MARAS RESTAURANTS P.LTD ( NOW KNOWN AS RESTURATNS P.LTD), MUMBAI V. DCIT CIR 8(2), MUMBAI

ITA 331/MUM/2012

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2512 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-12-2015
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 19-05-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 13-01-2012
• Court: TRIBUNAL
• Department Lawyers: S R KIRTANE
• Keywords: Additional evidence

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI RAM LAL NEGI , JM ./ ITA NO. 331 / MUM/20 1 2 ( / ASSESSMENT YEAR : 200 8 - 0 9 ) M/S MARS RES TAURANTS PVT. LTD. (NOW KNOWN AS WAH RESTAURANTS PVT. LTD., OFF INTERNATIONAL AIRPORT APPROACH ROAD, MAROL, ANDHERI (E), MUMBAI - 400059 VS. DCIT, CIRCLE - 8(2), MUMBAI ./ ./ PAN/GIR NO. : A A CCM 1584 C ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI JITENDRA JAIN /REVENUE BY : SHRI S.R.KIRTANE / DATE OF HEARING : 01 / 1 2 /2015 / DATE OF PRONOUNCEMENT 01 / 12 /2015 / O R D E R PE R R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - MUMBAI, DATED 24 - 10 - 2011, FOR THE ASSESSMENT YEAR 2008 - 09 , IN THE MATTER OF ORDER PASSED U/S.143(3) OF THE I.T.ACT. 2. GROUND NO.1 WAS NOT PRESSED, THE SAME IS THEREFO RE DISMISSED IN LIMINE. 3. IN GROUND NO.2, THE ASSESSEE IS AGGRIEVED FOR DISALLOWANCE OF LEGAL AND PROFESSIONAL FEES OF RS.6,28,406/ - BY TREATING THE SAME AS CAPITAL IN NATURE. 4. WE HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND THAT THE DISALLOWANCE OF RS. 6,28,401/ - OUT OF LEGAL AND PROFESSIONAL FEE WAS MADE ITA NO. 331 /201 2 2 BY AO BY TREATING THE SAME AS CAPITAL IN NATURE. IN THE ASSESSMENT ORDER THE AO HAS NOTED THAT THE SAID EXPENSES HAS BEEN PAID TO M/S ARUN ARORA & CO. TOWARDS PROFESSIONAL FEE FOR RBI MATTERS FOR SHARE APPLICATION PURPOSES. HOWEVER, DURING THE COURSE OF APPELLATE PROCEEDINGS, THE ASSESSEE HAS FILED COPIES OF TWO BILLS OF M/S ARUN ARORA & CO AND SUBMITTED THAT BILL NO. 8472 FOR RS. 2,80,900/ - WAS NOT WITH REGARD TO RBI SANCTIONED AND WAS THEREFORE ALLOWABLE . HOWEVER, THE CIT(A) DECLINED TO ACCEPT THE ADDITIONAL EVIDENCE. IN THE INTEREST OF JUSTICE, WE RESTORE THE DISALLOWANCE OF RS.2,80,900/ - BACK TO THE FILE OF AO FOR CONSIDERING THE ADDITIONAL EVIDENCE WHICH GOES TO THE ROOT OF THE ISSUE FOR DECIDING AFRE SH AFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE. BALANCE DISALLOWANCE IS HEREBY CONFIRMED. 5 . IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED IN PART FOR STATISTICAL PURPOSES. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 04 /1 2 / 201 5 . SD/ - ( R AM LAL NEGI ) SD/ - ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 04 /1 2 /2015 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE AP PELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//