Shri Prashant Khatri, Kanpur V. The Asstt. Commissioner of Income Tax, Kanpur

ITA 591/LKW/2013

• Counselvise Citation: 59123714 RSA 2013
• Duration Of Justice: 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 22-04-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 25-07-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R K RAM
• Keywords: Principle of natural justice

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.591/LKW/2013 ASSESSMENT YEAR:2005 - 06 SHRI PRASHANT KHATRI, 55/57, KAHU KOTHI, KANPUR. PAN:ACMPK8253F VS. A.C.I.T., CENTRAL CIRCLE - II, KANPUR. (APPELLANT) (RESPONDENT) APPELLANT BY SHRI RAKESH GARG, ADVOCATE RESPONDENT BY SHRI R. K. RAM, D.R. DATE OF HEARING 22 /04/2014 DATE OF PRONOUNCEMENT 1 3 /05/2014 O R D E R PER A. K. GARODIA, A.M. THIS IS AN ASSESSEES APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT (A) - I, KANPUR DATED 10/05/2013 FOR ASSESSMENT YEAR 2005 - 2006. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: 1. THAT THE LEARNED COMMISSIONER OF INCOME TAX (A) - I, KANPUR HAS BEEN WRONG IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS.11,40,598/ - ON ACCOUNT OF COMMISSION PAID TO HOSPITAL I.E. RATAN CANCER & RESEARCH INSTITUTE. 2. THAT THE ADDITION OF RS.11,40,598/ - MADE BY THE ASSESSING OFFICER ON ACCOUNT OF EXCESS COMMISSION PAID TO HOSPITAL AND CONFIRMED BY THE LEARNED COMMISSIONER OF INCOME TAX (A) - I, KANPUR IS WITHOUT CONSIDERING THE FACTS OF THE CASE AND IS UNJUSTIFIED AND ARBITRARY. 3. THAT THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (A) - I, KANPUR IS BAD IN LAW, ON FACTS AND AGAINST THE PRINCIPLES OF NATURAL JUSTICE. 2 4. THAT THE 'A' CRAVES LEAVE TO AMEND ANY ONE OR MORE OF THE GROUNDS OF APPEAL AS STATED ABOVE AS AND WHEN NEED OF DOING SO ARISE DURING THE COURSE OF APPELLAT E PROCEEDINGS BEFORE THE HON'BLE BENCH OF INCOME TAX APPELLATE TRIBUNAL. 3. LEARNED A.R. OF THE ASSESSEE REITERATED THE SAME CONTENTIONS, WHICH WERE RAISED BEFORE CIT(A). HE ALSO SUBMITTED THAT THE DISALLOWANCE IS EXCESSIVE. 4. LEARNED D.R. OF THE REVE NUE SUPPORTED THE ORDER OF LEARNED CIT(A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. THIS ISSUE WAS DECIDED BY LEARNED CIT(A) AS PER PARA 3 OF HIS ORDER, WHICH IS REPRODUCED BELOW FOR THE SAKE OF READY REFERENCE: 3. FIRST ISSUE IS WITH RESPECT TO DISALLOWANCE OF RS. 11,40,598/ - ON ACCOUNT OF COMMISSION PAID TO THE HOSPITAL. THIS ISSUE IN THE FIRST ROUND OF APPEAL HAD ALREADY BEEN SUBJECTED TO APPEAL BEFORE THE HON'BLE ITAT WHEREIN THE HON'BLE ITAT HAD GIVEN THE DECIDED THAT THE COMMISSION PAYABLE T O M/S RATAN CANCER & RESEARCH INSTITUTE WOULD BE ALLOWABLE TO THE EXTENT OF 10% OF TOTAL THE TURNOVER. TOTAL COMMISSION PAID BY THE ASSESSEE WAS RS.25,61,616/ - WHICH WAS @18.02% ON TOTAL TURNOVER OF RS.1,42,10,180/ - . THUS, THE ADDITION ON ACCOUNT OF COMMI SSION AS PER THE HON'BLE ITAT'S DECISION WOULD BE RESTRICTED TO 8.02% (I.E. 18.02 - 10) OF RS.1,42,10,180/ - , WHICH COMES TO RS.11,40,598/ - . SINCE THE DISALLOWANCE/ADDITION MADE BY THE A.O. WHILE GIVING EFFECT TO THE HON'BLE ITATS ORDER ON ACCOUNT OF COMMISS ION IS IN CONFORMITY WITH THE DIRECTION OF THE HON'BLE I.T.A.T., THE ADDITION SO MADE BY THE ASSESSING OFFICER REQUIRES NO INTERFERENCE. 5.1 FROM THE ABOVE PARA OF CIT(A)S ORDER, WE FIND THAT THE DECISION OF THE CIT(A) IS BY FOLLOWING THE TRIBUNAL ORDER IN ASSESSEES OWN CASE WHERE IT WAS HELD BY THE TRIBUNAL THAT DEDUCTION ON ACCOUNT OF COMMISSION PAYMENT TO RATAN CANCER & RESEARCH INSTITUTE WOULD BE ALLOWABLE TO THE EXTENT OF 10% OF 3 THE TOTAL TURNOVER. THE CIT(A) HAS ALLOWED THE DEDUCTION TO THAT EXTE NT AND DISALLOWED THE CLAIM IN EXCESS OF 10% OF THE TURNOVER. SINCE THE DECISION OF CIT(A) IS IN LINE WITH THE TRIBUNAL DECISION, WE DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF CIT(A). 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 3 /05/2014. *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR