ACIT, CHENNAI V. Krishnamurthy Mani, CHENNAI

ITA 1121/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7326 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2017
• Appeal Filed By: Department
• Bench Allotted: C
• Next Hearing Date: 15-03-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 25-04-2016
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTHJCIT
• Keywords: Tax effect; Capital expenditure

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI . . . , !'. . # $ % , ' () BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S.SUNDER SINGH, ACCOUNTANT MEMBER ./ ITA NO.1121/MDS/2016 * +* /ASSESSMENT YEAR: 2011-12 THE ASST. COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE-3, 121, MAHATMA GANDHI ROAD, NUNGAMBAKKAM, CHENNAI-600 034. VS. SHRI KRISHNAMURTHY MANI, NEW NO.24/1, SUBRAMANIAM STREET, ABIRAMAPURAM, CHENNAI-600 018. [PAN: AF JPM 9409 F ] ( ,- /APPELLANT) ( ./,- /RESPONDENT) ,- 0 1 / APPELLANT BY : MR.A.V.SREEKANTH,JCIT ./,- 0 1 /RESPONDENT BY : MR.A.N.R.JAYAPRATHAP, ADV. # 0 2' /DATE OF HEARING : 15.03.2017 34+ 0 2' /DATE OF PRONOUNCEMENT : 27.03.2017 / O R D E R PER D.S.SUNDER SINGH , ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST AN ORDER DATED 29.01.2016 OF COMMISSIONER OF INCOME TAX (APPEALS)- 14, CHENNAI, IN ITA NO.170/14-15 FOR THE AY 2011-12 ON THE FOLLOWING GR OUNDS: 1. THE ORDER U/S.250(6) OF THE LD.CIT(A) IS CONTRARY T O LAW AND OPPOSED TO THE FACTS OF THE CASE. ITA NO.1121/MDS/2016 :- 2 -: 2. THE LEARNED CIT(A) HAS ERRED IN DIRECTING TO DELETE THE ADDITION OF RS.11,75,550/- MADE ON ACCOUNT OF LEGAL EXPENSES WITHOUT APPRECIAT ING THE FACT THAT THE ASSESSEE HAD FAILED TO PROVE BEFORE THE ASSESSING OFFICER ALONG W ITH EVIDENCE THAT THIS AMOUNT IS PAID TO SINGAPORE AGENT FOR REGISTRATION OF PRODUCTS COO RDINATION WITH THE RESPECTIVE HEALTH DEPARTMENT OF EACH COUNTRY. 3. THE LD CIT(A) HAS ERRED IN DIRECTING TO DELETE THE ADDITION MADE BY THE ASSESSING OFFICER OF RS.16,17,714/- UNDER THE HEAD PRODUCT RE GISTRATION CHARGES ON ACCOUNT OF SAME BEING CAPITAL EXPENDITURE WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE HAD FAILED TO PRODUCE EVIDENCE ABOUT THE EXPENSES INCUR RED AND TO ESTABLISH ANY NEXUS BETWEEN THE EXPENSES CLAIMED AND ITS USE FOR BUSINE SS PROPOSES. 4. FOR THESE AND OTHER GROUNDS THAT MAY BE ADDUCED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE COMMISSIONER OF INCOME TAX (A PPEALS) MAY PLEASE BE SET ASIDE AND THAT OF ASSESSING OFFICER BE RESTORED. 2. THE LD.A.R. BROUGHT TO THE NOTICE OF THE BENCH T HAT THE APPEAL IS NOT MAINTAINABLE SINCE THE TAX EFFECT IS BELOW RS.10.00 LAKHS. THE ASSESSING OFFICER PASSED ORDER U/S.143(3) ON 29.01.2016 DETER MINING THE TOTAL INCOME AT RS.2,88,50,001/-, AGAINST WHICH THE LD.CI T(A) HAS DELETED THE ADDITION OF RS.11,75,550/- TOWARDS LEGAL EXPENSES A ND RS.16,17,714/- UNDER THE HEAD PRODUCT REGISTRATION CHARGES. ACCORD ING TO THE LD.AR, THE TAX EFFECT COMES TO RS.9,06,274/- ONLY AGAINST THE DELETION OF ADDITION AGAINST WHICH THE REVENUE IS IN APPEAL. ON HEARING FROM THE LD. DEPARTMENTAL REPRESENTATIVE, SHRI A.V.SREEKANTH, JC IT, WE FIND THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10 LAKHS. THE CBDT IN CIRCULAR NO.21/2015 DATED 10.12.2015 INCREASED THE MONETARY LIMIT FOR FILING APPEAL BEFORE THIS TRIBUNAL FROM RS.4 LAKHS TO RS.1 0 LAKHS. THE CBDT FURTHER CLARIFIED THAT THE INSTRUCTION DATED 10.12. 2015 WILL APPLY RETROSPECTIVELY TO ALL THE PENDING APPEALS BEFORE T HIS TRIBUNAL. THE CBDT HAS ALSO INSTRUCTED ITS OFFICERS TO WITHDRAW THE AP PEALS PENDING BEFORE THIS TRIBUNAL. IN VIEW OF THE ABOVE, THIS TRIBUNAL IS O F THE CONSIDERED OPINION THAT THE CIRCULAR ISSUED BY THE CBDT ON 10.12.2015 IS BINDING ON THE ITA NO.1121/MDS/2016 :- 3 -: DEPARTMENT. THEREFORE, THE APPEAL FILED BY THE REV ENUE IS NOT MAINTAINABLE. ACCORDINGLY, THE APPEAL OF THE REVEN UE IS DISMISSED. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH MARCH, 2017, AT CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( !' . . # $ % ) (D.S.SUNDER SINGH) ' /ACCOUNTANT MEMBER /CHENNAI, 5 /DATED: 27 TH MARCH, 2017. TLN 0 .2$6 76+2 /COPY TO: 1. ,- /APPELLANT 4. # 82 /CIT 2. ./,- /RESPONDENT 5. 69 .2 /DR 3. # 82 ( ) /CIT(A) 6. '* < /GF