East India Business Centre Private Limited, Kolkata V. DCIT, Cir-7, Kolkata, Kolkata

ITA 2058/KOL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 0962 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 20-06-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 26-10-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: SUBBIAH CHIDAMBARAM
• Keywords: Revised return

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (SMC), KOLKATA [BEFORE HONBLE SHRI J. SUDHAKAR REDDY] I.T.A. NO. 2058/KOL/2016 ASSESSMENT YEAR : 2010-11 EAST INDIA BUSINESS CENTRE PRIVATE LIMITED.......................................APPELLANT 25A, SHAKESPEARE SARANI, THE LEGACY, 1 ST FLOOR, KOLKATA - 700017 [PAN : AABCE7659R] D.C.I.T. CIRCLE 7 KOLKATA...................RESPONDENT 54, RAFI AHMED KIDWAI ROAD, KOLKATA - 700017 APPEARANCES BY: SHRI SUBBIAH CHIDAMBARAM, ADVOCATE APPEARING ON BEHALF OF THE ASSESSEE. SHRI BISWANATH DAS, ADDL CIT APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : SEPTEMBER 12, 2017 DATE OF PRONOUNCING THE ORDER : NOVEMBER 17, 2017 ORDER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF CIT (APPEALS) 16, KOLKATA DATED 04.08.2016 FOR THE ASSESSMENT YEAR 2010-11 ON THE FOLLOWING GROUNDS: 1. ORDER BAD IN LAW AND ON FACTS 1.1 THAT THE ORDER PASSED BY THE LD. CIT (A) UNDER SECTION 250 OF THE IT ACT IS BAD IN LAW AND ON FACTS. 2. DISCLOSURE OF HIGHER INCOME IN REVISED RETURN 2.1 THAT ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT (A) ERRED IN CONFIRMING THE CONTENTION OF THE ASSESSING OFFICER (AO) THAT DISCLOSURE OF HIGHER INCOME OF RS. 37,65,827/- (BEFORE ADJUSTMENT OF BROUGHT FORWARD LOSSES) IN THE REVISED RETURN FILED BY THE COMPANY AS AGAINST THE ORIGINAL RETURN RESULTED IN CONCEALMENT OF INCOME. 2.2 THAT THE LD. CIT (A) FAILED TO CONSIDER THAT THE TOTAL INCOME DISCLOSED IN BOTH THE ORIGINAL AND REVISED RETURN WAS NIL AFTER ADJUSTMENT OF BROUGHT FORWARD LOSSES. 3. EXPENSES INCURRED TOWARDS PROPERTY SERVICE CHARGES 2 I.T.A. NO. 2058/KOL/2016 A.Y. 2010-11 EAST INDIA BUSINESS CENTRE PVT. LTD. 3.1 THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT (A) ERRED IN CONFIRMING THE DISALLOWANCE MADE BY THE A.O. FOR EXPENSES INCURRED TOWARDS PROPERTY SERVICE CHARGES COVERED BY THE AGREEMENT FOR EXTRA FACILITIES AMOUNTING TO RS. 58,81,352/-. 4. EXPENSES INCURRED TOWARDS GENERATOR CHARGE 4.1 THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE MADE BY THE A.O. FOR EXPENDITURE INCURRED TOWARDS GENERATOR CHARGES AMOUNTING TO RS. 4,54,413/- ON AN ADHOC BASIS. 5. COST ALLOCATION FROM GROUP COMPANIES 5.1 THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT (A) ERRED IN CONFIRMING THE DISALLOWANCE MADE BY THE A.O. FOR EXPENDITURE OF RS. 28,01,696/- WHICH WAS INCURRED BY THE COMPANY TOWARDS INTER GROUP SERVICES RECEIVED BY THE COMPANY UNDER THE COST ALLOCATION AGREEMENT. 5.2 THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT (A) ERRED IN NOT CONSIDERING THE SUO MOTO DISALLOWANCE OF RS. 19,30,103 MADE BY THE COMPANY U/S 40(A) OF THE IT ACT ON ACCOUNT OF NON-DEDUCTION OF TDS WHILE CONFIRMING THE DISALLOWANCE MADE BY THE A.O. FOR ENTIRE EXPENSES TOWARDS INTER GROUP SERVICES. 2. WE HAVE HEARD MR. SUBBIAH CHIDAMBARAM, LD. ADVOCATE ON BEHALF OF THE ASSESSEE AND MR. BISWANATH DAS, LD. ADDL. CIT ON BEHALF OF THE REVENUE. ON A CAREFUL CONSIDERATION OF THE FACTS AND CIRCUMSTANCES OF THE CASE A PERUSAL OF THE PAPERS ON RECORD AND THE ORDERS OF AUTHORITIES BELOW, WE HOLD AS FOLLOWS. 3. THE LD. CIT (A) IN THIS CASE HAS NOT PASSED SPEAKING ORDER. THE ASSESSEE HAS MADE DETAILED SUBMISSIONS IN THIS CASE, A COPY OF WHICH IS FILED BEFORE US (PAGES 149 TO 187 OF THE PAPER BOOK). COPIES OF VARIOUS DOCUMENTS AND EVIDENCES THAT WERE FILED BEFORE THE LD. CIT(A) ALSO FORMED PART OF THE PAPER BOOK FILED BEFORE US. THE LD. CIT (A) DID CONSIDER IN THESE DETAILED SUBMISSIONS OR THE DOCUMENTS FILED. 3 I.T.A. NO. 2058/KOL/2016 A.Y. 2010-11 EAST INDIA BUSINESS CENTRE PVT. LTD. THE ISSUES RAISED WERE NOT ADJUDICATED. UNDER THESE CIRCUMSTANCES, WE DEEM IT FIT AND PROPER TO SET ASIDE THIS APPEAL TO THE FILE OF THE LD. CIT (A) FOR FRESH ADJUDICATION IN ACCORDANCE WITH LAW. THE LD. CIT (A) SHALL GIVE ADEQUATE OPPORTUNITY TO THE ASSESSEE AND THEREAFTER PASS A SPEAKING ORDER AFTER CONSIDERING ALL THE CONTENTIONS RAISED BY THE ASSESSEE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH NOVEMBER, 2017. SD/- (J. SUDHAKAR REDDY) ACCOUNTANT MEMBER DATED: 17/11/2017 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. EAST INDIA BUSINESS CENTRE PVT. LTD., 25A, SHAKESPEARE SARANI, THE LEGACY, 1 ST FLOOR, KOLKATA 700017. 2. DCIT, CIRCLE 7, 54, RAFI AHMED KIDWAI ROAD, KOLKATA 700017. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, SR. P.S. / H.O.O. ITAT, KOLKATA