M/s. Simplex Fintrade Pvt. Ltd., Kolkata V. ITO, Ward-1(4), Kolkata, Kolkata

ITA 1918/KOL/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83206 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 14-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SWATI BAID
• Keywords: Depreciation

Judgement Text

I.T.A. NO . 1 9 18 / KOL ./201 4 ASSESSMENT YEAR: 200 6 - 20 0 7 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN , JUDICIAL MEMBER I.T.A. NO. 19 18 / KOL / 20 1 4 ASSESSMENT YEAR : 200 6 - 20 0 7 M/S. SIMPLEX FINTRADE PVT. LTD.,..... ......... .... ............. .. .APP ELL ANT NO.3, CHO WRINGHEE APPROACH, KOLKATA - 700 072 [PAN : A ADCS 7851 F ] ] - VS. - INCOME TAX OFFICER , ........................... ................... ... . RESPONDENT WARD - 1 ( 4 ), KOLKATA , P - 7, CHOWRINGHEE APPROACH ROAD, KOLKATA - 700 0 69 APPEARANCES BY: S MT. SWATI BAID, C.A , FOR THE ASSESSEE S MT. RANU BISWAS , J CIT, SR. D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : NOVEMBER 2 8 , 2 01 4 DATE OF PRONOUNCING THE ORDER : NOVEMBER 28 , 201 4 O R D E R PER GEORGE MATHAN : THIS IS AN APPEAL FILED BY THE ASSESSE E AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS) - I , KOLKATA IN APPEAL NO. 497 / CIT(A) - I / W - 1(4)/2008 - 09 D ATED 28 . 0 8 .201 4 FOR THE ASSESSMENT YEAR 200 6 - 0 7 . 2. S MT. SWATI BAID, C.A. , REPRESENTED ON BEHALF OF THE ASSESSEE AND SMT. RANU BISWAS, JCIT , SR. D.R. REPRESENTED ON BEHALF OF THE REVENUE. 3. IT WAS SUBMITTED BY THE LD. A.R THAT THE ONLY ISSUE IN THE ASSESSEE S APPEAL WAS AGAINST THE ACTION OF THE LD. CIT(APPEALS) IN CONFIRMING THE DISALLOWANCE OF THE ENTIRE ADMINISTRATIVE EXPENDITURE CLAIME D BY THE ASSESSEE. IT WAS THE SUBMISSION THAT THE ASSESSEE IS A COMPANY WH ICH IS DOING THE BUSINESS OF TRADING IN SHARES AND ADVANCING OF LOANS. IT WAS THE SUBMISSION THAT THE ASSESSING OFFICER HAD DISALLOWED THE ENTIRE I.T.A. NO . 1 9 18 / KOL ./201 4 ASSESSMENT YEAR: 200 6 - 20 0 7 PAGE 2 OF 3 ADMINISTRATIVE EXPENSES ON THE GROUN D THAT NO EXPENDITURE WAS REQUIRED TO BE INCURRED FOR EARNING VARIOUS INCOMES THAT HAD BEEN EARN ED BY THE ASSESSEE. IT WAS THE SUBMISSION THAT THE EXPENDITURES WERE INCURRED BY THE ASSESSEE FOR MAINTAINING THE STATUS OF THE COMPANY AND IN VIEW OF THE DECIS ION OF THE HON BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. - GANGA PROPERTIES LIMITED REPORTED IN 199 ITR 94 (CAL.), THE EXPENSES WERE LIABLE TO BE ALLOWED. 4. IN REPLY, LD. SR. D.R. VEHEMENTLY SUPPORTED THE ORDER OF THE ASSESSING OFFICER AND LD . CIT(APPEALS). 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS IT IS NOTICED THAT THE ASSESSEE IS A COMPANY AND THE ASSESSEE ALSO HAS TO MAINT AI N ITS STATUS AS A COMPANY A ND INCUR EXPENDITURE AND HAS TO HAVE STAFF , WILL HAVE TO INCUR EXPENSES FOR STATIONA RY, WILL HAVE TO PAY RENT FOR ITS O FFICE PREMISES, WILL HAVE TO INCUR EXPENDITURE IN RESPECT OF RUNNING OF THE COMPANY AS ALSO DEPRECIATION ON ITS ASSETS AND AS IT IS NOTICED THAT THE AMOUNT S OF RS.1,74,91 2 / - INCURRED BY THE ASSESSEE ARE ONLY EXPENDITURES IN CONNECTION WITH THE ADMINISTRATIVE ACTIVITIES OF THE ASSESSEE , R ESPECTFULLY FOLLOWING THE DECISION OF THE HON BLE JURISDICTIONAL HIGH COURT IN THE CASE OF GANGA PROPERTIES LIMITED REFERRED TO SUPRA, I AM OF THE VIEW THAT THE EXPENDITURE OF RS.1,74,912/ - IS LIABLE TO BE ALLOWED. ASSESSING OFFICER CONSEQUENTLY DIRECTED TO ALLOW THE CLAIM OF EXPENDITURE OF RS.1,74,912/ - AS MADE BY THE ASSESSEE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH NOV EM BER , 2014. SD/ - GEORGE MATHAN ( JUDICIAL MEMBER) KOLKATA, THE 28 TH D AY OF NOVE MBER , 201 4 I.T.A. NO . 1 9 18 / KOL ./201 4 ASSESSMENT YEAR: 200 6 - 20 0 7 PAGE 3 OF 3 COPIES TO : (1) M/S. SIMPLEX FINTRADE PVT. LTD., NO.3, CHOWRINGHEE APPROACH, KOLKATA - 700 072 (2) INCOME TAX OFFICER, WARD - 1(4),KOLKATA, P - 7, CHOWRINGHEE APPROACH ROAD, KOLKATA - 700 069 (3) COMMISSIONER OF INCOME - TAX (APPEALS) (4) COMMISSIONER OF INCOME TAX ( 5 ) THE DEPARTMENTAL REPRESENTATIVE ( 6 ) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA LAHA/SR. P.S .