M/s. S.R. Batliboi & Cos. LLP, Kolkata V. DCIT, Circle - 22, Kolkata , Kolkata

ITA 370/KOL/2018

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8803 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-12-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 07-03-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S HALDER
• Assessee Lawyers: D GHOSH
• Section: 143(3); 14A; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : KOLKATA [BEFORE HONBLE SHRI J. SUDHAKAR REDDY, AM & SHRI S.S. GODARA, JM] I.T.A NO. 370/KOL/201 8 ASSESSMENT YEAR : 2010- 11 M/S S.R.BATLIBOI & COS. LLP -VS- DCIT , CIRCLE-22, KOLKATA (A LIMITED LIABILITY PARTNERSHIP WITH LLP IND) [PAN: ACHFS 9180 N] (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI D. GHOSH, FCA FOR THE RESPONDENT : SHRI S.HALDER, SR. DR DATE OF HEARING : 18.12.2018 DATE OF PRONOUNCEMENT : 28.12.2018 ORDER PER S.S. GODARA, JM 1. THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2010-11 ARISES AGAINST THE CIT(A)-6, KOLKATAS ORDER DATED 30.01.2018 PASSED IN CASE NO . CIT(A), KOLKATA-6/10075/2016- 17, INVOLVING PROCEEDING U/S 263 / 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2 ITA NO.370/KOL/2018 M/S S.R.BATLIBOI & COS. LLP A.YR.2010-11 2 2. THE ASSESSEES SOLE SUBSTANTIVE GROUND PLEADS IN THE INSTANT APPEAL CHALLENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION I NVOKING SECTION 14A READ WITH RULE 8D(2)(III) ADMINISTRATIVE EXPENDITURE DISALLOWANCE AMOUNTING TO RS. 6,71,675/- MADE IN THE COURSE OF ASSESSMENT DATED 31.03.2016 AND AFFIR MED IN LOWER APPELLATE PROCEEDINGS. LEARNED AUTHORIZED REPRESENTATIVES SOLE PLEA BEFOR E US IS THAT NEITHER THE ASSESSING OFFICER NOR THE CIT(A) HAS CORRECTLY APPLIED THE I MPUGNED DISALLOWANCE COMPUTATION PROVISION. HE SUBMITS THAT THE ADMINISTRATIVE DISAL LOWANCE IN QUESTION HAS TO BE COMPUTED AS PER AVERAGE VALUE OF INVESTMENT AS ON T HE OPENING AND CLOSING DATE OF THE RELEVANT PREVIOUS YEAR. HE THEREAFTER TAKES US TO T HE CIT(A)S FINDINGS NOWHERE ADJUDICATING THIS CLINCHING ASPECT DESPITE THE FACT THAT THE TAX PAYER HAD SPECIFICALLY RAISED THIS ARGUMENT IN LOWER APPELLATE PROCEEDING S. OUR ATTENTION IS INVITED TO PARAS 5 TO 5.2 OF PAGE 32 OF THE CIT(A)S ORDER SIMPLY BRUS HING ASIDE THE SAID SPECIFIC ARGUMENT NON-SPEAKING DISCUSSION. THE REVENUE FAILS TO DISPU TE THIS CLINCHING FACTUAL POSITION EMANATING FROM THE RECORD DURING THE COURSE OF HEAR ING. WE THEREFORE DEEM IT APPROPRIATE TO RESTORE THE INSTANT SOLE ISSUE BACK TO THE CIT(A) FOR APPROPRIATE ADJUDICATION AS PER LAW. 3. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICA L PURPOSES. ORDER PRONOUNCED IN THE COURT ON 28.12.2018 SD/- SD/- [J. SUDHAKAR REDDY] [ S.S.GODARA ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 28.12.2018 SB, SR. PS 3 ITA NO.370/KOL/2018 M/S S.R.BATLIBOI & COS. LLP A.YR.2010-11 3 COPY OF THE ORDER FORWARDED TO: 1. M/S S.R. BATLIBOI & COS. LLP (A LIMITED LIABILIT Y PARTNERSHIP WITH LLP IDENTITY NO. AAB-4294), 22, CAMAC STREET, KOLKATA-16 2. DCIT, CIRCLE-22, KOLKATA, 3..C.I.T(A).- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER ASS ISTANT REGISTRAR ITAT, KOLKATA BENCHES