ACIT. CIR.-9(3), MUMBAI V. M/S TRAVELORG HOLIDAYS PVT LTD., MUMBAI

ITA 3439/MUM/2011

• Counselvise Citation: 343919914 RSA 2011
• Duration Of Justice: 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2007-2008
• Appeal Filed On: 29-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M N SATHYAMOORTHY
• Section: 37(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH EMUMBAI BEFORE SHRI B.RAMAKOTAIAH (ACCOUNTANT MEMBER) AND SHRI VIVEK VARMA (JUDICIAL MEMBER ITA NO.3439/MUM/2011 ASSESSMENT YEAR-2007-08 THE ACIT, CIR-9(3), AAYAKARBHAVAN, MUMBAI-400 020 VS. M/S. TRAVELORG HOLIDAYS PVT. LTD., PLOT NO.1, SONAWALA LANE NEXT TO SAMARAT MOTOR TRAINING SCHOOL, GOREGAON (E), MUMBAI -400 063 PAN-AACCT 5821D (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI M.N. SATHYAMOORTHY RESPONDENT BY: NONE DATE OF HEARING :27.02.2012 DATE OF PRONOUNCEMENT:02.03.2012 O R D E R PER B. RAMAKOTAIAH, AM : THIS IS REVENUES APPEAL AGAINST THE ORDER OF LD. CIT(A)-20, MUMBAI DT.28.2.2011. 2. THE ONLY GROUND RAISED BY THE REVENUE READS AS F OLLOWS: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN HOLDING THAT DISALLOWA NCE OF LEGAL & PROFESSIONAL EXPENSES TO THE EXTENT OF RS. 10,90,50 0/- WAS NOT JUSTIFIED, DESPITE THE FACT THAT THE ASSESSEE HAD P RODUCED ONLY SELF-SERVING DEBIT NOTES AS PROOF OF THE EXPENDITUR E AND NO EVIDENCE TO PROVE THE ADMISSIBILITY OF EXPENSES U/S . 37(1) WAS PRODUCED DURING THE ASSESSMENT PROCEEDINGS. 3. WHEN THE CASE WAS CALLED, NOBODY WAS THERE TO RE PRESENT THE ASSESSEE AND THE CASE WAS HEARD IN THE ABSENCE OF ASSESSEE, EX PARTE. THE LD. DEPARTMENTAL REPRESENTATIVE MADE HIS SUBMISSIONS. ITA NO.3439/M/11 2 4. THE ASSESSING OFFICER DISALLOWED THE LEGAL AND P ROFESSIONAL EXPENSES DOUBTING THE SAID EXPENSES AS NOT GENUINE IN NATURE . BEFORE THE LD. CIT(A), THE ASSESSEE CONTESTED AND SUBMITTED THE RELEVANT D ETAILS AND THE MATTER WAS REMANDED TO AO. AFTER CONSIDERING THE REPORT OF AO , THE LD. CIT(A) DELETED THE ADDITION OF RS. 10,90,500/- BY STATING AS UNDER : AS SAID BEFORE, THE AO MADE DISALLOWANCE OF RS. 11,45,497/- CLAIMED AS LEGAL AND PROFESSIONAL EXPEN SES AS THE APPELLANT HAD FURNISHED ONLY SELF MADE DEBIT NOTES IN PROOF OF PAYMENT. AS ADDITIONAL MATERIALS, THE APPELLANT FU RNISHED TDS CERTIFICATES ISSUED TO FIVE PERSONS FOR MAKING PAYM ENT OF PROFESSIONAL CHARGES AGGREGATING TO RS. 10,90,500/- . ON REMAND, THE AO HAS NOT QUESTIONED THE CREDIBILITY O F PAYMENTS REFLECTED IN THE TDS CERTIFICATES. I AM OF THE OPI NION THAT THE APPELLANT HAD BEEN ABLE TO ESTABLISH THE GENUINENE SS OF PAYMENT OF A TOTAL SUM OF RS. 10,90,500 OUT OF DISP UTED SUM OF RS. 11,45,497. I THEREFORE RESTRICT THE DISALLOWAN CE TO RS. 54,997/-. THE APPELLANT GETS RELIEF OF RS. 10,90,5 00/-. 5. SINCE THE LD. CIT(A) CONSIDERED THE ISSUE ON FAC TS AND THAT TOO AFTER GIVING THE AO A REASONABLE OPPORTUNITY BY WAY OF RE MAND, WE DO NOT SEE ANY REASON TO INTERFERE WITH THE ORDER OF LD. CIT(A). THERE IS NO MERIT IN REVENUES GROUND AND ACCORDINGLY THE GROUND IS REJE CTED. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON THIS 2 ND DAY OF MARCH, 2012 SD/- SD/- (VIVEK VARMA) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED 2 ND MARCH, 2012 RJ ITA NO.3439/M/11 3 COPY TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT-CONCERNED 4. THE CIT(A)-CONCERNED 5. THE DR E BENCH TRUE COPY BY ORDER ASSTT. REGISTRAR, I.T.A.T, MUMBAI