Appeal details
Counselvise Citation
[2021] 109 COUNSELVISE.COM (IT) 3623 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 7 month(s) 29 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
09-03-2021
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
D
Assessment Year
2012-2013
Appeal Filed On
10-07-2019
Judgement Text
THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI SHRI SHAMIM YAHYA (AM) & SHRI RAMLAL NEGI (JM) I.T.A. NO. 4669/MUM/2019 (ASSESSMENT YEAR 2012-13) I.T.A. NO. 4670/MUM/2019 (ASSESSMENT YEAR 2 014-15) MEDIAEDGE:CIA(INDIA) PVT. LTD. 8 TH FLOOR COMMERZ, INTERNATIONAL BUSINESS PARK OBEROI GARDEN CITY, GOREGAON EAST, MUMBAI-400 063. PAN : AAACF4315L VS. DCIT-12(3)(2) ROOM NO. 147B 1 ST FLOOR AAYAKAR BHAVAN M.K. ROAD MUMBAI- 400020. (APPELLANT) (RESPONDENT) ASSESSEE BY NONE DEPARTMENT BY SHRI BHARAT ANDHLE DATE OF HEARING 08.03.2021 DATE OF PRONOUNCEMENT 09.03.2021 O R D E R PER SHAMIM YAHYA (AM) :- THESE ARE APPEALS BY THE ASSESSEE DIRECTED AGAINST RESPECTIVE ORDERS OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) [IN SH ORT LEARNED CIT(A)] WHEREIN HE HAS SUSTAINED 20% DISALLOWANCE OUT OF TR AVELLING EXPENSES AS UNDER :- ASSESSMENT YEAR 2012-13 RS. 7,98,391/- ASSESSMENT YEAR 2014-15 RS. 9,40,868/- 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IN THIS CASE IS ENGAGED IN THE BUSINESS OF PLANNING AND BUYING OF MEDIA SPACE/TIME ON BEHALF OF CLIENTS. THE ASSESSING OFFICER IN THIS CASE MADE A DISALLOWANCE OF 20% OF THE FOREIGN TRAVELLING EXPENDITURE INCURRED BY THE ASSESSEE. TH E ASSESSING OFFICER NOTED THAT ASSESSEE HAS GIVEN THE DETAILS OF THE EXPENDIT URE. HOWEVER, HE OPINED THAT PERSONAL ELEMENT CANNOT BE RULED OUT. HE MENTIONED THAT ASSESSEE HAS NOT SUBMITTED THE INVOICE AND THE PURPOSE. WHAT SORT OF INVOICE THE ASSESSING MEDIAEDGE:CIA(INDIA) PVT. LTD. 2 OFFICER WAS LOOKING FOR HAS NOT AT ALL BEEN SPELT O UT. LEARNED CIT(A) HAS UPHELD THAT ORDER. 3. AGAINST THIS ORDER ASSESSEE IS IN APPEAL BEFORE US. WE HAVE HEARD LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSED THE RECORDS. 4. AS EVIDENT FROM THE ABOVE THE DISALLOWANCE OF TH E TRAVELLING EXPENSES HAS BEEN DONE ON THE BASIS OF SURMISE AND CONJECTUR E WITHOUT ANY COGENT FINDING REGARDING THE EXACT ANOMALY. IT IS SETTLED LAW THAT DISALLOWANCE IS BASED ON SURMISE AND CONJECTURE ARE NOT SUSTAINABLE . THERE IS NO PRESUMPTION ALSO THAT THERE HAS TO BE AN ADHOC PERSONAL ELEMENT IN SUCH TYPE OF EXPENDITURE AS OPINED BY REVENUE AUTHORITY. IN THI S VIEW OF THE MATTER WE SET ASIDE THE ORDERS OF AUTHORITIES BELOW AND DELETE TH E DISALLOWANCE. 5. IN THE RESULT, THESE APPEALS BY THE ASSESSEE STA ND ALLOWED. PRONOUNCED IN THE OPEN COURT ON 9.3.2021. SD/- SD/- (RAMLAL NEGI) (SHAMIM YA HYA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED : 09/03/2021 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// ( ASSISTANT REGISTRAR) PS ITAT, MUMBAI
