DCIT, Circle -22, Kolkata, Kolkata V. M/s. Deloitte Haskins & Sells, Kolkata

ITA 2479/KOL/2017

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 2695 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 18-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROBIN CHOWDHURY
• Assessee Lawyers: P B CHHAPGAR
• Section: 143(3); 37(1); 37

Judgement Text

, D , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH D KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI, S.S. GODARA, JUDICIAL MEMBER ITA NO. 2479 / KOL / 20 17 ASSESSMENT YEAR :2013-14 DCIT, CIRCLE 22, KOLKATA 54/1, RAFI AHMED KIDWAI ROAD, 4 TH FLOOR, KOLKATA 700 016. [ PAN NO. AADFD 5357 J ] V/S . M/S. DELOITTE HASKINS & SELLS, BENGAL INTELLIGENT PARK BUILDING ALPHA, 1 ST FLOOR, BLOCK-EP & GP, SECTOR-V, KOLKATA 700 091. /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI ROBIN CHOWDHURY, ADDL. CIT, /BY RESPONDENT SHRI P.B. CHHAPGAR, AR /DATE OF HEARING 17-09-2018 /DATE OF PRONOUNCEMENT 12-10-2018 / O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2013-14 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-6, KOLKATAS ORDER DATED 12.09.2017 PASSED IN CASE NO.CIT(A), KOLKATA-6/10066/2016-17 INVOLVING PROCEEDINGS U/S 143(3) OF THE I.T. ACT, 1961, IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. IT EMERGES FROM THE CASE FILE THAT THE REVENUE HAS RAISED 3 SUBSTANTIVE GROUNDS SEEKING TO REVIVE THE ASSESSING OFFICERS ACTION INVOKING SECTION 40(A)(IA) DISALLOWANCE OF RS. 62,88,782/- QUA RENT PAID ON HIRE OF COMPUTERS AND RS. 67,71,416/- IN THE NATURE OF SUBSCRIPTION AND TECHNOLOGY FEES; BOTH ITA NO. 2479/KOL/2017 A.Y. 2013-14 M/S. DELOITTE HASKIN & SELLS PAGE 2 WITHOUT DEDUCTING TDS THEREBY HOLDING THE SAME TO BE IN THE NATURE OF RENT AND FEES FOR TECHNICAL SERVICES U/S 194I AND 194J AS WELL AS DISALLOWING / ADDING INDEMNITY INSURANCE EXPENSES OF RS. 13,45,821/- U/S 37(1) OF THE ACT; RESPECTIVELY. THE CIT(A) HAS ALL THESE THREE DISALLOWANCES / ADDITIONS IN THE COURSE OF LOWER APPELLATE PROCEEDINGS. 3. WE NOTICE AT THE OUTSET THAT THE REVENUE HAD RAISED THE VERY SUBSTANTIVE GROUNDS IN ITS APPEALS ITA NO. 587 & 588/K/2016 FOR ASSESSMENT YEARS 2010-1 & 2011-12, RESPECTIVELY. THE SAID CO-ORDINATE BENCHS ORDER DATED 11.07.2018 HELD THAT RENT PAID ON HIRING COMPUTERS IN ISSUE IS IN THE NATURE OF MERE REIMBURSEMENT NOT ATTRACTING ANY TDS DEDUCTION. LEARNED CO- ORDINATE BENCH THEREAFTER CONCLUDED QUA THE SECOND ISSUE OF SUBSCRIPTION AND TECHNOLOGY FEES THAT THE SAME COULD NOT HAVE BEEN TREATED AS FEE FOR TECHNICAL SERVICES SINCE THERE WAS NO PROFIT ELEMENT EMBEDDED THEREIN. COMING TO THE 3 RD ISSUE OF INDEMNITY INSURANCE EXPENSES, IT HELD THIS EXPENDITURE HAD TO BE WHOLLY AND EXCLUSIVELY INCURRED FOR THE PURPOSE OF ASSESSEES BUSINESS U/S 37 OF THE ACT. BOTH THE LEARNED REPRESENTATIVES ARE AD-IDEM DURING THE COURSE OF HEARING THAT THE CIT(A) HAS FOLLOWED HIS EARLIER FINDINGS IN THE IMPUGNED ASSESSMENT YEAR MUTATIS MUTANDIS WHILE DELETING ALL THESE THREE DISALLOWANCES / ADDITIONS IN QUESTION. WE THEREFORE ADOPT JUDICIAL CONSISTENCY QUA ALL THESE THREE ISSUES TO DECLINE REVENUES CORRESPONDING SUBSTANTIVE GROUNDS. 4. THIS REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT 12/10/2018 SD/- SD/- ( ) ( ) (P.M. JAGTAP) (S.S.GODARA) (ACCOUNTANT MEMBER (JUDICIAL MEMBER) KOLKATA, BISWAJIT, SR.P.S - 12 /10 /201 8 ITA NO. 2479/KOL/2017 A.Y. 2013-14 M/S. DELOITTE HASKIN & SELLS PAGE 3 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-DCIT, CIRCLE 22, KOLKATA. 2. /RESPONDENT-M/S. DELOITTE HASKIN & SELLS., KOLKATA. 3. / CONCERNED CIT KOLKATA 4. - / CIT (A) KOLKATA (SENT THROUGH E-MAIL) 5. , , / DR, ITAT, KOLKATA (SENT E-MAIL) 6. [ / GUARD FILE. BY ORDER/ , SR. PRIVATE SECRETARY, HEAD OF OFFICE/DDO ,