SUNNY GEORGE KUTTY, MUMBAI V. ADDL CIT RG 25(3), MUMBAI

ITA 3650/MUM/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 71908 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 11-12-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 23-05-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MAORYA PRATEEP
• Assessee Lawyers: PRADEEP S SHETTY

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL E B ENCH, MUMBAI . . , , , ! ' BEFORE SHRI I.P. BANSAL, JM AND SHRI SANJAY AROR A, AM ./ I.T.A. NO.3650/MUM/2012 ( # # # # $ $ $ $ / ASSESSMENT YEAR :2008-09 SHRI SUNNY GEORGE KUTTY, 119, GUNDEECHA INDL. COMPLEX, ABHUYADAYA BANK, AKURLI ROAD, KANDIVALI (E), MUMBAI 400 101 THE ADDL CIT,RANGE 25(3), MUMBAI % ! ./ & ./PAN/GIR NO. : AAGPK 3283P ( %' /APPELLANT ) .. ( ()%' / RESPONDENT ) %' * / APPELLANT BY : ` SHRI PRADEEP S. SHETTY ()%' + * /RESPONDENT BY : SHRI MAORYA PRATEEP # + ,-! / DATE OF HEARING :11.12.2013 .$ + ,-! / DATE OF PRONOUNCEMENT :11.12.2013 / / O R D E R PER I.P BANSAL, JM: THE APPEAL IS FILED BY THE ASSESSEE. IT IS DIRECT ED AGAINST THE ORDER OF THE LD. CIT(A)-35, MUMBAI DT. 4.1.2012 FOR A.Y. 2008-09. 2. THE GROUNDS OF APPEAL READ AS UNDER: 1. THE AO HAS ADDED AN AMOUNT OF RS. 8,34,732/- ON THE BASIS OF ITAT RECORD WHICH IS ERRONEOUS. ITA NO.3650/M/2012 2 2. THE LD. AO HAS DISALLOWED FOLLOWING EXPENSES ON ADHOC BASIS I.E.20% OF THE FOLLOWING EXPENSES: * CONVEYANCE EXPENSES-RS. 1,46,844/- * STAFF WELFARE EXPENSES- RS.4,62,538/- * BUSINESS PROMOTION -RS11,26,170/- * TELEPHONE -RS. 3,40,122/- TOTAL -RS.20,75,674 20 OF THIS I.E. RS.4,15,135/- 3. AT THE TIME OF HEARING, LD. AR SUBMITTED THAT GROUN D NO. 2 IS NOT PRESSED HENCE THE SAME IS DISMISSED AS NOT PRESSED . 4. APROPOS GROUND NO. 1, FACTS ARE AS UNDER: THE ASSESSING OFFICER COMPARED AIR INFORMATION WITH THE ACCOUNT BOOKS OF THE ASSESSEE AND HE FOUND THAT THE CONTRAC T RECEIPTS SHOWN BY THE ASSESSEE IN HIS PROFIT AND LOSS ACCOUNT WERE SHOWIN G LESS RECEIPTS OF RS. 8,34,732/- AND RS 27,576/- IN RESPECT OF PAYMENTS R ECEIVED BY THE ASSESSEE FROM M/S. LUBRIZOL PVT. LTD., AND M/S. PIPECON CONS ULTANT (I) PVT. LTD. AFTER CONSIDERING THE EXPLANATION OF THE ASSESSEE, THE AO ADDED AN AMOUNT OF RS. 8,34,732/- TO THE INCOME OF THE ASSESSEE ON ACCOUN T OF LESS RECEIPTS PERTAINING TO M/S. LUBRIZOL PVT. LTD. 5. THE LD. CIT(A) CONFIRMED SUCH ADDITION. ON THES E FACTS, IT IS THE CASE OF THE ASSESSEE THAT LATER ON THE MISTAKE WAS POINT ED OUT TO M/S. LUBRIZOL INDIA PVT. LTD. REGARDING THE DISCREPANCY IN THE RE CEIPTS AND AFTER CONSIDERING THE REQUEST OF THE ASSESSEE, THE MISTAKES WERE RECT IFIED AND NOW THE RECEIPTS OF THE ASSESSEE ARE IN ACCORDANCE WITH REVISED FOR M NO. 26-AS, COPY OF WHICH HAS BEEN FILED IN THE PAPER BOOK AT PAGES 14 TO 21. IT WAS SUBMITTED BY LD. AR THAT THIS DOCUMENT WAS ALSO FILED BEFORE THE LD. CIT(A) BUT HE DID NOT APPRECIATE THIS FACT. HE SUBMITTED THAT MATTER MAY BE RESTORED BACK TO THE FILES OF THE AO FOR VERIFICATION OF THE REVISED FORM NO. 26AS. AS PER THE ITA NO.3650/M/2012 3 REVISED FORM NO. 26AS, THE RECEIPTS OF THE ASSESSEE ARE MATCHING WITH HIS BOOKS OF ACCOUNT. 6. THE LD. DEPARTMENTAL REPRESENTATIVE RELIED UPON BY THE ORDER PASSED BY THE AO AND LD. CIT(A). 7. WE HAVE HEARD BOTH THE PARTIES AND THEIR CONTENT IONS HAVE CAREFULLY BEEN CONSIDERED. THE DISCREPANCY ON THE BASIS OF W HICH LD. AO HAS MADE ADDITION HAS LATER ON RECONCILED IN REVISED FORM NO . 26-AS. HOWEVER, FOR VERIFICATION OF SUCH CASE OF THE ASSESSEE, THE MATT ER HAS TO BE RESTORED BACK TO THE FILE OF THE AO WITH A DIRECTION TO VERIFY TH E CONTENTION OF THE ASSESSEE. IF THE ASSESSEE IS ABLE TO RECONCILE THE RECEIPTS WH ICH MATCH WITH THE RECEIPTS IN HIS BOOKS OF ACCOUNT, THEN NO ADDITION CAN BE MA DE BY THE AO. WE DIRECT ACCORDINGLY. FOR STATISTICAL PURPOSE, GROUND NO. 1 IS CONSIDERED AS ALLOWED IN THE MANNER AFORESAID. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE IN THE MANNER AFORESAID. ORDER PRONOUNCED IN THE OPEN COURT ON 11.12.2013 . / + $ ! 0 1#2 11.12.2013 + 3 SD/- SD/- (SANJAY ARORA) (I.P. BANSAL ) ! / ACCOUNTANT MEMBER /JUDICIAL MEMBER MUMBAI; 1# DATED 11 /12/2013 . # . ./ RJ , SR. PS ITA NO.3650/M/2012 4 / / / / + ++ + (,4 (,4 (,4 (,4 5 4$, 5 4$, 5 4$, 5 4$, / COPY OF THE ORDER FORWARDED TO : 1. %' / THE APPELLANT 2. ()%' / THE RESPONDENT. 3. 6 ( ) / THE CIT(A)- 4. 6 / CIT 5. 473 (,# , , / DR, ITAT, MUMBAI 6. 38 9 / GUARD FILE. /# /# /# /# / BY ORDER, )4, (, //TRUE COPY// : :: : / ; ; ; ; (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI