The Dy. CIT, Circle-4(1)(1), Ahmedabad V. M/s. Sal Care Pvt. Ltd., Ahmedabad

ITA 541/AHD/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2739 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 03-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K DEV
• Assessee Lawyers: S N SOPARKAR
• Keywords: Revenue expenditure
• Section: 143(3)

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR ./ I.T.A. NO. 541/AHD/2017 ( ASSESSMENT YEAR : 2012-13) D.C.I.T. CIRCLE-4(1)(1), AHMEDABAD / VS. M/S. SAL CARE PVT. LTD. C/O SAL HOSPITAL AND MEDICAL INSTITUTE, OPP. DOORDARSHAN, DRIVE-IN- ROAD, AHMEDABAD - 380054 ./ ./ PAN/GIR NO. : AALCS7886G ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI S. K. DEV, SR. D.R. / RESPONDENT BY : SHRI S. N. SOPARKAR, A.R. DATE OF HEARING 25/10/2018 !'# / DATE OF PRONOUNCEMENT 02/11/2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-8, AHMEDABAD (CIT(A) IN SHORT), DATED 23.12.2016 ARISING IN THE ASSESSMENT ORDER DATED 27.03.2015 PA SSED BY THE ITA NO.541/AHD/17 [DCIT VS. M/S. SAL CARE PVT. LTD.] A.Y. 2012-13 - 2 - ASSESSING OFFICER (AO) UNDER S. 143(3) R.W.S. OF TH E INCOME TAX ACT, 1961 (THE ACT) CONCERNING ASSESSMENT YEAR 2012 -13. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REA DS AS UNDER:- 1. WHETHER THE LD. CIT(APPEAL) IS RIGHT IN LAW AN D ON FACTS IN DELETING THE ADDITION OF RS.2,56,18,315/- ON ACCOUNT OF OPERATIO N AND MANAGEMENT. 3. WITH THE ASSISTANCE OF THE LEARNED AR FOR THE AS SESSEE, WE FIND THAT THE AO HAS RAISED THE ISSUE OF PAYMENT TO WARDS OPERATIONAL AND MANAGEMENT RIGHTS AND REIMBURSEMENT OF EXPENSES BASED ON THE ASSESSMENT ORDER FOR AY 2009- 10 IN WHICH SIMILAR TREATMENT WAS GIVEN BY THE AO TREATING THE PAYMENT OF RECURRING REVENUE EXPENSES OF OPERATION AND MANAGEM ENT CHARGES AND REIMBURSEMENT OF EXPENSES TO M/S. ADARSH FOUNDA TION AS PAYMENT TOWARDS ACQUISITION OF INTANGIBLE ASSETS. THE IDENTICAL ISSUE TRAVELLED BEFORE THE CO-ORDINATE BENCH OF TRI BUNAL IN ASSESSEES OWN CASE IN AYS 2009-10 AND 2011-12 IN I TA NO.1518/AHD/2012 DATED 21.07.2015 AND ITA NO.1811/A HD/2015 ORDER DATED 05.09.2017 RESPECTIVELY. THE CO-ORDINA TE BENCH HAS DISMISSED THE APPEAL OF THE REVENUE IN THE SIMILAR CIRCUMSTANCES IN BOTH THESE ASSESSMENT YEARS. IT IS FURTHER NOTI CED THAT THE REVENUE HAS TAKEN THE MATTER BEFORE THE HONBLE GUJ ARAT HIGH COURT IN R/TAX APPEAL NO.215 OF 2018 JUDGMENT DATED 27.03.2018 CONCERNING AY 2011-12. THE HONBLE GUJA RAT HIGH COURT HAS DISMISSED THE APPEAL OF THE REVENUE AND I N EFFECT ENDORSED THE DECISION OF THE TRIBUNAL THAT EXPENDIT URE CLAIMED ON ACCOUNT OF OPERATION AND MANAGEMENT RIGHT CHARGES A ND ITA NO.541/AHD/17 [DCIT VS. M/S. SAL CARE PVT. LTD.] A.Y. 2012-13 - 3 - REIMBURSEMENT OF EXPENSES ARE REVENUE EXPENDITURE. THUS, IN PARITY, WE DO NOT SEE ANY FLAW IN THE ORDER OF THE CIT(A) SOUGHT TO BE IMPUGNED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 02/11/2018 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 02/11/201 8