ITO 13 (1)(1), MUMBAI V. M/S NIRVANA FOOD, MUMBAI

ITA 6270/MUM/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6385 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 03-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SMITA VERMA
• Keywords: Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI , BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 6270 //20 19 (. . 2014-15 ) ITA NO.6270/MUM/2019 (A.Y.2014-15) ITO-13(1)(1), ROOM NO. 225, 2 ND FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-400020 ...... ' / APPELLANT VS. M/S NIRVANA FOOD CONCEPTS PVT. LTD. SHOP NO. 21,22,23, HALL EVERSHINE MILLENIUM PLAZA, THAKUR VILLAGE, KANDIVALI (E), MUMBAI-400101. PAN: AADCN3252D . .... (*/ RESPONDENT ' +/ APPELLANT BY : MS. SMITA VERMA (* +/ RESPONDENT BY : NONE , / DATE OF HEARING : 03/05/2021 , / DATE OF PRONOUNCEMENT : 16/07/2021 / ORDER PER VIKAS AWASTHY, J.M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-21, MUMBAI [HE REINAFTER REFERRED TO AS THE CIT(A)] DATED 28.06.2019 FOR THE ASSESSMENT Y EAR (AY) 2014-15. 2 . 6270 //20 19 (. .2014-15 ) ITA NO.6270/MUM/2019 (A.Y.2014-15) 2. MS. SMITA VERMA REPRESENTING THE DEPARTMENT SUBM ITTED THAT THE SOLITARY ISSUE RAISED IN APPEAL BY THE REVENUE IS A GAINST THE ORDER OF CIT(A) IN DELETING ADDITION OF RS. 3,95,000/-. THE LD. DEPART MENTAL REPRESENTATIVE (DR) SUBMITTED THAT THE ASSESSEE HAD MADE PAYMENT OF RS. 3,95,000/- TO M/S EVERSHINE HALLEY CO-OP. HSG SOC. LTD. FOR USE OF OP EN SPACE. THE ASESSEE FAILED TO DEDUCT TAX AT SOURCE ON THE SAID PAYMENT, NO ANY CERTIFICATE FROM CHARTERED ACCOUNTANT IN FORM-26A OF THE INCOME TAX ACT, 1961 [HEREINAFTER REFERRED TO AS THE ACT] WAS FURNISHED BY THE ASSESSEE ALONG W ITH THE RETURN OF INCOME. THE ASSESSING OFFICER (AO) DISALLOWED ASSESSEES EN TIRE CLAIM OF EXPENDITURE OF RS. 3,95,000/- IN RESPECT OF PAYMENT MADE TO HOUSIN G SOCIETY. IN FIRST APPELLATE PROCEEDINGS, THE CIT(A) HELD THAT THE ASSESSEE HAS FURNISHED CERTIFICATE FROM THE ACCOUNTANT IN FORM-26A OF THE ACT AND DELETED T HE ADDITION OF RS. 3,95,000/-. THE DR PRAYED FOR REVERSING THE FINDING S OF CIT(A) AND UPHELD THE ASSESSMENT ORDER. 3. SUBMISSIONS MADE BY LD. DR HEARD, ORDERS OF AUTH ORITIES BELOW EXAMINED. AT THE OUTSET IT IS OBSERVED THAT THE APP EAL OF REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN THE LI GHT OF CENTRAL BOARD OF DIRECTORS (CBDT) CIRCULAR NO. 17 OF 2019 DATED 08.0 8.2019. 4. EVEN OTHERWISE ON MERITS, WE FIND THAT THE ADDIT ION OF RS. 3,95,000/- IS LIABLE TO BE DELETED AS THE ASSESSEE HAS FURNISHED CERTIFICATE FROM ACCOUNTANT IN FORM-26A OF THE ACT AS ENVISAGED UNDER SECTION 2 01(1) READ WITH RULE 31CB(1) OF THE INCOME TAX RULES, 1962 [HEREINAFTER REFERRED TO AS THE RULES] TO THE EFFECT THAT THE COMPENSATION PAID BY THE ASS ESSEE TO M/S EVERSHINE HALLEY CO-OP. HSG SOC. LTD. (SUPRA) HAS BEEN OFFERE D TO TAX BY THE PAYEE. THE 3 . 6270 //20 19 (. .2014-15 ) ITA NO.6270/MUM/2019 (A.Y.2014-15) CIT(A) AFTER EXAMINING THE FACTS HAS RECORDED A FIN DINGS TO THIS EFFECT AND DELETED THE ADDITION. THE IMPUGNED ORDER WARRANTS N O INTERFERENCE. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON FRIDAY , THE 16 TH DAY OF JULY, 2021. SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 1/ DATED: 16/07/2021 SK, PS ( 2 ( 2 ( 2 ( 2 COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT , 2. (* / THE RESPONDENT. 3. 3 ( )/ THE CIT(A)- 4. 3 CIT 5. ( , . . . , / DR, ITAT, MUMBAI 6. 7 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI