AXIS IMPEX, MUMBAI V. ACIT 18(1), MUMBAI

ITA 4014/MUM/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5898 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 06-06-2018
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH A , MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER AND SHRI RAMIT KOCHAR , HON'BLE ACCOUNTANT MEMBER ITA NO. 4014 /MUM/201 8 (A.Y: 2013 - 14) M/S AXIS IMPEX SHOP NO . 4 83/85, DADISHETH AGIARY LANE MUMBAI 400 002 PAN: AAGFA 2650 N V. ACIT - 18(1) EARNEST HOUSE NARIMAN POINT MUMBAI - 400 021 (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE DEPARTMENT BY : SHRI SATISHCHANDRA RAJORE DATE OF HEARING : 01.07.2019 DATE OF PRONOUNCEMENT : 01.07.2019 O R D E R PER C. N. PRASAD (JM) 1. THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 29, MUMBAI [HEREINAFTER IN SHORT LD.CIT(A)] DATED 06.04.2018 FOR THE A.Y. 2013 - 14. 2. ASSESSEE HAS RAISED THE FOLLOWING GROUND S IN ITS APPEAL: - DISALLOWANCE OF 10% OF THE STAFF WELFARE EXPENSES (A) THE COMMISSIONER OF INCOME TAX APPEALS - 29 {CIT (A)} ERRED IN FACTS & LAW IN CONFIRMING DISALLOWANCE OF 10% OF STAFF WELFARE EXPENSES AS REDUCED FROM THE ORIGINAL 20% DISALLOWED BY THE ASSESSING OFFICER. (B) THE CIT (A) ERRED IN FIXING THE DISALLOWANCE AT 10 % OF THE TOTAL STAFF WELFARE EXPENSES DESPITE THE FACT THAT THE AO HAD MADE AN AD - HOC DISALLOWANCE 2 ITA NO.4014/MUM/2018 (A.Y: 2013 - 14) M/S AXIS IMPEX WITHOUT ANY SPECIFIC INSTANCE OF INFLATED OR BOGUS EXPENSES AS MENTIONED IN THE ORDER. (C) THE APPELLANT PRAYS THAT THE NO DISALLOWANCE BE MADE IN ABSENCE OF ANY FINDINGS OF CLAIM OF INFLATED OR BOGUS EXPENSES 3. T HE NOTICE SENT THROUGH RPAD WAS SERVED AND NOBODY APPEARED ON BEHALF OF THE ASSESSEE FIRM . W E OBSERVED FROM THE RECORD THAT THE ASSESSEE VIDE LETTER DATED 20 TH JUNE, 2019 SUBMITTED THAT , CONSIDERING THE COST OF FIGHTING THE APPEAL COMPARED TO THE TAX INCIDENCE AND FURTHER TO REDUCE THE LITIGATION BURDEN, ASSESSEE DO NOT WANT TO PRESS THE APPEAL AND REQUESTED FOR WITHDRAWAL OF APPEAL. CONTENTS OF THE L ETTER FILED BY THE ASSESSEE ARE AS UNDER: - THE ABOVE APPEAL WAS FILED BEFORE US AGAINST THE ORDER OF THE CIT(APPEALS) - 29. THE HEARING OF THE ABOVE APPEAL IS FIXED ON 01.07.2019. ON ANALYZING THE COST OF FIGHTING THE APPEAL COMPARED TO THE TAX INCIDENCE, AND FURTHER TO REDUCE THE LITIGATION BURDEN, WE HAVE DECIDED NOT TO PURSUE THE FURTHER AT THE TRIBUNAL LEVEL. WE WOULD REQUEST YOUR HONOUR TO KINDLY CONSIDER OUR CASE AND ALLOW US TO WITHDRAW THE APPEAL. IN VIEW OF THE SUBMISSIONS OF T HE ASSESSEE IN ITS LETTER REQUESTING FOR WITHDRAWAL OF APPEAL, THE APPEAL IS PERMITTED TO BE WITHDRAWN. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON THE 0 1 ST JULY, 2019 SD/ - SD/ - ( RAMIT KOCHAR ) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 01/07/2019 GIRIDHAR , SR. PS 3 ITA NO.4014/MUM/2018 (A.Y: 2013 - 14) M/S AXIS IMPEX COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER (ASSTT. REGISTRAR) ITAT, MUM