Nrothern Medi- AIDS (India) Pvt. Ltd., Meerut V. Addl. CIT, Meerut

ITA 203/DEL/2013

• Counselvise Citation: 20320114 RSA 2013
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 12-02-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 11-01-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH E EE E : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV, ,, , JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO. .. .203/DEL/2013 203/DEL/2013 203/DEL/2013 203/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2007 2007 2007 2007- -- -08 0808 08 M/S NORTHERN MEDI M/S NORTHERN MEDI M/S NORTHERN MEDI M/S NORTHERN MEDI- -- -AIDS AIDS AIDS AIDS (INDIA) PRIVATE LIMITED, (INDIA) PRIVATE LIMITED, (INDIA) PRIVATE LIMITED, (INDIA) PRIVATE LIMITED, 183, SAKET, 183, SAKET, 183, SAKET, 183, SAKET, MEERUT. MEERUT. MEERUT. MEERUT. PAN : PAN : PAN : PAN : AAACN4599C. AAACN4599C. AAACN4599C. AAACN4599C. VS. VS. VS. VS. ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, MEERUT. MEERUT. MEERUT. MEERUT. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.P. RASTOGI, ADVOCATE. RESPONDENT BY : SHRI KEYUR PATEL, SR.DR. ORDER ORDER ORDER ORDER PER G. PER G. PER G. PER G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VP VPVP VP : : : : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A), MEERUT DATED 12 TH OCTOBER, 2012 FOR THE AY 2007-08. 2. THE ASSESSEE HAS RAISED THREE GROUNDS OF APPEAL. HOWEV ER, THEY ARE ALL AGAINST THE FOLLOWING DISALLOWANCES/ADDITIONS:- (I) DISALLOWANCE OF RENT AND SALARY OF GHAZIABAD OFFICE - ` 2,77,200/- (II) ADDITION ON ACCOUNT OF SHORTAGE OF CASH - ` 74,140/-. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND P ERUSED THE MATERIAL PLACED BEFORE US. THE LEARNED COUNSEL FOR T HE ASSESSEE DID ITA-203/DEL/2013 2 NOT SERIOUSLY CONTEST THE ADDITION ON ACCOUNT OF SHORTA GE OF CASH. THE ONLY EXPLANATION WAS THAT IT WAS ON ACCOUNT OF MISTAK E OF THE ACCOUNTANT. AFTER CONSIDERING THE ARGUMENTS OF BOTH THE SIDES, WE ARE OF THE OPINION THAT THIS EXPLANATION OF THE ASSESSEE WAS RIGHTLY REJECTED BY THE LOWER AUTHORITIES. ACCORDINGLY, WE SUSTAIN THE ADDITION ON ACCOUNT OF SHORTAGE OF CASH AMOUNTING TO ` 74,140/-. 4. WITH REGARD TO RENT OF GHAZIABAD OFFICE AND SALAR Y OF STAFF OF GHAZIABAD OFFICE, THE ASSESSEES COUNSEL HAS FURNISHED THE COMPARATIVE CHART OF PRECEDING THREE YEARS SHOWING TH AT GHAZIABAD OFFICE IS WORKING FROM PAST THREE YEARS AND ACCEPTED B Y THE REVENUE. HE ALSO STATED THAT THE ASSESSMENT FOR AY 2004-05 WAS COM PLETED UNDER SECTION 143(3). FOR READY REFERENCE, THE CHA RT IS REPRODUCED BELOW:- AY 2004-05 AY 2005-06 AY 2006-07 AY 2007-08 GHAZIABAD OFFICE RENT 1,20,000 1,20,000 1,20,000 1,20,000 GHAZIABAD SALARY STAFF 1,11,600 1,17,600 1,56,600 1,57,200 ------------ ------------ ------------ --------- ---- 2,31,600 2,37,600 2,76,600 2,77,200 ------------ ------------ ------------ --------- ----- AO NO DISALLOWANCE NO DISALLOWANCE NO DISALLOWA NCE 2,77,200 5. WHEN IN THE PRECEDING THREE YEARS THE REVENUE HAS ACCEPTED THE EXPENSES OF GHAZIABAD OFFICE AND ALLOWED THE RENT AND SALARY OF GHAZIABAD STAFF, IN OUR OPINION, THERE IS NO JUSTIFICA TION FOR DISALLOWING THE SAME IN THE YEAR UNDER CONSIDERATION HOLDING THAT THERE IS NO ITA-203/DEL/2013 3 EVIDENCE OF EXISTENCE OF GHAZIABAD OFFICE. IN VIEW OF THE ABOVE, WE DELETE THE ADDITION OF ` 2,77,200/-. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY AL LOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 28 TH FEBRUARY, 2014. SD/- SD/- ( (( (RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV) )) ) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 28.02.2014 VK. COPY FORWARDED TO: - 1. APPELLANT : M/S NORTHERN MEDI M/S NORTHERN MEDI M/S NORTHERN MEDI M/S NORTHERN MEDI- -- -AIDS (INDIA) PRIVATE LIMITED, AIDS (INDIA) PRIVATE LIMITED, AIDS (INDIA) PRIVATE LIMITED, AIDS (INDIA) PRIVATE LIMITED, 183, SAKET, MEERUT. 183, SAKET, MEERUT. 183, SAKET, MEERUT. 183, SAKET, MEERUT. 2. RESPONDENT : ADDITIONAL COMMISSIONER OF INCOME TA X, ADDITIONAL COMMISSIONER OF INCOME TAX, ADDITIONAL COMMISSIONER OF INCOME TAX, ADDITIONAL COMMISSIONER OF INCOME TAX, MEERUT. MEERUT. MEERUT. MEERUT. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR