ACIT, Circle 30, Kolkata V. Sri Sudhir D. Ahuja, Kolkata

ITA 1453/KOL/2009

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 6654 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2011
• Appeal Filed By: Department
• Bench Allotted: A
• Next Hearing Date: 29-04-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 20-08-2009
• Court: TRIBUNAL
• Department Lawyers: A K PRAMANIK

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH A, KOLKATA () BEFORE , , , , , SHRI MAHAVIR SINGH, JUDICIAL MEMBER. /AND ! ! ! ! , '# SHRI AKBER BASHA, ACCOUNTANT MEMBER $% &'/ ASSESSMENT YEAR : 2005-06 ) ) ) ) / ITA NO . 1453/KOL/2009 (*+,-/ RESPONDENT ) A.C.I.T., CIRCLE-30, KOLKATA - $ - - VERSUS - . (,- / APPELLANT ) SHRI SUDHIR D.AHUJA (PAN: ACNPA 0705 F) ,- / 0 '/ FOR THE DEPARTMENT SHRI A.K.PRAMANIK *+,- / 0 '/ FOR THE ASSESSEE: SHRI SUBASH AGARWAL '! / ORDER ( (( ( ! ! ! !) )) ), , , , '# PER SHRI AKBER BASHA, AM THE APPEAL BY THE REVENUE IS DIRECTED AGAINST THE O RDER DATED 29.05.2009 OF THE CIT (A)-XIV, KOLKATA PERTAINING TO THE ASSESSMENT Y EAR 2005-06. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE ARE AS UNDER:- 1. ADDITION OF RS.1,08,632/- OF S.T.C.L. THE LD. CIT(A) HAS FAILED TO APPRECIATE THE POINTS RAISED BY THE AO IN MAKING TH E ADDITION. THE LD. CIT(A) HAS THEREFORE ERRED IN FACTS AND CIRCUMSTANCES OF T HE CASE BY DELETING THE ADDITION WITHOUT ASSIGNING ANY VALID REASON. SECOND APPEAL IS STRONGLY RECOMMENDED. 2. ADDITION OF RS.3,00,000/- OF CLUB EXPENSES THE LD. CIT(A) HAS FAILED TO APPRECIATE THE POINTS RAISED BY THE AO IN MAKING TH E ADDITION. THE LD. CIT(A) HAS THEREFORE ERRED IN FACTS AND CIRCUMSTANCES OF T HE CASE BY DELETING THE 2 ADDITION WITHOUT ASSIGNING ANY VALID REASON. SECOND APPEAL IS STRONGLY RECOMMENDED. 3. ADDITION OF RS.1,20,000/- OF BUSINESS SETTLEMENT FEES THE LD. CIT(A) HAS FAILED TO APPRECIATE THE POINTS RAISED BY THE AO IN MAKING THE ADDITION. THE LD. CIT (A) HAS THEREFORE ERRED IN FACTS AND CIRCUMSTAN CES OF THE CASE BY DELETING THE ADDITION WITHOUT ASSIGNING ANY VALID REASON. SE COND APPEAL IS STRONGLY RECOMMENDED. 4. ADDITION OF RS.11,29,314/- PAID TO A SISTER CONC ERN FOR VARIOUS SERVICES THE LD. CIT(A) HAS FAILED TO APPRECIATE THE POINTS RAIS ED BY THE AO IN MAKING THE ADDITION. THE LD. CIT (A) HAS THEREFORE ERRED IN FA CTS AND CIRCUMSTANCES OF THE CASE BY DELETING THE ADDITION WITHOUT ASSIGNING ANY VALID REASON. SECOND APPEAL IS STRONGLY RECOMMENDED. 5. ADDITION OF RS.32,37,500/- OF BUSINESS SETTLEMEN T FEES PAID TO M/S. UNILUX TECHNOLOGIES (P) LTD U/S 40A(2)(B) THE LD. CIT(A) HAS FAILED TO APPRECIATE THE POINTS RAISED BY THE AO IN MAKING THE ADDITION. THE LD. CIT (A) HAS THEREFORE ERRED IN FACTS AND CIRCUMSTANCES OF THE C ASE BY DELETING THE ADDITION WITHOUT ASSIGNING ANY VALID REASON. SECOND APPEAL I S STRONGLY RECOMMENDED. 6. ADDITION OF RS.13,27,239/- OF MADE OUT OF EXPENS ES THE LD. CIT(A) HAS FAILED TO APPRECIATE THE POINTS RAISED BY THE AO IN MAKING THE ADDITION. THE LD. CIT (A) HAS THEREFORE ERRED IN FACTS AND CIRCUMSTAN CES OF THE CASE BY DELETING THE ADDITION WITHOUT ASSIGNING ANY VALID REASON. SE COND APPEAL IS STRONGLY RECOMMENDED. 7. ADDITION OF RS.6,89,446/- OF EXPENSES OUT OF BUS INESS PROMOTION EXPENSES THE LD. CIT(A) HAS FAILED TO APPRECIATE THE POINTS RAISED BY THE AO IN MAKING THE ADDITION. THE LD. CIT (A) HAS THEREFORE ERRED I N FACTS AND CIRCUMSTANCES OF THE CASE BY DELETING THE ADDITION WITHOUT ASSIGNING ANY VALID REASON. SECOND APPEAL IS STRONGLY RECOMMENDED. 3. AT THE OUTSET, WE FIND THAT THE CIT (A) HAS NOT PASSED A SPEAKING ORDER ON ALL THE GROUNDS RAISED BY THE ASSESSEE DURING THE APPEL LATE PROCEEDINGS AND THE CIT [A] DELETED THE ADDITION WITH GENERAL OBSERVATIONS WITH OUT ASSIGNING ANY VALID REASONS. WE FIND THAT THE ASSESSEE ALSO FURNISHED SOME ADDIT IONAL EVIDENCES VIZ., M.O.U. ETC., BEFORE THE CIT (A) WHICH WERE NOT FILED BEFORE THE ASSESSING OFFICER DURING THE ASSESSMENT PROCEEDINGS. HENCE, IN THE INTEREST OF J USTICE, WE FEEL IT PROPER TO RESTORE THE ENTIRE ISSUES TO THE FILE OF THE ASSESSING OFFI CER TO RE-CONSIDER THE ENTIRE ISSUES. ACCORDINGLY, WE DO THE SAME. WE DIRECT THE ASSESSIN G OFFICER TO RE-DO THE ASSESSMENT BY PASSING A REASONING ORDER AFTER GIVING PROPER OP PORTUNITY TO THE ASSESSEE OF BEING HEARD. 3 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 29.04.2011. SD/- SD/- , , , , MAHAVIR SINGH, JUDICIAL MEMBER ! ! ! !, ,, , '# '# '# '# , AKBER BASHA, ACCOUNTANT MEMBER. ( (( (1# 1# 1# 1#) )) ) DATE: 29.04.2011. '! / *2 3'2&4- COPY OF THE ORDER FORWARDED TO: 1. SHRI SUDHIR D.AHUJA, 53, SYED AMIR ALI AVENUE, KOLK ATA-700019. 2 THE A.C.I.T., CIRCLE-30, KOLKATA 3. THE CIT, 4. THE CIT(A)-X, KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA +2 */ TRUE COPY, '!$:/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES R.G.(.P.S.)