A.Raja, Tirunelveli V. ITO, CHENNAI

ITA 115/CHNY/2016

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7578 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2016
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 21-01-2016
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTHJCIT
• Assessee Lawyers: V S JAYAKUMAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , ! ' #! ' $ . %& ' () BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO.115 /MDS./2016 ( / ASSESSMENT YEAR :2011-12) MR.A.RAJA , ADITHYA PROPERTIES, A-2,NORTH MAIN ROAD, NGO A COLONY, PALAYAMKOTTAI, TIRUNELVELI. VS. INCOME TAX OFFICER, WARD XIV-(1), PRESENTLY NCC-10, CHENNAI 600 034. PAN APFPR 9413 N ( *+ / APPELLANT ) ( ,-*+ / RESPONDENT ) / APPELLANT BY : MR.V.S.JAYAKUMAR, ADVOCATE / RESPONDENT BY : MR.A.V.SREEKANTH,JCIT, D.R / DATE OF HEARING : 14.03.2016 /DATE OF PRONOUNCEMENT : 24.03.2016 . / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)- 12, CHENNAI DATED 15.12.2015 PERTAINING TO THE ASSESSMENT YEAR 2011-12. ITA NO115./MDS/2016 2 2. THE FIRST GROUND IN THIS APPEAL IS WITH REGARD TO DISALLOWANCE U/S.40(A)(IA) OF THE ACT REPRESENTING RENT PAYMENT OF ` 4,37,700/-, ADVERTISING EXPENSES OF ` 15,75,843/- AND LEGAL EXPENSES OF ` 3,00,500/-. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. IN OUR OPINION, THE ISSUE IN DISPUTE IS SQ UARELY COVERED BY THE DECISION OF CO-ORDINATE BENCH OF TRIBUNAL IN THE CA SE OF SHRI N.PALANIVELU VS. ITO REPORTED IN [2015] 40 ITR (TRI B) 325 (ITAT[CHEN]) VIDE ORDER DATED 29.04.2015 WHEREIN HE LD THAT:- 4. WE HAVE HEARD BOTH SIDES AND PERUSED THE MATERIA L ON RECORD. WE FIND THAT THE SPECIAL BENCH OF THE TRIBU NAL IN THE CASE OF MERILYN SHIPPING AND TRANSPORTS V. ADDL. CI T [2012] 16 ITR (TRIB) 1 (VISAKHAPATNAM) [SB] AND JUDGMENT O F THE GUJARAT HIGH COURT IN THE CASE OF CIT V. VECTOR SHI PPING SERVICES (P.) LTD. IN I. T. A. NOS. 122 OF 2013 DAT ED JULY 9, 2013 [2013] 357 ITR 642 (ALL) HELD THAT SECTION 40( A)(IA) IS NOT APPLICABLE WHEN THERE IS NO OUTSTANDING BALANCE AT THE END OF THE CLOSE OF THE YEAR RELEVANT TO THE ASSESS MENT YEAR IN RESPECT OF THESE PAYMENTS. HOWEVER, THE ASSESSEE HAS NOT BROUGHT ON RECORD, THE DETAILS OF OUTSTANDING E XPENSES OR SCHEDULE OF SUNDRY CREDITORS SHOWING WHETHER THE IM PUGNED ITA NO115./MDS/2016 3 AMOUNT IS OUTSTANDING AT THE END OF THE CLOSE OF TH E PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR EITHER IN THE NAME OF THE PARTY OR OUTSTANDING EXPENSES. HENCE, IN THE IN TEREST OF JUSTICE, WE ARE REMITTING THE ISSUE BACK TO THE FIL E OF THE ASSESSING OFFICER WITH DIRECTION TO VERIFY THE CLAI M OF THE ASSESSEE AND THE ASSESSEE SHALL PLACE NECESSARY EVI DENCE IN SUPPORT OF HIS CLAIM. 5. FURTHER, WE MAKE IT CLEAR THAT IF THE IMPUGNED A MOUNT IS NOT OUTSTANDING AT THE END OF THE CLOSE OF THE ASSE SSMENT YEAR IN RESPECT OF THE EXPENSES EITHER AS OUTSTANDI NG EXPENSES OR AS SUNDRY CREDITORS, THIS AMOUNT CANNOT BE DISALLOWED. THIS GROUND IS REMITTED BACK TO THE ASS ESSING OFFICER FOR FRESH CONSIDERATION. IN VIEW OF THE ORDER OF THE TRIBUNAL, WE ARE INCLIN ED TO REMIT THIS ISSUE TO THE FILE OF THE LD. ASSESSING OFFICER WITH SIMIL AR DIRECTION. THESE GROUNDS RAISED BY THE ASSESSEE U/S.40(A)(IA) OF THE ACT IS PARTLY ALLOWED. 4. THE NEXT GROUND IN THIS APPEAL IS WITH REGARD T O DISALLOWANCE OF 10% OF DEVELOPMENT CHARGES. AT THE TIME OF HEARING , THE LD.A.R ITA NO115./MDS/2016 4 MADE AN ENDORSEMENT THAT THE ASSESSEE HAS NOT WANT TO PRESS THIS GROUND. ACCORDINGLY, THIS GROUND IS DISMISSED AS N OT PRESSED. 5. IN THE RESULT, THE APPEAL OF ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ONTHURSDAY , THE 24 TH OF MARCH,2016 AT CHENNAI. SD/- SD/- ! ' # . $ %& ' ( DUVVURU RL REDDY ) ) ( ( () * + ) ) ! CHANDRA POOJARI ', JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 24 TH MACH,2016 . K S SUNDARAM. -.,, /0,10 /COPY TO: , 1. /APPELLANT 2. /RESPONDENT 3. , 2,!' /CIT(A) 4. , 2 /CIT 5. 034, 5 /DR 6. 4&,6 /GF