M/s. Charotar Gas Sahkari Mandali Ltd., Anand V. The Dy. Commissioner of Income Tax, Anand Circle, Anand

ITA 652/AHD/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7040 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 15-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B P SRIVASTAVA
• Assessee Lawyers: MRS ARTI N SHAH
• Keywords: Business expenditure; Commercial expediency

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ./ ITA NO.652/AHD/2017 / ASSESSMENT YEAR: 2012-13 M/S.CHAROTAR GAS SAHAKARI MANDLI LTD, GAS HOUSE ANAND-SOJITRA ROAD V.U. NAGAR, ANAND 388 365 PAN : AAATC 1831 F). VS DCIT, ANAND CIRCLE ANAND. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : MRS. ARTI N. SHAH, AR REVENUE BY : SHRI B.P. SRIVASTAVA, SR.DR / DATE OF HEARING : 07/01/2019 /DATE OF PRONOUNCEMENT : 9 /01/2019 O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER : ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST ORDER OF THE LD.CIT(A) 4, VADODARA DATED 30.11.2016 PASSED FOR THE ASSESSMENT YEAR 2012-13. 2. SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE LD.CI T(A) HAS ERRED IN CONFIRMING DISALLOWANCE OF RS.2,94,652/- WHICH WAS CLAIMED ON ACCOUNT OF INSURANCE PREMIUM PAID FOR THE STAFF MEMBERS. ITA NO.652/AHD/2017 - 2 - 3. THE LD.COUNSEL FOR THE ASSESSEE AT THE VERY OUTS ET SUBMITTED THAT IDENTICAL ISSUE AROSE IN THE ASSTT.YEAR 2011-12 THE TRIBUNAL HAS SET ASIDE HIS ISSUE TO THE FILE OF THE AO WHILE DECIDING THE APPEAL OF THE ASSESSEE BEARING NO.412/AHD/2016. SHE SUBMITTED THAT THIS I SSUE BE REMITTED BACK TO THE FILE OF THE AO FOR FRESH ADJUDICATION. THE LD.DR WAS NOT ABLE TO CONTROVERT THE CONTENTIONS OF THE LD.COUNSEL FOR THE ASSESSEE. 4. WITH THE ASSISTANCE OF THE LD.REPRESENTATIVES, W E HAVE GONE THROUGH THE RECORD. WE FIND THAT IDENTICAL ISSUE W AS REMITTED BY THE TRIBUNAL TO THE FILE OF AO FOR ADJUDICATION AFRESH. THE FINDING OF THE TRIBUNAL READS AS UNDER: 6. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE ORDERS OF THE AUTHORITIES BELOW. THERE IS NO DISPUTE THAT THE ASSES SEE HAS PAID INSURANCE PREMIUM ON THE POLICIES TAKEN IN THE NAME OF THE EMPLOYEES. THE CLAIM OF THE ASSESSEE THAT THE INSURANCE POLICY IS TAKEN IN THE CATEGORY OF EMPLOYER EMPLOYEE POLICY OF THE L IC NEEDS VERIFICATION. IN OUR CONSIDERED OPINION, THIS IS A FIT CASE FOR RESTORATION TO THE FILES OF THE A.O. FOR DE NOVO ASSESSMENT . WE ACCORDINGLY RESTORE THE ENTIRE ASSESSMENT TO THE FILES O F THE A.O. THE ASSESSEE IS DIRECTED TO FURNISH THE DETAILS OF TH E INSURANCE POLICY. THE ASSESSEE IS FURTHER DIRECTED TO SHOW THAT TH E EMPLOYEES REMAINED IN EMPLOYMENT THROUGHOUT THE YEAR AND FURTHER EXPLAINED THE PROCEDURE ADOPTED BY THE ASSESSEE IF IN CASE, THE EMPLOYEE LEAVES THE EMPLOYMENT AND THE INSURAN CE PREMIUM IS PAID ON HIS POLICY. THE A.O. IS DIRECTED T O VERIFY THE DETAILS AFRESH AND THEN DECIDE WHETHER THE INSURANCE P REMIUM IS TO BE ALLOWED ON THE GROUNDS OF COMMERCIAL EXPEDIENCY AS BUSINESS EXPENDITURE. ITA NO.652/AHD/2017 - 3 - 5. FOLLOWING THE ABOVE DECISION OF THE TRIBUNAL, WE SET ASIDE THE ISSUE TO THE FILE OF THE AO FOR RECONSIDERATION WIT H SIMILAR DIRECTION AS GIVEN IN THE ASSTT.YEAR 2011-12. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. PRONOUNCED IN THE OPEN COURT ON 9 TH JANUARY, 2019. SD/- SD/- (WASEEM AHMED) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER