ITO Wd 12(3), Kolkata, Kolkata V. M/s Magnum Surveyors(I)(P)Ltd., Kolkata

ITA 1582/KOL/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 78400 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 8 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2014
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 31-10-2012
• Court: TRIBUNAL
• Department Lawyers: DAVID Z CHAWNGTHU CITSR
• Assessee Lawyers: D K BANDYOPADHYAY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH C , KOLKATA [BEFORE HONBLE SRI P.K.BANSAL, AM & HONBLE SRI GEORGE MATHAN, JM] ITA NO.1582/KOL/2012 ASSESSMENT YEAR : 2008-09 ( APPELLANT ) - (RESPONDENT) I.T.O., WARD-12(3), M/S.MAGNUM SURVEYORS(I) KOLKATA -VERSUS- PVT. LTD., KOLKATA (PAN : AADCM 1689 B) FOR THE APPELLANT: SHRI DAVID Z.CHAWNGTHU, ADDL.CIT,SR.DR FOR THE RESPONDENT: SHRI D.K.BANDYOPADHYAY, C.A. DATE OF HEARING : 25.07.2014 DATE OF PRONOUNCEMENT : 25.07.2014. ORDER PER SHRI P.K.BANSAL, AM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A)-XXIV, KOLKATA DATED 22.08.2012 FOR A.YR.2008-09 2. GROUND NOS.1 AND 2 RELATE TO THE ADDITION OF RS .5,20,307/-. THE AO NOTED THAT THE ASSESSEE HAS CLAIMED CREDIT FOR TDS BUT HAS NOT ACCOUNTED THE INCOME OF RS.30,27,795/- IN ITS INCOME. THE ASSESSEE WENT IN APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) CALLED FOR THE REMAND REPORT FROM THE AO . IN THE REMAND REPORT THE AO FOUND A SUM OF RS.25,85,440/- HAVE BEEN RECONCILED AND ACCEPTED WHILE A SUM OF RS.4,32,512/- WAS NOT BEING RECONCILED. BEFORE THE LD. CIT(A) THE ASSESSEE AGAIN MADE THE RECONCILIATION AND ULTIMATELY THE LD. CIT( A) ALLOWED RELIEF OF RS.29,25,842/- OUT OF THE ADDITION OF RS.30,27,795/-. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y CONSIDERED THE SAME ALONG WITH ORDERS OF THE TAX AUTHORITIES BELOW. WE NOTED THAT AFTER HEARING THE RIVAL SUBMISSIONS THE LD. CIT(A) HAS GIVEN DOUBLE RELIEF TO THE ASSESSEE FOR A SUM OF RS.8,090/- IN RESPECT OF M/S.TATA AIG GENERAL INSUR ANCE CO.LTD. AND FOR A SUM OF ITA NO.1582/KOL/2012 M/S.MAGNUM SURVEYO RS (I)PVT.LTD., A.YR.2008-09 2 RS.24,917/- IN RESPECT OF M/S.BAJAJ ALLIANZ INSURAN CE CO.LTD.. THE CHEQUE NUMBERS DID NOT TALLY THEREFORE THE ADDITION HAS NOT TO BE DELETED. WE ACCORDINGLY SET ASIDE THE ORDER OF THE LD. CIT(A) AND SUSTAIN THE ADDITION OF RS.8,090/- AND RS.24,197/- OUT OF A SUM OF RS.29,25,842/- DELETED BY THE LD. CIT(A). 4. GROUND NO.3 TAKEN BY THE REVENUE READS AS UNDER :- 3. WHETHER ON THE FACTS AND IN CIRCUMSTANCES OF TH E CASE LD.CIT(A) WAS JUSTIFIED IN DELETING THE DISALLOWANCE OF EXPENSES (I) DATA ENTR Y CHARGES RS.3,00,977/- (II) PETROL AND MAINTENANCE RS.4,83,973/- (III) TELEPHONE EXPEN SES OF RS.58,266/- AND (IV) MOBILE PHONE EXPENSES OF RS.86,833/- IGNORING THE SPECIFIC FINDING OF THE ASSESSING OFFICER. 5. AFTER HEARING THE RIVAL SUBMISSIONS WE NOTED THA T THE AO MADE THE FOLLOWING DISALLOWANCES :- A) DATA ENTRY CHARGES : RS.4,00,977/- B) PETROL & MAINTENANCE : RS.5,58,973/- C) TELEPHONE EXPENSES : RS. 58,266/- D) MOBILE PHONE EXPENSES : RS.1,11,833/- 6. EVEN THOUGH THE ASSESSEE HAS SUBMITTED DETAILS O F VARIOUS EXPENSES INCURRED BY HIM THE MATTER WENT BEFORE THE LD. CIT(A). THE ASSE SSEE CONTENDED THAT SINCE ALL THE DETAILS WERE SUBMITTED AND ALL THE EXPENSES WERE IN CURRED FOR THE PURPOSE OF BUSINESS BUSINESS EXIGENCY REQUIRED SUCH EXPENDITURE TO BE I NCURRED. THE LD. CIT(A) AFTER GOING THROUGH THE SUBMISSIONS OF THE ASSESSEE REDUC ED THE ADDITION BY HOLDING AS UNDER :- 5..3. I HAVE CAREFULLY CONSIDERED THE OBSERVATION OF THE ASSESSING OFFICER IN THE ASSESSMENT ORDER AND ALSO THE SUBMISSION OF THE LD. A/R. I FIND THAT THERE IS SUFFICIENT MERIT IN THE SUBMISSIONS OF THE LD. A/R. CONSIDERIN G THE FACTS OF THE CASE AND ALSO THE NATURE OF THE BUSINESS OF THE APPELLANT, (I) THE DI SALLOWANCE OUT OF DATA ENTRY CHARGES IS RESTRICTED RS.1,00,000/- INSTEAD OF RS.4,00,977/-, (II) THE DISALLOWANCE OUT OF PETROL & MAINTENANCE IS RESTRICTED TO RS.75,000/- INSTEAD OF RS.5,58,973/- AND (III) THE DISALLOWANCE OF RS.58,266/- OUT OF TELEPHONE EXPENS ES IS DELETED (IV) THE DISALLOWANCE OUT OF MOBILE PHONE EXPENSES IS RESTRICTED TO RS.25 ,000/- INSTEAD OF RS.1,11,833/-. THUS THE APPELLANT GETS A RELIEF OF RS.9,30,049/- (RS.3, 00,977/- + RS.4,83,973/- + RS.58,266/- +RS.86,833). THIS GROUND OF APPEAL IS PARTLY ALLOWE D. ITA NO.1582/KOL/2012 M/S.MAGNUM SURVEYO RS (I)PVT.LTD., A.YR.2008-09 3 7. THE LD.DR EVEN THOUGH BEFORE US VEHEMENTLY RELIE D ON THE ORDER OF AO WE NOTED THAT THE DISALLOWANCE HAS BEEN MADE BY THE AO ON THE BASIS OF THE ASSUMPTION AND PRESUMPTION. IN OUR OPINION THE LD.CIT(A) WAS F AIR AND REASONABLE TO REDUCE THE DISALLOWANCE SINCE THE ASSESSEE IS NOT IN APPEAL. W E, THEREFORE, CONFIRM THE ORDER OF THE LD.CIT(A). 8. IN THE RESULT THE APPEAL FILED BY THE REVENUE ST ANDS PARTLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 25.07.2014. SD/- SD/- [GEORGE MATHAN ] [P.K.BANSAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 25.07.2014. R.G.(.P.S.) COPY OF THE ORDER FORWARDED TO: 1. M/S.MAGNUM SURVEYORS (I)PVT.LTD., PAUL MANSION, 6B, BISHOP LEFROY ROAD, BHOWANIPORE, KOLKATA-700020. 2 I.T.O., WARD-12(3), KOLKATA 3 . CIT KOLKATA 4 . CIT(A)- XXIV, KOLKATA 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY, BY ORDER, ASST. REGISTRAR , ITAT, KOLKATA BENCHES