ODD LIFE LIVING STYLE PRIVATE LIMITED, MUMBAI V. ITO WARD 2(2), NASHIK

ITA 1963/PUN/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 9656 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-01-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 11-12-2019
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Assessee Lawyers: SUNIL MISTRY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE – VIRTUAL COURT BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA No. 1963/PUN/2019 नधा रण वष / Assessment Year : 2012-13 M/s. OOD Life Living Style Private Limited, C/o. Sunil Mistry & Co., Chartered Accountants, Pokar Mansion, 3 rd Floor, N.G. Acharya Marg, Chembur (East), Mumbai – 400 071 PAN : AABCO2932P Vs. ITO, Ward-2(2), Nashik Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee arises out of the order dated 01-10-2019 passed by the CIT(A)-2, Nashik in relation to the assessment year 2012-13 confirming disallowance of Sales promotion expenditure of Rs.24,81,750/-. 2. Tersely stated, the facts of the case are that the assessee furnished its return declaring total income of Rs.29,33,900/-. Despite notices, the assessee did not put in appearance before the Assessee by Shri Sunil Mistry Revenue by Shri M.G. Jasnani Date of hearing 25-01-2022 Date of pronouncement 27-01-2022 ITA No. 1963/PUN/2019 2 AO during the assessment proceedings. This led to passing of the assessment order u/s.144 of the Act, resulting into disallowance of Rs.84,76,617/- on account of Sales Promotion expenses. The assessee furnished certain details/evidence in support of the expenditure during the first appellate proceedings. The ld. CIT(A) called for the remand report from the AO. On the basis of the remand report and other relevant material, he sustained the addition at Rs.24,81,750/- towards payment made to M/s. Universal Expositions Ltd., which party had not responded to the notices issued by the AO u/s.133(6) and u/s.131 of the Act during the remand proceedings. Aggrieved by the action of the authorities below, the assessee has come up in appeal before the Tribunal. 3. We have heard the rival submissions in Virtual Court and gone through the relevant material on record. It is seen that the assessee paid Rs.24.81 lakh to M/s. Universal Expositions Ltd., towards Sales Promotion expenses through banking channel. During the remand proceedings, the AO tried to ascertain the genuineness of the transaction by issuing notices u/s.133(6) and 131 of the Act, which were not responded to by the party. The ld. AR submitted that M/s. Universal Expositions Ltd., though did ITA No. 1963/PUN/2019 3 not respond at the material time, but was ready to co-operate if another opportunity is given to the assessee to substantiate genuineness of the expenditure. Considering the entirety of the facts and circumstances of the case, we are of the considered opinion that if would be in the fitness of the things if the impugned order is set-aside and the matter is restored to the file of the AO for deciding this issue afresh after affording reasonable opportunity of hearing to the assessee. 4. In the result, the appeal is allowed for statistical purposes. Order pronounced in the Open Court on 27 th January, 2022. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT प ु णे Pune; दनांक Dated : 27 th January, 2022 Satish ITA No. 1963/PUN/2019 4 आदेश क त ल प अ े षत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. यथ / The Respondent; 3. The CIT(A)-2, Nashik 4. 5. The Pr.CIT-3, Nashik िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, पुणे “B” / DR ‘B’, ITAT, Pune 6. गाड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune Date 1. Draft dictated on 25-01-2022 Sr.PS 2. Draft placed before author 27-01-2022 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *