SHREE RAJ RAJESHWARI PAP CHEM INDUSTRIES P.LTD, MUMBAI V. DCIT 9(3), MUMBAI

ITA 5109/MUM/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0965 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 23-10-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PURUSHOTTAM KUMAR LD
• Section: 143(3)

Judgement Text

ITA NO.5109/MUM/2015 SHRI RAJ RAJESHWARI PAP CHEM INDUSTRIES PVT. LTD. ASSESSMENT YEAR-2011-12 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI , , BEFORE SHRI JOGINDER SINGH, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.5109/MUM/2015 ( / ASSESSMENT YEAR: 2011-12) SHREE RAJ RAJESHWARI PAP CHEM INDUSTRIES P. LTD. 144, SHAH HOUSE OPP. KHAR POLICE STATION KHAR(W) MUMBAI-400 052 / VS. DEPUTY COMMISSIONER OF INCOME TAX 9(3) MUMBAI ! ./ ./PAN/GIR NO. AAACR-3535-J ( !# /APPELLANT ) : ( $%!# / RESPONDENT ) A SSESSEE BY : NONE RE VENUE BY : PURUSHOTTAM KUMAR, LD. SR. DR / DATE OF HEARING : 05/12/2017 / DATE OF PRONOUNCEMENT : 10/01/2018 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE CAPTIONED APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2011-12 ASSAILS THE ORDER OF THE LD. COMMISSIONER O F INCOME-TAX (APPEALS)-21 CIT(A)], MUMBAI, APPEAL NO. CIT(A)-21/DCIT-13(2)(1)/IT- 155/2014-15 DATED 19/08/2015 QUA CONFIRMATION OF CERTAIN DISALLOWANCES ITA NO.5109/MUM/2015 SHRI RAJ RAJESHWARI PAP CHEM INDUSTRIES PVT. LTD. ASSESSMENT YEAR-2011-12 2 AMOUNTING TO RS.21,29,480/-. NONE HAS APPEARED FOR ASSESSEE DESPITE NOTICE AND NO ADJOURNMENT APPLICATION IS ON RECORD. LEFT WITH NO OPTION, WE PROCEED TO DISPOSE-OFF THE SAME ON THE BASIS OF MATERIAL AVAILABLE ON RECORD AND AFTER HEARING LD. DEPARTMENTAL REPRESENT ATIVE [DR]. THE REGISTRY HAS NOTED THAT THE APPEAL HAS BEEN FILED W ITH A DELAY OF 2 DAYS. KEEPING IN VIEW THE MINOR DELAY, WE CONDONE THE SAM E. THE ASSESSMENT FOR IMPUGNED AY WAS FRAMED BY LD. DEPUTY COMMISSIONER OF INCOME TAX 9(3), MUMBAI [AO] U/S 143 (3) OF THE INCOME TAX ACT, 1961 ON 29/03/2014. 2. BRIEFLY STATED THE ASSESSEE BEING RESIDENT CORPORATE ASSESSEE ENGAGED AS MANUFACTURER AND DEALER OF PAPER AND PAPER BOARD WAS ASSESSED U/S 143(3) AT RS.1,24,75,788/- UNDER NORMA L PROVISION AS AGAINST RETURNED INCOME OF RS.89,67,020/- FILED BY THE ASSESSEE ON 30/03/2013. THE SOLE SUBJECT MATTER OF THIS APPEAL IS DISALLOWANCE OF STAFF WELFARE EXPENSES AMOUNTING TO RS.21,29,480/-. 3. DURING ASSESSMENT PROCEEDINGS IT WAS NOTED THAT THE ASSESSEE DEBITED STAFF WELFARE EXPENSES OF RS.25,88,160/- OUT OF WHICH RS.21,29,480/- WAS INCURRED BY THE DIRECTORS OF THE ASSESSEE COMPANY BY WAY OF CREDIT CARD TOWARDS HOTEL EXPENSES AND P URCHASE OF DRESS MATERIALS. SINCE THE EXPENSES WERE NOT RELATED TO T HE BUSINESS, THE SAME WERE DISALLOWED AND ADDED TO THE INCOME OF THE ASSESSEE. THE SAME HAS SINCE BEEN CONFIRMED BY LD. CIT(A) UPON FU RTHER APPEAL VIDE IMPUGNED ORDER DATED 19/08/2015. AGGRIEVED, THE ASS ESSEE IS IN FURTHER APPEAL BEFORE US. THE LD. DR HAS PLACED RELIANCE ON THE STAND OF LOWER AUTHORITIES. ITA NO.5109/MUM/2015 SHRI RAJ RAJESHWARI PAP CHEM INDUSTRIES PVT. LTD. ASSESSMENT YEAR-2011-12 3 4. HEARD AND PERUSED RELEVANT MATERIAL ON RECORD. U PON PERUSAL, WE FIND THAT IN TERMS OF SECTION 37(1), THE ASSESSEE H AS MISERABLY FAILED TO PROVE THAT THE SAID EXPENDITURE WERE INCURRED WHOLL Y AND EXCLUSIVELY FOR BUSINESS PURPOSES OF THE ASSESSEE. NO DEDUCTION COU LD BE ALLOWED TO ASSESSEE AGAINST PERSONAL EXPENSES. HENCE, FINDING NO INFIRMITY IN THE ORDER OF LOWER AUTHORITIES, WE DISMISS ASSESSEES A PPEAL. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH JANUARY,2018 SD/- SD/- (JOGINDER SINGH) (MANOJ KUMAR AGGAR WAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 10.01.2018 SR.PS:- THIRUMALESH ! / COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $%!# / THE RESPONDENT 3. - ( ) / THE CIT(A) 4. - / CIT CONCERNED 5. $'/ , / , / DR, ITAT, MUMBAI 6. 0 / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI