DR AJIT M. VAZE, MUMBAI V. ASST CIT 11(2), MUMBAI

ITA 1711/MUM/2016

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8205 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 22-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M C OMI NINGSHAM
• Assessee Lawyers: PRASAD A NAVRE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES H, MUMBAI BEFORE SHRI P K BANSAL, VICE PRESIDENT & SHRI AMARJIT SINGH, JUDICIAL MEMBER ITA NO.1711/MUM/2016 ASSESSMENT YEAR : 2011-12 DR AJIT M VAZE, MEGGHOOT, S H PARLKAR ROAD, DADAR (W), MUMBAI 400 028 PAN AAPV5907F VS. ASST. CIT 11(2) MUMBAI (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PRASAD A NAVRE RESPONDENT BY : SHRI M C OMI NINGSHAM DATE OF HEARING : 14. 11 .2017 DATE OF PRONOUNCEMENT : 27 . 11 .2017 O R D E R PER P K BANSAL, VICE-PRESIDENT: THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-5, MUMBAI, DATED 08.12.2015, FOR A.Y. 2011-1 2, BY TAKING THE FOLLOWING EFFECTIVE GROUNDS OF APPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW, THE LEARNED CIT(A) ERRED IN: I) UPHOLDING THE LEARNED AO'S ACTION OF DIS ALLOWING AN AMOUNT OF RS. 6,31,0847-BEING PROFESSIONAL FEES PAID AS VI SITING FEES / LABORATORY CHARGES / PHARMACY / ANESTHESIA CHARGES BY WAY OF FEES PAID FOR SERVICES RENDERED ON THE GROUND THAT THE P AYMENTS WERE MADE IN THE SUBSEQUENT YEAR. II) UPHOLDING THE LEARNED AO'S ACTION OF DISALL OWING AN AMOUNT OF RS. 2,38,4387-BEING PROFESSIONAL FEES PAID FOR X-RA Y AND OTHER ITA NO.1711/MUM/2016 DR AJIT M VAZE 2 RELATED CHARGES BY WAY OF FEES PAID FOR SERVICES RE NDERED ON THE GROUND THAT THE PAYMENTS WERE MADE IN THE SUBSEQUEN T YEAR. THE APPELLANT SUBMITS THAT THERE WAS A TYPOGRAPHICA L ERROR IN THEIR SUBMISSIONS HANDED OVER TO THE HON'BLE CIT(A) ON 8TH DECEMBER 2015. THERE WAS AN INADVERTENT MISTAKE IN THE HEADING IN COLUMN E OF THE SUBMISSIONS. THE WORDS IN BRACKE TS 'AFTER APRIL- 11' SHOULD NOT HAVE BEEN MENTIONED AND INSTEAD THE WORDS 'PAID IN THE CURRENT YEAR' SHOULD HAVE BEEN MENTIONED. HOWEV ER, THE NOTE MENTIONED TO COLUMN E WAS CORRECTLY MENTIONED WHICH I CORRECTLY STATED THAT THE FACT THAT PAYMENTS WERE MADE IN THE CURRENT YEAR I.E., SUBSEQUENT TO THE YEAR IN WHICH THEY WERE ACT UALLY RECEIVED FROM THE PATIENTS. 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE CAR EFULLY CONSIDERED THE SAME ALONG WITH THE ORDERS OF THE TAX AUTHORITIES B ELOW. WE NOTED THAT THE AMOUNTS OF ` 6,31,084/- AND ` 2,38,438/- HAVE BEEN DISALLOWED BECAUSE THE ASSESSEE HAS PAID THESE AMOUNTS AFTER APRIL 2011 I. E. AFTER THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR AS THE ASSESSEE WAS FOLLOWING CASH SYSTEM OF ACCOUNTING. THE LEARNED AR BEFORE US VEHEMENTLY CO NTENDED THAT THE ASSESSEE HAD MADE PAYMENT OF THESE AMOUNTS NOT AFTE R APRIL 2011 BUT IN THE CURRENT YEAR AND THIS FACT HAS BEEN INCORRECTLY MEN TIONED DUE TO TYPOGRAPHICAL ERROR. IT IS NOT DENIED THAT THE ASS ESSEE IS FOLLOWING CASH SYSTEM OF ACCOUNTING. WE, THEREFORE, IN THE INTERE ST OF JUSTICE AND FAIR PLAY TO BOTH THE PARTIES, SET ASIDE THE ISSUE TO THE FILE O F THE ASSESSING OFFICER WITH THE DIRECTION THAT HE SHALL DELETE BOTH THE DISALLO WANCE IN CASE THE ASSESSEE PRODUCES THE NECESSARY EVIDENCE PROVING THAT THE PA YMENTS HAVE BEEN MADE UPTO 31.03.2011 I.E. WITHIN THE FINANCIAL YEAR RELE VANT TO THE IMPUGNED ITA NO.1711/MUM/2016 DR AJIT M VAZE 3 ASSESSMENT YEAR. THE ASSESSEE IS ALSO DIRECTED TO PRODUCE THE NECESSARY PAPERS IN THIS REGARD. 3. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH DAY OF NOVEMBER, 2017. SD/- SD/- (AMARJIT SINGH) (P K BANSAL) JUDICIAL MEMBER VICE-PRESIDENT MUMBAI; DATED: 27 TH NOVEMBER, 2017 SA COPY OF THE ORDER FORWARDED TO : 1. THE APP ELL ANT. 2. THE RESPONDENT. 3. T HE CIT(A), MUMBAI 4. THE CIT 5. DR, H BENCH, ITAT, MUMBAI BY ORDER, #TRUE COPY # ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI