M/s Crown Corporation (P) Ltd, New Delhi V. ACIT, New Delhi

ITA 4463/DEL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7240 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 08-06-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 25-07-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V R SONBHA DRA SENIOR
• Assessee Lawyers: ARUNA MITTAL
• Keywords: Earning of tax free income; Tax effect
• Section: 14A; 147; 6

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH B BB B : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND SHRI KULDIP SINGH SHRI KULDIP SINGH SHRI KULDIP SINGH SHRI KULDIP SINGH, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 4463/DEL/2013 4463/DEL/2013 4463/DEL/2013 4463/DEL/2013 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2009 2009 2009 2009 - -- - 10 1010 10 M/S CROWN CORPORATION M/S CROWN CORPORATION M/S CROWN CORPORATION M/S CROWN CORPORATION PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., D DD D- -- -5, DEFENCE COLONY, 5, DEFENCE COLONY, 5, DEFENCE COLONY, 5, DEFENCE COLONY, NEW NEW NEW NEW DELHI. DELHI. DELHI. DELHI. PAN : AAACC8688D. PAN : AAACC8688D. PAN : AAACC8688D. PAN : AAACC8688D. VS. VS. VS. VS. ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -13, 13, 13, 13, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) ITA NO ITA NO ITA NO ITA NO .4634/DEL/2013 .4634/DEL/2013 .4634/DEL/2013 .4634/DEL/2013 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2009 2009 2009 2009 - -- - 10 1010 10 ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -13, 13, 13, 13, NEW D NEW D NEW D NEW DELHI. ELHI. ELHI. ELHI. VS. VS. VS. VS. M/S CROWN CORPORATION PVT.LTD., M/S CROWN CORPORATION PVT.LTD., M/S CROWN CORPORATION PVT.LTD., M/S CROWN CORPORATION PVT.LTD., D DD D- -- -5, DEFENCE COLONY, 5, DEFENCE COLONY, 5, DEFENCE COLONY, 5, DEFENCE COLONY, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN : AAACC8688D. PAN : AAACC8688D. PAN : AAACC8688D. PAN : AAACC8688D. (APPELLANT) (RESPONDENT) ASSESSEE BY : MS. ARUNA MITTAL, CA. REVENUE BY : SHRI V.R. SONBHADRA, SENIOR DR. DATE OF HEARING : 08.06.2016 08.06.2016 08.06.2016 08.06.2016 DATE OF PRONOUNCEMENT : 27.06.2016 27.06.2016 27.06.2016 27.06.2016 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - THESE CROSS-APPEALS BY THE ASSESSEE AND THE REVENU E FOR THE ASSESSMENT YEAR 2009-10 ARE DIRECTED AGAINST THE OR DER OF LEARNED CIT(A)-1, NEW DELHI DATED 30 TH MAY, 2013. ITA NO.4634/DEL/2013 ITA NO.4634/DEL/2013 ITA NO.4634/DEL/2013 ITA NO.4634/DEL/2013 REVENUES APPEAL : REVENUES APPEAL : REVENUES APPEAL : REVENUES APPEAL :- -- - 2. IT IS OBSERVED THAT THE TAX EFFECT INVOLVED IN T HIS APPEAL BY THE REVENUE IS BELOW `10 LAKHS. THE CBDT IN ITS CIRCUL AR NO.21/2015 DATED 10 TH DECEMBER, 2015 HAS REVISED THE MONETARY LIMIT FOR FILING OF ITA-4463 & 4634/D/2013 2 THE DEPARTMENTAL APPEALS TO THE ITAT AT `10 LAKHS W HICH IS EVIDENT FROM PARAGRAPH 3 OF THE CIRCULAR, WHICH READS AS UN DER:- 3. HENCEFORTH, APPEAL/SLPS SHALL NOT BE FILED IN C ASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMITS GIVEN HEREUNDER:- S.NO. A PPEALS IN INCOME - TAX MATTERS MONETARY LIMIT (IN RS) 1. BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2. BEFORE HIGH COURT 20,00,000/ - 3. BEFORE SUPREME COURT 25,00,000/ - IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETA RY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 3. IN PARAGRAPH 10 OF THE CIRCULAR, SUCH MONETARY L IMITS HAVE BEEN MADE APPLICABLE RETROSPECTIVELY. FOR READY REFEREN CE, WE REPRODUCE PARAGRAPH 10 BELOW:- 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/TRIBUNALS. PENDING APPEALS BELOW THE SPECIF IED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED . APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED B Y THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 4. THEREFORE, THE ABOVE CIRCULAR WOULD BE SQUARELY APPLICABLE TO THE APPEAL UNDER CONSIDERATION BEFORE US. 5. LEARNED SENIOR DR WHO APPEARED AT THE TIME OF HE ARING BEFORE US STATED THAT HE NEEDS SOME TIME TO CALL FOR THE R EPORT FROM THE ASSESSING OFFICER AS WELL AS INSTRUCTIONS FROM ADMI NISTRATIVE CIT FOR WITHDRAWING THIS APPEAL BECAUSE THE APPEAL WAS FILE D WITH THE APPROVAL OF ADMINISTRATIVE CIT. LEARNED DR FURTHER POINTED OUT THAT IN PARAGRAPH 7 OF THE SAID CIRCULAR, IT HAS BEEN CLARI FIED BY THE CBDT THAT ITA-4463 & 4634/D/2013 3 WITHDRAWAL OF THIS APPEAL BY THE REVENUE ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRECEDENT IN THE SUBS EQUENT YEARS OF THE ACCEPTANCE OF ISSUES INVOLVED IN THIS APPEAL AN D, THEREFORE, IF IN THE SUBSEQUENT YEAR SIMILAR ISSUE ARISES BEFORE THE ITA T WHERE THE APPEAL IS ABOVE THE TAX LIMIT AS PRESCRIBED IN THIS CIRCUL AR, THE SAME SHOULD BE DECIDED ON MERITS. 6. LEARNED COUNSEL FOR THE ASSESSEE, ON THE OTHER H AND, STATED THAT THE CIRCULAR IS SQUARELY APPLICABLE TO THE FACTS OF THE ASSESSEES CASE. 7. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE SI DES, WE ARE OF THE OPINION THAT THERE IS NO NECESSITY FOR ADJOURNING T HE APPEAL AND CALLING THE REPORT FROM THE ASSESSING OFFICER BECAUSE, APPA RENTLY, THE TAX EFFECT INVOLVED IN THIS APPEAL OF THE REVENUE IS BE LOW `10 LAKHS. HOWEVER, WE ADD HERE THAT IF ON RECEIPT OF ORDER TH E ASSESSING OFFICER FINDS THAT THE TAX EFFECT IS ABOVE `10 LAKHS OR, IN ANY OTHER MANNER, THE CIRCULAR IS NOT APPLICABLE, HE WILL BE AT LIBERTY T O FILE THE MISCELLANEOUS APPLICATION. WE ALSO AGREE WITH THE CONTENTION OF THE LEARNED DR THAT THIS ORDER WOULD NOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN THIS APPEAL AND WILL NOT B E AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUE INVOLVED IN THIS APPEA L BEFORE THE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THA N `10 LAKHS. WITH THIS REMARK, WE DEEM IT PROPER TO DISMISS THE APPEAL IN THE LIGHT OF THE CIRCULAR NO.21/2015 OF CBDT DATED 10 TH DECEMBER, 2015. ITA NO.4463/DEL/2013 ITA NO.4463/DEL/2013 ITA NO.4463/DEL/2013 ITA NO.4463/DEL/2013 ASSESSEES APPEAL : ASSESSEES APPEAL : ASSESSEES APPEAL : ASSESSEES APPEAL :- -- - 8. GROUND NO.1 OF THE ASSESSEES APPEAL IS OF GENER AL NATURE AND NEEDS NO ADJUDICATION. 9. GROUND NOS.2 & 3 ARE AGAINST THE DISALLOWANCE OF `89,650/- SUSTAINED BY LEARNED CIT(A) U/S 14A AS AGAINST `1,0 00/- DISALLOWED BY THE ASSESSEE COMPANY. ITA-4463 & 4634/D/2013 4 10. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES A ND HAVE PERUSED THE MATERIAL PLACED BEFORE US. AT THE TIME OF HEARING BEFORE US, THE MAIN CONTENTION OF THE LEARNED COUNSEL FOR THE ASSESSEE WAS THAT THE ASSESSEE HAS SUO MOTU DISALLOWED A SUM OF `1,000/- U/S 14A. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AS SESSING OFFICER ASKED THE ASSESSEE TO GIVE THE DETAILED NOTE ON THE APPLICABILITY OF PROVISIONS OF SECTION 14A READ WITH RULE 8D AND ALS O ASKED TO FURNISH THE WORKING OF THE DISALLOWANCE UNDER RULE 8D. THE ASSESSEE FILED THE WRITTEN REPLY DATED 13 TH OCTOBER, 2011 WHEREIN THE ASSESSEE HAS CLAIMED THAT, IN FACT, NO EXPENDITURE WAS INCURRED BY THE ASSESSEE FOR EARNING OF DIVIDEND INCOME BECAUSE THE INVESTMENT W AS MADE THROUGH ACCOUNT PAYEE CHEQUE IN MUTUAL FUND AND DIVIDEND WA S ACCOUNTED FOR ON ACCRUAL BASIS AT THE YEAR END. THE ASSESSING OF FICER, WITHOUT RECORDING ANY SATISFACTION HOW THE ASSESSEES WORKI NG IS INCORRECT, WORKED OUT THE DISALLOWANCE UNDER RULE 8D. SHE STA TED THAT IN THE ABSENCE OF SUCH SATISFACTION, THE DISALLOWANCE CANN OT BE WORKED OUT UNDER RULE 8D. 11. LEARNED DR, ON THE OTHER HAND, RELIED UPON THE ORDER OF LEARNED CIT(A) AND HE STATED THAT THE ASSESSEE HAS NOT GIVE N THE WORKING HOW THE DISALLOWANCE HAS BEEN MADE AT `1,000/- U/S 14A. 12. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF BOTH THE SIDES AND HAVE PERUSED THE MATERIAL PLACED BEFORE US. SE CTION 14A OF THE ACT READS AS UNDER:- 14A. 14A. 14A. 14A. [(1)] FOR THE PURPOSES OF COMPUTING THE TOTAL INCOME UNDER THIS CHAPTER, NO DEDUCTION SHALL BE ALLOWED I N RESPECT OF EXPENDITURE INCURRED BY THE ASSESSEE IN RELATION TO INCOME WHICH DOES NOT FORM PART OF THE TOTAL INC OME UNDER THIS ACT.] [(2) THE ASSESSING OFFICER SHALL DETERMINE THE AMOU NT OF EXPENDITURE INCURRED IN RELATION TO SUCH INCOME WHI CH DOES ITA-4463 & 4634/D/2013 5 NOT FORM PART OF THE TOTAL INCOME UNDER THIS ACT IN ACCORDANCE WITH SUCH METHOD AS MAY BE PRESCRIBED, I F THE ASSESSING OFFICER, HAVING REGARD TO THE ACCOUNTS OF THE ASSESSEE, IS NOT SATISFIED WITH THE CORRECTNESS OF THE CLAIM OF THE ASSESSEE IN RESPECT OF SUCH EXPENDITURE IN R ELATION TO INCOME WHICH DOES NOT FORM PART OF THE TOTAL INC OME UNDER THIS ACT. (3) THE PROVISIONS OF SUB-SECTION (2) SHALL ALSO AP PLY IN RELATION TO A CASE WHERE AN ASSESSEE CLAIMS THAT NO EXPENDITURE HAS BEEN INCURRED BY HIM IN RELATION TO INCOME WHICH DOES NOT FORM PART OF THE TOTAL INCOME UNDER THIS ACT :] [PROVIDED PROVIDED PROVIDED PROVIDED THAT NOTHING CONTAINED IN THIS SECTION SHA LL EMPOWER THE ASSESSING OFFICER EITHER TO REASSESS UN DER SECTION 147 OR PASS AN ORDER ENHANCING THE ASSESSME NT OR REDUCING A REFUND ALREADY MADE OR OTHERWISE INCREAS ING THE LIABILITY OF THE ASSESSEE UNDER SECTION 154, FO R ANY ASSESSMENT YEAR BEGINNING ON OR BEFORE THE 1ST DAY OF APRIL, 2001.]. 13. AS PER SUB-SECTION (2) OF SECTION 14A, THE ASSE SSING OFFICER IS EMPOWERED TO DETERMINE THE EXPENDITURE INCURRED IN RELATION TO EXEMPT INCOME PROVIDED HE IS NOT SATISFIED WITH THE CORRECTNESS OF THE CLAIM OF THE ASSESSEE IN RELATION TO THE INCURRING OF EXPENDITURE FOR EARNING OF EXEMPT INCOME. AS PER SUB-SECTION (3), THE ASSESSING OFFICER IS EMPOWERED TO DETERMINE THE EXPENDITURE E VEN WHEN THE ASSESSEE CLAIMS THAT NO EXPENDITURE HAS BEEN INCURR ED BY HIM IN RELATION TO EARNING OF EXEMPT INCOME PROVIDED THE A SSESSING OFFICER IS NOT SATISFIED WITH THE CORRECTNESS OF THE CLAIM OF THE ASSESSEE. FROM A COMBINED READING OF SUB-SECTION (2) & (3) OF SECTIO N 14A, IT IS EVIDENT THAT FIRST THE ASSESSEE HAS TO STATE WHETHER ANY EX PENDITURE WAS INCURRED BY HIM FOR EARNING OF EXEMPT INCOME, IF YE S, THEN, HE HAS TO SPECIFY THE EXPENDITURE WHICH WAS INCURRED FOR EARN ING OF EXEMPT INCOME. THEREAFTER, THE ASSESSING OFFICER IS REQUI RED TO EXAMINE THE ASSESSEES CLAIM WITH REGARD TO INCURRING OF NO EXP ENDITURE OR WITH REGARD TO THE AMOUNT OF EXPENDITURE CLAIMED TO HAVE BEEN INCURRED BY THE ASSESSEE FOR EARNING OF EXEMPT INCOME. IF THE ASSESSING OFFICER IS SATISFIED WITH THE CLAIM OF THE ASSESSEE, THEN, NO FURTHER ACTION UNDER ITA-4463 & 4634/D/2013 6 SECTION 14A IS REQUIRED EXCEPT TO DISALLOW THE AMOU NT OF EXPENDITURE, IF ANY, WHICH ASSESSEE CLAIMED TO HAVE INCURRED FOR EARNING OF EXEMPT INCOME. HOWEVER, WHEN THE ASSESSING OFFICER IS NOT SATISFIED WITH THE CLAIM OF THE ASSESSEE WITH REGARD TO INCURRING OF N O EXPENDITURE OR THE AMOUNT OF EXPENDITURE SPECIFIED BY THE ASSESSEE FOR EARNING OF EXEMPT INCOME, THEN, HE IS REQUIRED TO DETERMINE THE AMOUN T OF EXPENDITURE INCURRED BY THE ASSESSEE IN RELATION TO EARNING OF EXEMPT INCOME. SUCH EXPENDITURE IS TO BE DETERMINED BY HIM IN ACCO RDANCE WITH SUCH METHOD AS MAY BE PRESCRIBED. THAT HON'BLE JURISDIC TIONAL HIGH COURT HAS CONSIDERED THIS ASPECT IN THE CASE OF MAXOPP IN VESTMENT LTD. 347 ITR 272 (DEL) AND, THEIR LORDSHIPS HELD AS UNDER:- THE REQUIREMENT OF THE ASSESSING OFFICER EMBARKING UPON A DETERMINATION OF THE AMOUNT OF EXPENDITURE INCURR ED IN RELATION TO EXEMPT INCOME WOULD BE TRIGGERED ONLY I F THE ASSESSING OFFICER RETURNS A FINDING THAT HE IS NOT SATISFIED WITH THE CORRECTNESS OF THE CLAIM OF THE ASSESSEE I N RESPECT OF SUCH EXPENDITURE. THEREFORE, THE CONDITION PREC EDENT FOR THE ASSESSING OFFICER ENTERING UPON A DETERMINA TION OF THE AMOUNT OF THE EXPENDITURE INCURRED IN RELATION TO EXEMPT INCOME IS THAT THE ASSESSING OFFICER MUST RE CORD THAT HE IS NOT SATISFIED WITH THE CORRECTNESS OF TH E CLAIM OF THE ASSESSEE IN RESPECT OF SUCH EXPENDITURE. 14. IN VIEW OF THE ABOVE LANGUAGE OF SECTION 14A(2) AND (3) AND ALSO RELYING UPON THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF MAXOPP INVESTMENT LTD. (SUPRA), WE HOLD THA T THE ASSESSING OFFICER IS REQUIRED TO RECORD THE SATISFACTION THAT HE IS NOT SATISFIED WITH THE CLAIM OF THE ASSESSEE WITH REGARD TO INCURRING OF NO EXPENDITURE OR THE AMOUNT OF THE EXPENDITURE AS SPECIFIED BY THE A SSESSEE FOR EARNING OF EXEMPT INCOME BEFORE EMBARKING UPON THE DETERMIN ATION OF THE AMOUNT OF EXPENDITURE INCURRED IN RELATION TO EXEMP T INCOME UNDER SECTION 14A(2). 15. IN THE CASE UNDER CONSIDERATION BEFORE US, THE ASSESSEE HAS CLAIMED THAT IT HAS INCURRED AN EXPENDITURE OF `1,0 00/- FOR EARNING OF ITA-4463 & 4634/D/2013 7 EXEMPT INCOME AND HAS OFFERED THE SAME AS DISALLOWA BLE U/S 14A. WE FIND THAT DURING THE COURSE OF ASSESSMENT PROCEEDIN GS, THE ASSESSING OFFICER ASKED THE ASSESSEE TO FURNISH THE DETAILED EXPLANATION WITH REGARD TO DISALLOWANCE MADE BY HIM AT `1,000/-. TH E ASSESSEE WAS ALSO ASKED TO GIVE THE WORKING OF DISALLOWANCE WHIC H WOULD HAVE WORKED OUT AS PER RULE 8D. THE ASSESSEE, VIDE REPL Y DATED 13 TH OCTOBER, 2011, FURNISHED THE EXPLANATION SAYING THA T NO EXPENDITURE WAS INCURRED FOR EARNING OF EXEMPT INCOME. HE HAS ALSO RELIED UPON THE DECISION OF HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS. HERO CYCLES LTD. [2010] 323 ITR 518 (P&H) SO AS TO BUTTRESS ITS CLAIM THAT THE EXPENDITURE CAN BE DISALLOWED U/S 14 A ONLY IF IT IS CLEARLY IDENTIFIED TO BE INCURRED FOR THE PURPOSE OF EARNIN G EXEMPT INCOME. HE ALSO SUBMITTED THE STATEMENT OF CALCULATION UNDER R ULE 8D AS WAS DIRECTED BY THE ASSESSING OFFICER. THE ASSESSING O FFICER DID NOT AT ALL CONSIDER THE ASSESSEES SUBMISSION AND SIMPLY WORKE D OUT THE DISALLOWANCE AS PER RULE 8D. THUS, THERE IS NO FIN DING BY THE ASSESSING OFFICER THAT HE IS NOT SATISFIED WITH THE CLAIM OF THE ASSESSEE THAT IT INCURRED AN EXPENDITURE OF `1,000/- FOR EARNING OF EXEMPT INCOME. WITHOUT RECORDING SUCH SATISFACTION, THE ASSESSING OFFICER CANNOT PROCEED TO WORK OUT THE DISALLOWANCE UNDER RULE 8D AS PER SECTION 14A(2) OF THE ACT. WE, THEREFORE, DELETE THE DISAL LOWANCE SUSTAINED BY LEARNED CIT(A) U/S 14A AMOUNTING TO `89,650/-. 16. GROUND NO.4 OF THE ASSESSEES APPEAL READS AS U NDER:- THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS ERRED IN DISALLOWING CLUB EXPENSE S OF RS.10,529/- INCURRED FOR THE PURPOSE OF BUSINESS. 17. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES A ND HAVE PERUSED THE MATERIAL PLACED BEFORE US. DURING THE COURSE OF HEARING BEFORE US, LEARNED DR POINTED OUT THAT THIS GROUND OF APPEAL WAS NOT PRESSED BY THE ASSESSEE AT THE TIME OF HEARING BEFO RE THE LEARNED ITA-4463 & 4634/D/2013 8 CIT(A). ON PERUSAL OF THE ORDER OF LEARNED CIT(A), WE FIND HIS SUBMISSION TO BE CORRECT. NO REASON HAS BEEN GIVEN BY THE ASSESSEE THAT WHEN THE ASSESSEE HAS NOT PRESSED THE DISALLOW ANCE OF CLUB EXPENSES BEFORE THE LEARNED CIT(A), HOW IT IS AGGRI EVED WITH THE ORDER OF LEARNED CIT(A) IN THIS REGARD. ACCORDINGLY, WE DO NOT FIND ANY JUSTIFICATION TO INTERFERE WITH THE ORDER OF LEARNE D CIT(A) IN THIS REGARD AND REJECT GROUND NO.4 OF THE ASSESSEES APPEAL. 18. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PA RTLY ALLOWED AND THE APPEAL OF THE REVENUE IS DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 27.06.2016 . SD/- SD/- (KULDIP SINGH (KULDIP SINGH (KULDIP SINGH (KULDIP SINGH ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. ASSESSEE : M/S CR M/S CR M/S CR M/S CROWN CORPORATION PVT.LTD., OWN CORPORATION PVT.LTD., OWN CORPORATION PVT.LTD., OWN CORPORATION PVT.LTD., D DD D- -- -5, DEFENCE COLONY, NEW DELHI. 5, DEFENCE COLONY, NEW DELHI. 5, DEFENCE COLONY, NEW DELHI. 5, DEFENCE COLONY, NEW DELHI. 2. REVENUE : ASSISTANT COMMISSIONER OF INCOME TAX , ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -13, NEW DELHI. 13, NEW DELHI. 13, NEW DELHI. 13, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR