SANJEEV CHAWLA, MUMBAI V. ACIT CIR 21(2), MUMBAI

ITA 6442/MUM/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 88017 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 14-01-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 22-10-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LOVE KUMAR
• Assessee Lawyers: AJAY R SINGH; DR K SHIVARAM
• Keywords: Business expenditure

Judgement Text

, , , , , ,, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E, MUMBAI , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI SANJAY ARORA, ACCOUNTANT MEMBER ITA NO.6442/MUM/2012 ASSESSMENT YEAR: 2006-07 MR. SANJEEV CHAWLA, 102, LEELA APARTMENTS, S.V. ROAD, VILE PARLE(W), MUMBAI-400056 / VS. ASST. COMM. OF INCOME - TAX, CIRCLE-21(2), 508, 5 TH FLOOR, C-10, BANDRA KURLA COMPLEX BANDRA(E), MUMBAI-400051 ( #$% /ASSESSEE) ( & / REVENUE) P.A. NO.AABPC0945K #$% ' ( ' ( ' ( ' ( / // / ASSESSEE BY) DR.K. SHIVARAM & SHRI AJAY R. SINGH & ' ( ' ( ' ( ' ( / REVENUE BY : SHRI LOVE KUMAR - DR ' %) / / / / DATE OF HEARING : 14 /01/2015 *+, ' %) / DATE OF PRONOUNCEMENT : 14/01/2015 DATE OF ORDER : - - - - ' %) / 23/01/2015 - - - - / / / / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) : THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 20/07/2012 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI . THE FIRST GROUND PERTAINS TO DISALLOWING THE ENTIRE EXP ENSES MR. SANJEEV CHAWLA . 2 OF RS.8,71,947/-, INCURRED BY THE PROPRIETARY CONCE RN M/S METRO EXPORTS. 2. AT THE TIME OF HEARING, THE ONLY GROUND RAISED A ND ARGUED BY LD. SENIOR ADVOCATE, DR. K. SHIVARAM ALON G WITH SHRI AJAY R. SINGH, IS THAT THE RELIEF WAS DEN IED TO THE ASSESSEE WITHOUT LOOKING INTO THE DETAILS FILED , DURING ASSESSMENT PROCEEDINGS, BY THE ASSESSEE AND EVEN WITHOUT ASSIGNING ANY REASON. THE LD. COUNSEL INVITED OUR ATTENTION TO PAGE 21, 171 TO 176 OF THE PAPER BOOK. ON THE OTHER HAND, SHRI LOVE KUMAR, LD . DR, DEFENDED THE CONCLUSION ARRIVED AT IN THE IMPUG NED ORDER. IT WAS SUBMITTED THAT THERE WAS NO NEXUS OF THE EXPENDITURE WHICH WAS CLAIMED TO BE INCURRED FOR BUSINESS PURPOSES, THUS, THE BUSINESS EXPENDITURE W AS RIGHTLY DISALLOWED. 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT WAS N OTED BY THE ASSESSING OFFICER THAT IN THE PROFIT & LOSS ACCOUNT OF M/S METRO EXPORTS, PROPRIETARY CONCERN OF THE ASSESSEE, HAVING BUSINESS OF MANUFACTURING AND EXPORTS OF WRITING INSTRUMENTS WAS HAVING ONLY INTE REST INCOME FROM ICICI BONDS AND LOAN AND ALSO INTEREST ON DELAYED PAYMENTS FROM DEBTORS IN FOREIGN CURRENCY. ADMITTEDLY, THE INTEREST ON DELAYED PAYMENTS WAS REALIZED IN FOREIGN CURRENCY FROM ITS DEBTORS OF EA RLIER YEARS BUT AS PER THE REVENUE NO ACTIVITY WAS CARRIE D OUT, PERTAINING TO EXPORT BUSINESS, DONE BY M/S MET RO EXPORTS. THE CLAIMED EXPENSES WERE DISALLOWED. WE HAVE SEEN THESE EXPENSES LIKE BANK CHARGES, CABLE T V MR. SANJEEV CHAWLA . 3 CHARGES, COMMISSION PAID, ELECTRICITY CHARGES, INCO ME TAX APPEAL FEE, INSURANCE CHARGES, INTERNET RENEWAL CHARGES, OFFICE EXPENSES, PRINTING AND STATIONARY EXPENSES, PROFESSIONAL TAX/FEE, REPAIR AND MAINTENA NCE, SALES TAX, SALARIES, SHOP AND ESTABLISHMENT FEES, TELEPHONE EXPENSES, TRADEMARK RENEWAL CHARGES, VEHI CLE EXPENSES, ETC. KEEPING IN VIEW, THE TOTALITY OF FAC TS, MATERIAL AVAILABLE ON RECORD ALONGWITH NATURE OF EXPENSES AND ALSO TO PUT AN END TO THE LITIGATION, AS AGREED FROM BOTH SIDES, THE EXPENSES ARE ALLOWED TO THE EXTENT OF RS.5,40,000/- AGAINST RS.8,71,947/- BY TH E LD. COMMISSIONER OF INCOME TAX (APPEALS). THUS, THIS GROUND OF THE ASSESSEE IS PARTLY ALLOWED FINALLY, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOW ED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 14/01/2015. - ' *+, . / 14/01/2015 + ' 5 SD/ - (SANJAY ARORA) SD/ - (JOGINDER SINGH) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; . DATED : 23/01/201 5 F{X~{T? P.S/. .. - ' 7%8 98,% - ' 7%8 98,% - ' 7%8 98,% - ' 7%8 98,%/ COPY OF THE ORDER FORWARDED TO : 1. :; / THE APPELLANT 2. 7<:; / THE RESPONDENT. 3. = ( ) / THE CIT, MUMBAI. 4. = / CIT(A)- , MUMBAI 5. 8?5 7% , , / DR, ITAT, MUMBAI MR. SANJEEV CHAWLA . 4 6. 5@# A / GUARD FILE. - - - - / BY ORDER, <8% 7% //TRUE COPY// B BB B/ // /C & C & C & C & (DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI