DCIT, Circle-2(1)., Vijayawada V. 3K Entertainment Private Limited, Vijayawada

ITA 403/VIZ/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2998 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 1 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 10-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K C DAS
• Section: 40A(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 403 / VIZ /201 7 (ASST. YEAR : 20 12 - 13 ) DCIT, CIRCLE - 2(1), VIJAYAWADA. V S . M/S. 3K ENTERTAINMENT PVT. LTD., D.NO. 32 - 9 - 2A, MOGHALRAJPURAM, VIJAYAWADA. PAN NO. AAACZ 3097 R (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE. DEPARTMENT BY : SHRI K.C. DAS SR. DR DATE OF HEARING : 06 / 0 8 /201 8 . DATE OF PRONOUNCEMENT : 17 / 08 /201 8 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) , VIJAYAWADA , DATED 0 1 /0 2 /201 7 FOR ASSESSMENT YEAR 20 12 - 13 . 2. THE REVENUE HAS RAISED AS MANY AS 09 GROUNDS, BUT WE FIND 03 GROUNDS ARE NECESSARY FOR ADJUDICATION I.E. GROUND NOS. 3, 7 & 8 . 3 . GROUND NO.3 RELATING TO INVOCATION OF SECTION 40A(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'ACT') . THE 2 ITA NO. 403 /VIZ/2017 ( M/S. 3K ENTERTAINMENT PVT. LTD. ) PROVISIONS OF SECTION 40A(3) OF THE ACT HAVE NEITHER COMING OUT OF THE ASSESSMENT ORDER NOR LD. CIT(A)S ORDER. THEREFORE, THIS GROUND OF APPEAL RAISED BY THE REVENUE CANNOT BE SURVIVE D , SAME IS DISMISSED. 4 . GROUND NO.7 RELATING TO DISALLOWANCE OF EXPENDITURE . THE LD. CIT(A) DIRECTED THE ASSESSING OFFICER TO DISALLOW 15% OF THE EXPENDITURE ON ACCOUNT OF FAILURE TO PRODUCE BILLS & VOUCHERS. WE FIND THAT LD. CIT(A) HAS RIGHTLY DIRECTED THE ASSESSING OFFICER TO DISALLOW ONLY 15% OF THE EXPENDITURE CLAIMED BY THE ASSESSEE. WE FIND NO INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A). THUS, THIS GROUND OF APPEAL RAISED BY THE RE VENUE IS DISMISSED. 5. GROUND NO.8 RELATING TO VI O LATION OF RULE 46 ( A ) (3) OF THE I.T. RULES, 1962 . WE FIND NO FAULT IN THE ORDER OF THE LD. CIT(A) IN EXERCISING RULE 46(A)(3) OF THE I.T. RULES. THUS, THIS GROUND OF APPEAL RAISED BY THE REVENUE IS DISMISSED. 6 . IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 1 7 T H DAY OF AUGUST , 201 8 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 1 7 T H AUGUST , 201 8 . VR/ - COPY TO: 3 ITA NO. 403 /VIZ/2017 ( M/S. 3K ENTERTAINMENT PVT. LTD. ) 1. THE ASSESSEE M/S. 3K ENTERTAINMENT PVT. LTD., D.NO. 32 - 9 - 2A, MOGHALRAJPURAM, VIJAYAWADA. 2. THE REVENUE DCIT, CIRCLE - 2(1), VIJAYAWADA. 3. THE PR. CIT , VIJAYAWADA. 4. THE CIT(A) , VIJAYAWADA. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.