IBEXI SOLUTIONS P. LTD, MUMBAI V. ASST CIT CIR 6(1), MUMBAI

ITA 3763/MUM/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3989 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-04-2016
• Appeal Filed By: Assessee
• Bench Allotted: I
• Next Hearing Date: 10-02-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 13-05-2013
• Court: TRIBUNAL
• Department Lawyers: K RAVIKIRAN
• Assessee Lawyers: PARA SAVLA PRATIK PODDAR
• Keywords: Opportunity of being heard; Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL I BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER I.T.A. NO. 3763/M/2013 (ASSESSMENT YEAR: 2009 - 2010 ) M/S. IBEXI SOLUTIONS PRIVATE LIMITED, 22, NEW PUSHPMILAN, 67 WORLI HILLS, WORLI, MUMBAI 400 018. / VS. ACIT - CIRCLE - 6(1), MUMBAI. ./ PAN : AAACI8674H ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI PARA SAVLA / PRATIK PODDAR AND HARSH KAPADIA / RESPONDENT BY : SHRI K. RAVI KIRAN, DR / DATE OF HEARING : 04 .04.2016 / DATE OF PRONOUNCEMENT : 13 .04.2016 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 13.5.2013 IS AGAINST THE ORDER OF THE CIT (A) - 14, MUMBAI DATED 22.2.2013 FOR THE ASSESSMENT YEAR 2009 - 2010. IN THIS APPEAL, ASSESSEE RAISED THE FOLLOWING GROUNDS WHICH READ AS UNDER: - 1. THE CIT (A) UPHELD THE DISALLOWANCE OF SUM OF RS. 16,83,261/ - AND RS. 12,80,220/ - MADE BY THE AO, BEING SALARY PAID TO MR. RACHIT SAHAI AND MR. AMOL ZALKE RESPECTIVELY, UNDER SECTION 40(A)(IA) FOR NOT HAVING DEDUCTED TAX AT SOURCE. ASSESSEE SUBMITS THAT THE SAID D ISALLOWANCE BE DELETED. 2. THE LD CIT (A) UPHELD THE DISALLOWANCE OF A SUM OF RS. 21,23,985/ - MADE BY THE AO, BEING DAILY OVERSEAS ALLOWANCE PAID TO THE RESIDENT EMPLOYEES. ASSESSEE SUBMITS THAT THE SAID DISALLOWANCE BE DELETED. 2. AT THE OUTSET, LD COU NSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO THE LETTER DATED2.2.2016 RELATING TO THE A PPLICATION FOR ADDITIONAL EVIDENCE UNDER RULE 29 OF THE IT RULES, 1962 AND SUBMITTED THAT PAGES FROM 34 ONWAR DS OF THE PAPER BOOK CONSTITUTE ADDITIONAL EVIDENCE. NARRATING EVERY PAGE, LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT THEY CONSTITUTE EMPLOYMENT CONTRACTS WITH EMPLOYEES NAMELY MR. RACHIT SAHAI AND AMOL ZALKE. THESE CONTRACTS CONSTITUTE THE TERMS AND CONDITIONS OF 2 THE EMPLOYMENT WHICH WERE DEMANDED BY THE OFFICERS BELOW. T HESE DOCUMENTS WERE SUBMITTED TO THE CIT (A) AT THE RELEVANT POINT OF TIME AND THEY WERE REJECTED BY THE CIT (A) WITHOUT GIVING ANY REASONS. REFERRING TO THE ORDER OF THE AO, LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT FOR WANT OF THESE DOCUMENTS, AO DISAL LOWED THE EXPENSES BY WAY OF SALARIES PAID TO THE SAID EMPLOYEES IN ADDITION TO THE OVERSEAS DAILY ALLOWANCES PAID TO THE EMPLOYEES. WITH THIS BACKGROUND, LD COUNSEL FOR THE ASSESSEE REQUESTED FOR ADMITTING THE ADDITIONAL EVIDENCES AND REMAND THE ISSUES R AISED IN THE GROUNDS OF APPEAL TO THE FILE OF THE AO FOR FRESH ROUND OF REMAND PROCEEDINGS. 3. AFTER HEARING BOTH THE PARTIES, CONSIDERING THE RELEVANCE OF THESE ADDITIONAL EVIDENCES TO THE ISSUES UNDER CONSI DERATION, WE ARE OF THE OPINION T H A T T H E S A I D E V I D E N C E S WILL GO TO THE ROOT OF THE MATTER. THEREFORE, WE ARE OF THE OPINION, IT IS A FIT CASE FOR ADMITTING THE SAID ADDITIONAL EVIDENCES WHICH WERE E A R L I E R IGNORED BY THE CIT (A). AFTER ADMISSION, WE REMAND THESE PAPERS TO THE FILE OF THE AO AS REQUESTED BY THE LD COUNSEL FOR TH E ASSESSEE AND DIRECT HIM TO ADJUDICATE THIS ISSUE AFRESH AFTER GRANTING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ACCORDINGLY, GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 1 3 T H APRIL, 2016. S D / - S D / - ( RAM LAL NEGI ) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 1 3 .4.2016 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 3 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI