Unison Insurance Broking Services, Ahmedabad V. The ACIT.,Circle-4, Baroda

ITA 1259/AHD/2010

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2057 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 18-04-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 22-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y P VERMA
• Assessee Lawyers: ANIL R SHAH
• Keywords: Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD B BENCH BEFORE: SHRI D.K. TYAGI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER UNISON INSURANCE BROKING SERVICES, 206-213 GLACIER COMPLEX, JETALPUR ROAD, BARODA PAN AAACU286Q (APPELLANT) VS ACIT, CIRCLE-4, BARODA (RESPONDENT) REVENUE BY: SRI Y.P. VERMA, SR. D.R. ASSESSEE BY: SRI ANIL R. SHAH A.R. DATE OF HEARING : 18-04-2013 DATE OF PRONOUNCEMENT : 10-05-20 13 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER:- THIS IS THE ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT(A)-III, BARODA DATED 24-11-2009. 2. THE ASSESSEE HAS TAKEN FOLLOWING EFFECTIVE GROUN D:- 1. THE LEARNED CIT(A)-III. BARODA HAS ERRED BOTH I N LAW AND IN FACT IN HOLDING THAT DISALLOWANCE U/S 40A(2)(B) MAD E BY THE ASSESSING ITA NO. 1259/AHD/2010 ASSESSMENT YEAR 2006-07 I.T.A NO. 1259/AHD/2010 A.Y. 2006-07 PAGE N O UNISON INSURANCE BROKING SERVICES VS. ACIT 2 OFFICER IS VALID AND THEREBY CONFIRMING THE ADDITIO N OF RS. 1,05,756/- MADE BY THE ASSESSING OFFICER. 3. DURING THE ASSESSMENT PROCEEDINGS ASSESSING OFFI CER OBSERVED THAT ASSESSEE HAS PAID A SUM OF RS. 1,05,756/- TO THE P ROPRIETOR CONCERN OF M/S OF LILY SINHA WIFE OF MR. BIRAJ SINHA ONE OF THE DI RECTOR OF THE ASSESSEE- COMPANY. IT WAS ALSO NOTED BY THE ASSESSING OFFICE R THAT ASSESSEE COULD NOT GIVE THE EXACT NATURE OF SERVICE RENDERED AND JUSTI FICATION OF THE SAME. HE THEREFORE DISALLOWED 10 % OF THE TOTAL EXPENSES SHO WN TO HAVE BEEN INCURRED BY THE ASSESSEE THEREBY MAKING AN ADDITION OF RS. 1 ,05,756/- TO THE INCOME OF THE ASSESSEE. BEFORE LD. CIT(A) NO EVIDENCE WA S PRODUCED REGARDING EXACT NATURE OF SERVICE RENDERED TO M/S LILY SINHA TO THE ASSESSEE-COMPANY THEREFORE HE CONFIRMED THE ACTION OF THE A.O. 4. FURTHER AGGRIEVED NOW THE ASSESSEE IS IN APPEAL BEFORE US. AT THE TIME OF HEARING LEARNED COUNSEL OF THE ASSESSEE PRA YED THAT ASSESSEE MAY KINDLY BE GIVEN ONE OPPORTUNITY TO PROVIDE EVIDENCE IN RESPECT OF SERVICES RENDERED BY M/S LILY SINHA TO THE ASSESSEE-COMPANY AND FOR THIS PURPOSE HE REQUESTED US TO RESTORE THE MATTER BACK TO THE FILE OF A.O. LD. D.R. VEHEMENTLY OPPOSED TO THIS SUBMISSION OF THE ASSESS EE AND ARGUED THAT SINCE ASSESSEE HAS FAILED TO GIVEN ANY EVIDENCE IN RESPEC T OF SERVICES RENDERED BY M/S SINHA BEFORE LOWER AUTHORITIES HE SHOULD NOT BE GIVEN ANY MORE OPPORTUNITY FOR THE SAME THEREFORE PRAYED THAT THE ORDER OF LD. CIT (A) MAY KINGLY BE UPHELD. 5. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORD AND IN THE INTEREST OF NATURAL JUSTICE AND FAIR PLAY WE ARE OF THE VIEW THAT ASSESSEE MAY BE GIVEN ONE MORE OPPORTUNITY TO SUBSTANTIATE HIS C LAIM OF PAYMENT MADE TO I.T.A NO. 1259/AHD/2010 A.Y. 2006-07 PAGE N O UNISON INSURANCE BROKING SERVICES VS. ACIT 3 A PROPRIETARY CONCERN OF M/S LILY SINHA BY GIVING E VIDENCE IN RESPECT OF THE SERVICES RENDERED BY M/S LILY SINHA TO THE ASSESSEE . FOR THIS PURPOSE THE MATTER IS RESTORED TO THE FILE OF A.O. FOR FRESH AD JUDICATION. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE ALLOWE D FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (A.MOHAN ALANKAMONY) ( D.K.TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 10/05/2013 AK / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. / CONCERNED CIT 4. - / CIT (A) 5. , ! , '# / DR, ITAT, AHMEDABAD 6. $% &' / GUARD FILE. BY ORDER/ , ( / ' ) ! , '#