Fire Trix Engineering & Systems P. Ltd., CHENNAI V. ITO Corporate Ward 2(2), CHENNAI

ITA 2113/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7912 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 09-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURUBASHYAM JCITD R
• Assessee Lawyers: T T DURAIRAJ KANDIAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI , . , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER & SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.2113/CHNY/2018 / ASSESSMENT YEAR : 2012-13 M/S.FIRE TRIX ENGINEERING & SYSTEMS P LTD ., 5/39,DR.MURTHY NAGAR, PADI,CHENNAI 600 050. VS. INCOME TAX OFFICER, CORPORATE WARD 2 (2), NUNGAMBAKKAM, CHENNAI 600 034. [PAN AAACF 9393 G] ( / APPELLANT) ( /RESPONDENT) ! ' # / APPELLANT BY : MR.T.T.DURAIRAJ KANDIAR, C.A $% ! ' # /RESPONDENT BY : MR.GURU BASHYAM,JCIT,D.R & ' ' () / DATE OF HEARING : 01 - 01 - 201 9 * ' () / DATE OF PRONOUNCEMENT : 01 - 01 - 201 9 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-13, CHENNA I IN ITA NO.37/CIT(A)-13/A.Y 2012-13 DATED 14.11.2017 F OR THE ASSESSMENT YEAR 2012-13. ITA NO. 2113/CHNY/2018 :- 2 -: 2. MR.T.T.DURAIRAJ KANDIAR REPRESENTED ON BEHALF OF THE ASSESSEE AND MR.GURU BASHYAM REPRESENTED ON BEHALF OF THE REVENUE. 3. IT WAS SUBMITTED BY LD.A.R THAT ASSESSEE IS D EALERS IN FIRE EXTINGUISHING PRODUCTS. IT WAS A SUBMISSION THAT B USINESS PROMOTION EXPENSES TO AN EXTENT OF ` 11,10,506/- CAME TO BE DISALLOWED ON THE GROUND THAT THEY WERE SUPPORTED BY SELF-VOUCHERS, S ELF MADE VOUCHERS AND SOME THIRD PARTY VOUCHERS, WHICH APPEARED TO HA VE BEEN COOKED UP. AS PER THE LD. ASSESSING OFFICER, THE VOUCHERS SUBMITTED APPEARED FRESH, NEITHER FADED NOR TORN. IT WAS A SUBMISSION THAT LD.CIT(A) ON THE GROUND THAT THERE WAS NO FURTHER SUPPORTING DOC UMENTS, CONFIRMED THE DISALLOWANCE OF ` 11,10,506/- AS NON-GENUINE BUSINESS PROMOTION EXPENSES. IT WAS A SUBMISSION THAT THE ASSESSEE HAS PRODUCED ALL THE EVIDENCES, WHICH ARE IN THE FORM OF VOUCHERS, AND N ONE OF THE VOUCHERS ARE FOUND TO BE FALSE AND THE DISALLOWANCE S HAVE BEEN MADE ON PRESUMPTIONS. IT WAS A PRAYER THAT THE DISALLOWA NCES SUSTAINED BY LD.CIT(A) MAY BE DELETED. 4. IN REPLY, THE LD.D.R SUPPORTED THE ORDERS OF TH E LD. ASSESSING OFFICER AND THE LD.CIT(A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PE RUSAL OF THE ASSESSMENT ORDER AND ORDER OF THE CIT(APPEALS) SHO WS THAT THE DISALLOWANCES MADE BY THE LD. ASSESSING OFFICER AND CONFIRMED BY THE ITA NO. 2113/CHNY/2018 :- 3 -: LD.CIT(A) ARE ONLY ON THE BASIS OF PRESUMPTIONS. AN ASSESSMENT ORDER CANNOT BE MADE ON PRESUMPTIONS AND ASSUMPTIONS. IT IS NOT THE CASE THAT THE ASSESSEE HAS NOT PRODUCED VOUCHERS. THE AS SESSEE HAS PRODUCED THEM. JUST BECAUSE THE LD. ASSESSING OFFI CER SUSPECTS THE SAME, THERE CANNOT BE ANY DISALLOWANCE. THIS BEING SO, THE DISALLOWANCE MADE BY THE LD. ASSESSING OFFICER AND CONFIRMED BY THE LD.CIT(A) STANDS DELETED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 01 JANUARY, 2019, AT CHENNAI. SD/ - SD/ - ( . ) (A.MOHAN ALANKAMONY) ! '# / ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) $ '# / JUDICIAL MEMBER - ' / CHENNAI . / DATED: 01 JANUARY, 2019. K S SUNDARAM / ' $(01 2 1( / COPY TO: 1 . ! / APPELLANT 4. & 3( / CIT 2. $% ! / RESPONDENT 5. 145 $(6 / DR 3. & 3( () / CIT(A) 6. 57 8' / GF