Talera Automobiles Pvt.Ltd, Pune V. Assistant Commissioner of Income-tax, Circle - 7, Pune

ITA 2313/PUN/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5479 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 03-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF DATED PASSED

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH, A PUNE VIRTUAL COURT BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER . / ITA NO.2313/PUN/2017 / ASSESSMENT YEARS : 2009-10 TALERA AUTOMOBILES PRIVATE LIMITED, 14, MOTILAL TALERA ROAD, PUNE 411 001 PAN : AAACT6814C VS. ACIT, CIRCLE-7, PUNE APPELLANT RESPONDENT / ORDER PER R.S. SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER DATED 21-07-2017 PASSED BY THE CIT(A)-5, PUNE IN RELATION TO THE ASSESSMENT YEAR 2009-10. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONF IRMATION OF DISALLOWANCE OF FOREIGN TRAVEL EXPENSES AMOUNTING TO RS.9,29,041/-. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESS EE IS A PRIVATE LIMITED COMPANY ENGAGED IN THE BUSINESS OF DEALERSH IP OF CARS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A SSESSING OFFICER (AO) OBSERVED THAT THE ASSESSEE INCURRED FOREIGN T RAVEL ASSESSEE BY NONE (WRITTEN SUBMISSIONS) REVENUE BY SHRI A.M. KRISHANAN MAHADEVAN DATE OF HEARING 11-05-2021 DATE OF PRONOUNCEMENT 11-05-2021 ITA NO.2313/PUN/2017 TALERA AUTOMOBILES PVT. LTD., 2 EXPENSES TO THE TUNE OF RS.9,29,041/-. ON BEING CALLED UPON TO JUSTIFY THE DEDUCTION, THE ASSESSEE SUBMITTED DETAILS WHICH INDIC ATED THAT SMT. VASUMATI P. TALERA TRAVELLED TO SWITZERLAND ON 24.6.2 008 AND TO THE USA ON 15.3.2009 ALONG WITH SMT. SNAGDA P. TALER A. THE AO MADE THE DISALLOWANCE BY OBSERVING THAT NO EVIDENCE WAS FILED SHOWING THE BUSINESS EXIGENCY. THE LD. CIT(A) CONFIR MED THE DISALLOWANCE. 4. WE HAVE HEARD THE LD. DR THROUGH VIRTUAL COURT AND GON E THROUGH THE RELEVANT MATERIAL ON RECORD. THE ASSESSEE HA S FILED WRITTEN SUBMISSIONS URGING THE BENCH TO DECIDE THE CASE ON SU CH BASIS. IT IS NOTICED THAT THE ASSESSEE IS HAVING A SHOWROOM O F FORD CARS IN INDIA. IN ORDER TO ENABLE ITSELF TO SURVIVE IN A HIGH LY COMPETITIVE BUSINESS, THE DIRECTOR UNDERTOOK FOREIGN TRAVELS TO USA AND SWITZERLAND FOR ASCERTAINING AS TO HOW THE DISTRIBUTORS IN OTH ER COUNTRIES WERE MAINTAINING THEIR SHOWROOMS. IT IS IMPORTANT TO NOTE THAT THE DIRECTOR WHO TRAVELLED TO SWITZERLAND AND USA IS A WIDOW AND TOOK OVER THE REINS OF THE COMPANY IN THE YEAR 2003 A FTER THE DEMISE OF HER HUSBAND. THE ASSESSEE HAS PLACED ON REC ORD A COPY OF BOARD RESOLUTION AUTHORISING SUCH FOREIGN TRAVELS. NOT ONLY TH AT, THE ASSESSEE HAS ALSO FILED COPIES OF CERTAIN LETTERS WRITTEN BY ITS DIRECTOR TO THE DEALERS WHICH SHE VISITED IN SWITZERLAND AND USA. THE AO ITA NO.2313/PUN/2017 TALERA AUTOMOBILES PVT. LTD., 3 HAS NOT BROUGHT ANYTHING ON RECORD TO SHOW THAT EITHER THE LETTE RS OR THEIR CONTENTS WERE NOT BONA FIDE . HAVING CONSIDERED THE ENTIRE FACTUAL SCENARIO OBTAINING IN THE EXTANT CASE, WE ARE OF THE CONSIDERED OPINION THAT THE FOREIGN TRAVEL EXPENSES INCURRED BY THE ASSESSEE ARE GENUINE AND MEANT FOR BUSINESS PURPOSE ON LY. THE IMPUGNED ORDER IS OVERTURNED AND THE ADDITION IS DELETED. 5. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH MAY, 2021. SD/- SD/- ( PARTHA SARATHI CHAUDHURY ) (R.S.SYAL) JUDICIAL MEMBER VIC E PRESIDENT PUNE; DATED : 11 TH MAY, 2021 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A)-5, PUNE 4. 5. 6. THE PCIT-4, PUNE DR, ITAT, A BENCH, PUNE / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR P RIVATE SECRETARY , / ITAT, PUNE ITA NO.2313/PUN/2017 TALERA AUTOMOBILES PVT. LTD., 4 DATE 1. DRAFT DICTATED ON 11-05-2021 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 11-05-2021 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *