DCIT, New Delhi V. M/s Granite Services International India Pvt. Ltd., New Delhi

ITA 4571/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3555 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2017
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 10-07-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R C D AN DE
• Section: 143(3)

Judgement Text

1 ITA NO. 4571/DEL/2015 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: A NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEM BER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER ITA NO. 4571/DEL/201 5 ( A.Y 2009-10) ACIT CIRCLE 10 (2), NEW DELHI (APPELLANT) VS GRANITE SERVICES INTERNATIONAL INDIA PVT. LTD. BLDG NO. 7A, 5 TH FLOOR, TOWER- A DLF CYBER CITY, PHASE-III GURGAON AACCG3374Q (RESPONDENT) APPELLANT BY SH. R. C. DANDE, SR DR RESPONDENT BY SH. KHIRENDER MOHAN GUPTA, SH. AYUSH CHATURVEDI ORDER PER SUCHITRA KAMBLE THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER DATED 15/4/2015 PASSED BY CIT(A)-IV, NEW DELHI. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE WHET HER THE CIT(A) HAS ERRED IN DELETING THE ADDITION MADE ON ACCOUNT OF DISALLOWANCES OUT OF TRAVEL AND CONVEYANCE EXPEN SES IGNORING THE FACT THAT THE ASSESSEE HAS NOT BEEN AB LE TO DATE OF HEARING 28.09.2017 DATE OF PRONOUNCEMENT 08.11.2017 2 ITA NO. 4571/DEL/2015 FURNISH THE COMPLETE AND REQUISITE DETAILS OF THE E XPENSE TO THE ASSESSING OFFICER . 2. THE CIT(A) HAS ERRED IN DELETING THE ADDITION MA DE BY THE ASSESSING OFFICER ON ACCOUNT OF DISALLOWANCES OUT OF TRAVEL AND CONVEYANCE EXPENSES IGNORING THE FACT T HAT THE ASSESSEE HAS NOT BEEN ABLE TO FILE ANY PLAUSIBLE EXPLANATION FOR MULTIFOLD INCREASE IN THE SAME. 3. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF PROVI DING TECHNICAL ASSOCIATES & CONSULTANCY SERVICES FOR POWER PLANTS AND BUSINESS PROCESS OUTSOURCING ACTIVITIES. RETURN DECLARING I NCOME OF RS.13,05,31,760/- WAS FILED BY THE ASSESSEE ON 30/0 9/2009. THE RETURN WAS PROCESSED U/S 143(1) OF THE ACT AND THE CASE WAS SELECTED FOR SCRUTINY. THE ASSESSING OFFICER COMPL ETED THE ASSESSMENT U/S 143(3) OF THE ACT AFTER MAKING A DIS ALLOWANCE OF RS.92,75,102/- BEING 10% OF EXPENSES CLAIMED UNDER THE HEAD TRAVEL AND CONVEYANCE. 4. BEING AGGRIEVED BY THE SAME THE ASSESSEE FILED A PPEAL BEFORE THE CIT(A). THE CIT(A) ALLOWED THE APPEAL OF THE AS SESSEE. 5. THE LD. AR SUBMITTED THAT ALL THE RELEVANT RECOR DS WERE FILED BEFORE THE ASSESSING OFFICER BUT THE SAME WAS NOT P ROPERLY TAKEN INTO ACCOUNT BY THE ASSESSING OFFICER. 3 ITA NO. 4571/DEL/2015 6. THE LD. DR SUBMITTED THAT THE ASSESSING OFFICER WAS RIGHT IN DISALLOWING THE TRAVEL AND CONVEYANCE EXPENSES AS T HE ASSESSING OFFICER DURING THE PROCESSING HAS GIVEN FORMAT WHER EIN THE DATE OF TRAVEL, NAME OF PRESENT TRAVEL, WHETHER EMPLOYEE OR NOT, TRAVEL FROM, TRAVEL TO, TOTAL VALUE OF TICKET, FOOD AND LODGING, OTHER EXPENSES AND TOTAL EXPENSES INCURRED WAS MENTIONED IN THE SAID F ORMAT. THE ASSESSEE COULD NOT FURNISH THE DETAILS AS PER THE P RESCRIBED MANNER AND FORMAT PROVIDED BY THE ASSESSING OFFICER. THE ASSESSING OFFICER, THEREFORE, TOOK 10% OF TOTAL EXPENSES INCU RRED UNDER THIS HEAD AND ADDED THE SAME TO THE INCOME OF THE ASSESS EE. 7. THE LD. AR SUBMITTED THAT THE ASSESSEE HAS GIVEN DETAILS AS RELATED TO THE DATE OF TRAVEL EXPENSES OF AIR TICKE T, EXPENSES ON FOOD AND LODGING AND OTHER EXPENSES BUT COULD NOT GIVE T HE DETAILS OF TRAVEL FROM, TRAVEL TO, AS WELL AS THE TOTAL VALUE OF TICKET AND BIFURCATION OF THE FOOD AND LODGING. 8. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. THE CIT(A) IN HIS ORDER HELD THAT THE ASSESSEE COULD NOT FURNISH THE DETAILS AS PER THE FORMAT GIV EN BY THE ASSESSING OFFICER. BUT THE CIT(A) PROCESSED ON THE BASIS THAT THERE WAS NO DEFECT SHORT COMINGS DISCREPANCIES IN ANY OF THE ITEMS OF EXPENDITURE WHICH WAS SUBMITTED BY THE ASSESSING OF FICER. BUT THE CIT(A) IGNORED THAT THERE WAS NO BIFURCATION GIVEN BY THE ASSESSEE 4 ITA NO. 4571/DEL/2015 RELATING TO TRAVELLING AND CONVEYANCE EXPENSES. TH EREFORE, THIS MATTER NEEDS TO BE VERIFIED BY THE ASSESSING OFFICE R. THE ORDER OF CIT(A) IS SET ASIDE. NEEDLESS TO SAY, THE ASSESSEE HAS TO BE GIVEN PROPER HEARING AS PER THE PRINCIPAL OF NATURAL JUST ICE. 9. IN RESULT, THE APPEAL OF THE REVENUE IS PARTLY A LLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 08 TH NOVEMBER, 2017 . SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 08/11/2017 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE 1. DRAFT DICTATED ON 10/10/2017 PS 2. DRAFT PLACED BEFORE AUTHOR 11/10/2017 PS 5 ITA NO. 4571/DEL/2015 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER .2017 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 8.11.2017 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK 8 .11.2017 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.