DHANERA & CO. (INDIA), MUMBAI V. ITO 15(1)(1), MUMBAI

ITA 2255/MUM/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 1192 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-07-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 22-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K SINGH
• Assessee Lawyers: N M PORWAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 2255/M/2010 ASSESSMENT YEAR: 2006-07 M/S DHANERA & CO., APPELLANT 2 ND KUMBHARWADA, MUMBAI 400 004. VS. INCOME TAX OFFICER, RESPONDENT CIRCLE 15(1)(1), , MUMBAI. APPELLANT BY : MR. N.M. PORWAL RESPONDENT BY : MR. S.K. SINGH O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDERS OF CIT(A)-26, MUMBAI, PASSED ON 02.02.2010 F OR THE ASSESSMENT YEAR 2006-07 WHEREIN THE ASSESSEE HAS RA ISED THE FOLLOWING GROUNDS OF APPEAL:- 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LEARNED COMMISSIONER OF INCOME-TAX APPEALS HAS ERRE D IN CONFIRMING THE ADDITION OF DISALLOWANCES OF SALARY RS. 2,00,000/-, THE SAME MAY BE DELETED. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LEARNED COMMISSIONER OF INCOME-TAX APPEALS HAS ERRE D IN CONFIRMING THE ADDITION ON ACCOUNT OF INTEREST RECE IVED FROM HIRANANDANI AKRUTI RS. 14,752/-, THE SAME MAY BE DE LETED. 2. BRIEFLY THE FACTS RELATING TO GROUND NO. 1 ARE T HAT THE AO DISALLOWED RS. 2,00,000/- ON THE GROUND THAT RS. 84 ,000/- DEBITED ON ACCOUNT OF SALARY IN THE NAME OF SONAL J. MEHTA WHEREIN THE ASSESSEE FAILED TO POINT OUT THE SERVICES RENDERED. THE AO HAS ALSO DISALLOWED 1/3 RD OF THE SALARY DEBITED IN THE NAME OF 7 EMPLOYEES, OF WHICH THE CALCULATION COMES TO RS. 1,16,000/-. T HE TOTAL ITA NO. 2255/M/10 M/S DHANERA & CO. 2 ADDITION MADE BY THE AO ON THE SAID COUNTS IS RS. 2 ,00,000/-. THE CIT(A) CONFIRMED THE SAID ADDITION MADE BY THE AO. 3. I HAVE HEARD THE LEARNED REPRESENTATIVES OF THE PARTIES AND PERUSED THE RECORD. THE LEARNED AR POINTED OUT THAT THE ASSESSEE FILED THE DETAILS OF ALL THE PERSONS WITH DESIGNATI ONS OF WHICH COPY HAS BEEN PLACED IN THE ASSESSEES PAPER BOOK. HE FURTHER SUBMITTED THAT SONAL J. MEHTA DECLARED THE AMOUNT O F SALARY DISALLOWED BY THE AO IN HER RETURN OF INCOME. HE FU RTHER SUBMITTED THAT SONAL J. MEHTA HAS FILED AN AFFIDAVIT DATED 24 TH JUNE, 2010. IT IS THE SUBMISSION OF THE LEARNED AR THAT IN THE INT EREST OF JUSTICE THE ABOVE AFFIDAVIT AND OTHER DETAILS MAY BE ADMITT ED. AFTER CONSIDERING THE FACTS OF THE CASE, I FIND THAT COMP LETE AND CORRECT FACTS OF THE CASE ARE REQUIRED TO BE PUT ON RECORD AFTER NECESSARY EXAMINATION. THEREFORE, I THINK IT PROPER TO REMIT THE MATTER BACK TO THE FILE OF THE AO WITH A DIRECTION TO DECIDE TH E ISSUE AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING OPPORTUNITY OF HEARING TO THE ASSESSEE. 4. AS REGARDS 2 ND GROUND, DURING THE COURSE OF ASSESSMENTS THE AO NOTICED THAT THE ON THE BASIS OF AIR DATA RE CEIVED RS. 14,752/- FROM HIRANANDANI AKRUTI. THE CONTENTION OF THE ASSESSEE IS THAT THEY DID NOT RECEIVE THE SAID AMOUNT. CONSI DERING THE FACTS OF THE CASE, I FIND THAT THIS ISSUE ALSO REQUIRES C OMPLETE AND CORRECT FACTS WHEN THE ASSESSEE DENIES THAT THE SAID AMOUNT WAS NOT RECEIVED AND THE DEPARTMENT HAS GOT INFORMATION ON THE BASIS OF AIR DATA THAT THE ASSESSEE RECEIVED THE SAID AMOUNT . THEREFORE, TO EXAMINE THE ISSUE CORRECT AND COMPLETE FACTS ARE RE QUIRED TO BE PUT ON RECORD AND IN THE LIGHT OF THAT THIS GROUND IS A LSO REMITTED BACK TO THE FILE OF THE AO TO DECIDE THE ISSUE AFRESH AF TER GETTING CORRECT INFORMATION. ITA NO. 2255/M/10 M/S DHANERA & CO. 3 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 13.07.2010. SD/- (A.L. GEHLOT) ACCOUNTANT MEMB ER DATED: 13 TH JULY, 2010. COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) CONCERNED. 4) THE CIT CONCERNED. 5) THE DEPARTMENTAL REPRESENTATIVE, SMC BEN CH, I.T.A.T., MUMBAI. BY ORDER //TRUE COPY// ASST. REGISTRAR, I.T.A.T., MUMBAI. KV S.NO. DESCRIPTION DATE INTALS 1. DRAFT DICTATED ON 13.07.2010 SR.P.S./P.S 2. DRAFT PLACED BEFORE AUTHOR 13.07.2010 SR.P.S/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.P.S./PS SR.P.S./P.S 6. KEPT FOR PRONOUNCEMENT ON SR. P.S./P.S. 7. FILE SENT TO THE BENCH CLERK SR.P.S./P.S 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER