DCIT, New Delhi V. M/s. Dynamic Sales Services International, New Delhi

ITA 168/DEL/2014

• Counselvise Citation: 16820114 RSA 2014
• Duration Of Justice: 1 year(s) 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 04-06-2015
• Assessment Year: 2003-2004
• Appeal Filed On: 08-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K K JAISWAL
• Assessee Lawyers: B N GOSWAMI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH SMC SMC SMC SMC : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT PRESIDENT PRESIDENT PRESIDENT ITA NO ITA NO ITA NO ITA NO . .. . 168/DEL/2014 168/DEL/2014 168/DEL/2014 168/DEL/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2003 2003 2003 2003 - -- - 04 0404 04 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -5, 5,5, 5, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S DYNAMIC SALES SERVICES M/S DYNAMIC SALES SERVICES M/S DYNAMIC SALES SERVICES M/S DYNAMIC SALES SERVICES INTERNATIONAL PVT.LTD., INTERNATIONAL PVT.LTD., INTERNATIONAL PVT.LTD., INTERNATIONAL PVT.LTD., 208 208 208 208- -- -216, AUROBINDO PLACE, 216, AUROBINDO PLACE, 216, AUROBINDO PLACE, 216, AUROBINDO PLACE, HAUZ KHAS, HAUZ KHAS, HAUZ KHAS, HAUZ KHAS, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 016. 110 016. 110 016. 110 016. PAN : AAACD0590P. PAN : AAACD0590P. PAN : AAACD0590P. PAN : AAACD0590P. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.K. JAISWAL, SR.DR. RESPONDENT BY : SHRI B.N. GOSWAMI, ADVOCATE. DATE OF HEARING : 04.06.2015 04.06.2015 04.06.2015 04.06.2015 DATE OF PRONOUNCEMENT : 03.07.2015 03.07.2015 03.07.2015 03.07.2015 ORDER ORDER ORDER ORDER THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 200 3-04 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XXXI, N EW DELHI DATED 31 ST OCTOBER, 2013. 2. THE GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDER: - 1. THE ORDER OF LD.CIT(A) IS NOT CORRECT IN LAW AND FACTS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD.CIT(A) HAS ERRED IN LAW IN DELETING THE ADDITION OF RS.29,44,147/- MADE BY AO ON ACCOUNT OF NOT FURNISHIN G OF PROPER VOUCHER FOR EXPENDITURE INCURRED. 3. LEARNED DR HAS RELIED ON THE ORDER OF THE ASSESSING O FFICER. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE I N THE GROUNDS OF APPEAL OF THE REVENUE IS COVERED IN FAVOU R OF THE ASSESSEE ITA-168/DEL/2014 2 WITH THE VARIOUS DECISIONS OF THE TRIBUNAL IN ASSESSEES OW N CASE FOR THE ASSESSMENT YEAR 2001-02 TO 2012-13, COPIES FILED IN THE COMPILATION BEFORE THE TRIBUNAL. HE REFERRED TO TH E RELEVANT PORTION OF THE APPELLATE ORDER PASSED BY THE LEARNED CIT(A) IN SU PPORT OF THE CASE OF THE ASSESSEE. 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE PERU SED THE ORDER OF THE ASSESSING OFFICER AND THE CIT(A). I FIND THAT LEARNED CIT(A) HAS NOTED IN THE IMPUGNED ORDER THAT THE ASSESSEE HAS SUBM ITTED THAT ON IDENTICAL FACTS, THE ASSESSING OFFICER HAS ACCEPTED TH E FINANCIAL RESULTS FOR THE ASSESSMENT YEAR 2001-02, 2004-05, 2005-06 , 2009-10 AND 2010-11 AND THE ASSESSMENTS HAVE BEEN COMPLETED WITH OUT ANY DISALLOWANCES, LET ALONE THE AD-HOC DISALLOWANCE. TH E LEARNED CIT(A) HAS FURTHER RECORDED THAT THE ADDITIONAL CIT HAS GIVE N DIRECTION UNDER SECTION 144A TO AFFORD AN OPPORTUNITY TO THE ASSESSEE B EFORE MAKING SUCH DISALLOWANCE OUT OF EXPENDITURE. THE CIT(A) HAS RECORDED THAT HE COULD NOT SEE ANY SUCH ATTEMPT HAVING BEEN MADE BY TH E ASSESSING OFFICER AND THE ASSESSING OFFICER HAS SIMPLY MADE AD-HOC ADDITIONS WITHOUT PROVIDING ANY DETAILS ETC. THE ASSESSING OFFICE R HAS NOT POINTED OUT ANY PARTICULAR ENTRY OF EXPENDITURE WHI CH IS NOT VOUCHED OR FOR WHICH BUSINESS EXPEDIENCY HAS NOT BEEN EXPLAINED. THE CIT(A) HAS GIVEN A FINDING THAT THE ASSESSEE IS A COMPANY AND THERE COULD NOT BE ANY PERSONAL ELEMENT IN THE EXPENSES INCURRED BY THE C OMPANY AS A GENERAL PRINCIPLE, UNLESS A SPECIFIC ITEM IS POINTED OU T. I FIND THAT THE ASSESSEE HAS CLAIMED BEFORE THE CIT(A) THAT THE ENTIRE P AYMENTS WERE MADE THROUGH ACCOUNT PAYEE CHEQUES EXCEPT PETTY EXPE NSES. FURTHER, IT WAS CLAIMED THAT MORE THAN 40% OF TOTAL EXPENDITU RE CLAIMED IN THE AUDITED PROFIT & LOSS ACCOUNT WAS FOR MAKING SALARY TO THE STAFF BY TRANSFER TO THE RESPECTIVE BANK ACCOUNTS OF THE EMPLOY EES BY DEBITING THE COMPANY CURRENT ACCOUNT WITH THE CORRESPONDING A MOUNT. THE CIT(A) HAS RECORDED IN HIS ORDER THAT THE ASSESSEE COMPAN Y HAS FILED ITA-168/DEL/2014 3 DETAILS OF THE EXPENSES UNDER FOUR HEADS OF EXPENSES NAME LY CONSULTANCY CHARGES, TOUR AND TRAVELLING FOREIGN AND INLAND AND SALARY PAID ALONG WITH PHOTOCOPY OF THE BILLS AND THE ENTIR E PAYMENTS WERE DULY REFLECTED IN THE BANK ACCOUNT OF THE ASSESSEE. IN THESE FACTS OF THE CASE, I AM OF THE VIEW THAT THERE IS NO MISTAKE IN THE ORDER OF THE LEARNED CIT(A), WHICH IS ACCORDINGLY CONFIRMED, AND THE GROUNDS OF APPEAL OF THE REVENUE ARE DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED . DECISION PRONOUNCED IN THE OPEN COURT ON 3 RD JULY, 2015. SD/- (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : DEPUTY COMMISSIONER OF INCOME TAX , DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -5, NEW DELHI. 5, NEW DELHI. 5, NEW DELHI. 5, NEW DELHI. 2. RESPONDENT : M/S DYNAMIC SALES SERVICES INTERNATIONA L PVT.LTD., M/S DYNAMIC SALES SERVICES INTERNATIONAL PVT.LTD., M/S DYNAMIC SALES SERVICES INTERNATIONAL PVT.LTD., M/S DYNAMIC SALES SERVICES INTERNATIONAL PVT.LTD., 208 208 208 208- -- -216, AUROBINDO PLACE, HAUZ KHAS, 216, AUROBINDO PLACE, HAUZ KHAS, 216, AUROBINDO PLACE, HAUZ KHAS, 216, AUROBINDO PLACE, HAUZ KHAS, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 016. 110 016. 110 016. 110 016. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR