CHETAN H NEGANDHI, MUMBAI V. ITO 19(2)(1), MUMBAI

ITA 1722/MUM/2013

• Counselvise Citation: 172219914 RSA 2013
• Duration Of Justice: 1 year(s) 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 08-09-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 04-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PREMANAND J
• Assessee Lawyers: D M SHAH
• Keywords: Gift

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C, MUMBAI BEFORE SHRI R C SHARMA, ACCOUNTANT MEMBER AND SHRI VIVEK VARMA, JUDICIAL MEMBER ITA NO. : 1722/MUM/2013 (ASSESSMENT YEAR: 2006-07) SHRI CHETAN H NEGANDHI, 13, SAMARAT, 36, PEDAR ROAD, SANTACRUZ(WEST), MUMBAI - 400 054 PAN: AAAPN 4771 B VS ITO 19(2)(1), PIRAMAL CHAMBERS, PAREL LALBAUG, MUMBAI 400 012 (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D M SHAH RESPONDENT BY : SHRI PREMANAND J ! /DATE OF HEARING : 08-12-2014 '#$ ! / DATE OF PRONOUNCEMENT : 21-01-2015 ORDER , , , , PER VIVEK VARMA, JM: INSTANT APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) II, MUMBAI, DATED 24.01.2013, WHEREIN, THE FOLLOWING GROUNDS HAVE BEEN RAISED: 1. (A) ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE LEARNED CIT(A) ERRED IN PASSING ORDER WITHOUT CONSIDERING THE FACTS AND DETAILS AND BASED ON PRESUMPTION THE APPELLANT IS NOT INTERESTED IN PROSECUTING HIS APPEAL. (B)THE APPELLANT PRAYS THE ORDER OF THE CIT(A) BE S ET ASIDE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LEARNED CIT(A) ERRED IN NOT APPRECIATING THAT THE N OTICE U/S. 143(2) DT:26/1 0/2007 WAS NOT SERVED WITHIN STATUTORY TIME LIMIT AND HENCE THE ASST. ORDER IS B AD IN LAW AND IT BE CANCELLED. 3. (A) ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE LEARNED ASSESSING OFFICER ERRED IN DISALLOWING THE WHOLE OF THE TRAVELLING EXPENSES OF RS.5,25,150/- W HICH ADDITION BE DELETED. (B) THE APPELLANT PRAYS THAT ALL SUCH EXPENDITURE HAVING BEEN INCURRED IN COURSE OF THE BUSINESS AND DETAILS HAVING BEEN FILED THE ADDITION BE DELETED. (C) WITHOUT PREJUDICE, THE DISALLOWANCE OF THE WHOLE OF THE AMOUNT BEING EXCESSIVE IT BE REDUCED. 4 (A) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, SHRI CHETAN H NEGANDHI ITA 1722/MUM/2013 2 THE LEARNED ASSESSING OFFICER ERRED IN MAKING DISALLOWANCE ON AD HOC BASIS AT 25% OF THE FOLLOWIN G EXPENSES, WHICH ADDITION BE DELETED (I) BUSINESS PROMOTION EXPENSES 60,241 (II) GIFTS AND PRESENTATION 63,879 (III) INCENTIVE PAID 51,750 (IV) MOTOR CAR EXPENSES 64,628 (V) TELEPHONE EXPENSES 22,877 (VI) CONFERENCE EXPENSES 11,740 (B) THE LEARNED ASSESSING OFFICER ERRED IN OBSERVIN G THAT THE PAYMENTS MADE COULD NOT BE VERIFIED. (C) THE LEARNED CIT(A) ERRED IN REJECTING THE GROUN DS OF APPEAL RELATED TO THE ABOVE EXPENSES WITHOUT CONSIDERING THE SAME. THE APPELLANT PRAYS THAT ALL SUCH EXPENSES HAVING B EEN INCURRED IN COARSE OF THE BUSINESS, IT SHALL BE ALL OWED IN FULL AND ADDITION BE DELETED. WITHOUT PREJUDICE, THE DISALLOWANCE BEING MADE ON AD HOC BASIS THE SAME BEING EXCESSIVE, IT BE REDUCED. 5. THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR ALTE R ANY OR ALL OF THE GROUND OF APPEAL. 2. THE FIRST GROUND BEING AGITATED BEFORE US PERTAINS TO THE PASSING OF ORDER BY THE CIT(A), BASED ON PRESUMPTIONS AND NOT CONSIDERING THE FACTS. SINCE THE CIT(A) HAS APPARENTLY NOT CONSIDERED THE SUBMISSIONS OF THE ASSESSEE, WE DEEM IT FIT TO RESTORE THE APPEAL TO THE FILE OF THE CIT(A). 3. THE DR DID NOT HAVE ANY OBJECTION FOR THE APPEAL BE ING RESTORED TO THE FILE OF THE CIT(A). 4. WE, THEREFORE, SET ASIDE THE ORDER OF CIT(A) AND DIRECT HIM TO ADJUDICATE THE ENTIRE APPEAL AS FILED BY THE ASSESSEE AFRESH. 5. GROUND NO. 1 IS THEREFORE, ALLOWED FOR STATISTICAL PURPOSES. 6. SINCE WE HAVE RESTORED THE APPEAL TO THE CIT(A) FOR FRESH ADJUDICATION, GROUNDS NO. 2, 3 & 4 BECOME INFRUCTUOUS. 7. IN THE RESULT, THE APPEAL IS TREATED AS ALLOWED FOR STA TISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST JANUARY, 2015. SHRI CHETAN H NEGANDHI ITA 1722/MUM/2013 3 SD/- SD/- ( ) ( ) (R C SHARMA) (VIVEK VARMA) ACCOUNTANT MEMBER J UDICIAL MEMBER MUMBAI, DATE: 21 ST JANUARY, 2015 / COPY TO:- 1) / THE APPELLANT. 2) / THE RESPONDENT. 3) THE CIT(A) -11, MUMBAI. 4) THE CIT-19, MUMBAI/CIT -19, MUMBAI. 5) ()* , , / THE D.R. C BENCH, MUMBAI. 6) *+, - COPY TO GUARD FILE. ./0 / BY ORDER / / TRUE COPY / / 1 / 2 3 , DY. / ASSTT. REGISTRAR I.T.A.T., MUMBAI *CHAVAN, SR.PS