AXIS SECURITIES LTD, MUMBAI V. DCIT RG 4(1), MUMBAI

ITA 4377/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0313 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 19-04-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 23-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUPAMA SINGLA
• Assessee Lawyers: VIPUL MODY
• Keywords: Opportunity of being heard
• Section: 143(3); 37; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH G MUMBAI BEFORE SHRI D.T. GARASIA (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 4377 /MUM/201 6 ASSESSMENT YEAR: 20 11 - 12 AXIS SECURITIES LTD 8 TH FLOOR, AXIS HOUSE, WADIA INTERNATIONAL CENTRE, PANDURANG BUDHKAR RD. WORLI, MUMBAI 40002 5 VS. DCIT RG 4(1) 6 TH FLOOR, AAYAKARBHAVAN, MARINE LINES, MUMBAI 400020 PAN NO. AABCE6263F (APPELLANT) (RESPONDENT) APPELLANT BY: MR. NITESH JOSHI & VIPUL MODY , A R RESPONDENT BY: MS. ANUPAMA SINGLA , D R DATE OF HEARING: 19 /0 4 /2017 DATE OF ORDER: 14 /06/2017 ORDER PER N.K. PRADHAN, AM THIS IS AN APPEAL FILED BY THE ASSESSEE. THE RELEVANT ASSESSMENT YEAR IS 20 1 1 - 1 2 . THE APPEAL IS DIRECTED AGAINST THE ORDER COMMISSIONER (APPEALS) 09 , MUMBAI AND ARISES OUT OF ORDER U/S 143(3) OF THE INCOME TAX ACT, 1961 (THE ACT). 2. THE GROUNDS OF APPEAL FILED BY THE ASSESSEE READ AS UNDER: 1 . THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) ERRED IN UPHOLDING THE ORDER OF THE ASSESSING OFFICER DISALLOWING RS. 13,27,548/ - ON AN ADHOC BASIS OUT OF CONVEYANCE AND TRAVELLING EXPENSES INCURRED DURING THE YEAR. ITA NO 4377/MUM/2016 2 IT IS SUBMITTED THAT THE APPELLANT IS A COMPANY AND HAS INCURRED ENTIRE EXPENSES WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF ITS BUSINESS AND AS SUCH NO DISALLOWANCE IS CALLED FOR. THE CONCLUSION ARRIVED AT BY THE LEARNED COMMISSIONER OF THE INCOME - TAX (APPEALS) AND THE LEARNED ASSESSING OFFICER IS ERRONEOUS AND CONTRAR Y TO THE FACTS AND THE LAW. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER (AO) OBSERVED THAT THE ASSESSEE COMPANY HAD DEBITED RS. 37,01,934/ - AND RS. 16,08,259/ - TOWARDS CONVEYANCE AND TRAVELLING EXPENSES RESPECTIVELY. HE ASKED THE ASSESSEE - COMPANY TO JUSTIFY ITS CLAIM. AS THE ASSESSEE COULD NOT FILE SUFFICIENT DETAILS, THE A.O. DISALLOWED 25% OF THE ABOVE EXPENSES FOR WANT OF VERIFICATION AND THE POSSIBILITY OF PERSONAL ELEMENT. THE DISALLOWANCE COMES TO RS. 13,27,548/ - . 4. AGGRIEVED BY THE ORDER OF A.O. THE ASSESSEE FILED AN APPEAL BEFORE THE LD. CIT (A) . WE FIND THE LD. CIT(A) HAS RELIED ON THE DECISION IN THE CASE OF AMITABH BACHCHAN CORPN LTD . (2015) 56 TAXMANN.COM 77 (MUMBAI - TRIB) & GOODLAS NERO LAC PAINTS LTD. V S. CIT 1 37 ITR 58 (BOM) AND OBSERVED THAT THE ONUS IS ON THE ASSESSEE TO FURNISH ALL THE REQUISITE DETAILS BEFORE THE A.O. AND SUBSTANTIATE ITS CLAIM. AS THE ASSESSEE FAILED TO DO SO, THE LD. CIT(A) UPHELD THE DISALLOWANCE OF RS. 13,27,548/ - MADE BY THE A.O. 5. BEFORE US, THE LD. COUNSEL OF THE ASSESSEE FILES A PAPER BOOK CONTAINING (I) A CCOUNTS FOR THE YEAR ENDED 31.03.2011 AND (II) LETTER DATED 30.10.2013 ALONG WITH DETAILS OF CONVEYANCE AND DRAWING EXPENSES. IT IS SUBMITTED BY HIM THAT THESE DOCUMENTS WERE FI LED BEFORE THE AO AND LD. CIT(A). ON THE OTHER HAND, THE LD. DR SUPPORTS THE ORDER PASSED BY THE LD. CIT (A). 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED RELEVANT MATTER ON RECORD. WE FIND THAT THE A.O. HAS RESORTED TO ADHOC DISALLOWANCE AS THE ITA NO 4377/MUM/2016 3 AS SESSEE FAILED TO FILE SUFFICIENT DETAILS OF EXPENSES. THEREFORE, WE DEEM IT PROPER TO SET ASIDE THE ORDER THE LD. CIT (A) AND RESTORE THE MATTER TO THE FILE OF THE A.O. TO MAKE A FRESH ASSESSMENT AFTER GIVING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS DIRECTED TO FILE BEFORE THE A.O. THE RELEVANT DETAILS. 7. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14/06/2017. SD/ - (D.T. GARASIA) SD/ - (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED: 14/06/2017 RAHUL DHOKE P.S. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE . BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI