RELIANCE PETRO MARKETING LTD, MUMBAI V. ITO 8(1)(2), MUMBAI

ITA 448/MUM/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3517 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 19-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VISHWAS JADHAV
• Assessee Lawyers: A V SONDE
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEORE SHRI G.S.PANNU, ACCOUNTANT MEMBER ITA NO. 448/MUM/2015 (ASSESSMENT YEAR : 2009-10) RELIANCE PETRO MARKETING LIMITED, COURT HOUSE, 4 TH FLOOR, LOKMANYA TILAK MARG, DHOBI TALAO, MUMBAI 400012 PAN: AABCR 1721M ... APPELLANT VS. THE INCOME TAX OFFICER 8(1)(2), AAYKAR BHAVAN, MUMBAI 400 020 .... RESPONDENT APPELLANT BY : SHRI A.V. SONDE RESPONDENT BY : SHRI VISHWAS JADHAV DATE OF HEARING : 07/12/2015 DATE OF PRONOUNCEMENT : 29/02/2016 ORDER THE CAPTIONED APPEAL IS PREFERRED BY THE ASSES SEE AND IS DIRECTED AGAINST THE IMPUGNED ORDER DATED 17/11/ 2014 OF CIT(A)-14, MUMBAI, PERTAINING TO THE ASSESSMENT YEAR 2009-10, WHICH IN TURN HAS ARISEN FROM AN ORDER PASSED BY THE ASSESSING OFFICE R DATED 05/12/2011 UNDER SECTION 143(3) OF THE INCOME TAX ACT, 196 1( IN SHORT THE ACT). 2 ITA NO. 448/MUM/2015 (ASSESSMENT YEAR : 2009-10) 2. IN THIS APPEAL THE ONLY ISSUE RAISED BY THE ASSE SSEE IS WITH REGARD TO DISALLOWANCE OF A SUM OF RS.9,47,000/- BEING FOR EIGN TRAVEL EXPENSES INCURRED BY THE EMPLOYEES. 3. THE APPELLANT IS A COMPANY INCORPORATED UNDER TH E PROVISIONS OF THE COMPANIES ACT, 1956 AND IS, INTER-ALIA, ENGAGED IN THE BUSINESS OF SALE OF PETROLEUM PRODUCTS LIKE MOTOR SPIRIT, HIGH SPEED DIESEL AND LIQUEFIED PETROLEUM GAS, ETC. IN THE COURSE OF ASS ESSMENT PROCEEDINGS THE ASSESSING OFFICER NOTED THAT ASSESSEE HAD CLAI MED AN EXPENDITURE OF RS.9,47,000/- TOWARDS FOREIGN TRAVEL EXPENSES OF ITS EMPLOYEES FOR BUSINESS VISITS TO EAST AFRICAN COUNTRIES. ON BEIN G SHOW CAUSED, THE EXPLANATION OF THE ASSESSEE WAS FOUND UNSATISFACTOR Y. THE ASSESSING OFFICER DISALLOWED THE EXPENDITURE ON TWO COUNTS, N AMELY, IN THE ABSENCE OF THE SUPPORTING DOCUMENTS OF INCURRENCE O F EXPENDITURE AND SECONDLY, THAT THE EXPENDITURE WAS INCURRED FOR IN ITIATION OF NEW BUSINESS. 4. IN APPEAL, THE CIT(APPEALS) AGREED WITH THE ASSE SSEE THAT THE EXPENDITURE WAS INCURRED FOR AN EXISTING BUSINESS. HOWEVER, HE RETAINED THE DISALLOWANCE ON THE GROUND THAT THE EX PENSES WERE NOT SUPPORTED BY ANY DOCUMENTS TO PROVE THAT THE TRAV EL WAS ACTUALLY PERFORMED BY THE EMPLOYEES OF THE ASSESSEE TO EAST AFRICAN COUNTRIES. AGAINST SUCH DISALLOWANCE ASSESSEE IS IN APPEAL BEF ORE THE TRIBUNAL. 5. BEFORE ME, THE LD. REPRESENTATIVE FOR THE ASSESS EE POINTED OUT TO PAGES 63 TO 107 OF THE PAPER BOOK, WHEREIN THE DETA ILS OF THE EXPENDITURE INCLUDING THE PRIMARY DOCUMENTS NAMELY INVOICES FROM THE 3 ITA NO. 448/MUM/2015 (ASSESSMENT YEAR : 2009-10) TRAVEL AGENT, REIMBURSEMENT VOUCHERS OF THE EMPLOYE ES, ETC. HAVE BEEN PLACED. IT WAS THEREFORE, CONTENDED THAT THE AFORE SAID MATERIAL FULLY MEETS WITH THE OBJECTION OF THE LOWER AUTHORITIES AND THAT THE CLAIM OF THE ASSESSEE BE CONSIDERED AS PER LAW. 6. THE LD. DEPARTMENTAL REPRESENTATIVE FOR THE REVE NUE ON THE OTHER HAND, RELIED UPON THE ORDER OF THE LOWER AUTH ORITIES IN SUPPORT OF THE CASE OF THE REVENUE. 7. HAVING CONSIDERED THE RIVAL SUBMISSIONS, I DEEM IT FIT AND PROPER TO RESTORE THE MATTER TO THE FILE OF ASSESSING OFFI CER, WHO SHALL EXAMINE THE MATERIAL REFERRED TO BY THE ASSESSEE, COPIES OF WHICH ARE PLACED IN THE PAPER BOOK AND THEREAFTER, DECIDE THE ISSUE OF ALLOWABILITY OF THE IMPUGNED EXPENDITURE OF RS.9,47,000/- AFRESH. NEED LESS TO SAY THAT THE ASSESSING OFFICER SHALL ALLOW THE ASSESSEE A REASON ABLE OPPORTUNITY TO EXPLAIN THE CLAIM AND ONLY THEREAFTER, THE ASSESS ING OFFICER SHALL PASS AN ORDER AFRESH AS PER LAW ON THE AFORESAID LIMITED ASPECT. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED AS ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 29/02/2016. SD/- (G.S. PANNU) ACCOUN TANT MEMBER MUMBAI, DATED 29/02/2016 VM , SR. PS 4 ITA NO. 448/MUM/2015 (ASSESSMENT YEAR : 2009-10) 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