THE REPUBLIC PVT LTD., RANCHI V. ACIT CIRCLE-3, RANCHI

ITA 256/RAN/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9698 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 05-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 24-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MOHANTY
• Assessee Lawyers: VINAY KUMAR JALAN
• Keywords: Depreciation
• Section: 142(1)

Judgement Text

1 ITA NO. 2 56 /RAN/ 201 7 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S.SAINI , ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE , JUDICIAL MEMBER ITA NO. 256 /RAN/201 7 A.Y. : 20 12 - 20 1 3 M/S THE REPUBLIC PVT. LTD. C/O - SRI VINAY KUMAR JALAN, M/S O.P.JALAN & A SSOCIATES CONSULTANTS LLP, 48 CART SARAI ROAD, UPPER BAZAAR, RANCHI, JHARKHAND - 834001 V S ACIT, CIRCLE - 3,RANCHI P AN NO. : A ACCT 0051 D (APPELLANT ) . RESPONDENT ASSESSEE BY : SHRI VINAY KUMAR JALAN , ADVOCATE REVENUE BY :SHRI A.K.MOHANTY , JCIT DATE OF HEARING : 2 5 . 05 .201 8 DATE OF PRONOUNCEMENT : 28 . 05 .201 8 O R D E R PER PAVAN KUMAR GADALE, JM : TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT ( A ) , RANCHI , DATED 22.08.2017 , FOR THE ASS ESSMENT YEAR 20 12 - 2013 . 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN RELYING OVER THE ORDER OF THIS TRIBUNAL WHEN THE CASE WAS ADJUDICATED WHERE THE LD. ASSESS ING OFFICER HAD MADE ADDITIONS ON ESTIMATES BUT IN THE SUBSEQUENT YEARS UNDER THE ORDER PASSED BY THE LD. ASSESSING OFFICER, HE HIMSELF HAD ACCEPTED ALL THESE EXPENSES TO BE GENUINE AFTER EXAMINING THE BOOKS OF ACCOUNTS AND THE BILLS AND VOUCHERS. UNDER TH ESE CIRCUMSTANCES WHETHER THE OBSERVATIONS MADE BY THE LD. CIT(A) RELYING OVER THE FACTS ARE CONSISTENT OR INCONSISTENT IS A QUESTION TO BE DECIDED. 2 ITA NO. 2 56 /RAN/ 201 7 2 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN CONFIRMING THE DISALLOWANCE OF 25% OF THE AMOUNT DEBITED BY THE APPELLANT AS LIASIONING & SUBVENTION CHARGES IN THE PROFIT & LOSS ACCOUNT. 3 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN CONFIRMING THE DISALLOWANCE OF 50% OF THE AMOUNT DEBITED BY THE APPELLANT AS DEPRECIATION IN THE PROFIT & LOSS ACCOUNT. 4 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN DISALLOWING 10% OF MISCELLANEOUS EXPENSES DEBITED BY THE APPELLANT IN THE PROFIT & LOSS ACCOUNT. 5 . FOR THAT, THE LD. CI T(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN DISALLOWING 10% OF REPAIR AND MAINTENANCE OF VEHICLE DEBITED BY THE APPELLANT IN THE PROFIT & LOSS ACCOUNT. 6 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN DISALLO WING 10% OF COMMISSION ON SALES DEBITED BY THE APPELLANT IN THE PROFIT & LOSS ACCOUNT. 7 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN DISALLOWING 10% OF INCENTIVE TO SALESMAN DEBITED BY THE APPELLANT IN THE PROFIT & LOSS A CCOUNT. 8 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN DISALLOWING 10% OF SALES PROMOTION DEBITED BY THE APPELLANT IN THE PROFIT & LOSS ACCOUNT. 9 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN DISALLOWING 10% OF DELIVERY & TRANSPORT EXPENSES DEBITED BY THE APPELLANT IN THE PROFIT & LOSS ACCOUNT. 10 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN DISALLOWING 10% OF TRAVELLING & CONVEYANCE EXPENSES DEBITED BY THE APPELLANT IN THE PROFIT & LOSS ACCOUNT. 11 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN CONFIRMING THE DISALLOWANCE OF L/3RD OF THE AMOUNT DEBITED BY THE APPELLANT AS RENT PAYMENT IN THE PROFIT & LOSS ACCOUNT. 12 . FOR THAT, TH E LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN DISALLOWING 10% OF SALES DISCOUNT DEBITED BY THE APPELLANT IN THE PROFIT & LOSS ACCOUNT. 13 . FOR THAT, THE OTHER GROUNDS SHALL BE URGED AT THE TIME OF HEARING. 3 ITA NO. 2 56 /RAN/ 201 7 3 . BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2012 - 2013 ON 28.09.2012 WITH TOTAL INCOME OF RS. 1,67,54,980/ - AND THE RETURN OF INCOME WAS DULY PROCESSED U/S.143(1) OF THE ACT AND THE CASE WAS SELECTED FOR SCRUTINY. SUBSEQUENTLY, NOTI CE U/S.143(2) & 142(1) OF THE ACT WERE ISSUED TO THE ASSESSEE. IN COMPLIANCE, THE AR OF THE ASSESSEE APPEARED FROM TIME TO TIME AND CASE WAS DISCUSSED . THEREAFTER THE AO COMPLETED THE ASS ESSMENT AND MADE VARIOUS ADDITION S AND ASSESSED TOTAL INCOME AT RS. 3 ,12,33,990/ - AND PASSED ORDER U/S.143(3) OF THE ACT, DATED 29.03.2015 . 4 . AGGRIEVED BY THE ASSESSMENT ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(A). IN THE APPELLATE PROCEEDINGS THE ASSESSEE ARGUED THE GROUNDS AND REITERATED THE SUBMISSIONS MAD E BEFORE THE AO. THE CIT(A) AFTER CONSIDERING THE SUBMISSIONS OF ASSESSEE AND THE FINDINGS OF AO, DISMISSED THE APPEAL OF THE ASSESSEE. 5 . AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 6 . LD. AR BEFORE US FILED S OME RELEVANT DOCUMENTS IN THE FORM OF PAPER BOOK AND SUBMITTED THAT CERTAIN FACTS HAVE BEEN OVERLOOKED, WHICH GOES TO THE ROOT OF THE CASE AND PRAYED FOR ALLOWING THE APPEAL AFTER TAKING THE DOCUMENTS ON RECORD. 7 . LD.DR OPPOSED TO THE SUBMISSIONS OF LD.A R OF THE ASSESSEE AND RELIED ON THE ORDERS OF LOWER AUTHORITIES. 4 ITA NO. 2 56 /RAN/ 201 7 8 . WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. PRIMA FACIE, WE FIND THAT THE LD.AR OF THE ASSESSEE HAS FILED SOME RELEVANT DOCUMENTS IN THE FORM OF PAPER BOOK . LD. AR BEFORE US SUBMITTED THAT BOTH THE LOWER AUTHORITIES HAVE OVERLOOKED THE RELEVANT FACTS PLACED BY THE ASSESSEE BEFORE THEM, HOWEVER, WITHOUT CONSIDERING THE SAME, THE ADDITION HAS BEEN MADE BY THE AO AND SUBSEQUENTLY CONFIRMED BY THE CIT(A). IN THE INTEREST OF SUBSTANTIAL JUSTICE, WE PROVIDE ONE MORE OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CLAIM BEFORE THE AO. ACCORDINGLY, WE REMIT THE ENTIRE DISPUTED ISSUE TO THE FILE OF AO, WHO SHALL VERIFY AND EXAMINE THE RELEVANT DETAILS FILED BEFORE THE TRIBUNA L AND PASS ORDER AFTER PROVIDING ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE SHALL COOPERATE IN SUBMITTING THE INFORMATION BEFORE THE AO. 9 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28 / 05 /201 8 SD/ - SD/ - ( N.S.SAINI ) ( PAVAN KUMAR GADALE ) ACCOUNTANT MEMBER JUDICIAL MEMBER RANCHI, DATED 28 / 05 /201 8 PRAKASH KUMAR MISHRA , SR. PS 5 ITA NO. 2 56 /RAN/ 201 7 COPY OF THE ORDER FORWARDED TO : BY ORDER, //TRUE COPY// SR.PS, ITAT, RANCHI 1. THE APPELLANT M/S THE REPUBLIC PVT. LTD. C/O - SRI VINAY KUMAR JALAN , M/S O.P.JALAN & ASSOCIATES CONSULTANTS LLP, 48 CART SARAI ROAD, UPPER BAZAAR, RANCHI, JHARKHAND - 834001 2. THE RESPONDENT ACIT, CIRCLE - 3,RANCHI 3. THE CIT(A) CONCERNED 4. CIT , CONCERNED 5. DR, ITAT, RANCHI 6. GUARD FILE.