HAWKINS COOKERS LTD., MUMBAI V. D.C.I.T. (OSD) 3(1), MUMBAI

ITA 1482/MUM/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3997 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 22-07-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 02-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHINAY KUMAR

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL H B ENCH, MUMBAI . . , !'#$ , % &' BEFORE SHRI H.L. KARWA, PRESIDENT AND SHRI N.K. BILLAIYA, AM ./I.T.A. NO. 1482/MUM/2012 ( ( ( ( ( / ASSESSMENT YEAR : 2008-09 M/S. HAWKINS COOKERS LTD., F-101, MAKER TOWER, CUFFE PARADE, MUMBAI-400 005 THE DCIT 3(1), AAYAKAR BHAVAN, MUMBAI-400 020 ') % ./ *+ ./PAN/GIR NO. : AAACH 1784M ( ), /APPELLANT ) .. ( -.), / RESPONDENT ) ), / / APPELLANT BY : ` NONE -.), 0 / /RESPONDENT BY : SHRI ABHINAY KUMAR 0 12% / DATE OF HEARING :22.07.2013 34( 0 12% / DATE OF PRONOUNCEMENT :24.7.2013 &5 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-7, MUMBAI DT.10.10.2011 PERTAINING TO A.Y. 2008-09. 2. THE ASSESSEE HAS FILED AN ADJOURNMENT APPLICATIO N, THE SAME HAS BEEN REJECTED BY THE BENCH AND PROCEED TO DECIDE T HE SAME EX PARTE ON MERITS. 3. THE SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE L D. CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF FOREIGN TRAVELLING E XPENSES AT RS. 25,043/-. ITA NO.1482/M/2012 2 4. DURING THE COURSE OF THE SCRUTINY ASSESSMENT PRO CEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS DE BITED RS. 36,82,515/- ON ACCOUNT OF FOREIGN TRAVEL. THE ASSESSEE WAS ASK ED TO FILE A COMPLETE DETAIL. ON PERUSING THE DETAIL FILED BY THE ASSESS EE, THE AO NOTED THAT THE ASSESSEE HAS INCURRED CERTAIN EXPENSES ON TRAVEL OF SMT. SUSAN VASUDEVA WIFE OF SHRI BRAHM VASUDEVA, CHAIRMAN OF THE ASSESS EE COMPANY ON A TRIP TO CHICAGO IN THE MONTH OF MARCH, 2008. THE ASSESSEE WAS ASKED TO EXPLAIN THE GENUINENESS OF THE EXPENSES INCURRED ON ACCOUNT OF SMT. SUSAN VASUDEV. THE ASSESSEE VIDE ITS LETTER DT. 27 .11.2009 EXPLAINED THAT SMT. SUSAN VASUDEVA ASSISTED SHRI BRAHM VASUDEVA D URING THE TRADE FAIR AT CHICAGO. THE AO DID NOT FIND ANY SUBSTANCE IN T HIS REPLY OF THE ASSESSEE AND DISALLOWED THE EXPENDITURE OF RS. 25,0 43/- INCURRED IN RELATION TO JOURNEY OF SMT. SUSAN VASUDEVA. 5. THE ASSESSEE CARRIED THIS MATTER BEFORE THE LD. CIT(A) BUT FAILED TO CONVINCE THE BUSINESS NECESSITY OF THIS TRAVEL EXPE NSE TO CHICAGO. 6. AGGRIEVED BY THIS FINDING, THE ASSESSEE IS BEFOR E US. 7. THE LD. DEPARTMENTAL REPRESENTATIVE SUPPORTED TH E FINDINGS OF THE LOWER AUTHORITIES. 8. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE LOWE R AUTHORITIES AND THE MATERIAL EVIDENCE BROUGHT ON RECORD IN THE FORM OF PAPER BOOK. A CHART IS EXHIBITED AT PAGE-37 OF THE PAPER BOOK WHI CH CONTAINS THE DETAILS OF FOREIGN TRAVEL EXPENSES TO THE TUNE OF RS. 36,82 ,515/-. ONE OF THE ITEMS OF THESE DETAILS IS TRAVEL EXPENSE OF RS. 25, 043/- INCURRED ON SMT. SUSAN VASUDEVA FOR A TRIP TO CHICAGO. EXHIBIT-38 O F THE PAPER BOOK CONTAINS DETAILS OF THE PEOPLE REGISTERED ON BEHALF OF THE ASSESSEE ITA NO.1482/M/2012 3 COMPANY IN THE TRADE FAIR AT CHICAGO ALONGWITH CHAI RMAN, SHRI BRAHM VASUDEVA. IT IS MENTIONED THAT SMT. SUSAN VASUDEVA ALSO ATTENDED THE TRADE FAIR AT CHICAGO. THESE DOCUMENTS CLEARLY SHO W THAT SMT. SUSAN VASUDEVA HAS ACTUALLY VISITED THE TRADE FAIR AT CHI CAGO. EVIDENCE ON RECORD ALSO SUGGESTS THAT SMT. SUSAN VASUDEVA HAS A N AMERICAN BACKGROUND AND IS WELL CONVERSED WITH AMERICA. CO NSIDERING THE NATURE OF EXPENSE IN THE LINE OF THE NATURE OF BUSINESS OF THE ASSESSEE , IN OUR VIEW, THE TRAVEL EXPENSES INCURRED BY THE ASSESSEE COMPANY IN THE INTERNATIONAL HOUSEWARE SHOW IN USA FOR THE TRAVEL OF SMT. SUSAN VASUDEVA IS DIRECTLY CONNECTED WITH THE BUSINESS OF THE ASSESSEE, THEREFORE, WE DO NOT FIND ANY REASON FOR THE DISALL OWANCE OF SUCH EXPENSE. THE AO IS DIRECTED TO ALLOW THE TRAVEL EX PENSE OF RS. 25,043/-. 9. HOWEVER, HERE WE WOULD LIKE TO MAKE IT CLEAR THA T WE ARE ALLOWING THIS TRAVEL EXPENSE FOR THE PECULIAR FACTS OF THE C ASE AND IT IS MADE CLEAR THAT OUR DECISION ON FACTS OF THIS CASE SHOULD NOT BE CITED AS PRECEDENCE IN ANY OTHER CASE. 10. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 24.7.2013 . &5 0 4( % 6 7&8 24.7.2013 4 0 9 SD/- SD/- (H.L. KARWA ) (N.K . BILLAIYA ) /PRESIDENT % &' / ACCOUNTANT MEMBER MUMBAI; 7& DATED 24/07/2013 . . ./ RJ , SR. PS ITA NO.1482/M/2012 4 &5 &5 &5 &5 0 00 0 -1! -1! -1! -1! :!(1 :!(1 :!(1 :!(1 / COPY OF THE ORDER FORWARDED TO : 1. ), / THE APPELLANT 2. -.), / THE RESPONDENT. 3. ; ( ) / THE CIT(A)- 4. ; / CIT 5. !<9 -1 , , / DR, ITAT, MUMBAI 6. 9= > / GUARD FILE. &5 &5 &5 &5 / BY ORDER, .!1 -1 //TRUE COPY// ? ?? ? / @ @ @ @ * * * * (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI