LIMRAS LOTTERY & TRADINGCOMPANY PVT. LTD, CHENNAI V. ITO, CORPORAT CIRCLE-4(1), CHENNAI

ITA 451/CHNY/2023

AI Insights

The case involves M/s. Limras Lottery & Trading Company Pvt. Ltd., which appealed against certain additions made by the Income Tax Officer (ITO), Corporate Circle-4(1), Chennai, for the assessment year 2010-11. The appeal was initially delayed by 1265 days, attributed to the deaths of two counsels during the COVID-19 pandemic. The Tribunal admitted the appeal after condoning the delay. The primary issues in the appeal included discrepancies in reported income, disallowances under section 40(a)(ia) for lack of TDS on rental payments, and unsubstantiated legal expenses. The Tribunal directed the AO to reconcile the income discrepancy and to further examine the TDS-related disallowance, while upholding the addition for legal expenses due to lack of proof.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134415 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: C
• Next Hearing Date: 28-05-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 06-04-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS
• Section: 40(a)(ia)

Judgement Text

आयकर अपीलीय अिधकरण “सी” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, CHENNAI माननीय +ी वी. द ु गा1 राव, ाियक सद2 एवं माननीय +ी मनोज कु मार अ7वाल ,लेखा सद2 के सम9। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ITA No.451/Chn y/2023 (िनधा1रणवष1 / Assessment Year: 2010-11) M/s. Limras Lottery & Trading Company Pvt. Ltd. 164, Near Hotel Orchid Inn, Peters Road, Opp. New Colony, Chennai-600 014. बनाम / V s . ITO Corporate Circle-4(1) Chennai. थायीलेखासं./जीआइआरसं./PAN/GIR No.A AAC L -77 24- R (अपीलाथ /Appellant) : ("#थ / Respondent) अपीलाथ कीओरसे/ Appellant by : None (Adj. application rejected) "#थ कीओरसे/Respondent by : Shri P. Sajit Kumar (JCIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 29-05-2023 घोषणाकीतारीख/Date of Pronouncement : 29-05-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. At the time of hearing of captioned appeal, none appeared for assessee and accordingly, the appeal is being disposed-off with the able assistance of Ld. Sr. DR who pleaded for dismissal of the appeal. 2. The registry has noted delay of 1265 days in the appeal, the condonation of which has been sought by the assessee by way of condonation petition which is supported by the affidavit of director of the assessee company. It has been submitted that the two counsels 2 ITA No. 451/Chny/2023 appointed by the assessee expired in the year 2021 and 2022 due to Coid-19 Pandemic which led to delay in the appeal. Considering the same, we condone the delay and admit the appeal for adjudication on merits. 3. The assessee has assailed three additions. The addition of Rs.2.45 Lacs represent difference of gross total income reflected by the assessee in its Income Tax Return vis-à-vis the amount reflected in Form 26AS. We find that the same is matter of reconciliation and accordingly, we remit this issue back to the file of Ld. AO with a direction to the assessee to reconcile the difference. 4. The second addition is disallowance u/s 40(a)(ia) for Rs.4.44 Lacs for want of TDS on rental payments. Apparently, the payments are for Delhi office and Kolkata Office and the payees seem to be different. Therefore, we restore this issue back to the file of Ld. AO with a direction to the assessee to substantiate this claim. 5. The last addition of Rs.2.55 Lacs represents legal expenses for which no proof could be submitted by the assessee. Therefore, this addition does not require any interference on our part. 6. The appeal stand partly allowed for statistical purposes. Order pronounced on 29 th May, 2023 Sd/- Sd/- (V. DURGA RAO) (MANOJ KUMAR AGGARWAL) ाियक सद2/JUDICIAL MEMBER लेखासद2 / ACCOUNTANT MEMBER चे5ईChennai; िदनांकDated : 29-05-2023 DS आदेशकीXितिलिपअ7ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant2. यथ /Respondent 3. आयकरआय ु त/CIT4. वभागीय त न ध/DR 5. गाड फाईल/GF