J. Thomas & Co. Pvt. Ltd., , Kolkata V. DCIT, Circle - 4(1), Kolkata , Kolkata

ITA 200/KOL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1388 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 1 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 08-02-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SAURABH KUMAR
• Assessee Lawyers: ANUP SINHA ACA
• Section: 143(3)

Judgement Text

, C , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH C KOLKATA BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 200 / KOL / 20 18 ASSESSMENT YEAR :2012-13 J. THOMAS & CO. PVT. LTD., 11, R.N. MUKHERJEE ROAD, KOLKATA-700001 [ PAN NO.AABCJ 2851 Q ] V/S . DCIT, CIRCLE-4(1),, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI ANUP SINHA, ACA /BY RESPONDENT SHRI SAURABH KUMAR, ADDL. CIT-DR /DATE OF HEARING 16-01-2019 /DATE OF PRONOUNCEMENT 15-03-2019 / O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2012-13 ARISES FROM COMMISSIONER OF INCOME TAX (APPEALS)-2, KOLKATAS O RDER DATED 09.01.2018 PASSED IN CASE NO.1973 CIT(A)-2/14-15, INVOLVING PROCEEDIN GS U/S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GROUND CHALLENGE S BOTH THE LOWER AUTHORITIES ACTION DISALLOWING ITS FOREIGN TRAVEL EXPENSES TO T HE TUNE OF 15,88,077/-. MR. SINHA VEHEMENTLY CONTENDS DURING THE COURSE OF HEARING TH AT THE ASSESSING OFFICER AS WELL AS CIT(A) HAVE ERRED IN LAW AND ON FACTS IN DISALLO WING THE IMPUGNED FOREIGN TRAVEL EXPENSES CLAIM. HE PLACES ON RECORD THIS TRIBUNALS ORDER IN ASSESSMENT YEAR(S) 2010-11 AND 2011-12 DATED 01.11.2017 AND 13.12.2017 IN ITA NOS.2071/KOL/2014 AND 569/KOL/2016 ; RESPECTIVELY DELETING IDENTICAL DISALLOWANCE IN S AID EARLIER ITA NO.200/KOL/2018 ASSESSMENT YEAR: 2 012-13 J. THOMAS & CO. PVT. LTD. VS. DCIT, CIRI- 4(1), KOL. PAGE 2 ASSESSMENT YEARS. THE REVENUE STRONGLY SUPPORTS THE IMPUGNED DISALLOWANCE MADE IN THE COURSE OF ASSESSMENT AS AFFIRMED IN LOW ER APPELLATE PROCEEDINGS. 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RI VAL CONTENTIONS. THERE IS NO DISPUTE ABOUT THE ASSESSEE BEING A COMPANY ENGAGED IN TEA AND COFFEE AUCTIONING, FINANCING AND RUBBER HANDLING BUSINESS(ES). IT CLAI MED THE IMPUGNED FOREIGN TRAVEL EXPENSES PERTAINING TO ITS MANAGING DIRECTOR, CHAIR MAN AND OTHER OFFICIALS TO HAVE MADE OVERSEAS TOURS TO UNITED KINGDOM, DUBAI AND AF RICA ETC. FOR AUGMENTING ITS BUSINESS. THE ASSESSEE WOULD SUBMIT BEFORE THE ASSE SSING OFFICER THAT THE PURPOSE OF TRAVEL IN ISSUE WAS TO EXPLORE POTENTIAL REQUIR EMENTS OF TEA IMPORTERS AND IMPROVEMENT IN TEA QUALITY PRODUCE ETC., THE ASSESS ING OFFICER DISALLOWED ASSESSEES CLAIM IN ASSESSMENT ORDER DATED 07.01.20 15 FOR THE REASON THAT IT COULD NOT ESTABLISH ANY DIRECT NEXUS BETWEEN ITS BUSINESS AND FOREIGN TOURS IN ISSUE. THE CIT(A) HAS AFFIRMED THE SAME IN ITS LOWER APPELLATE ORDER UNDER CHALLENGE. WE HAVE ALREADY NARRATED ASSESSEES ARGUMENTS IN SUPPORT OF THE IMPUGNED CLAIM IN PRECEDING PARAGRAPH. IT MAINLY SEEKS TO RELY UPON T HE TRIBUNALS DECISIONS (SUPRA) DELETING IDENTICAL DISALLOWANCE IN EARLIER ASSESSME NT YEARS. WE FIND THAT THE ASSESSEE HAS NOT PLACED ON RECORD EVEN ITS PAPER BO OK IN SUPPORT OF THE IMPUGNED FOREIGN TRAVEL EXPENSES OF ITS TOP OFFICE BEARERS A LONG WITH ALL NECESSARY DETAILS. THE FACT ALSO REMAINS THAT IT HAS ALREADY SUCCEEDED UND ER THE VERY HEAD IN PRECEDING ASSESSMENT YEAR(S). AND THAT FOREIGN TRAVEL EXPENDI TURE CANNOT BE COMPLETELY RULED OUT IN SUCH A BUSINESS. WE THEREFORE DEEM IT APPROP RIATE IN THESE PECULIAR FACTS AND CIRCUMSTANCES THAT A LUMP SUM DISALLOWANCE OF 50,000/- OUT OF 15,88,077/- ON ESTIMATE BASIS WOULD MEET ENDS OF JUSTICE WITH A RI DER THAT SAME SHALL NOT BE TAKEN AS PRECEDENT IN ANY OTHER CASE OR ASSESSMENT YEAR; AS THE CASE MAY BE. BALANCE DISALLOWANCE AMOUNT OF 15,38,077/- STANDS DELETED. 4. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOV E TERMS. ORDER PRONOUNCED IN THE OPEN COURT 15/03/2019 SD/- SD/- ( %) (' %) (DR.A.L. SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) KOLKATA, *DKP, SR.P.S (- 15 / 03 /201 9 ITA NO.200/KOL/2018 ASSESSMENT YEAR: 2 012-13 J. THOMAS & CO. PVT. LTD. VS. DCIT, CIRI- 4(1), KOL. PAGE 3 / COPY OF ORDER FORWARDED TO:- 1 . / APPELLANT-J THOMAS & CO. PVT. LTD. 1, R.N. MUKHER JEE ROAD, KOLKATA-001 2 . /RESPONDENT-DCIT, CIRCLE-4(1), AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQ. KOL-69 3. 3 4 / CONCERNED CIT KOLKATA 4. 4- / CIT (A) KOLKATA 5 . 7 ''3, 3, / DR, ITAT, KOLKATA 6. < / GUARD FILE. BY ORDER/ , /TRUE COPY/ / 3,