Vasantha Corpo Relations Private Limited , Hyderabad V. Dy. Commissioner of Income Tax , Circle-17(2), Hyderabad

ITA 617/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3568 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 26-04-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 26-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 617 /HYD/20 1 9 (ASSESSMENT YEAR : 2014 - 15 ) M/S. VASANTHA CORPO RELATIONS PVT. LTD., HYDERABAD. PAN AADCV 4959M ..APPELLANT. VS. DY. COMMISSIONER OF INCOME TAX, CIRCLE 17(2), HYDERABAD. ..RESPONDENT. APPELLANT BY : SHRI S.RAMA RAO. RESPONDENT BY : SHRI SUNIL KUMAR PANDEY (D.R) DATE OF HEARING : 26.04.2021 . DATE OF PRONOUNCEMENT : 31 .05. 2021. O R D E R PER SHRI S.S. GODARA, J.M. : THIS ASSESSEES APPEAL FOR ASST. YEAR 2014 - 15 ARISES FROM THE COMMISSIONER OF INCOME TAX (APPEALS) - 5 , HYDERABAD S ORDER DT. 81.04.2018 PASSED IN CASE NO. 0139/2017 - 18/CIT(A) - 5 IN PROCEEDINGS UNDER SECTION 143(3) OF INCOME TAX ACT, 1961 (THE ACT). 2 ITA NO. 617/HYD/2019 HEARD BOTH TH E PARTIES . C ASE FILE PERUSED. 2. WE NOTICE AT THE OUTSET THAT ASSESSEE'S INSTANT APPEAL SUFFERS FORM 312 DAYS DELAY IN FILING. LEARNED COUNSEL SUBMITTED THAT DUE TO THE OUTBREAK OF PANDEMIC COVID 19 UNABLE TO GET THE DOCUMENTS FROM THE DEPARTMENT WHICH CAUSED THE IMPUGNED DELAY IN FILING OF THE INSTANT APPEAL. CASE LAW COLL ECTOR LAND ACQUISITION VS. MST. KATIJI & ORS, 1987 AIR 1353 (SC) AND UNIVERSITY OF DELHI VS. UNION OF INDIA, CIVIL APPEAL NO.9488 & 9489/2019 DATED 17 TH DEC., 2019, HOLD THAT SUCH A DELAY; SUPPORTED BY COGENT REASONS, DESERVES TO BE CONDONED SO AS TO MAKE WAY FOR THE CAUSE OF SUBSTANTIAL JUSTICE. WE ACCORDINGLY HOLD THAT ASSESSEE'S IMPUGNED DELAY OF 312 DAYS IS NEITHER INTENTION NOR DELIBERATE BUT DUE TO THE CIRCUMSTANCES BEYOND HIS CONTROL. THE C ASE IS NOW TAKEN UP FOR ADJUDICATION ON MERITS. 3. TH E ASSESSEE'S SOLE SUBSTANTIVE GRIEVANCE CANVASSED IN THE INSTANT APPEAL CHALLENGES THE CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION IN SUSTAINING THE 3 ITA NO. 617/HYD/2019 DISALLOWANCE OF ENTIRE EXPENSES TO THE TUNE OF RS.36,63,212 PAID TO THE ASSOCIATES OF M/S. TCS EMPLOY EES IN CASH. THE REVENUES CASE AS PER BOTH THE LOWER AUTHORITIES DETAILED DISCUSSION IS THAT THE IMPUGNED ADDITION HAS NOT BEEN MADE FOR THE FIRST TIME AS WELL . 4. WE NOTICE IN THIS FACTUAL BACKDROP THAT THE TRIBUNAL, RECENT ORDER IN ASSESSEE'S C ASE ITSELF DT. 24.03.2012 INVOLVING ITA NO.1470/HYD/2017 FOR PRECEDING ASSESSMENT YEAR 2013 - 14 HAS RESTRICTED THE VERY DISALLOWANCE @ 50% THEREBY PARTLY ACCEPTING ASSESSEE'S AS WELL AS REVENUES SUBMISSIONS. 5 . WE FURTHER FIND THAT THE FACTUAL POSITI ON IS NOT DIFFERENT IN THE IMPUGNED ASSESSMENT YEAR AS WELL WHEREIN THE ASSESSEE HAD CLAIMED THE EXPENDITURE AS HAVING P AID CASH INCENTIVE S TO M/S. TCS EMPLOYEES, AS A GOODWILL TACTIC. WE THUS ADOPT JUDICIAL CONSISTENCY IN THE GIVEN CIRCUMSTANCES TO ADOPT THE VERY COURSE OF ACTION HERE IN AS WELL. THE ASSESSING OFFICER IS DIRECTED TO RESTRICT THE IMPUGNED DISALLOWANCE TO THE TUNE OF 50% WITH A RIDER 4 ITA NO. 617/HYD/2019 THAT THE SAME SHALL NOT BE TREATED AS A PRECEDENT. NECESSARY COMPUTATION SHALL FOLLOW AS PER LAW. 6 . THE A SSESSEE'S APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST MAY, 2021. SD/ - SD/ - (LAXMI PRASAD SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 31 .05 .2021. * REDDY GP COPY TO : 1. M/S. VASANTHA CORPO RELATIONS PVT. LTD., 1 - 96/4, 1 ST FLOOR, ABOVE HYDERABAD HOUSE SUPREME BUILDING, MADHAPUR MAIN ROAD, HYDERABAD - 500 081 2. DCIT, CIRCLE 17(2), HYDERABAD. 3. PR. C I T - 5 , HYDERABAD. 4. CIT(APPEALS) - 5, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.