BHAVIK RAJESH KHANDHAR SHARE & STOCK BROKERS P. LTD., MUMBAI V. DCIT RG 4(1), MUMBAI

ITA 5079/MUM/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0453 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 28-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N HEMALATHA
• Assessee Lawyers: DILIP LAKHANI
• Section: 11

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI SMC BENCHES , MUMBAI , BEFORE SHRI JOGINDER SINGH, J UDICIAL M EMBER ITA NO . 5079 /MUM/20 17 ASSESSMENT YEAR: 20 1 0 - 11 BHAVIK RAJE SH KHANDHAR SHARE & STOCK BROKERS PVT. LTD., 278, JEEVAN UDYOG BLDG. , 2 ND FLOOR, D.N. ROAD, FORT, MUMBAI 400 001. / VS. DCIT, RANGE 4(1), MUMBAI . ( /ASSESSEE) ( / REVENUE) P.A. NO. AAACB 9797 Q / ASSESSE E BY SHRI DILIP LAKHANI SR. ADV. / REVENUE BY MS. N. HEMALATHA - DR / DATE OF HEARING : 13 /0 2 /201 8 / DATE OF ORDER : 13 /02 /201 8 / O R D E R THE ASSESSE E IS AGGRIEVED BY THE IMPUGNED ORDER DATED 12/05/2017 OF THE LD. FIRST APPELLATE AUTHORITY, MUMBAI . THE ONLY GROUND AGITATED BY THE LD. COUNSEL FOR THE ASSESSEE IS WITH RESPECT TO CONFIRMING THE ADDITION OF RS. 2,45,340/ - INVOKING BHAVIK RAJESH KHANDHAR SHARE & STOCK BROKERS P. LTD. ITA NO. 5079/MUM/2017 2 THE PROVISIONS OF SECTION 40(A)(IA) OF THE INCOME TAX ACT, 19 61 (HEREINAFTER THE ACT) . 2. DURING THE HEARING, THE LD. COUNSEL FOR THE ASSESSEE SHRI DILIP LAKHANI CONTENDED THAT THE ASSESSEE MADE THE PAYMENTS TO M/S. RAJESH ENTERPRISES, BEING THE REIMBURSEMENT OF EXPENDITURE INCURRED BY M/S. RAJESH ENTERPRISES ON BEHALF OF THE ASSESSEE AND THERE WAS NO OBLIGATION UPON THE ASSESSEE TO DEDUCT TAX AT SOURCE ON REIMBURSEMENT OF EXPENDITURE . IT WAS PLEADED THAT M/S.RAJESH ENTERPRISES ACTUALLY RECOVERED THE EXPENSES FROM THE ASSESSEE. MY ATTENTION WAS INVITED TO PAGE NO. 38 OF THE PAPER BOOK CONTAINING A DEBIT NOTE OF RS.2,28,000/ - , WHICH HAS BEEN INCLUDED IN THE BALANCE SHEET 31/03/2011 (PAGE NO. 36 OF THE PAPER BOOK) IN ITS INCOME AND EXPENDITURE ACCOUNT. MY ATTENTION WAS FURTHER INVITED TO PAGE NO. 30 OF THE PAPER BOOK , LETTER DATED 21/10/2013 CONTAINING THE DETAILS OF EXPENSES AMOUNTING TO RS.2,28,000/ - ADDRESSED TO THE DCIT BY THE ASSESSEE . IT WAS FURTHER CONTENDED THAT THE PAYEE TO WHOM THE PAYMENT WAS MADE HE OFFERED INCOME AND PAID TAXES . THIS CLAIM OF THE AS SESSEE WAS NOT CONTROVERTED BY THE REVENUE , BUT IT WAS ADDED THAT THE APPEAL MAY BE BHAVIK RAJESH KHANDHAR SHARE & STOCK BROKERS P. LTD. ITA NO. 5079/MUM/2017 3 SENT TO THE FILE OF THE LD. ASSESSING OFFICER TO EXAMINE THE CLAIM OF THE ASSESSEE. CONSIDERING THE TOTALITY OF FACTS AND SINCE THE ADDITION HAS BEEN MADE OF RS. 2,45,340/ - ON WHICH NO TDS WAS DEDUCTED AND THE PROVISION OF SECTION 40(A)(IA) WAS INVOKED, WHEREAS IN THE DEBIT NOTE THE INCOME HAS BEEN MENTIONED AT RS. 2,28,000/ - , THEREFORE, IN FITNESS OF THINGS I AM OF THE VIEW THAT IT NEEDS EXAMINATION AT THE LEVEL OF THE LD. ASSESSING OFFICER . THE ASSESSEE BE GIVEN OPPORTUNITY TO SUBSTANTIATE HIS CLAIM. THUS, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. FINALLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. T HIS ORDER WAS PRONOUNCED I N THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FRO M BOTH SIDES AT T H E CONCLUSION OF THE HEARING ON 13 /0 2 /201 8 . S D/ - (JOGINDER SINGH) / JUDICIAL MEMBER MUMBAI; DATED : 13 /02 /201 8 VR , P.S/. . . BHAVIK RAJESH KHANDHAR SHARE & STOCK BROKERS P. LTD. ITA NO. 5079/MUM/2017 4 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT, MUMBAI. 4. / CIT(A) - , MUMBAI 5. , , / DR , ITAT, MUMBAI 6. / GUARD FILE. / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI