TRIMURTI FILMS P. LTD, MUMBAI V. ASST CIT 11(1), MUMBAI

ITA 4231/MUM/2012

• Counselvise Citation: 423119914 RSA 2012
• Duration Of Justice: 2 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 15-07-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 18-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PITAMBAR DAS
• Assessee Lawyers: DR K SHIVARAM
• Keywords: Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI . . , . . , BEFORE SHRI H.L. KARWA, PRESIDENT, AND SHRI P.M.JAG TAP, AM ./ I.T.A. NO. 4231/MUM/2012 ( !' # $# / ASSESSMENT YEAR: 2008-09) M/S TRIMURTI FILMS PVT. LTD. B-11, COMMERCE CENTRE, TARDEO ROAD, MUMBAI-400034 ' / VS. THE ASST. COMMISSIONER OF INCOME-TAX-11(1), AAYAKAR BHAVAN, M.K.ROAD, MUMBAI-400020 ./ PAN : AAACT4118M ( / APPELLANT ) .. ( / RESPONDENT ) ! / ASSESSEE BY: DR.K.SHIVARAM ! / REVENUE BY : SHRI PITAMBAR DAS ' # $ / DATE OF HEARING : 15/07/2014 %&'( $ / DATE OF PRONOUNCEMENT : 30/07/2014 ) / O R D E R PER P.M.JAGTAP, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) -3, MUMBAI DATED 30/05/2012 AND THE SOLI TARY ISSUE RAISED THEREIN RELATES TO THE DISALLOWANCE OF RS.48 ,53,132/- MADE BY THE AO AND CONFIRMED BY THE CIT(A) ON ACCOUNT OF TR AVELLING EXPENSES. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY WH ICH IS ENGAGED IN THE BUSINESS OF PRODUCTION AND DISTRIBUT ION OF HINDI FEATURE FILMS. THE RETURN OF INCOME FOR THE YEAR UND ER CONSIDERATION WAS FILED BY IT ON 11/09/2008 DECLARI NG LOSS OF ITA NO.4231/MUM/2012 M/S TRIMURTI FILMS PVT. LTD. 2 RS.30,58,294/-. IN THE PROFIT AND LOSS ACCOUNT FILE D ALONG WITH SAID RETURN, A SUM OF RS.48,53,132/- WAD DEBITED BY THE ASSESSEE ON ACCOUNT OF TRAVELLING EXPENSES OF ITS DIRECTORS. DU RING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE WAS CALLED UPO N BY THE AO TO ESTABLISH THAT THE TRAVELLING EXPENSES CLAIMED BY I T ARE WHOLLY AND EXCLUSIVELY INCURRED FOR THE PURPOSE OF BUSINESS. ALTHOUGH THE ASSESSEE-COMPANY OFFERED ITS EXPLANATION IN THIS RE GARD VIDE LETTER DATED 21/09/2010, THE SAME WAS NOT FOUND ACCEPTABLE BY THE AO MAINLY BECAUSE IT WAS NOT SUPPORTED BY THE RELEVANT DOCUMENTARY EVIDENCE. HE THEREFORE DISALLOWED THE TRAVELLING E XPENSES OF RS.48,53,132/- CLAIMED BY THE ASSESSEE. ON APPEAL, THE LD. CIT(A) CONFIRMED THIS DISALLOWANCE MADE BY THE AO MAINLY O N THE GROUND THAT THERE IS NO EVIDENCE PRODUCED BY THE ASSESSEE TO ESTABLISH THAT TRAVELLING EXPENSES OF DIRECTORS CLAIMED BY IT WHER E INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS. AGGRI EVED BY THE ORDER OF THE CIT(A), THE ASSESSEE HAS PREFERRED THIS APPE AL BEFORE THE TRIBUNAL. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. THE LD. C OUNSEL FOR THE ASSESSEE HAS FILED BEFORE US THE FOLLOWING DOCUMENT S AS ADDITIONAL EVIDENCE WITH AN APPLICATION SEEKING ADMISSION THER EOF: SR. NO. PARTICULARS 1. CONFIRMATION FROM STEVE ROBERTS, WRITER, LOS ANGELE S, U.S.A. PROP. BARRACUDA PRODUCTIONS 2. CONFIRMATION FROM LENA MICHALS ENTERTAINMENT LOS A NGELES, U.S.A. ITA NO.4231/MUM/2012 M/S TRIMURTI FILMS PVT. LTD. 3 3. CONFIRMATION FROM BOLLYWOOD - HOLLYWOOD, MIAMI, U.S.A 4. CONFIRMATION FROM BENAROYA PICTIRES, BEVERLY HILLS, U.S.A. 5. CONFIRMATION FROM MANDA KOTECHA, HERTFORDSHIRE, U.K . 6. CONFIRMATION FROM HARJINDER DHAMI, U.K. 7. CONFIRMATION FROM S.P.MARAWAHA, U.K. 8. DOCUMENTATION OF REGISTRATION OF THE SCRIPT WITH WR ITERS GUILD OF AMERICA IN VARIOUS NAMES A THE SCRIPT EVOLVED. 9. COVERING LETTER DT. 6/12/2013 ALONG WITH DETAILED N OTE ON TRAVELLING EXPENSES FILED WITH A.O. FOR THE A.Y. 20 11-12 10. COVERING LETTER DT. 21/03/2014 FILED WITH A.O. FOR A.Y. 2011 - 12 11. COPY OF ASSESSMENT ORDER FOR A.Y. 2011 - 12 DT. 14/03/2014 12. COPY OF BROACHERS OF FILMS 4. AS SUBMITTED IN THE APPLICATION FILED BY THE ASS ESSEE UNDER RULE 29 OF THE INCOME TAX APPELLATE TRIBUNAL RULES, 1963 AND FURTHER REITERATED BY THE LD. COUNSEL FOR THE ASSES SEE AT THE TIME OF HEARING BEFORE US, THE ABOVE DOCUMENTS COULD NOT BE PRODUCED BEFORE THE AUTHORITIES BELOW AS THE SAME WERE NOT A VAILABLE AT THE RELEVANT TIME AND THEY HAVE BEEN SUBSEQUENTLY OBTA INED TO REFUTE THE OBSERVATIONS OF THE AUTHORITIES BELOW AND TO SU PPORT THE CLAIM OF THE ASSESSEE FOR TRAVELLING EXPENSES EFFECTIVELY. KEEPING IN VIEW THIS SUBMISSION MADE ON BEHALF OF THE ASSESSEE AND HAVIN G REGARD TO THE FACT THAT THE DOCUMENTS FILED BY THE ASSESSEE AS AD DITIONAL EVIDENCE ARE RELEVANT FOR THE PURPOSE OF DECIDING THE ISSUE INVOLVED IN THE CASE OF THE ASSESSEE RELATING TO DISALLOWANCE OF TRAVELL ING EXPENSES, WE ARE OF THE VIEW THAT THE ADDITIONAL EVIDENCES FILED BY THE ASSESSEE DESERVES TO BE ADMITTED IN THE INTEREST OF THE ASSE SSEE. THE LD. DR IN THIS CONNECTION HAS CONTENDED THAT IF THE ADDITIONA L EVIDENCE FILED BY ITA NO.4231/MUM/2012 M/S TRIMURTI FILMS PVT. LTD. 4 THE ASSESSEE IS ADMITTED BY THE TRIBUNAL OPPORTUNIT Y SHOULD BE GIVEN TO THE ASSESSING OFFICER TO VERIFY THE SAME. WE FI ND MERIT IN THIS CONTENTION OF THE LD. DR. ACCORDINGLY, IMPUGNED OR DER OF THE LD. CIT(A) ON THIS ISSUE IS SET-ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE AO FOR DECIDING THE SAME AFRESH AFTER VERIFY ING THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE AND AFTER GIVING OPP ORTUNITY TO THE ASSESSEE OF BEING HEARD. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 30/07/20 14 ) %&'( ' * + ,# 30/07/2014 , & - SD/- (H.L.KARWA) SD/- (P.M.JAGTAP) HONBLE PRESIDENT ACCOUNTANT MEMBER ' . MUMBAI; ,# /DATED : 30 TH JULY, 2014. F{X~{T F{X~{T F{X~{T F{X~{TA A A A P.S. P.S. P.S. P.S. %& ' (!)*+ ,+$) / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ' / ( ) / THE CIT- , MUMBAI. 4. ' / / CIT(A)- , MUMBAI 5. 01 22#34 , $ 34 ( , ' . / DR, ITAT, MUMBAI 6. 5 6 / GUARD FILE. %&' / BY ORDER, 0 2 //TRUE COPY// - / . / (DY./ASSTT. REGISTRAR) , ' . / ITAT, MUMBAI