Emerald Company Private Ltd., , Kolkata V. DCIT, Circle - 8(1), Kolkata

ITA 2136/KOL/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2095 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 10-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C J SINGH
• Assessee Lawyers: P R KOTHARI
• Section: 37(1); 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA A BENCH, KOLKATA (BEFORE SRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER & SRI S.S. GODARA, JUDICIAL MEMBER) I.T.A. NO. 2136/KOL/2018 ASSESSMENT YEAR: 2012-13 EMERALD COMPANY PVT. LTD......................................................APPELLANT (AS LIKHAMI LEASING LTD. MERGED WITH EMERALD COMPANY LTD. WHICH CONVERTED TO EMERALD CO. P. LTD.) GRAPHITE INDIA PREMISES 31, CHOWRINGHEE ROAD KOLKATA 700 001 [PAN : AADCE 2623 D] VS. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-8(1), KOLKATA..........................................RESPONDENT APPEARANCES BY: SHRI P.R. KOTHARI, FCA, APPEARED ON BEHALF OF THE ASSESSEE. SHRI C.J. SINGH, JCIT SR. D/R. , APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : MAY 13 TH , , 2019 DATE OF PRONOUNCING THE ORDER : JUNE 19 TH , 2019 ORDER PER J. SUDHAKAR REDDY, AM :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 3, KOLKATA, (HEREINAFTER THE LD.CIT(A)), PASSED U/S. 250 OF THE INCOME TAX ACT, 1961 (THE ACT), DT. 08/08/2018, FOR THE ASSESSMENT YEAR 2012-13 ON THE FOLLOWING GROUNDS:- 1. AGAINST DISALLOWANCE OF RS.10,47,280/- OUT OF PROFESSIONAL AND LEGAL CHARGES: FOR THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN SUSTAINING THE DISALLOWANCE OF RS.10,47,280/- OUT OF PROFESSIONAL AND LEGAL CHARGES ON THE GROUND OF DISALLOWED EXPENSES BEING CAPITAL IN NATURE WHICH WERE DISALLOWED BY LD. ASSESSING OFFICER ON THE BASIS OF HIS INCORRECT NOTIONS. 2. AFTER HEARING RIVAL CONTENTIONS, WE FIND THAT THE ASSESSEE IS A PETITIONER BEFORE THE COMPANY LAW BOARD, ADDITIONAL PRINCIPLE BENCH, BOMBAY IN CASE NO. C.P. NO. 53/397/398 OF 2010 AND HENCE A PARTY TO THE LITIGATION. THE MAIN RELIEF CLAIMED BY THE ASSESSEE IS AT PARA 8 OF THE PETITION WHICH IS AT PAGE 34 TO 42 OF THE PETITION. THERE IS NO DISPUTE THAT THE EXPENSES IN QUESTION ARE LEGAL AND PROFESSIONAL CHARGES WHICH 2 I.T.A. NO. 2136/KOL/2018 ASSESSMENT YEAR: 2012-13 EMERALD COMPANY PVT. LTD WERE GENUINELY INCURRED. UNDER THESE CIRCUMSTANCES, WE ARE OF THE CONSIDERED OPINION THAT THE EXPENDITURE INCURRED AS PROFESSIONAL AND LEGAL CHARGES HAS TO BE ALLOWED U/S 37(1) OF THE ACT. 3. IN THE RESULT, WE ALLOW THIS GROUND OF THE ASSESSEE AND DIRECT THE ASSESSING OFFICER TO ALLOW THIS EXPENDITURE. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. KOLKATA, THE 19 TH DAY OF JUNE, 2019. SD/- SD/- [S.S. GODARA] [J. SUDHAKAR REDDY] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 19.06.2019 {SC SPS} COPY OF THE ORDER FORWARDED TO: 1. EMERALD COMPANY PVT. LTD (AS LIKHAMI LEASING LTD. MERGED WITH EMERALD COMPANY LTD. WHICH CONVERTED TO EMERALD CO. P. LTD.) GRAPHITE INDIA PREMISES 31, CHOWRINGHEE ROAD KOLKATA 700 001 2. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-8(1), KOLKATA 3. CIT(A)- 4. CIT- , 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES