CREATION, MUMBAI V. ITO 12(3)(4), MUMBAI

ITA 1067/MUM/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4569 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 19-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V S JADHAVDR
• Assessee Lawyers: HEMANT J VORA

Judgement Text

, - , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC, MUMBAI , ! ' , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, ITA NO.1067/MUM/2015 ASSESSMENT YEAR: 2007-08 M/S CREATION, 4, PAREKH VORA CHAMBERS, 66, NAGINDAS MASTER ROAD, FORT, MUMBAI-400001 / VS. ITO-12(3)(4), MUMAI / ASSESSEE / REVENUE P.A. NO. AAAFC0639D $ % & / ASSESSEE BY SHRI HEMANT J. VORA $ % & / REVENUE BY SHRI V.S. JADHAV-DR / DATE OF HEARING 14/01/2016 & / DATE OF ORDER: 14/01/2016 & / O R D E R THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DATED 10/11/2010 OF THE LD. FIRST APPELLATE AUTHORI TY, MUMBAI. THE ONLY GROUND RAISED IN THIS APPEAL PERTA INS TO CONFIRMING DISALLOWANCE OF RS.1,40,500/- BEING ELEC TRICITY EXPENSES OF THE OFFICE USED BY THE FIRM TO CARRY OU T ITS BUSINESS ACTIVITIES. ITA NO.1067/MUM/2015 M/S CREATION 2 2. DURING HEARING OF THIS APPEAL, THE LD. COUNSEL FOR THE ASSESSEE, SHRI, HEMANT J. VORA, ADVANCED ARGUME NTS, WHICH IS IDENTICAL TO THE GROUND RAISED BY CONTENDI NG THAT THE OFFICE PREMISES WAS ACTUALLY USED BY THE ASSESS EE FIRM FOR ITS BUSINESS PURPOSES AND ELECTRICITY EXPENSES WERE PAID. MY ATTENTION WAS INVITED TO PAGES 26 TO 28 OF THE PAPER BOOK CONTAINING BILLS ISSUED BY BMEST UNDERTA KING. THIS FACTUAL MATRIX WAS NOT CONTRADICTED BY THE LD. DR, SHRI V.S. JADHAV, THOUGH, HE DEFENDED THE ADDITION MADE BY THE ASSESSING OFFICER BY CONTENDING THAT THE ADD ITION WAS RIGHTLY MADE AS AT THE RELEVANT TIME, NECESSARY DOCUMENT OF PAYMENT OF ELECTRICITY CHARGES WAS NOT PRODUCED BY THE ASSESSEE. 2.1. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACT S, IN BRIEF, ARE THAT THE ASSESSEE IS A PARTNERSHIP FIRM, ENGAGED IN THE BUSINESS OF OUTDOOR ADVERTISING DECLARED INC OME OF RS.3,09,227/- IN ITS RETURN FILED ON 31 ST OCTOBER, 2004. AS PER THE ASSESSEE, THE ASSESSEE FIRM IS ASSESSED TO TAX FOR THE LAST ABOUT 34 YEARS AND IS IN EXCLUSIVE POSSESS ION OF HOARDING SITES ON PERMANENT STEEL HOLDING STRUCTURE AND PERMANENTLY EMBEDDED IN BUILDINGS. THE SAID HOARDIN G STRUCTURES ARE PRIMARILY REVENUE GENERATING ASSET O F THE ASSESSEE FIRM. THE ASSESSEE INCURRED OFFICE ELECTRI CITY EXPENSES AMOUNTING TO RS.1,90,234/-, PAID TO BEST UNDERTAKING BY ACCOUNT PAYEE CHEQUE FOR OFFICE PREM ISES NO. 4, 7, AND 14, USED BY THE ASSESSEE FOR BUSINESS ITA NO.1067/MUM/2015 M/S CREATION 3 PURPOSES. OFFICE PREMISES NO.4, AS EXPLAINED BY THE LD. COUNSEL FOR THE ASSESSEE BELONGS TO THE ASSESSEE FI RM AND PREMISES NO. 7 & 14 BELONGS TO PARTNERS OF THE FIRM . THE ASSESSING OFFICER DISALLOWED ADHOC 75% OF THE SAME, WHICH IS UNDER CHALLENGE BEFORE THIS TRIBUNAL. TOTALITY O F FACTS AND THE CIRCUMSTANCES, CLEARLY INDICATES THAT THE P REMISES WERE USED BY THE ASSESSEE FIRM FOR BUSINESS PURPOSE S, THEREFORE, THE CHARGES LIKE ELECTRICITY HAS TO BE I NCURRED. SINCE, THE ASSESSEE, PAID THE AMOUNT THROUGH CHEQUE AND DULY RECEIVED BY THE BEST UNDERTAKING, THEREFORE, T HERE IS NO QUESTION OF DISALLOWING THE SAME. NO CONTRARY EV IDENCE HAS BEEN BROUGHT ON RECORD BY THE REVENUE, EVIDENCI NG THAT DOUBLE DEDUCTION WAS CLAIMED BY THE ASSESSEE O R BY THE PARTNER. I AM SATISFIED WITH THE EVIDENCE FILE D BY THE ASSESSEE, THEREFORE, THE ADDITION SO SUSTAINED IS D ELETED. THE APPEAL OF THE ASSESSEE IS, THEREFORE, ALLOWED. FINALLY, THE APPEAL OF THE ASSESSEE IS ALLOWED. THIS ORDER WAS PRONOUNCED IN THE OPEN IN THE PRESENCE OF LD. REPRESENTATIVE FROM BOTH SIDES AT T HE CONCLUSION OF THE HEARING ON 14/01/2016. SD/- (JOGINDER SINGH) ! ' / JUDICIAL MEMBER MUMBAI; DATED : 14/01/2016 F{X~{T? P.S / ! & $ )!*+ ,&+-* / COPY OF THE ORDER FORWARDED TO : ITA NO.1067/MUM/2015 M/S CREATION 4 1. '#$%& / THE APPELLANT 2. '(%& / THE RESPONDENT. 3. ) ) * ( '#$ ) / THE CIT, MUMBAI. 4. ) ) * / CIT(A)- , MUMBAI 5. -./ ' , ) '#$ ' 1 , / DR, ITAT, MUMBAI 6. /2 3$ / GUARD FILE. & / BY ORDER, (-# ' //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI