Parminder Singh, Chandigarh V. Pr. CIT-II, Chandigarh

ITA 525/CHANDI/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0334 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 23-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G S PHANI KISHORE
• Assessee Lawyers: B K NOHRIA
• Keywords: Business expenditure
• Section: 263

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH , ! '# $ % & '# , () BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 525/CHD/2017 / ASSESSMENT YEAR : 2012-13 SH. PARMINDER SINGH PROP BHULLAR AUTOMOBILE SERVICE, NH-21, SECTOR 41-C, CHANDIGARH VS. THE PCIT -2, CHANDIGARH ./PAN NO: AJOPS8844GH / APPELLANT /RESPONDENT ! /ASSESSEE BY : SH. B.K. NOHRIA, CA ' ! / REVENUE BY : SH. G.S PHANI KISHORE, CIT DR # $ % /DATE OF HEARING : 20.11.2018 &'() % / DATE OF PRONOUNCEMENT : 20.11 . 2018 (*/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 01.03.2017 OF THE PRINCIPAL COMMISSIONE R OF INCOME TAX, CHANDIGARH [HEREINAFTER REFERRED TO AS PCIT]. 2. THE SOLE ISSUE RAISED BY THE ASSESSEE IN THIS AP PEAL IS REGARDING THE EXERCISE OF REVISION JURISDICTION BY THE LD. PCIT U /S 263 OF THE INCOME- TAX ACT, 1961 (IN SHORT 'THE ACT') AND THEREBY DISA LLOWING THE LANGAR (FREE FOOD) EXPENSES INCURRED BY THE ASSESSEE CLAIM ED AS BUSINESS EXPENDITURE. THE ASSESSEE CLAIMED THAT THE AFORESA ID LANGAR EXPENSES WERE INCURRED FOR THE PROMOTION AND GROWTH OF BUSIN ESS. HOWEVER, THE LD. ITA NO. 525-CHD-2017- SH. PARMINDER SINGH, CHANDIGARH 2 PCIT NOTED THAT THE ASSESSEE COULD NOT LINK THE AFO RESAID LANGAR EXPENSES WITH THE BUSINESS ACTIVITY OF THE ASSESSEE. 3. BEFORE US, LD. COUNSEL FOR THE ASSESSEE HAS SUBM ITTED THAT THE ASSESSEE IS RUNNING A PETROL PUMP AND LANGER (FR EE FOOD) WAS OFFERED TO THE GENERAL PUBLIC AT THE BUSINESS SITE SO AS TO MA KE AWARE THE PUBLIC ABOUT THE RUNNING OF PETROL PUMP AND ALSO TO ATTRACT CUST OMERS AS ALSO TO SHOW HIS GOODWILL GESTURE TO THE CUSTOMERS. THE ENTIRE E XERCISE WAS DONE TO GET AND ATTRACT THE CUSTOMERS. 4. CONSIDERING THE MEAGER AMOUNT OF EXPENDITURE INC URRED ON THE LANGER BY THE ASSESSEE AND THE ABOVE SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE, WE DO NOT FIND IT A FIT CASE FOR EX ERCISING OF REVISION JURISDICTION BY THE LD. PCIT AS IT CANNOT BE SAID IN STRICT TERM THAT THE MOTIVE OF THE EXPENDITURE WAS NOT FOR GETTING GROWT H OF THE BUSINESS. IN VIEW OF THE ABOVE, THE IMPUGNED ORDER OF THE LD. PCIT IS SET ASIDE AND THE APPEAL OF THE ASSESSEE IS HEREBY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 20.11.2018. SD/- SD/- ( $ % & '# / ANNAPURNA GUPTA) () / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 20.11 .2018 .. '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE ITA NO. 525-CHD-2017- SH. PARMINDER SINGH, CHANDIGARH 3 '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR