NUEVO CONSULTANCY SERVICES LTD, MUMBAI V. DCIT 3(1), MUMBAI

ITA 3843/MUM/2013

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8381 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 12-07-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 14-05-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR
• Section: 143(3); 37(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH B,MUM BAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA NO.3843/MUM/2013 (ASSESSMENT YEAR- 2009-10) M/S. NUEVO CONSULTANCY SERVICES LIMITED (FORMERLY KNOWN AS FORBES INFOTAINMENT LTD., 41/44, SHAPOORJI PALLONJI CENTRE, MINOO DESAI MARG, COLABA, MUMBAI 400005. PAN: AABCD7314A VS. DCIT-3(1), MUMBAI. (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI SUMAN KUMAR (DR) DATE OF HEARING : 07.11.2017 DATE OF PRONOUNCEMENT : 29.11.2017 ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE U/S.253 OF THE IN COME TAX ACT IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX [LD. CIT(A)] (APPEALS)-6, MUMBAI DATED 27.02.2013 FOR ASSESSMENT YEAR (AY) 20 09-10. THE SOLITARY GROUND OF APPEAL RAISED BY ASSESSEE IS AGAINST CONF IRMING THE DISALLOWANCE OF EXPENDITURE OF RS. 41,50,835/- UNDER SECTION 37(1) OF THE ACT TREATING THE EXPENSES AS NONE-GENUINE. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE-CO MPANY IS ENGAGED IN THE BUSINESS OF SALE AND RESALE OF ONLINE LOTTERIES TIC KETS, FILED RETURN OF INCOME ON 2 ITA NO.3843/M/2013 M/S. NUEVO CONSULTANCY SERVICE S LIMITED 16.09.2009 DECLARING LOSS OF RS. 8,75,46,024/-. THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF THE ACT ON 12.12.2011. THE AO WHILE PASSING THE ASSESSMENT ORDER BESIDES THE OTHER ADDITION AND DIS ALLOWANCE DISALLOWED PROFESSIONAL FEES OF RS. 41,50,835/-. ON APPEAL BEF ORE THE LD. CIT(A), THE ACTION OF AO WAS CONFIRMED. THUS, FURTHER AGGRIEVED BY THE ORDER OF LD. CIT(A), THE ASSESSEE HAS FILED THE PRESENT APPEAL BEFORE US. 3. NONE APPEARED ON BEHALF OF ASSESSEE DESPITE WAIT ING FOR SUFFICIENT TIME. NONE IS APPEARED ON BEHALF OF THE ASSESSEE THROUGHO UT THE PROCEEDING. THE PRESENT APPEAL WAS FILED ON 14.05.2013 AND SINCE BE GINNING, NOBODY TO HAVE APPEARED ON BEHALF OF THE ASSESSEE. WE LEFT NO OPTI ON EXCEPT TO HEAR THE LD. DR FOR THE REVENUE AND TO DECIDE THE APPEAL ON THE BAS IS OF MATERIAL AVAILABLE ON RECORD. 4. THE LD. DR FOR THE REVENUE ARGUED THAT ASSESSE E HAS NOT FILED ANY DOCUMENTARY EVIDENCE TO SUBSTANTIATE THE CLAIM OF P ROFESSIONAL FEES WHICH WERE DISALLOWED BY AO AND CONFIRMED BY LD. CIT(A) HOLDIN G THAT ASSESSEE FAILED TO ESTABLISH THAT EXPENSES WAS MADE WHOLLY AND EXCLUSI VELY FOR THE PURPOSE OF BUSINESS. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSION OF LD. D R FOR THE REVENUE AND PERUSED THE ORDER OF AUTHORITIES BELOW. THE AO DISA LLOWED THE CLAIM OF PROFESSIONAL FEES AS THE ASSESSEE WAS FAILED TO FIL E ANY DOCUMENTARY EVIDENCE AND TO FURNISH THE CONFIRMATION. SINCE THE GENUINENESS OF THE CLAIM TOWARDS THE TRANSACTION WAS NOT PROVED BY THE ASSESSEE THAT EXP ENSES WERE INCURRED WHOLLY 3 ITA NO.3843/M/2013 M/S. NUEVO CONSULTANCY SERVICE S LIMITED AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS, HENCE , THE EXPENDITURE OF RS. 41,50,835/- WAS DISALLOWED. THE LD. CIT(A) ALSO CON FIRMED THE ADDITION ON THE SIMILAR LINE. BEFORE US NEITHER THE REPRESENTATIVE OF THE ASSESSEE HAS APPEARED NOR FILED ANY DOCUMENTARY EVIDENCE TO SUBSTANTIATE THEI R CLAIM, THUS, WE DO NOT FIND ANY MERIT IN THE GROUNDS OF APPEAL. 6. IN THE RESULT, APPEAL FILED BY ASSESSEE IS DISMI SSED. . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 29TH DAY OF NOVEMBER, 2017. SD/- SD/- (G.S. PANNU) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED 29/11/2017 S.K.PS COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT.REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY/