KSN Automobiles Private Limited, CHENNAI V. ITO Corporate Ward 4(3) , CHENNAI

ITA 2530/CHNY/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1286 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 30-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V M MAHIDAR
• Assessee Lawyers: Y SRID HAR
• Keywords: Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , ! ' # , % #& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.2530/CHNY/2018 ) *) / ASSESSMENT YEAR : 2014-15 M/S KSN AUTOMOBILES PVT. LTD., C/O M/S RAMESH AND RAMACHANDRAN, CHARTERED ACCOUNTANTS, NEW NO.39, OLD NO.29/3, VISWANATHAPURAM MAIN ROAD, KODAMBAKKAM, CHENNAI - 600 024. PAN : AAECK 4344 C V. THE INCOME TAX OFFICER, CORPORATE WARD 4(3), CHENNAI. (,-/ APPELLANT) (./,-/ RESPONDENT) ,- 0 1 / APPELLANT BY : SHRI Y. SRIDHAR, CA ./,- 0 1 / RESPONDENT BY : SHRI V.M. MAHIDAR, JCIT 2 0 3% / DATE OF HEARING : 07.08.2019 45* 0 3% / DATE OF PRONOUNCEMENT : 05.09.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -8, CHENNA I, DATED 20.06.2018 AND PERTAINS TO ASSESSMENT YEAR 2014-15. 2. SHRI Y. SRIDHAR, THE LD. REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT THE ASSESSING OFFICER DISALLOWED 7,04,737/- ON THE 2 I.T.A. NO.2530/CHNY/18 GROUND THAT THIS WAS PRIOR PERIOD EXPENDITURE. ACC ORDING TO THE LD. REPRESENTATIVE, THESE ARE THE AMOUNTS COLLECTED FRO M THE CUSTOMERS TOWARDS REGISTRATION CHARGES OF THE VEHICLES AND RO AD TAX. THIS WAS ACTUALLY COLLECTED AND PAID TO THE RESPECTIVE AUTHO RITIES DURING THE CURRENT YEAR. ACCORDING TO THE LD. REPRESENTATIVE, PROBABLY, IN SOME CASES, IT MAY BE COLLECTED IN THE PREVIOUS YEAR AND IT WAS PAID DURING THE CURRENT YEAR. IT IS NOT A PRIOR PERIOD EXPENSES. ACCORDING TO THE LD. REPRESENTATIVE, IT IS A CURRENT EXPENDIT URE INCURRED BY THE ASSESSEE DURING THE YEAR UNDER CONSIDERATION, THERE FORE, DISALLOWANCE OF 7,04,737/- IS NOT JUSTIFIED. 3. ON THE CONTRARY, SHRI V.M. MAHIDAR, THE LD. DEPA RTMENTAL REPRESENTATIVE, SUBMITTED THAT IN THE PROFIT & LOSS ACCOUNT, THE ASSESSEE CLAIMED THE SAME AS PRIOR PERIOD EXPENSES, THEREFORE, THE ASSESSING OFFICER HAS DISALLOWED THE SAME. IF IT I S A CURRENT YEAR EXPENDITURE, THE MATTER MAY BE RE-EXAMINED BY THE A SSESSING OFFICER. 4. HAVING HEARD THE LD. REPRESENTATIVE FOR THE ASSE SSEE AND THE LD. D.R., THIS TRIBUNAL IS OF THE CONSIDERED OP INION THAT SINCE THE ASSESSEE CLAIMS THAT THE AMOUNT WAS COLLECTED IN TH E PREVIOUS YEAR AND EXPENSES WERE INCURRED DURING THE CURRENT FINAN CIAL YEAR, THIS 3 I.T.A. NO.2530/CHNY/18 FACT NEEDS TO BE RE-EXAMINED BY THE ASSESSING OFFIC ER. ACCORDINGLY, THE ORDERS OF BOTH THE AUTHORITIES BEL OW ARE SET ASIDE AND THE DISALLOWANCE OF 7,04,737/- IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RE- EXAMINE THE MATTER IN THE LIGHT OF THE MATERIAL THAT MAY BE FIL ED BY THE ASSESSEE AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANC E WITH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 5 TH SEPTEMBER, 2019 AT CHENNAI. SD/- SD/- ( ! ' # ) ( . . . ) (INTURI RAMA RAO) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 7 /DATED, THE 5 TH SEPTEMBER, 2019. KRI. 0 .389 :9*3 /COPY TO: 1. ,- /APPELLANT 2. ./,- /RESPONDENT 3. 2 ;3 () /CIT(A)-8, CHENNAI 4. PRINCIPAL CIT- 4, CHENNAI 5. 9< .3 /DR 6. =) > /GF.