DCIT, CHENNAI V. Chennai Corporate Club Pvt. Ltd., CHENNAI

ITA 2759/CHNY/2014

• Counselvise Citation: 275921714 RSA 2014
• Duration Of Justice: 1 year(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2015
• Appeal Filed By: Department
• Bench Allotted: D
• Next Hearing Date: 09-09-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 07-11-2014
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNANJCIT

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI ... , . , , BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.2757, 2758 & 2759 /MDS./2014 ( !' #' / ASSESSMENT YEARS :2006-07, 2007-08 & 2008-09) DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE I(3), CHENNAI 600 034. VS. M/S.CHENNAI CORPORATE CLUB PVT LTD., NO.3, CITY CENTRE PLAZA, IV FLOOR, ANNA SALAI, CHENNAI 600 002. PAN AACCC 3395 H ( / APPELLANT ) ( / RESPONDENT ) $% & ' / APPELLANT BY : MR.P.RADHAKRISHNAN,JCIT D.R () $% & ' / RESPONDENT BY : NONE * + & ,- / DATE OF HEARING : 09.09.2015 .# & ,- /DATE OF PRONOUNCEMENT : 18.11.2015 / O R D E R ITA NOS.2757 TO 2759 /MDS/2014 2 PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THESE THREE APPEALS ARE FILED BY THE ASSESSEE, A GGRIEVED BY THE COMMON ORDER OF THE LEARNED COMMISSIONER OF IN COME TAX(A)- II, CHENNAI DATED 14.07.2014 IN ITA NO.903, 904 & 9 05/11-12/A-1 PASSED UNDER SEC.115WL R.W.S. 154 & 115WE(3) OF THE ACT FOR THE ASSESSMENT YEARS 2006-07 & 2007-08 AND 2008-09. SIN CE THE ISSUES IN ALL THESE APPEALS ARE IDENTICAL AND COMMON, THEY ARE DISPOSED OF BY THIS CONSOLIDATED ORDER. 2. THE REVENUE HAS RAISED FIVE ELABORATE GROUNDS I N ITS APPEAL; HOWEVER THE CRUX OF THE ISSUE IS THAT THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE LD. CIT (A), WHO HAD DELETED THE L EVY OF FRINGE BENEFIT TAX TOWARDS TELEPHONE EXPENSES INCURRED IN RESPECT OF TELEPHONES INSTALLED IN OFFICE PREMISES OF THE ASSE SSEE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE IS A COMPANY, ENGAGED IN THE BUSINESS OF RECREATION CLUB. IN ALL THE THREE ASSESSMENT ORDERS FOR THE ASSESSMENT YEARS 2006-07 & 2007-08 AND ITA NOS.2757 TO 2759 /MDS/2014 3 2008-09 OF EVEN DATE 24.11.2010 PASSED UNDER SEC.11 5WL R.W.S. 154 OF THE ACT, THE LD. ASSESSING OFFICER HAD LEVIE D FRINGE BENEFIT TAX TOWARD TELEPHONE CHARGES INCURRED ON TELEPHONE INST ALLED IN THE OFFICE PREMISES OF THE ASSESSEE. 4. ON APPEAL, THE LD. CIT(A) DELETED THE ADDITION BY FOLLOWING THE DECISION OF THE MUMBAI BENCHES OF THE TRIBUNAL IN T HE CASE DY. CIT VS. KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LTD., REPORTED IN [2011] 16 TAXMANN.COM 395 WHEREIN IT WAS HELD THAT PROVISI ONS OF FRINGE BENEFIT TAX WILL NOT BE ATTRACTED IN RESPECT OF EXP ENSES INCURRED ON TELEPHONE INSTALLED IN THE OFFICE PREMISES OF THE A SSESSEE. 5. SINCE THE LD. CIT (A) HAS FOLLOWED THE DECISION OF THE TRIBUNAL FOR DELETING THE LEVY OF FRINGE TAX ON TELEPHONE EX PENSES INCURRED AT THE OFFICE PREMISES OF THE ASSESSEE, WE DO NOT FIND ANY REASON TO INTERFERE WITH HIS ORDER. HENCE, WE UPHOLD THE DECI SION OF THE LD. CIT (A) AND HEREBY SUSTAIN HIS ORDER. ITA NOS.2757 TO 2759 /MDS/2014 4 6. IN THE RESULT, ALL THE THREE APPEALS FILED BY TH E REVENUE ARE DISMISSED. ORDER PRONOUNCED ON THE 18 TH NOVEMBER, 2015 AT CHENNAI. SD/- SD/- ( . . . ) ( N.R.S.GANESAN ) ( . '#$ %' ) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 18 TH NOVEMBER, 2015. K S SUNDARAM. & (,/0 1 0#, /COPY TO: 1. $% /APPELLANT 2. ()$% /RESPONDENT 3. * 2, ( ) /CIT(A) 4. * 2, /CIT 5. 05 (,6! /DR 6. ' 7+ /GF