ACIT, Jaipur V. SUDHANSHU KASLIWAL, Jaipur

ITA 144/JPR/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5124 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 18-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BHATEJA
• Assessee Lawyers: ANANT KASLIWAL DHK
• Keywords: Audit objection; Tax effect
• Section: 154

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH HKKXPUN] YS[KK LNL; DS LE{K BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 144/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 THE ACIT CENTRAL CIRCLE- 1 JAIPUR CUKE VS. SHRI SUDHANSHU KASLIWAL SB-14, BHAWANI SINGH MARG BAPU NAGAR,JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: ABQPK 1554 J VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY :SHRI O.P. BHATEJA, ADDL CIT-. DR FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: SHRI ANANT KASLIWAL LQUOKBZ DH RKJH[K@ DATE OF HEARING : 27/07/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 28 /07/2016 VKNS'K@ ORDER PER BHAGCHAND, AM THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)-4, JAIPUR DATED 16-12-2015 FOR THE ASSESSM ENT YEAR 2009-10 RAISING THEREIN FOLLOWING GROUNDS:- 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) WAS RIGHT IN DELETING THE ADDI TION OF RS. 1,60,486/- MADE BY THE AO IN THE ORDER U/S 154 OF T HE I.T. ACT ON ACCOUNT OF INADMISSIBLE EXPENSES PAID TO M/S. MAX NEW YORK LIFE INSURANCE (P) LTD. FOR INSURANCE PREMIUM FOR STAFF IGNORING THE FACT THAT THIS AMOUNT IS INADMISSIBLE U/S 40A(9) OF THE I.T. ACT AND WHICH WAS NOT ADDED BACK WHILE COMPUTING TAXABLE I NCOME IN ITA NO. 144/JP/2016 SHRI SUDHANSHU KASLIWAL VS. ACIT, CENTRAL CIRCLE- 1, JAIPUR . 2 RETURN OF INCOME AND IN THE ASSESSMENT ORDER. IT I S PERTINENT TO MENTION HERE THAT THIS CASE IS COVERED UNDER EXCEPT ION LAID DOWN IN PARA 8 OF THE CIRCULAR NO.21/2015 DATED 10-12-2005 ISSUED BY THE CBDT FOR FILING OF APPEALS. 2.1 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. I FEEL THAT IT IS NOT IMPERATI VE TO RE-DISCUSS THE ISSUE IN DETAIL AS THE LD. CIT(A) HAS ALREADY TAKEN INTO CONSIDERATION ALL THE ASPECTS AS TO DELETION OF ADDITION OF RS. 1,60,487/ - MADE BY THE AO IN HIS ORDER PERTAINING TO CLAIM OF RS. 1,60,487/- PAID TO M/S. MAX NEW YORK INSURANCE COMPANY PVT. LTD. FOR INSURANCE PREMIUM F OR STAFF. HOWEVER, FIRST OF ALL, IT IS NOTED THAT THIS APPEAL IS NOT M AINTAINABLE IN VIEW OF CBDT CIRCULAR NO.21/2015 DATED 10 TH DEC. 2015 ISSUED BY GOVT. OF INDIA MINISTRY OF FINANCE, DEPTT OF REVENUE, CENTRAL BOAR D OF DIRECT TAXES, NEW DELHI FOR LOW TAX EFFECT. DURING THE COURSE OF HEARING, THE LD. DR SUBMITTED THAT THIS APPEAL HAS BEEN FILED IN VIEW O F THE REVENUES AUDIT OBJECTION WHICH HAS BEEN ACCEPTED BY THE DEPARTMENT BUT NO EVIDENCE IN SUPPORT OF IT WAS SUBMITTED BEFORE ME. THE LD. AR R ELIED ON THE ORDER OF THE LD. CIT(A) BESIDES THE CIRCULAR OF CBDT DATED 1 0-12-2015 (SUPRA). MOREOVER, IT IS OBSERVED THAT THIS ADDITION WAS MAD E BY INVOKING THE PROVISIONS OF SECTION 154 OF THE ACT. SINCE THIS WA S NOT AN APPARENT MISTAKE ON RECORD AND IT WAS A DEBATABLE ISSUE, THE REFORE, SUCH ADDITION ITA NO. 144/JP/2016 SHRI SUDHANSHU KASLIWAL VS. ACIT, CENTRAL CIRCLE- 1, JAIPUR . 3 CANNOT BE MADE BY INVOKING THE PROVISIONS OF SECTIO N 154 OF THE ACT. IT IS NOTED THAT THIS ISSUE IS NOT COVERED BY THE PROVISI ONS OF SECTION 40A(9) OF THE ACT. HENCE, CONSIDERING ENTIRETY OF THE FACTS A ND CIRCUMSTANCES OF THE CASE, I DISMISS THE APPEAL OF THE REVENUE. 3.0 IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 /07/201 6. HKKXPUN ( BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 28 /07/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT , CENTRAL CIRCLE- 1, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- SHRI SUDHANSHU KASLIWAL,JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 144/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ @ ASSISTANT. REGISTRAR