASES; RESPECTIVELY, IN THE CIT(A)S O RDER. 5. WE FIND WITH THE ABLE ASSISTANCE OF BOTH THE PAR TIES THAT ALL THESE HEAD(S) OF EXPENSES ARE OF REGULAR NATURE INCURRED IN EVERY YEAR AND ACCEPTED BY THE LOWER AUTHORITIES THEMSELVES IN PRINCIPLE. T HE ASSESSEE ALSO FAILS TO DISPUTE THAT IT COULD NOT PLACE ON RECORD ALL THE C ORRESPONDING DETAILS AND SUPPORTIVE EVIDENCE BEFORE EITHER OF THE LOWER AUTH ORITIES. WE DEEM IT APPROPRIATE IN THESE FACTS AND CIRCUMSTANCES TO RES TRICT ALL THE IMPUGNED DISALLOWANCE @ 50% IN FORMER TWO AND 30% UNDER THE LATTER THREE HEADS (SUPRA) TO THE TUNE OF 25% AND 15% EACH; RESPECTIVE LY WITH A RIDER THAT OUR INSTANT ESTIMATION SHALL NOT BE TREATED AS A PRECED ENT IN ANY OTHER ASSESSMENT YEAR. THE ASSESSEE GETS PART RELIEF IN ALL THESE FI VE HEAD(S) IN OTHER WORDS. NECESSARY COMPUTATION TO FOLLOW AS PER LAW. ITA NO.106 & 364/RAN/2018 A.YS.13-14 & 15-16 M/S K.M.MEMORIAL HOSPITAL & RESEARCH CENTRE (P) LTD . VS. ACIT, CIR-1, HZB PAGE 3 6. THIS LEAVES US WITH THE ASSESSES LAST TWO SUBST ANTIVE GRIEVANCES THAT BOTH THE LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS IN ADDING INTEREST ON REFUND AND MEDITEK EXPENSES OF 32,217 & 1,61,196/-; RESPECTIVELY. 7. WE NOTICE FROM A PERUSAL OF THE CASE FILE THAT T HE ASSESSING OFFICERS PRIMA FACIE MADE THE IMPUGNED FORMER ADDITION / DISALLOWANCE O N ACCOUNT OF FACT THAT INTEREST OF REFUND U/S 244 HAD BEEN RECEI VED AS AGAINST THE ASSESSEES CASE THAT THERE WAS NO SUCH INDICATION I N THE CORRESPONDING FORM 26AS. THE SAME APPEARS TO BE THE CASE REGARDING IN LATTER ISSUE OF MEDITEK SUM OF 1,61,196/- DUE TO THE ALLEGED MIS-MATCH IN TDS REFL ECTED IN FORM 26AS. WE ARE OF THE CONSIDERED OPINION IN THESE FAC TS THAT BOTH ISSUES REQUIRE ASSESSING OFFICERS FACTUAL VERIFICATION AS PER LAW . WE ORDER ACCORDINGLY. THESE TWIN SUBSTANTIVE GROUNDS ARE ALLOWED FOR STAT ISTICAL PURPOSES THEREFORE. THIS ASSESSEES LATTER APPEAL ITA NO.364/RAN/2018 IS PARTLY ALLOWED IN ABOVE TERMS. 8. THE ASSESSEES FORMER APPEAL ITA NO.106/RAN/2018 IS DISMISSED AS WITHDRAWN WHEREAS LATTER APPEAL ITA NO.364/RAN/2018 IS PARTLY ALLOWED. A COPY OF THIS COMMON ORDER BE PLACED IN THE RESPECTI VE CASE FILES. ORDER PRONOUNCED IN OPEN COURT AT THE CLOSE OF HEAR ING ON WEDNESDAY 25 TH NOVEMBER, 2020 SD/- SD/ - (J.SUDHAKAR REDDY) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) KOLKATA, *DKP SR.P.S. $- 25 / 11 /20 20 / / COPY OF ORDER FORWARDED TO:- 1. /ASSESSEE-M/S K.M.MEMORIAL HOSPITAL & RESEARCH CENTRE (P) LTD. BYE PASS RD. CHAS, DIST. BOKARO 2. /REVENUE-ACIT, CIR-1, AAYKAR BHAWAN, HAZARIBAG-825301 3. . 0 / CONCERNED CIT RANCHI 4. 0- / CIT (A) RANCHI 5. 4 77., . , / DR, ITAT, RANCHI 6. ; / GUARD FILE. BY ORDER/ , ?@ 7 . SR. PRIVATE SECRETARY, .,