College Street Education Technologies Private Limited , Hyderabad V. Dy. Commissioner of Income Tax , Circle-1(2), Hyderabad

ITA 2245/Hyd/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8458 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-08-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Assessment Year: 2015-2016
• Appeal Filed On: 04-12-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ROHIT MAJUMDAR
• Keywords: Corroborative evidences
• Section: 37; 143(3); 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 2245 /HYD/20 18 (ASSESSMENT YEAR : 20 15 - 16 ) M/S. COLLEGE STREET EDUCATION TECHNOLOGIES PVT. LTD., HYDERABAD. PAN AAECC 5683Q ..APPELLANT. VS. DY. COMMISSIONER OF INCOME TAX, CIRCLE 1(2), HYDERABAD. ..RESPONDENT. APPELLANT BY : NON E. RESPONDENT BY : SHRI ROHIT MAJUMDAR (D.R.) DATE OF HEARING : 25.05. 2021. DATE OF PRONOUNCEMENT : 16 .0 8 .2021. O R D E R PER SHRI S.S. GODARA, J.M. : THIS ASSESSEES APPEAL FOR ASST. YEAR 2015 - 16 ARISES FROM THE COMMISSIONER OF INCOME TAX (APPEALS) - 1, HYDERABAD S ORDER DT. 3.10.2018 PASSED IN CASE NO. 0253/CIT(A) - 1, HYD/2017 - 18/2018 - 19 IN PROCEEDINGS UNDER SECTION 143(3) OF INCOME TAX ACT, 1961 (THE ACT). CASE CALLED TWICE. NONE APPEAR ED AT ASSESSEE'S BEHEST. IT IS ACCORDINGLY PROCEEDED EXPARTE. 2 . THE ASSESSEE'S SOLE SUBSTANTIVE GRIEVANCE RAISED IN THE INSTANT CHALLENGES THE CORRECTNESS OF BOTH THE LOWER 2 ITA NO. 2245/HYD/2018 AUTHORITIES' ACTION DISALLOW ING ITS BUSINESS PROMOTION EXPENSES INCLUDING AD VERTISEMENTS, PRINT MEDIA, DIGITAL MEDIA ACTIVITIES, GOOGLE SEARCH SPACE AND CONFERENCE (S) IN EDUCATIONAL UNIVERSITIES INVOLVING A SUM OF RS.31,08,6 1 0 IN THE COURSE OF ASSESSMENT DT . 29.12.2017 AND UPHELD IN THE CIT(A)S ORDER AS UNDER : 3 ITA NO. 2245/HYD/2018 4. LEARNED DEPARTMENT REPRESENTATIVE FAIL TO DISPUTE THAT THE CIT(A) HAS MAINLY GONE BY THE FACT THAT THERE WAS NO JUSTIFICATION ON A SSESSEE'S PART TO INCUR THE IMPUGNED BUSINESS PROMOTION EXPENSES. SUCH A COURSE OF ACTION ON 4 ITA NO. 2245/HYD/2018 THE LEARNED LOWER AUTHORITIES PART AMOUNT S TO SITTING ON JUDGEMENT AS AN ASSESSEE'S BUSINESS EXPEDIENCY NOT SUSTAINABLE AS PER THE DECISION S.A. BUILDERS VS. CIT 288 ITR 1 (SC). THE FACT ALSO REMAINS THAT THE ASSESS EE HAS NOT BEEN ABLE TO FILE ITS COGENT SUPPORTING EVIDENCE TO THE EFFECT THAT THE IMPUGNED EXPENSES HAD BEEN INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS SO AS TO BE ALLOWABLE UNDER SECTION 37 OF THE ACT. FACED WITH THIS SITUATION, WE DEEM IT APPROPRIATE THAT A LUMP SUM DISALLOWANCE OF 3 0% OF THE IMPUGNED EXPENDITURE AMOUNTING TO RS.31,08,610 WOULD BE JUST AND PROPER WITH A RIDER THAT SAME SHALL NOT BE TREATED AS PRECEDENT IN ANY OTHER ASSESSMENT YEAR. WE ORDER ACCORDINGLY. NECESSARY COM PUTATION SHALL FOLLOW AS PER LAW. 5. THIS ASSESSEE'S APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 16TH AUG. , 2021. SD/ - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 16 .0 8 .2021. * REDDY GP 5 ITA NO. 2245/HYD/2018 COPY TO : 1. M/S.COLLEGE STREET EDUCATION TECHNOLOGIES PVT. LTD., SUITE 301B, SRI DURGA TOWERS, ROAD NO.10, BANJARA HILLS, HYDERABAD - 500 034 2. DCIT,CIRCLE 1(2), HYDERABAD. 3. PR. C I T - 1 , HYDERABAD. 4. CIT(APPEALS) - 1, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.