DCIT, Circle-9, Kolkata, Kolkata V. M/s Vivekshil Dealers (P) Ltd., Kolkata

ITA 1796/KOL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99735 (ITAT-KOLKATA)
• Duration Of Justice: 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 16-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MD GHAYAS UDDIN
• Assessee Lawyers: DILIP KUMAR PATNI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC , KOLKATA (BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ) ITA NO. 1796 /KOL/201 4 : ASSTT. YEAR : 2009 - 2010 DCIT, CIRCLE - 9 , KOLKATA VS M/S. VIVEKSHIL DEALERS (P) LTD. , PAN: AA ACV 9626 L (APPELLANT) (RESPONDENT) A PPELLANT BY : MD. GHAYAS UDDIN , JCIT, SR.DR RESPONDENT BY : SRI DILIP KUMAR PATNI, CA DATE OF HEARING : 21 .08 .2015 DATE OF PRONOUNCEMENT : 26 .08 .2015 ORDER THIS IS AN APPEAL FILED BY THE DEPARTMENT DIRECTED AGAINST THE ORDER OF THE COMMISS IONER OF INCOME - TAX (APPEALS) - VIII , KOLKATA DATED 06.06 .2014 FOR THE ASSESSMEN T YEAR 2009 - 10 ON THE FOLLOWING GROUNDS. 1. WHETHER THE LD. CIT(A) WAS JUSTIFIED IN RESTRICTING THE DISALLOWANCE OF RS.18,89,078/ - UNDER RULE 8D(III) TO THE EXTENT OF RS.2,80,162/ - RELYING ON THE FACT THAT DISALLOWANCE UNDER RULE 8D(III) CANNOT EXCEED ADMINISTRATIVE/ ESTABLISHMENT EXPENSES DEBITED TO PROFIT AND LOSS. 2 . THAT T HE APPELLANT CRAVES LEAVE TO ADD, ALTER, MODIFY AND/OR WITHDRAW ANY GROUND OR GROUNDS O F APPEAL AT THE TIME OF HEARING . 2 . AFT ER HEARING THE RIVAL CONTENTION , I FIND THAT THE FIRST APPELLATE AUTHORITY HAS RESTRICTED THE DISALLOWANCE UNDER SECTION 1 4A READ WITH RULE 8D(III), TO RS.2,80,162/ - , IN PLACE OF RS.18,89,078/ - DETERMINED AND DISALLOWED BY THE AO, ON THE GROUND THAT, THE ACTUAL ADMINISTRATIVE 2 ITA NO. 1 796 /KOL/2014 M/S. VIVEKSHIL DEALERS (P) LTD. ASSESSMENT YEAR: 20 09 - 10 EXPENDITURE INCLUDING SALARY, DEBITED BY THE ASSESSEE, TO THE PROFIT & LOSS ACCOUNT, WAS ONLY RS.2,80 ,162/ - . 3. I DO NOT FIND ANY INFIRMITY IN THIS DECISION OF THE LD. CIT(A), AS, EVEN UNDER THE FORMULA GIVEN UNDER RULE 8D(III), THE DISALLOWANCE CANNOT EXCEED THE ACTUAL EXPENDITURE CLAIMED BY THE ASSESSEE. IN COMING TO THIS DECISION, I RELY ON THE ORDER OF THE DELHI C BENCH OF THE ITAT IN ITA NO.267/DEL/2012 IN THE CASE OF M/S. GILLETTE GROUP INDIA PVT. LTD. VS - ACIT, THE ORDER DATED 23.03.2012 AND THE DECISION OF THE C BENCH OF ITAT, MUMBAI IN THE CASE OF ACIT - VS - M/S. PASSIONATE INVESTMENTS MANAGE MENT PVT. LTD. DATED 25.06.2014. ACCORDINGLY, I UPHOLD THE ORDER OF THE FIRST APPELLATE AUTHORITY AND DISMISS THE APPEAL OF THE REVENUE. 4 . IN THE RESULT, THE APPEAL FILED BY THE DEPARTMENT IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 /08 /2015. SD/ - ( J. SUDHAKAR REDDY ) ACCOUNTANT MEMBER DATED: 26 /08 /2015 TALUKDAR/SR.PS COPY OF ORDER FORWARDED TO : 1 M/S. M/S. VIVEKSHIL DEALERS (P) LTD., 1, R.N. MUKHERJEE ROAD, 5 TH FLOOR, ROOM NO.32B, KOLKATA 700 001 2 D CIT, CIRCLE - 9 , KOLKATA 3 THE CIT(A), 4 5 CIT, 5. D.R. TRUE COPY, BY ORDER, ASSTT. REGISTRAR , ITAT, KOLKATA