CREATION, MUMBAI V. ITO 12(3)(4), MUMBAI

ITA 4829/MUM/2012

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9109 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 10-12-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 23-07-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Corroborative evidences

Judgement Text

. , IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI , BEFORE SHRI R.K.GUPTA , J M ITA NO. 4829 / MUM/ 20 1 2 ( ASSESSMENT Y EAR : 200 5 - 20 0 6 ) M/S CREATION, 4 PAREKH VORA CHAMBERS, 66 NAGINDAS MASTER ROAD, FORT, MUMBAI - 400 001. VS. ITO 1 2(3 )( 4 ) , MUMBAI PAN/GIR NO. : A A AF C 0639 D ( APPELLANT ) .. ( RESPONDENT ) /A SSESSEE BY : NONE /RE VENUE BY : MR. RAKESH RANJAN DATE OF HEARING : 10 TH DEC ., 2012 DATE OF PRONOUNCEMENT : 14 TH DEC. ,2012 O R D E R THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER DATED 21 - 5 - 2012 OF LEANED CIT(A) - 2 3 , MUMBAI RELA TING TO THE ASSESSMENT YEAR 200 5 - 0 6 . 2 . THIS APPEAL IS DELAY BY THREE DAYS. LOOKING TO THE PERIOD OF DELAY OF THREE DAYS IN FILING THE APPEAL, I CONDONE THE SAME AND THE APP EAL IS DISPOSED OF ON MERIT . ITA NO. 4829 /20 1 2 2 3 . THE ASSESSEE IS OBJECTING THE CONFIRMATION OF DISALLOWANCE OF RS. 1,53,527/ - ON ACCOUNT OF ELECTRICITY EXPENSES, REPAIRS AND MAINTENANCE EXPENSES OF RS. 3,948/ - AND GENERAL EXPENSES A T RS. 36,523/ - RESPECTIVELY. 4 . THE AS SESSEE IS A PARTNERSHIP FIRM ENGAGED IN THE BUSINESS OF OUTDOOR ADVERTISING. A RETURN DECLARING RS. 79,060/ - WAS FILED. THE ASSESSING OFFICER NOTED THAT THE ASSESSEE HAS PAID RS. 2,04,008/ - FOR ELECTRICITY EXPENSES. THE ASSESSING OFFICER DISALLOWED RS. 1,53,5 27/ - BEING ELECTRICITY EXPENSES RELATED TO OFFICE PREMISES OWNED BY THE PARTNERS. LEARNED CIT(A) HAS CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5 . ON SECOND APPEAL, THE TRIBUNAL DIRECTED TO VERIFY THE SUPPORTING EVIDENCES AT THE END OF THE ASSESSING OFFICER. THEREAFTER THE REASSESSMENT WAS COMPLETED. THE ASSESSING OFFICER WAS OF THE VIEW THAT THOUGH THE ASSESSEE HAS FILED DETAIL OF EXPENSES OF ELECTRICITY, HOWEVER, CONCLUSIVE EVIDENCE HAS NOT BEEN FILED ALONG WITH THAT WHY THE ASSESSEE HAS PAID THE ELECTRI CITY BILLS OF FOUR PREMISES WHEREAS ONE OR TWO PREMISES HAS BEEN USED BY THE ASSESSEE. ACCORDINGLY, HE AGAIN DISALLOWED THE ELECTRICITY EXPENSES AS DISALLOWED EARLIER. LEARNED CIT(A) HAS ALSO CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 6 . AFTER CONSIDE RING THE ORDER S OF THE AS SESSING OFFICER AND THE CIT(A) AND THE PAPER BOOK CONTAINING DETAILS OF ELECTRICITY EXPENSES ETC. FILED BEFORE THE LOWER AUTHORITIES, I FOUND THAT THE ASSESSEE ITA NO. 4829 /20 1 2 3 DESERVES TO SUCCEED IN ITS APPEAL IN PART. I NOTED THAT THE TOTAL ELECT RICITY EXPENSES WERE CLAIMED AT RS. 2,0 4,008/ - . THERE WERE FOUR PREMISES, ONE BELONGING TO ASSESSEE FIRM AND OTHER BELONGING TO PARTNERS. IT WAS STATED THAT ALL THE PREMISES OWNED BY THE PARTNERS HAVE BEEN USED BY THE ASSESSEE FIRM FOR ITS BUSINESS PURPOSES . THEREFORE, THE ELECTRICITY EXPENSES ARE ALLOWABLE IN THE HANDS OF THE FIRM. THOUGH THE ASSESSEE COULD NOT FILE COMPLETE DETAILS THAT WHICH PREMISES WERE USED FOR BUSINESS PURPOSES BY THE ASSESSEE FIRM OR WHETHER THE ENTIRE PREMISES ARE USED BY THE ASSESS EE FIRM OR PARTLY USED BY THE ASSESSEE FIRM. THEREFORE, I AM OF THE VIEW THAT IF AN ADDITION OF RS. 50,000/ - IS SUSTAINED OUT OF THE TOTAL EXPENSES MADE BY THE ASSESSEE, THAT WILL MEET THE END OF JUSTICE. ACCORDINGLY, I CONFIRM THE ADDITION OF RS. 50,000/ - O UT OF TOTAL ELECTRICITY EXPENSES AND REMAINING ARE DELETED. 7 . SIMILARLY, I REDUCE THE DISALLOWANCE ON ACCOUNT OF REPAIR AND MAINTENANCE AT RS. 2,000/ - AND RS. 10,000/ - OUT OF GENERAL EXPENSES AS IN MY VIEW THE DISALLOWANCE MADE AND CONFIRMED ARE ON HIGHER SIDE. IN THIS WAY, AN ADDITION OF RS. 50,000/ - OUT OF ELECTRICITY EXPENSES, ADDITION OF RS. 2,000/ - OUT OF REPAIR AND MAINTENANCE EXPENSES AND ADDITION OF RS. 10,000/ - OUT OF GENERAL EXPENSES, RESPECTIVELY ARE CONFIRMED AND REMAINING ARE DELETED. 8 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART . ITA NO. 4829 /20 1 2 4 ORDER PRONOUNCED IN THE OPEN COURT ON THIS 14 T H DAY OF DEC. 2012. 2012 SD/ - ( ) ( R.K.GUPTA ) / JUDICIAL MEMBER MUMBAI ; DATED : 1 4 /12 / 2012 . /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) - X, MUMBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( DY./ASSTT. REGISTRAR) / ITAT, MUMBAI