RCC (SALES ) P.LTD, MUMBAI V. ACIT CC 38, MUMBAI

ITA 1980/MUM/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4871 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 21-03-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: CIRCUMSTANCES OF CASE; CIRCUMSTANCES IN CASE
• Assessee Lawyers: DR PRAYAG JHA SHRI S K MITRA
• Keywords: Revised return
• Section: 142(1); 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA , AM AND SHRI AMARJIT SINGH, JM / I .T.A. NO. 1980 /MUM/201 7 ( / ASSESSMENT YEAR: 20 1 0 - 1 1 ) M/S. RCC (SALES) PVT. LTD. MALHOTRA HOUSE, 4 TH FLOOR OPPOSITE GPO, FORT, MUMBAI - 400001 . / VS. ACIT, CENTRAL CIRCLE - 38 (NOW ACIT, CENTRAL CIRCLE - 6(3) 19 TH FLOOR, AIR INDIA BUILDING, NARIMAN POINT, MUMBAI - 400021. ./ ./ PAN/GIR NO. : AAACR9675D ( / APPELLANT ) .. ( / RESPONDENT ) / DATE OF HEARING : 07 / 0 5 / 201 9 / DATE OF PRONOUNCEMENT : 22 / 05 / 20 1 9 / O R D E R PER AMARJIT SINGH, J M: THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST THE ORDER DATED 26 . 1 2 .201 6 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 54 , MUMBAI [HEREINAFTE R REFERRED TO AS THE CIT(A)] RELEVANT TO THE A.Y. 20 10 - 1 1 . 2 . THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: - 1. ON THE FACTS AND CIRCUMSTANCES IN THE CASE AND IN LAW - THE LD. CIT(A) ERRED IN SUSTAINING THE DISALLOWANCE OUT OF INTEREST EXPENSES TO THE EXTENT OF RS.66,12,000/ - WITHOUT APPRECIATING PRO PERLY THE FACTS AND CIRCUMSTANCES OF THE CASE. ASSESSEE BY : SHRI DR. PRAYAG JHA REVENUE BY: SHRI S. K. MITRA ITA NO. 1980 / M/201 7 A.Y.20 10 - 11 2 2. THE LD. CIT(A) ERRED IN SUSTAINING THE DISALLOWANCE OF RS.1,67,118/ - OUT OF MISCELLANEOUS EXPENSES WITHOUT APPRECIATING THAT THESE EXPOSES INCURRED ON BOOKS AND PERIODICALS, GENERAL CHARGES SUBSCRIPTIONS AND SERVICE CHARGES WERE OF ROUTINE NATURE AND INCURRED FOR THE PURPOSES OF BUSINESS. 3 . THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETU RN OF INCOME ON 15 . 10 .201 0 DECLARING TOTAL INCOME TO THE TUNE OF RS.2,59,09,851 / - . THE ASSESSEE ALS O FILED THE REVISED RETURN OF INCOME ON 12 .12.201 1 DECLARING TOTAL INCO ME TO THE TUNE OF RS.2,59,09,851 / - . THE RETURN WAS PROCESSED U/S 143(1) OF THE I.T. ACT, 1961. THEREAFTER, THE CASE WAS SELECTED FOR SCRUTINY AND NOTICES U/S 143(2) & 142(1) OF THE ACT WERE ISSUED AND SERVED UPON THE ASSESSEE. THE ASSESSEE COMPANY DERIVES INCOME FROM BUSINESS OF MANUFACTURING ON JOB WORK BASIS AND SALES OF SAFETY RAXER BLADES ETC. AT THE TIME OF ASSESSMENT, THE AO DISALLOWED THE CLAIM OF THE EXCISE DUTY OF RS.1,54,90,03 7/ - WHICH WAS NOT PROVED AND ALSO DISALLOWED THE INTEREST EXPENSES IN SUM OF RS.23,05,58,237/ - AND MISCELLANEOUS EXPENSES IN SUM OF RS.62,52,979/ - AND ASSESSED THE TOTAL INCOME OF THE ASSESSEE IN SUM OF RS.9,58,30,852/ - . FEELING AGGRIEVED, THE A SSESSEE FIL ED AN APPEAL BEFORE THE CIT(A) WHO PARTLY ALLOWED THE CLAIM OF THE ASSESSEE BUT THE ASSESSEE WAS NOT SATISFIED ON THE ISSUES WHICH HAS BEEN RAISED IN APPEAL AND MENTIONED ABOVE , THEREFORE, THE ASSESSEE HAS FILED THE PRESENT APPEAL BEFORE US. ISSUE NOS. 1 4. AT THE TIME OF ARGUMENT, THE ASSESSEE DID NOT PRESS THE ISSUE NO. 1, THEREFORE, THIS ISSUE IS BEING DECIDED IN FAVOUR OF THE REVENUE BEING NOT PRESSED. ITA NO. 1980 / M/201 7 A.Y.20 10 - 11 3 ISSUE NOS. 2 5. UNDER THIS ISSUE THE ASSESSEE HAS CHALLENGED THE DISALLOWANCE OF CLAIM OF MISCELLANEO US EXPENSES IN SUM OF RS.1,67,118 / - . THE CLAIM OF MISCELLANEOUS EXPENSES IN SUM OF RS. 1,67,118/ - WAS DISALLOWED ON THE BASIS OF REMAND REPORT SOUGHT BY CIT(A). AT THE TIME OF ARGUMENT, THE LD. REPRESENTATIVE OF THE ASSESSEE HAS AGREED TO RESTRICT HIS CLAIM TO THE EXTENT OF 50% OF THE DISALLOWANCE OF RS.1,67,118/ - . ON SEEING THE CONTENTION OF THE LD. REPRESENTATIVE OF THE ASSESSEE AND TO END THE LITIGATION AND TO MEET THE INTEREST OF JUSTICE, W E ARE OF THE VIEW THAT THE DISALLOWANCE OF RS.1,67,118/ - BE RESTR ICTED TO THE EXTENT OF 50%. ACCORDINGLY, WE ALLOWED THE CLAIM OF THE ASSESSEE. 6 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS HEREBY ORDERED TO BE PARTLY ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 22 /05 /2019 . SD/ - SD/ - ( SHAMIM YAHYA ) (AMARJIT SINGH) / ACCOUNTANT MEMBER /JUDICIAL MEMBER MUMBAI; DATED : 22 /05 /2019 V IJAY ITA NO. 1980 / M/201 7 A.Y.20 10 - 11 4 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDE NT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. / BY ORDER, //TRUE COPY// (SR. PRIVATE SECRETARY) , / ITAT, MUMBAI