M/s Bernina International Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 2067/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4114 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 06-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Assessee Lawyers: VED JAIN ADV MS DEVINA SHARMA
• Keywords: Corroborative evidences

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI SMC BENCH, NEW DELHI BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMBER ITA NO. 2067 /DEL/201 7 [A.Y. 20 12 - 13 ] BERNINA INTERNATIONAL PVT. LTD VS. THE I.T. O FIRST FLOOR, PARIVARTAN HOUSE WARD 4 ( 3 ) STATE BANK OF PATIALA BUILDING N EW DELHI MEHRAULI MAHIPALPUR ROAD MAHIPALPUR, NEW DELHI PAN : AAACB 4006 G [APPELLANT] [RESPONDENT] DATE OF HEARING : 1 0 . 1 0.2017 DATE OF P RONOUNCEMENT : 16 . 1 0.2017 ASSESSEE BY : SHRI VED JAIN, ADV MS. DEVINA SHARMA, ADV REVENUE BY : SHRI T. VASANTHAN SR. DR ORDER THIS APPEAL OF THE ASSESSEE ARISES F ROM THE ORDER OF THE LD. CIT(A) - 35 , N EW DELHI VIDE ORDER DATED 20 .0 1 .201 7 FOR A.Y. 20 12 - 13 . 2. THE ASSESSEE HAS CHALLENGED THE ADHOC DISALLOWANCE OF RS. 6,06,394/ - AS 1/5 TH OF THE EXPENSES OF RS. 30,31,972/ - . 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HAS INCUR RED VARIOUS EXPENSES UNDER NINE HEADS AS ENUMERATED AT PAGES 1 AND 2 OF THE ASSESSMENT ORDER. AS PER THE OBSERVATIONS OF THE ASSESSING OFFICER, SOME VOUCHERS ARE SELF GENERATED VOUCHERS, SOME BILLS AND VOUCHERS ARE NOT SUPPORTED BY SUPPORTING EVIDENCE AND SOME BILLS AND VOUCHERS ARE NOT AVAILABLE. WHEN CONTROVERTED, THE LD. COUNSEL FOR THE ASSESSEE APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT THE EXPENSES ARE GENUINE BUT THE ASSESSING OFFICER MADE DISALLOWANCE OF 1/5 TH OF THE EXPENSES CLAIMED AND MA DE ADDITIONS WHICH WERE CONFIRMED BY THE LD. CIT(A). 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE PERUSED THE RELEVANT MATERIAL ON RECORD. AT THE VERY OUTSET, IT WAS POINTED OUT BY THE LD. COUNSEL FOR THE ASSESSEE THAT THE ASSESSEE SUBMITTED ALL LEDGER ACCOUNTS OF THE ASSESSEE AND T HE ASSESSING OFFICER HAS NOT POINTED OUT HOW THE EXPENSES ARE EXCESSIVE AS COMPARED TO THE EXPENSES INCURRED IN THE PRECEDING YEARS AND COMPARATIVE FIGURES WERE ALSO SUBMITTED BEFORE THE LD. CIT(A) IN WHICH NO DEFECT HAS BEEN POINTED OUT. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, SUCH EXPENSES ARE ESSENTIAL TO BE INCURRED FOR RUNNING BUSINESS AND THEREFORE, NO ADDITIONS ON THIS 3 COUNT CAN BE MADE. ACCORDINGLY , THE ADDITIONS SO MADE ARE DIRECTED TO BE DELETED. GROUNDS RA ISED BY THE ASSESSEE ARE ALLOWED. 4 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IN ITA NO. 2067/DEL/2017 IS ALLOWED . THE ORDER IS PRO NOUNCED IN THE OPEN COURT ON 16 . 1 0.2017. SD/ - [B.P. JAIN] ACCOUNTANT MEMBER DATED: 16 TH OCTOBER , 2017 VL/ COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI