Samiran Bagchi, Kolkata V. ITO, WD-2(1), Midnapore, Midnapore

ITA 486/KOL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99656 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 21-03-2014
• Court: TRIBUNAL
• Assessee Lawyers: VARSHA JALAN
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH SMC KOLKATA [BEFORE HON BLE S HRI MAHAVIR SINGH, JM ] ITA NO . 486/KOL/2014 ASSESSMENT YEAR : 2009 - 10 ( A PPELLANT ) (RESPONDENT) SAMIRAN BAGCHI - VERSUS - I.T.O., WARD - 2(1 ) , KOLKATA MI DNAPORE (PAN: AFSPB 4420 L) FOR THE APPELLANT: SMT .VARSHA JALAN, ADVOC ATE FOR THE RESPONDENT: SHRI SUBHENDU DUTTA DATE OF HEARING : 27 .07.2015 . DATE OF PRONOUNCEMENT : 03.08.2015. ORDER THIS APPEAL OF ASSESSEE ARISES FROM THE ORDER OF LD. CIT(A) - XX XVI , KOLKATA IN APPEAL NO . 434 /CIT(A) - XX XVI / KOL/WARD - 2(1 )/ MID/2011 - 12 DATED 13.12. 2013 . ASSESSMENT WAS FRAMED BY I.T.O., WARD - 2(1 ) U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REF ERRED TO AS THE ACT ) FOR A.YR . 2009 - 10 VIDE ITS ORDER D ATED 20.12.2011 DET ERMINING THE TAXABLE INCOME AT R S.13,16,353/ - MAKING VARIOUS ADDITIONS. 2. THE FIRST ISSUE TO BE DECIDED IS AS TO WHETHER THE LD. CIT(A) IS RIGHT IN UPHOLDING THE ADDITION MADE ON AN ADHOC BASIS IN RESPECT OF TOUR/SITE EXPENSES TO TH E TUNE OF RS.2,38,307/ - . 3 . THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF PLACEMENT IN OFFICE AND HAD DECLARED TOTAL INCOME OF RS.9,57,330/ - FOR A.YR.2009 - 10. IN THE RETURN THE ASSESSEE CLAIMED A SUM OF RS.23,83,071/ - U NDER THE HEAD TOUR/SITE EXPENSES AS DEDUCTION. THE AO ASKED FOR THE DETAILS OF PAYMENTS MADE UNDER THE HEAD TOUR/SITE EXPENSES WITH SUPPORTING BILLS AND VOUCHERS TO WHICH THE ASSESSEE THROUGH HIS AR REPLIED THAT THESE PAYMENTS WERE PAID BY THE ASSESSEE TO HIS STAFF BY CHEQUE FOR ITA NO. 486/KOL/2014 SAMIRAN BAGCHI . A.YR. 2009 - 10 2 OFFICIAL WORK. HE ALSO STATED THAT THE SAID AMOUNTS WERE DULY REIMBURSED BY ABB LTD AFTER DEDUCTING TAX AT SOURCE. THE AO, HOWEVER, PROCEEDED TO DISALLOW 10% OF THE TOTAL EXPENDITURE CLAIMED UNDER THE HEAD FOR WANT OF PROPER BILLS A ND VOUCHERS AND IN VIEW OF THE FACT , THAT TOUR AND SITE EXPENSES ARE IN EXCESS BY NEARLY RS.20 LAK HS DURING THE YEAR UNDER APPEAL AS COMPARED TO IMMEDIATELY PRECEDING ASSESSMENT YEAR. AGGRIEVED BY THIS ORDER , THE ASSESSEE CHALLENGED THIS ISSUE BEFORE THE LD. CIT(A), WHO UPHELD THE DISALLOWANCE MADE BY THE AO FOR WANT OF EVIDENCES. 4. THE SECOND ISSUE IS WHETHER THE LD. CIT(A) IS RIGHT IN UPHOLDING THE DISALLOWANCE OF EXPENSES ON AN ADHOC BASIS TOWARDS TRAVELLING AND CONVEYANCE RS.50,000/ - , PRIN TING AND STATIONERY RS.5,000/ - , FOODING AND LODGING RS.5,000/ - AND REPAIRS AND MAINTENANCE RS.5,000/ - . THE LD. AO PROCEEDED TO DISALLOW THE AFORESAID EXPENSES ON AN ADHOC BASIS FOR WANT OF PROPER BILLS AND VOUCHERS. AGGRIEVED BY THIS , THE ASSESSEE CHALLENGED THIS ISSUE BEFORE THE LD. CIT(A), WHO UPHELD THE DISALLOWANCE MADE BY THE AO FOR WANT OF EVIDENCES. 5 . AGGRIEVED BY THIS ORDER , THE ASSESSEE PREFERRED AN APPEAL BEFORE THIS TRIBUNAL ON THE FOLLOWING GROUNDS : - 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE TO RS.2,38,307/ - IN ARBITRARY AND ADHOC BASIS. 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE ON ADHOC ARBI TRARY BASIS UNDER THE HEADS : I)TRAVELLING & CONVEYANCE RS.50,000/ - II)PRINTING & STATIONERY RS. 5,000/ - III)FOODING & LODGING RS. 5,000/ - IV)REPAIRS & MAINTENANCE .RS. 5,000/ - THE ADDITIONS ARE ARBITRARY AND NOT MAINTAINABLE. 3. THAT THE APPEL LANT CRAVES LEAVE TO ADD TO AND/ OR ALTER/MODIFY THE GRO UND/GROUNDS TAKEN. 6 . SMT. VARSHA JALAN, ADVOCATE APPEARED ON BEHALF OF THE ASSESSEE AND SHRI SUBHENDU DUTTA APPEARED ON BEHALF OF THE REVENUE. ITA NO. 486/KOL/2014 SAMIRAN BAGCHI . A.YR. 2009 - 10 3 7 . IN RESPECT OF GROUND NO.1 , THE LD. AR O F THE ASSESSEE PLEADED THAT NONE APPEARED ON BEHALF OF THE ASSESSEE BEFORE THE LD. CIT(A) AND HENCE PRAYED FOR SETTING ASIDE THIS ISSUE TO THE FILE OF LD.CIT(A) FOR PRODUCTION OF ALL THE DETAILS AND VOUCHERS TO THE S ATISFACTION OF THE LD. CIT(A), A PART FRO M THE ARGUMENT THAT THE ENTIRE PAYMENTS UNDER THE HEAD TOUR/SITE EXPENSES WERE DU LY REIMBURSED BY A.B.B.LTD. AFTER TDS AND THERE IS NO LOSS TO THE REVENUE ON THIS ACCOUNT. 8 . THE LD. DR RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 9 . IN RES PECT OF GROUND NO.2 , THE LD. AR ARGUED THAT THE ADDITION THOUGH MADE ON ADHOC BASIS WHICH IS ARBITRARY AND HENCE PRAYED FOR SETTING ASIDE THIS ISSUE ALSO TO THE FILE OF LD. CIT(A) FOR EFFECTIVE REPRESENTATION AS NONE APPEARED BEFORE THE LD. CIT(A). THE LD. DR VEHEMENTLY SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 10 . I HAVE HEARD THE RIVAL SUBMISSIONS. I FIND THAT NONE APPEARED ON BEHALF OF THE ASSESSEE AND HENCE IN THE INTEREST OF JUSTICE , ONE MORE OPPORTUNITY BE GIVEN TO THE ASSESSEE T O SUBSTAN TIATE HIS CONTENTION AND ACCORDINGLY THE ISSUE IS SET ASIDE TO THE FILE OF LD.CIT(A) TO ADJUDICATE THESE ISSUES AFRESH BASED ON THE MATERIALS PRODUCED BY THE ASSESSEE BEFORE HIM. NEEDLESS TO MENTION THE ASSESSEE BE GIVEN REASONABLE OPPORTUNITY OF BEING HEA RD. THE ASSESSEE IS ALSO HEREBY DIRECTED NOT TO SEEK ADJOURNMENTS BEFORE THE LD. CIT(A) AND COOPERATE IN THE PROCEEDINGS FOR EXPEDITIOUS DISPOSAL OF THE PROCEEDINGS. 11 . IN THE RESULT THE APPEAL OF THE ASSESEE IS ALLOWED FOR STATISTICAL PURPOSES. ORD ER PRONOUNC ED IN TH E COURT . SD/ - [MAHAVIR SINGH] JUDICIAL MEMBER DATE: 03.08.2015. R.G.(.P.S.) ITA NO. 486/KOL/2014 SAMIRAN BAGCHI . A.YR. 2009 - 10 4 COPY OF THE ORDER FORWARDED TO : 1 . SAMIRAN BAGCHI, AGARW AL SANGANERIA & CO., 7, RABINDRA SARANI, 5 TH FLOOR, KOLKATA - 700001. 2 I.T.O., WARD - 2(1 ), KOLKATA. 3 . THE CIT, 4. THE CIT(A) - XX XVI , KOLKATA. 5 . DR, KOLKATA BENCHES, KOLKATA TRUE COPY , BY O RDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES