Sreemati Manjushree Somani, Kolkata V. A.C.I.T.,Circle-32, Kolkata

ITA 198/KOL/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2412 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 05-02-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BAVASH ROY J
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.198/KOL/2019 ASSESSMENT YEAR:2014-15 SMT.MANJUSHREE SOMANI 65, COTTON STREET, 3 RD FLOOR, KOLKATA-700001 [ PAN NO.AJSPS 5668 D ] / V/S . ACIT, CIRCLE-32 10B, MIDDLETON ROW, KOLKATA-700071 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI SUNIL SURANA, FCA /BY RESPONDENT SHRI BAVASH ROY, JCIT-DR /DATE OF HEARING 17-06-2019 /DATE OF PRONOUNCEMENT 21-06-2019 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2014-15 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-09, KOLKATAS ORDER DATED 14.01.2019 PASSED IN CASE NO.357/CIT(A)-9/CIR-32/2016-17/KOL, INVOLV ING PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES FORMER GRIEVANCE CHALLENGES CORRE CTNESS OF BOTH THE LOWER AUTHORITIES ACTION DISALLOWING HER FOREIGN TRAVEL EXPENDITURE OF 7,34,610/- AS NOT INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS. THERE IS NO DISPUTE THAT THE ASSESSEE HAD INCURRED 5,04,951/- AND 2,29,659/- FOR FOREIGN TRAVEL TO ENGLAND AND CHINA; RESPECTIVELY. SHE HAS PLACED ON RECORD S AMPLE INVOICES REGARDING IMPORTS AS WELL AS TECHNICAL COLLABORATION AGREEMENT WITH M /S MOULDED FIBRE GLASS PRODUCTS AS WELL AS SIMILAR INVOICE INVOLVING CHINA BASED PA RTIES. RELEVANT DETAILS TO THIS EFFECT ARE IN PAGES 1-9 OF THE PAPER BOOK. THE REVENUE FAI LS TO DISPUTE CORRECTNESS OF ALL THESE CRUCIAL DOCUMENTS. THE FACT ALSO REMAINS THAT ASSESSEE HAS NOT BEEN ABLE TO FILE ALL THE CORRESPONDING ONE-TO-ONE DETAILS OF THE REL EVANT NEXUS BETWEEN THE IMPUGNED ITA NO.198/KOL/2019 A.Y.20 14-15 SMT. MANJUSHRE SOMANI VS. ACIT, CIR-32, KOL. PAGE 2 EXPENDITURE VIS--VIS THE INVOICE IN ISSUE. I THERE FORE DEEM IT APPROPRIATE IN THIS PECULIAR BACKDROP THAT A LUMP SUM DISALLOWANCE @ 10 % OF THE TOTAL CLAIM COMING TO 73,461/- WOULD MEET THE ENDS OF JUSTICE WITH A RIDE R THAT SAME SHALL NOT BE TREATED AS A PRECEDENT IN ANY OTHER ASSESSMENT YEAR. THE ASSES SEE GETS PART RELIEF ACCORDINGLY. NECESSARY COMPUTATION TO FOLLOW. 3. NEXT COMES THE LATTER ISSUE OF DISALLOWANCE OF R ETAINERSHIP FEES OF 6 LAC. BOTH THE LOWER AUTHORITIES HOLD THAT ASSESSEE HAS NOT FI LED ANY EVIDENCE REGARDING THIS LATTER HEAD. CASE FILE SUGGESTS THAT ASSESSEE HAS INCURRED THE IMPUGNED RETAINERSHIP FEE EXPENDITURE IN CASE OF TWO PAYEES SHRI PARTHA DAS A ND SHRI MANOJ KUMAR TO THE TUNE OF 3 LAC EACH. SHE HAS FILED ON RECORD THE RELEVANT LE DGER ACCOUNTS AS WELL AS PROFIT AND LOSS ACCOUNT TO THIS EFFECT. LEARNED DEPARTMENT AL REPRESENTATIVE FAILS TO DISPUTE THE CLINCHING FACT THAT SIMILAR RETAINERSHIP FEE IN THE IMMEDIATE PRECEDING ASSESSMENT YEAR REGARDING THE VERY TWO PAYEES STANDS ACCEPTED. THE ASSESSEE HAS PLACED ON RECORD THE CORRESPONDING DETAILS TO THIS EFFECT WHICH HAVE GONE UNREBUTTED FROM THE REVENUE SIDE. I THEREFORE DIRECT THE ASSESSING OFFICER TO D ELETE THE IMPUGNED RETAINERSHIP FEE DISALLOWANCE OF 6 LAC. 4. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOV E TERMS. ORDER PRONOUNCED IN OPEN COURT ON 21/06/2019 SD/- (S.S . GODARA) JUDICIA L MEMBER KOLKATA, *DKP/SR.PS - 21/06/2019 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-SMT. MANJUSHREE SOMANI 65, COTTON ST. 3 RD FL. KOLKATA-700 007 2. /RESPONDENT-ACIT, CIR-32, 10B, MIDDLETON ROW, KOLKA TA-71 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , /TRUE COPY/ ',