ROBERT MCLEAN CONSULTANTS P.LTD, KOLKATTA V. DCIT CEN CIR 1(2), MUMBAI

ITA 1595/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9257 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 23-05-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 08-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K MITRA
• Assessee Lawyers: HARESH P KENIA
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM ITA NO. 1595 / MUM/2017 ( ASSESSMENT YEAR : 2012 - 13 ) M/S. ROBERT MCLEAN CONSULTANTS PVT. LTD., 9, ROWDON STREET, UDYANCHAL BUILDING, FLAT NO.20, 5 TH FLOOR, KOLKATTA 700 017 VS. DCIT CEN CIR 1(2), MUMBAI PAN/GIR NO. AABCR5764N APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI HARESH P. KENIA REVENUE BY SHRI S.K. MITRA DATE OF HEARING 06/09 /201 7 DATE OF PRONOUNCEME NT 25 / 09 /201 7 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 47, MUMBAI DATED 30/11/2016 FOR A.Y.2012 - 13 IN THE MATTER OF ORDER PASSED U/S.143(3) OF THE IT ACT. 2. IN THIS APPEAL, ASSESSEE IS AGGRIEVED F OR ADDITION OF RS.1,15,402/ - TOWARDS EXPENSES DEBITED TO PROFIT AND LOSS ACCOUNT WHICH WAS NOT CLAIMED IN THE RETURN OF INCOME FILED. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FROM THE RECORD, WE FOUND THAT THE EXPENSES TOTALLING RS.1,15,402 / - WAS INCURRED BY ASSESSEE CONSIST OF LEGAL EXPENSES OF RS.6,000/ - , MAINTENANCE CHARGES OF RS.51,053/ - , RENT OF RS.18,000/ - , SERVICE CHARGES OF RS.27,179/ - , TELEPHONIC EXPENSES OF RS.9,974/ - , SERVICE TAX OF ITA NO. 1595/MUM/2017 M/S. ROBERT MCLEAN CONSULTANTS PVT. LTD., 2 RS.2,801/ - AND DEPRECIATION OF RS.395/ - . IT IS S UBMITTED THAT THE ABOVE EXPENDITURE WAS PAID OUT OF THE AVAILABLE CASH IN HAND. IT IS CLAIMED THAT THE AFORESAID EXPENDITURE WAS IN THE NATURE OF ESTABLISHMENT EXPENSES INCURRED IN ORDER TO MAINTAIN THE COMP ANY AND TO RUN THE ORGANISATION 4. ON THE PLEA TH AT THERE WAS NO PURCHASE AND SALE TRANSACTION DURING THE YEAR, THE AO DISALLOWED ASSESSEES CLAIM OF EXPENSES. I FOUND THAT THESE EXPENSES WERE IN THE NATURE OF ESTABLISHMENT EXPENSES TO KEEP THE ASSESSEE COMPANY ALIVE AND THESE ARE THE BARE MINIMUM EXPENS ES. NOWHERE THE AO HAS DOUBTED THE GENUINENESS OF EXPENSES ACTUALLY INCURRED. 5. IN THE FOLLOWING JUDICIAL PRONOUNCEMENTS, IT HAS BEEN HELD THAT BARE MINIMUM EXPENDITURE INCURRED TO KEEP THE ASSESSEE COMPANY ALIVE, NOTWITHSTANDING THE FACT THAT DUR ING THE YEAR THERE ARE NO PURCHASE AND SALE . THESE EXPENDITURE S ARE REQUIRED TO BE ALLOWED. PREIMUS INVESTMENT AND FINANCE LTD., VS. DCIT ITA NO.4879/MUM/2012 DELHI HIGH COURT IN CASE OF ITA NO.530/2011 DATED 16.12.2011 BETWEEN CIT VS INTEGRATED TECHNOLOGIES LTD., CIT VS. ANITA JAIN 214 TAXATION 180 (DELHI)/281 TAXMAN 73. KNP SECURITIES PVT. LTD., VS. ACIT 33 DTR 210 MUMBAI / 127 TTJ 338 SHINGAR LAMPS LTD., VS. ACIT 150 TAXMAN 17 AMRITSAR. 6. LOOKING INTO THE NATURE OF EXPENSES AND THE QUANTUM INCURRED, I DO NOT F IND ANY MERIT FOR THE DISALLOWANCE ON THESE EXPENDITURES. ACCORDINGLY, AO IS DIRECTED TO DELETE DISALLOWANCE. ITA NO. 1595/MUM/2017 M/S. ROBERT MCLEAN CONSULTANTS PVT. LTD., 3 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 25 / 09 /2017 S D/ - ( R.C.SHARMA ) ACCOUNTANT MEMBER MUMBAI ; DATED 25 / 09 /201 7 KARUNA SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//