Appeal details
Counselvise Citation
[2021] 109 COUNSELVISE.COM (IT) 2738 (ITAT-DELHI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 6 month(s) 27 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
18-02-2021
Appeal Filed By
Assessee
Order Result
Partly Allowed
Bench Allotted
G
Assessment Year
2016-2017
Appeal Filed On
22-07-2019
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G, NEW DELHI BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER (THROUGH VIDEO CONFERENCING) ITA NO. 6168/DEL/2019 : ASSTT. YEAR : 2016-17 M/S SCAN HOLDINGS PVT. LTD., F-4, SHOPPING COMPLEX, A BLOCK, MEERA BAGH, WEST DELHI, NEW DELHI-110087 VS ACIT, CIRCLE-22(2), NEW DELHI-110001 (APPELLANT) (RESPONDENT) PAN NO. A A BCS0852N ASSESSEE BY : SH. S. KRISHNAN, ADV. REVENUE BY : SH. PRAKASH DUBEY, SR. DR DATE OF HEARING: 16.02.2021 DATE OF PRONOUNCEMENT: 18.02.2021 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A)-8, NEW DELHI DATED 18.0 6.2019. 2. REGARDING THE DISALLOWANCE U/S 14A, THE ASSESSEE AT THE OUTSET ARGUED THAT THIS IS NOT A PARAMETER TO BE EX AMINED IN THE CASE OF LIMITED SCRUTINY PERTAINING TO THE ASSE SSEE AS PER THE NOTICE ISSUED DATED 18.07.2017. THERE WAS NO PR OOF ON RECORD THAT THE LIMITED SCRUTINY CASE HAS BEEN CONV ERTED INTO FULL SCRUTINY ON OBTAINING THE APPROVAL OF THE LD. PCIT AS PER THE INSTANT INSTRUCTIONS ISSUED BY THE CBDT. ITA NO. 6168/DEL/2019 SCAN HOLDINGS PVT. LTD. 2 3. SINCE, THE DISALLOWANCE U/S 14A DETERMINED BY TH E LD. CIT (A) OF RS.68,137/- IS WITHOUT JURISDICTION MANDATED , WE HEREBY DELETE THE ADDITION MADE BY THE AO. 4. WITH REGARD TO THE DISALLOWANCE ON ACCOUNT OF CA R RUNNING EXPENSES AND ENTERTAINMENT EXPENSES (ADDITIONAL GRO UNDS). THE LD. AR ARGUED THAT THERE CANNOT BE ANY EXPENSES OF PERSONAL ELEMENT IN CASE OF THE COMPANY. HE ARGUED THAT THE DISALLOWANCE OF EXPENSES OF RS.1,53,051/- ON ACCOUN T OF CAR RUNNING AND RS.24,657/- ON ACCOUNT OF ENTERTAINMENT EXPENSES CANNOT BE TREATED AS PERSONAL EXPENSES. REGARDING T HE ENTERTAINMENT EXPENSES BEING A FACTUAL ISSUE OF DIS ALLOWANCE OF RS.24,657/- FORGONE BY THE ASSESSEE EARLIER, OWING TO ANY VALID REASONS, WE DECLINE TO ADMIT THIS GROUND AT THIS J UNCTURE. 5. HAVING GONE THROUGH THE RECORD, WE FIND THAT REV ENUE HAS NOT BROUGHT ANYTHING TO PROVE THE PERSONAL NATURE O F THE EXPENSES WITH REGARD TO CAR MAINTENANCE EXPENSES EX CEPT DISALLOWING THE SAME ON ADHOC BASIS. HENCE, THE ACT ION OF THE REVENUE CANNOT BE SUPPORTED. IN THE PECULIAR FACTS AND CIRCUMSTANCES OF THE CASE, THE APPEAL OF THE ASSESS EE ON THIS GROUND IS ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18/02/2021. SD/- SD/- (SUCHITRA KAMBLE) (DR. B . R. R. KUMAR) JUDICIAL MEMBER ACCOU NTANT MEMBER DATED: 18/02/2021 *SUBODH*
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