M/s. Smartowner Services India Pvt. Ltd, Bengaluru V. Income Tax Officer, Ward-6(1)(2), Bengaluru

ITA 167/BANG/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2265 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-12-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 09-11-2020
• Assessment Year: 2013-2014
• Appeal Filed On: 17-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYADARSHI MISHRA
• Assessee Lawyers: K SOUMYA
• Keywords: Opportunity of being heard; Principle of natural justice; Additional evidence; TDS; Set aside

Judgement Text

ITA NO.167/BANG/2018 M/S. SMARTOWNER SERVICES INDIA PVT. LTD., BENGALURU IN THE INCOME TAX APPELLATE TRIBUNAL BBENCH: BANGALORE BEFORE SHRI GEORGE GEORGE K., JUDICIAL MEMBER AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NO.167/BANG/2018 ASSESSMENT YEAR:2013-14 M/S. SMARTOWNER SERVICES INDIA PVT. LTD. 8 TH FLOOR, DELTA BLOCK, SIGMA TECH PARK WHITEFIELD VARTHUR ROAD NEAR RAMAGONDANAHALLI BENGALURU-560 066 PAN NO : AARCS7066C VS. ITO WARD-6(1)(2) BENGALURU APPELLANT RESPONDENT APPELLANT BY : SMT. K. SOUMYA, A.R. RESPONDENT BY : SHRI PRIYADARSHI MISHRA, D.R. DATE OF HEARING : 09.11.2020 DATE OF PRONOUNCEMENT : 01.12.2020 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 23.10.2017 PASSED BY LD. CIT(A)-6, BENGALURU AND IT RELATES TO ASSESSMENT YEAR 2013-14. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD. CIT(A) IN CONFIRMING THE DISALLOWANCE OF RS. 53,52,643/- AND RS.21,08,384/- CLAIMED BY THE ASSESSEE AS EXPENSES. 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE ASSESSEE COMPAN Y WAS INCORPORATED ON 19.6.2012 AND HENCE THIS IS THE FIR ST YEAR OF ITA NO.167/BANG/2018 M/S. SMARTOWNER SERVICES INDIA PVT. LTD., BENGALURU PAGE 2 OF 4 OPERATION. IT IS ENGAGED IN THE BUSINESS OF REAL E STATE BROKERAGE THROUGH E-PLATFORM. IT FILED THIS RETURN OF INCOME DECLARING A TOTAL INCOME OF RS.2,71,720/-. DURING THE COURSE OF HEAR ING, THE A.O. ASKED FOR VARIOUS DETAILS RELATING TO BROKERAGE AND COMMISSION EXPENSES OF RS.53,52,642/- AND ALSO LEGAL & PROFESS IONAL FEES OF RS.21,08,384/-. SINCE THE ASSESSEE DID NOT FURNISH THE DETAILS, THE A.O. DISALLOWED BOTH THE EXPENSES CITED ABOVE. THE LD. CIT(A) ALSO CONFIRMED THE SAME AND HENCE THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. 3. THE LD. A.R. SUBMITTED THAT THE ASSESSEES MODEL OF BUSINESS IS TRANSPARENT, SINCE ALL THE TRANSACTIONS WERE CON DUCTED THROUGH WEB PORTAL ONLY. FURTHER THE PAYMENTS TOWARDS BROKE RAGE, LEGAL AND PROFESSIONAL CHARGES WERE SUBJECTED TO TDS OBLIGATI ONS. EVEN THOUGH CERTAIN DOCUMENTS WERE FURNISHED BEFORE AO/C IT(A), FOR THE REASONS BEYOND THE CONTROL OF THE ASSESSEE, ALL DOC UMENTS REQUIRED BY THE A.O. COULD NOT BE FURNISHED BEFORE HIM. THE LD. A.R. SUBMITTED THAT THE ASSESSEE HAS COLLATED ALL THE DO CUMENTS IN THE FORM OF 2 PAPER BOOKS AND FURNISHING THE SAME AS AD DITIONAL EVIDENCES ALONG WITH AN APPLICATION UNDER RULE 29 O F THE APPELLATE TRIBUNAL RULES PRAYING ADMISSION OF THE ADDITIONAL EVIDENCES. THE LD A.R SUBMITTED THAT THE ASSESSEE WAS EXPECTING AN OTHER HEARING OPPORTUNITY BEFORE LD CIT(A), SO THAT IT COULD FURN ISH THE DOCUMENTS BEFORE HIM. HOWEVER, THE LD. CIT(A) HAS P ASSED THE ORDER WITHOUT GIVING FURTHER OPPORTUNITY AND HENCE THESE DOCUMENTS ARE PRODUCED BEFORE THE TRIBUNAL AS ADDIT IONAL EVIDENCES. ACCORDINGLY, THE LD. A.R. PRAYED THAT T HESE EVIDENCES BE ADMITTED AND THE MATTER MAY BE RESTORED TO THE FILE OF THE A.O. FOR EXAMINING BOTH THE ISSUES AFRESH. ITA NO.167/BANG/2018 M/S. SMARTOWNER SERVICES INDIA PVT. LTD., BENGALURU PAGE 3 OF 4 4. WE HAVE HEARD THE LD. D.R. AND PERUSED THE RECOR D. HAVING REGARD TO THE SUBMISSIONS MADE BY LD. A.R., IN THE INTEREST OF NATURAL JUSTICE, WE ARE OF THE VIEW THAT THE ADDITI ONAL EVIDENCES FURNISHED BY THE ASSESSEE SHOULD BE ADMITTED. IN F ACT, THE ADMISSION OF ADDITIONAL EVIDENCES AND EXAMINING THE M AFRESH WOULD PROMOTE THE CAUSE OF JUSTICE. ACCORDINGLY, W E ADMIT THE ADDITIONAL EVIDENCES FURNISHED BY THE ASSESSEE. SI NCE THE IMPUGNED ADDITIONS HAVE BEEN MADE FOR WANT OF EVIDE NCES AND SINCE THE ASSESSEE HAS FILED THE EVIDENCES IN THE F ORM OF ADDITIONAL EVIDENCES, WE ARE OF THE VIEW THAT BOTH THE ISSUES REQUIRE FRESH EXAMINATION AT THE END OF THE A.O. BY DULY CONSIDER ING THE ADDITIONAL EVIDENCES. ACCORDINGLY, WE SET ASIDE TH E ORDER PASSED BY LD. CIT(A) AND RESTORE BOTH THE ISSUES TO THE FILE OF THE A.O. FOR EXAMINING IT AFRESH AFTER CONSIDERING THE ADDITIONA L EVIDENCES AND ALSO ANY OTHER EVIDENCE AND EXPLANATIONS THAT MAY B E FURNISHED BY THE ASSESSEE BEFORE HIM. AFTER AFFORDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE,THE A.O. MAY TAKE APPRO PRIATE DECISION IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST DEC, 2020 SD/- (GEORGE GEORGE K.) JUDICIAL MEMBER SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 1 ST DEC, 2020. VG/SPS ITA NO.167/BANG/2018 M/S. SMARTOWNER SERVICES INDIA PVT. LTD., BENGALURU PAGE 4 OF 4 COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.