M/s. Fibres & Fabrics International Pvt. Ltd., Bangalore V. ACIT, Bangalore

ITA 1242/BANG/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 1527 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 21-11-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 16-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARSHA PRAKASH
• Assessee Lawyers: SRINIVAS ASHOK KAMAT
• Keywords: Additional evidence
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH B BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT AND SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NOS.1242 & 1243(BANG)/2010 (ASSESSMENT YEARS: 2006-07 & 2007-08) M/S.FIBRES & FABRICS INTERNATIONAL PVT. LTD. NO.21, E-1, II PHASE, PEENYA INDUSTRIAL AREA, BANGALORE-58. APPELLANT VS. ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-11(3),BANGALORE. RESPONDENT APPELLANT BY: SHRI SRINIVAS ASHOK KAMAT. RESPONDENT BY : SHRI HARSHA PRAKASH. O R D E R PER SMT. P. MADHAVI DEVI, JM : THESE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE CIT(A)-I, BANGALORE, DATED 11-8-2010 F OR THE ASSESSMENT YEARS 2006-07 AND 2007-08. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S A COMPANY WHICH IS ENGAGED IN THE BUSINESS OF MANUFAC TURE AND EXPORT OF READY-MADE GARMENTS. DURING THE ASSESSME NT PROCEEDINGS U/S 143(3) OF THE INCOME-TAX ACT, 1961 ITA NOS.1242 & 1243(BANG)/2010 PAGE 2 OF 3 [HEREINAFTER REFERRED TO AS 'THE ACT'], VARIOUS DIS ALLOWANCES AND CONSEQUENTLY ADDITIONS WERE MADE BY THE AO. AGAINS T THE SAME, THE ASSESSEE FILED APPEALS BEFORE THE CIT(A) WHO CONFIRMED THE ORDER OF THE CIT(A) AND THE ASSESSEE IS IN SECOND APPEAL BEFORE US. 3. AS SEEN FROM THE RECORDS AND THE GROUNDS OF APPE AL RAISED BY THE ASSESSEE, THE DISALLOWANCES ARE OF EX PENDITURE TOWARDS TERMINATION FEE, EXPENDITURE UNDER THE HEAD HANDLING AND TRACKING OF DELIVERY SCHEDULE 25% OF THE STAFF WELFARE EXPENSES, 20% OF EXPENSES DEBITED UNDER THE HEAD O THERS, DIFFERENCE IN RENT AND DISALLOWANCE OF REMUNERATION PAID TO MANAGING DIRECTOR. AT THE TIME OF HEARING, SHRI SR INIVAS ASHOK KAMATH, LEARNED COUNSEL FOR THE ASSESSEE, HAS FILED ADDITIONAL EVIDENCE SEEKING ADMISSION OF THE SAME. ON GOING T HROUGH THE SAID ADDITIONAL EVIDENCE, WE FIND THAT IT RELATES T O TRANSACTIONS OF THE ASSESSEE WITH 477 PARTIES WHICH WAS NOT FILE D BEFORE THE AO OR THE CIT(A). IT WAS SUBMITTED BY THE LEARNED COUNSEL FOR THE ASSESSEE THAT ADMISSION OF THIS EVIDENCE IS ESS ENTIAL FOR PROPER ADJUDICATION OF THE ISSUE. AS THIS VOLUMINO US EVIDENCE NEEDS VERIFICATION BY THE AO, WE DEEM IT FIT AND PR OPER TO REMAND THIS ISSUE TO THE FILE OF THE AO WITH A DIRE CTION TO TO THE ASSESSEE TO PRODUCE THESE ADDITIONAL EVIDENCES BEFO RE HIM AND THE AO IS DIRECTED TO RE-CONSIDER THE ISSUE IN ACCO RDANCE WITH ITA NOS.1242 & 1243(BANG)/2010 PAGE 3 OF 3 LAW. IN VIEW OF THE SAME, THESE APPEALS ARE ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH FEBRUARY, 2011. SD/- SD/- (DR. O.K. NARAYANAN) VICE PRESIDENT (SMT. P.MADHAVI DEVI) JUDICIAL MEMBER EKS COPY TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) CONCERNED 4. CIT 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE