PAREKH DISTRIBUTORS, MUMBAI V. ASST CIT CIR 12(3), MUMBAI

ITA 6378/MUM/2012

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2803 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-11-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 03-11-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 18-10-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SOMNATH UKKALDR
• Assessee Lawyers: NITISH JOSHI; S S JHUNJHUNWALA

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER ITA NO.6378/MUM/2012 ASSESSMENT YEAR- 2009-10 PAREKH DISTRIBUTORS, UNITED INDIA BUILDING, 2 ND FLOOR, SIR P.M.ROAD, FORT, MUMBAI-400001 / VS. ACIT, CIRCLE-12(3), AAYAKAR BHAVAN, MUMBAI-400020 ( /ASSESSEE) ( ! / REVENUE) PAN. NO. AAAFP8148A / ASSESSEE BY SHRI NITISH JOSHI & SHRI S.S. JHUNJHUNWALA ! / REVENUE BY SHRI SOMNATH UKKAL-DR ' !# $ % / DATE OF HEARING : 03/11/2015 $ % / DATE OF ORDER: 06/11/2015 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DA TED 23/07/2012 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI. PAREKH DISTRIBUTORS ITA NO.6378/MUM/2012 2 2. DURING HEARING OF THIS APPEAL, AT THE OUTSET, T HE LD. DR, SHRI SOMNATH UKKAL, CONTENDED THAT SO FAR AS, CONFIRMING THE DISALLOWANCE OF 5% OF MOTOR CAR EXPE NSES AMOUNTING TO RS.22,884/- (5% OF RS.4,57,684/-), TEL EPHONE EXPENSES AMOUNTING TO RS.59,556/-(5% OF RS.11,91,11 8/-), CONVEYANCE EXPENSES AMOUNTING TO RS.20,291/- (5% OF RS.4,05,829/-), STAFF WELFARE EXPENSES AMOUNTING TO RS.11,439/- (5% OF RS.2,28,789/-), SUNDRY EXPENSES AMOUNTING TO RS.1,47,569/-(5% OF RS.29,51,385/-) AN D TRAVELLING EXPENSES AMOUNTING TO RS.70,734 (5% OF RS.14,14,672/-), IDENTICALLY, WERE DECIDED AGAINST THE ASSESSEE FOR A.Y. 2006-07 (ITA NO.2661/MUM/2010) A ND IN SOME OTHER ASSESSMENT YEAR ALSO. THIS FACTUAL MATRI X WAS NOT CONTROVERTED BY THE LD. COUNSEL FOR THE ASSESSEE. 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND T HAT FOR A.Y. 2006-07, IN THE CASE OF THE ASSESSEE ITSELF, T HE TRIBUNAL VIDE ORDER DATED 11/03/2015 (ITA NO.2661/MUM/2010), WHEREIN, SUCH DISALLOWANCES WERE CONFIRMED UPTO 10% AND THE TRIBUNAL VIDE ITA NO.3294/MUM/2010 ORDER DATED 30/05/2012 CONSIDERED THE FACTS CONFIRMED THE DISAL LOWANCE AT 5%, THEREFORE, FOLLOWING THE ABOVE DECISION AND THE MATERIAL AVAILABLE ON RECORD, WE FIND NO MERIT IN T HESE GROUNDS (GROUNDS NO.1 TO 7), THEREFORE, THE GROUNDS ARE DISMISSED AND DECIDED AGAINST THE ASSESSEE. 3. THE NEXT GROUND PERTAINS TO CONFIRMING THE ADDI TION OF RS.5,39,068/- IN RESPECT OF TRANSACTION WITH SPE CIALTY FOOD PAREKH DISTRIBUTORS ITA NO.6378/MUM/2012 3 INDIA LTD. ON THE BASIS OF ITS DETAILS DOWNLOADED F ROM THE SYSTEM. THE LD. COUNSEL INVITED OUR ATTENTION TO PA GE 4, PARA - 7 OF THE ASSESSMENT ORDER AND PARA 4.3 (PAGE-5) OF THE IMPUGNED ORDER ALONG WITH PAGE 35 OF THE PAPER BOOK ALONG WITH PAGE 24 OF THE PAPER BOOK CONTAINING THE LETTE R OF THE ASSESSEE TO SPECIALTY FOOD. IT WAS CONTENDED THAT T HE ADDITION MAY BE DELETED. ON THE OTHER HAND, THE LD . DR, DEFENDED THE CONCLUSION ARRIVED AT IN THE IMPUGNED ORDER. 3.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE NOTE T HAT THE ASSESSEE ADMITTED TO HAVE ENTERED INTO TRANSACTION WITH M/S SPECIALTY FOOD INDIA PVT. LTD. AND IN SPITE OF PROV IDING OF AMPLE OPPORTUNITIES COULD NOT FURNISH CONFIRMATION FROM SPECIALTY FOOD INDIA PVT. LTD., THEREFORE, IN THE A BSENCE OF SUCH CONFIRMATION, THE ADDITION WAS CONFIRMED. BEFO RE US, THE LD. COUNSEL FOR THE ASSESSEE, INVITED OUR ATTEN TION TO PAGE- 24 OF THE PAPER BOOK CONTAINING LETTER DATED 16/11/ 2011 ADDRESSED TO SPECIALTY FOOD INDIA PVT. LTD. IN WHIC H SOME DETAILS OF TDS HAS BEEN MENTIONED. WE NOTE THAT THI S LETTER WAS NEVER PRODUCED BEFORE THE ASSESSING OFFICER. TH EREFORE, WE REMAND THIS ISSUE TO THE FILE OF THE LD. ASSESSI NG OFFICER TO EXAMINE THE CLAIM OF THE ASSESSEE AND THEN DECIDE I N ACCORDANCE WITH LAW. THE ASSESSEE BE GIVEN OPPORTUN ITY OF BEING HEARD, THUS, THIS GROUND OF THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES ONLY. FINALLY, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOW ED FOR STATISTICAL PURPOSES ONLY. PAREKH DISTRIBUTORS ITA NO.6378/MUM/2012 4 THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 03/11/2015. SD/- SD/- ( ASHWANI TANEJA ) (JOGINDER SINGH) '# / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER ' # MUMBAI; ' DATED : 06/11/2015 F{X~{T? P.S/. .. %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. )*+, / THE APPELLANT 2. -.+, / THE RESPONDENT. 3. / / ' 0 ( )* ) / THE CIT, MUMBAI. 4. / / ' 0 / CIT(A)- , MUMBAI 5. 2!3 - , / )*% ) 4 , ' # / DR, ITAT, MUMBAI 6. 5 6# / GUARD FILE. / BY ORDER, .2* - //TRUE COPY// / (DY./ASSTT. REGISTRAR) , ' # / ITAT, MUMBAI.