Sri S.Karunakaran Nair, Trivandrum V. ITO, Trivandrum

ITA 375/COCH/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58243 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2012
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 09-02-2012
• Assessment Year: 1999-2000
• Appeal Filed On: 04-06-2010
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI N.R.S.GANESAN, JM AND B.R.BASKAR AN, AM I.T.A NO. 375/COCH/2010 ASSESSMENT YEAR: 1999-2000 S.KARUNAKARAN NAIR, KAIRALI GOVT. GIRLS HIGH SCHOOL LANE, MANACAUD P.O., TRIVANDRUM. PAN: ABYPN 5173E] VS. THE INCOME TAX OFFICER, WARD- 2(2), TRIVANDRUM. (ASSESSEE-APPELLANT) (REVENUE-RESPONDENT) ASSESSEE BY SHRI A.S.NARAYANAMOORTHY, CA REVENUE BY MS. S. VIJAYAPRABHA, JR. DR DATE OF HEARING 09/02/2012 DATE OF PRONOUNCEMENT 10/02/2012 O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 08-03-2010 PASSED BY LD CIT(A)-I, TRIVANDRUM AND IT RELATES TO THE A SSESSMENT YEAR 1999-2000. 2. THOUGH THE ASSESSEE HAS RAISED FIVE GROUNDS, THE LD. AR RESTRICTED HIS ARGUMENT WITH REGARD TO THE ADDITION OF ` 3,84,005/- RELATING TO THE REIMBURSEMENT OF EXPENSE S RECEIVED BY THE ASSESSEE FROM BCCI. 3. THE FACTS RELATING TO THE SAME ARE STATED IN BRI EF. DURING THE RELEVANT PERIOD, THE ASSESSEE HAS WORKED AS HONORARY TREASURER OF BOARD OF CONTROL FOR CRICKET IN INDIA I.T.A. NO. 375/COCH/2010. 2 (BCCI) AND RECEIVED A SUM OF ` 5,84,005/- FROM BCCI TOWARDS REIMBURSEMENT OF EXPENSES INCURRED ON TRAVELLING, AS DETAILED BELOW: - A. TOTAL AIR FARE ` 3,26,705/- B. TOTAL DA ` 2,57,300/- --------------- GRAND TOTAL ` 5,84,005/- 4. DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS, THE ASSESSEE COULD NOT FURNISH EVIDENCES SUPPORTING THE EXPENSES CITED ABOVE AND H ENCE THE AO DID NOT ACCEPT THE CONTENTIONS THAT THEY ARE MERE REIMBURSEMENT OF EXP ENSES. HOWEVER, THE ASSESSING OFFICER CHOSE TO ALLOW A DEDUCTION OF ` 2 LAKHS TOWARDS EXPENSES AND BROUGHT THE BALANCE OF ` 3,84,005/- TO TAX. THE ASSESSEE COULD NOT SUCCEED IN THE APPEAL FILED BEFORE THE LD. CIT(A) AND HENCE HE IS IN APPEAL BEFORE US. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND CAREFULL Y PERUSED THE RECORD. WE NOTICE THAT THE EXPENSES TOWARDS AIR FARE WERE REIMBURSED BY BCCI ON ACTUAL BASIS. HOWEVER FIXED AMOUNTS HAVE BEEN PAID TOWARDS D.A, I.E., LOD GING AND BOARDING EXPENSES. THERE CANNOT BE ANY DISPUTE THAT IT IS THE RESPONSIBILITY OF THE ASSESSEE TO SHOW THAT HE HAD ACTUALLY SPENT THE AMOUNTS THAT WERE RECEIVED FROM BCCI. DURING THE COURSE OF HEARING, THE LD. AR BROUGHT TO OUR NOTICE THE ASSESSMENT ORD ERS PASSED IN THE HANDS OF THE ASSESSEE UNDER SECTION 143(3) OF THE ACT IN RESPECT OF THE ASSESSMENT YEARS 2000-01AND 203-04; WHEREIN IDENTICAL ISSUES HAVE BEEN DISPOSED OF BY THE ASSESSING OFFICER. WE NOTICE THAT THE AO HAD ALLOWED THE EXPENSES INCURRE D TOWARDS TRAVELLING FULLY AND ALLOWED 75% OF THE AMOUNT RECEIVED TOWARDS DA. THU S, IN EFFECT, ONLY 25% OF THE DA COMPONENT WAS BROUGHT TO TAX BY THE AO IN THOSE YEA RS. THE LD. AR SUBMITTED THAT THE ASSESSEE DOES NOT HAVE OBJECTION FOR DISALLOWANCE O F 25% OF THE DA COMPONENT. 6. THUS, WE NOTICE THAT THE AO HAS TAKEN A PART ICULAR VIEW IN RESPECT OF THE INSTANT ISSUE IN THE SUBSEQUENT ASSESSMENT YEARS. WE WERE INFORMED THAT THE ASSESSEE HAS ACCEPTED THE DISALLOWANCE OF 25% OF THE D.A. COMPON ENT IN THOSE YEARS. I.T.A. NO. 375/COCH/2010. 3 7. WITH REGARD TO THE REIMBURSEMENT OF AIR FARE , IT IS SUBMITTED THAT THE BCCI HAS REIMBURSED THE EXPENSES ON ACTUAL BASIS. HOWEVER, WITH REGARD TO THE D.A. COMPONENT, AS STATED EARLIER, IT HAS BEEN PAID ON LUMP SUM BAS IS AND THE ASSESSEE HAS FAILED TO PROVE THAT HE HAS ACTUALLY SPENT THE ENTIRE AMOUNT OF D.A .. IN THESE CIRCUMSTANCES, IN OUR VIEW, THE DECISION OF A.O TO BRING 25% OF D.A TO TAX IN S UBSEQUENT YEARS APPEARS TO BE REASONABLE. ACCORDINGLY, TO MAINTAIN CONSISTENCY O F THE MATTER, WE DIRECT THE AO TO ASSESSEE 25% OF THE D.A COMPONENT AS INCOME DURING THE INSTANT YEAR ALSO. ACCORDINGLY, WE SE ASIDE THE ORDER OF THE LD. CIT(A) ON THIS ISS UE. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. PRONOUNCED ACCORDINGLY ON 10-02-201 2. SD/- SD/- (N.R.S.GANESAN) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: ERNAKULAM DATED: 10TH FEBRUARY, 2012 GJ COPY TO: 1. S.KARUNAKARAN NAIR, KAIRALI GOVT. GIRLS HIGH SCH OOL LANE, MANACAUD P.O., TRIVANDRUM. 2. THE INCOME TAX OFFICER, WARD-2(2), TRIVANDRUM. 3 THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, TRI VANDRUM.. 4. THE COMMISSIONER OF INCOME-TAX, TRIVANDRUM. 5. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 6.. GUARD FILE . BY ORDER (ASSISTANT REGISTRAR) ITAT, COCHIN BENCH