M/s. Commune Marketing and Events Pvt. Ltd., New Delhi V. ACIT, New Delhi

ITA 1196/DEL/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5254 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 01-03-2017
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI H.S.SIDHU, JUDICIAL MEMBER & SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO.-1196/DEL/2017, A.Y. 2013-14 COMMUNE MARKETING AND EVENTS PVT. LTD. A-1/29, 2 ND FLOOR, PANCHSHEEL ENCLAVE NEW DELHI PAN : AADDC2520M VS . A CIT CIRCLE-6(1), ROOM NO. 390, C.R.BUILDING, I.P.ESTATE NEW DELHI APPELLANT RESPONDENT ASSESSEE BY : NONE REVENUE BY : SH. JAGDISH SINGH, SR. DR ORDER PER ANADEE NATH MISSHRA, A.M.: (A) THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE IMPUGNED APPELLATE ORDER DATED 19.01.20 17 PASSED BY LEARNED COMMISSIONER OF INCOME TAX (APPEA LS)- 35, NEW DELHI [IN SHORT, LD. CIT(A)] PERTAINING TO ASSESSMENT YEAR 2013-14. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL :- 1. THE ORDER OF THE LEARNED CIT(A) IS ERRONEOUS & CONTRARY TO THE FACTS. 2. THE LEARNED CIT(APPEAL) HAS ERRED ON FACTS AND IN LAW IN CONFIRMING THE DISALLOWANCE OF RS. 41,55,957/- DEBITED UNDER THE HEAD CONSULTANCY 2 ITA NO. 1196/DEL/2017 (COMMUNE MARKETING AND EVENTS (P.) LTD .) FEE AS DETAILED HEREUNDER PAID TO CONSULTANTS FOR EVENT MANAGEMENT AND RELATED CONSULTANCY. SUKHMANI SINGH RS. 9,72,184 VIVEK SETHIA RS. 12,00,000 ZINNIA NANDI SAXENA RS. 8,94,996 ROSHNI DINDSA CHAWLA RS. 6,08,777 MANISHI GUPTA RS. 4,80,000 ---------------------- RS. 41,55,957 3. THE LEARNED C.I.T (APPEAL) HAS ERRED ON FACTS IN STATING CONSULTANCY FEE PAID DETAILED HEREINABOVE AS LEGAL EXPENSES PAID TO PERSONS FOR RENDERING LEGAL SERVICES. (B) THE RELEVANT PORTION OF THE ASSESSMENT ORDER DATED 25/02/2016 IS REPRODUCED AS UNDER :- 3 ITA NO. 1196/DEL/2017 (COMMUNE MARKETING AND EVENTS (P.) LTD .) 4 ITA NO. 1196/DEL/2017 (COMMUNE MARKETING AND EVENTS (P.) LTD .) 5 ITA NO. 1196/DEL/2017 (COMMUNE MARKETING AND EVENTS (P.) LTD .) (C) THE LD. CIT(A) HAS ADMITTED ADDITIONAL EVIDEN CES FURNISHED BY THE ASSESSEE DURING APPELLATE PROCEEDI NGS BEFORE US THE RELEVANT PORTION OF THE AFORESAID IMP UGNED APPELLATE ORDER DATED 19/01/2017 OF THE LD. CIT(A) IS REPRODUCED AS UNDER :- 6 ITA NO. 1196/DEL/2017 (COMMUNE MARKETING AND EVENTS (P.) LTD .) 7 ITA NO. 1196/DEL/2017 (COMMUNE MARKETING AND EVENTS (P.) LTD .) 8 ITA NO. 1196/DEL/2017 (COMMUNE MARKETING AND EVENTS (P.) LTD .) 9 ITA NO. 1196/DEL/2017 (COMMUNE MARKETING AND EVENTS (P.) LTD .) (D) ON MERITS, THE RELEVANT PORTION OF THE IMPUGNE D APPELLATE ORDER DATED 19.01.2017 OF LD. CIT(A) IS A S UNDER 10 ITA NO. 1196/DEL/2017 (COMMUNE MARKETING AND EVENTS (P.) LTD .) 11 ITA NO. 1196/DEL/2017 (COMMUNE MARKETING AND EVENTS (P.) LTD .) 12 ITA NO. 1196/DEL/2017 (COMMUNE MARKETING AND EVENTS (P.) LTD .) 13 ITA NO. 1196/DEL/2017 (COMMUNE MARKETING AND EVENTS (P.) LTD .) 14 ITA NO. 1196/DEL/2017 (COMMUNE MARKETING AND EVENTS (P.) LTD .) (E) AT THE TIME OF HEARING, REVENUE WAS REPRESENTE D BY SHRI JAGDISH SINGH, LEARNED SENIOR DEPARTMENTAL REPRESENTATIVE (LD. SR. DR, FOR SHORT). HOWEVER, NONE WAS PRESENT FROM THE ASSESSEES SIDE. IN THE ABSENCE OF ANY 15 ITA NO. 1196/DEL/2017 (COMMUNE MARKETING AND EVENTS (P.) LTD .) REPRESENTATION FROM ASSESSEES SIDE, AT THE TIME OF HEARING BEFORE US, WE HEARD THE LD. SR. DR; WHO RELIED UPON THE ASSESSMENT ORDER DATED 25/02/2016 OF ASSESSING OFFI CER; AND ON THE AFORESAID IMPUGNED APPELLATE ORDER DATED 19.01.2017 OF THE LD. CIT(A). AFTER PERUSAL OF THE MATERIALS ON RECORD ; WE FIND THAT THE LD. CIT(A) HAS PASSED SPEAKING ORDER, RELEVANT PORTIONS OF WHICH HAVE ALREADY BEEN REPRODUCED IN EARLIER PART OF THIS ORDER. WE FIND T HAT THE LD. CIT(A) HAS GIVEN DETAILED REASONS FOR HER DECISION ON MERITS IN THE AFORESAID IMPUGNED APPELLATE ORDER DATED 19.01.2017. DURING APPELLATE PROCEEDINGS IN INCOME TAX APPELLATE TRIBUNAL (ITAT, FOR SHORT) NO MATERIAL HAS BEEN BROUGHT FOR OUR CONSIDERATION TO PERSUADE US TO TAK E A VIEW DIFFERENT FROM THE VIEW TAKEN BY THE LD. CIT(A) IN THE IMPUGNED APPELLATE ORDER DATED 19.01.2017. AFTER HE ARING THE LD. SR. DR, AND AFTER PERUSAL OF MATERIALS ON R ECORD, AND FURTHER, IN VIEW OF THE FOREGOING DISCUSSION, WE DE CLINE TO INTERFERE WITH THE AFORESAID IMPUGNED APPELLATE ORD ER DATED 19.01.2017 OF LD. CIT(A), AND ACCORDINGLY, THIS APP EAL IS DISMISSED. (F) BEFORE WE PART; WE EXPLICITLY CLARIFY THAT THE ASSESEE WILL BE AT LIBERTY TO APPROACH ITAT FOR RESTORATION OF THE APPEAL IN ACCORDANCE WITH PROVISO TO RULE 24 OF INC OME TAX (APPELLATE TRIBUNAL), RULES, 1963. IF THE ASSESSEE DOES APPROACH ITAT FOR RESTORATION OF THE APPEALS IN ITA T, THE MATTER WILL BE CONSIDERED IN ACCORDANCE WITH LAW HA VING REGARD TO THE FACTS AND CIRCUMSTANCES. 16 ITA NO. 1196/DEL/2017 (COMMUNE MARKETING AND EVENTS (P.) LTD .) (G) IN THE RESULT, APPEAL FILED BY ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20/02/20 SD/- SD/- (H.S.SIDHU) (ANADEE N ATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 20/02/20 *BR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 17.02.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 19.02.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER 17 ITA NO. 1196/DEL/2017 (COMMUNE MARKETING AND EVENTS (P.) LTD .)