Shri Harsh Vardhan Bhuwalka, Kolkata V. ITO, Wd-30(1), Kolkata, Kolkata

ITA 660/KOL/2014

• Counselvise Citation: 66023514 RSA 2014
• Duration Of Justice: 1 year(s) 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 11-04-2014
• Court: TRIBUNAL
• Assessee Lawyers: D S DAMLE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH SMC, KOLKATA [BEFORE HONBLE SHRI N.V.VASUDEVAN, JM] ITA NO.660/KOL/2014 ASSESSMENT YEAR : 2008-09 SHRI HARSH VARDHAN BHUWALKA VERSUS- I.T.O., WARD-30(1), LKOLKATA KOLKATA (PAN:ADWPB 9931 G) (APPELLANT ) (RESPONDENT) FOR THE APPELLANT : SHRI D.S.DAMLE, FCA FOR THE RESPONDENT : SHRI ANIL KUMAR PANDEY, ADDL .CIT DATE OF HEARING : 02.12.2015. DATE OF PRONOUNCEMENT : 09.12.2015. ORDER THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 31.01.2014 OF CIT(A)-XIV, KOLKATA RELATING TO A.Y.2008-09. 2. THE ASSESSEE IS AN INDIVIDUAL. HE IS THE MANAGIN G DIRECTOR OF M/S.VBL INNOVATIONS PVT. LTD WHICH WAS SUBSEQUENTLY KNOWN A S VARDHAN BANDAR LTD. THE AO WAS IN POSSESSION OF INFORMATION THAT ASSESSEE HAD SPENT RS.2,56,406/- ON CREDIT CARDS. THE SOURCE OF MAKING THE AFORESAID PAYMENT WAS QUES TIONED BY THE AO. ASSESSEE SUBMITTED THAT HE WAS THE MANAGING DIRECTOR OF M/S. VBL INNOVATIONS PVT. LTD AND THE AFORESAID COMPANY HAD MADE PAYMENT OF THE CREDI T CARD BILLS. ASSESSEE FURTHER EXPLAINED THAT THE EXPENSES WERE INCURRED BY THE AS SESSEE FOR THE FOLLOWING PURPOSES: 1. REPAYMENT OF LOAN TAKEN BY THE COMPANY FROM STATE BANK OF PATIALA RS.1,97,111,68 (PRIN CIPAL) RS. 16,440.34 (INTEREST) RS.2,13,551 2. BUSINESS PROMOTION EXPENSES RS.15,234 3. FOREIGN TRAVELLING EXPENSES RS.27,620 4. OFFICE EXPENSES RS.899 TOTAL RS.2,57,305/- ITA NO.660/KOL/2014 SHRI HARSH VARDHAN BHUWALKA A.YR.2008-09 2 WITH REGARD TO THE REPAYMENT OF LOAN TAKEN BY THE C OMPANY FROM STATE BANK OF PATIALA, THE ASSESSEE EXPLAINED THAT THE ASSESSEE R EPAID THE LOAN OF THE COMPANY USING HIS CREDIT CARD AND THE SAME WAS REIMBURSED BY THE COMPANY. THE OTHER THREE HEADS OF EXPENSES WERE INCURRED BY THE ASSESSEE FOR THE B USINESS OF THE ASSESSEE AND THE SAME WERE REIMBURSED BY THE COMPANY. 3. THE AO AS WELL AS CIT(A) WERE OF THE VIEW THAT THE PLEA OF REIMBURSEMENT OF LOAN, AND REIMBURSEMENT OF EXPENDITURE INCURRED ON BEHAL F OF THE COMPANY BY THE ASSESSEE WAS NOT ESTABLISHED. ACCORDINGLY, THE AFORESAID SUM WAS TREATED AS PERQUISITES IN THE HANDS OF THE ASSESSEE AND BROUGHT TO TAX BY THE REV ENUE AUTHORITIES. 4. BEFORE US THE LD. COUNSEL FOR THE ASSESSEE BROUG HT TO OUR NOTICE THAT M/S. VBL INNOVATIONS PVT. LTD HAD CONFIRMED THE FACT THAT A SUM OF RS.1,97,112/-WAS A LOAN GIVEN BY THE ASSESSEE TO COMPANY ON WHICH A SUM OF RS.,16,440/- WAS INTEREST PAYABLE. BESIDES THE ABOVE THE ASSESSEE HAD INCURRE D EXPENSES ON BEHALF OF THE COMPANY WHICH WERE ALL REIMBURSED BY THE COMPANY. T HE DETAILS IN THIS REGARD FILED BY THE ASSESSEE WHICH WAS DULY CONFIRMED BY THE COM PANY ARE ANNEXED TO THE ORDER. OUR ATTENTION WAS ALSO DRAWN TO THE FACT THAT THE L OAN BY THE ASSESSE TO THE COMPANY IS DULY REFLECTED IN THE BALANCE SHEET UNDER THE HEAD UNSECURED LOANS. THE REVENUE AUTHORITIES REFUSED TO BELIEVE THE ASSESSE FOR THE REASON THAT INITIALLY ASSESEE TOOK A STAND THAT FBT HAS BEEN PAID ON THE AFORESAID SUM B Y THE COMPANY AND HAD NOT GIVEN THE DETAILS OF FBT PAID. THE EXPLANATION LATER PUT FORTH BEFORE THE REVENUE AUTHORITIES ACCORDING TO THE REVENUE AUTHORITIES WAS AN AFTER T HOUGHT. I AM OF THE VIEW THAT THE EVIDENCE FILED BY THE ASSESSEE SUBSTANTIATED THE PL EA OF THE ASSESSEE THAT THE AMOUNT PAID BY THE COMPANY WAS REPAYMENT OF THE LOAN AND R EIMBURSEMENT OF THE EXPENDITURE INCURRED BY THE ASSESSEE ON BEHALF OF THE COMPANY. THEREFORE ADDITION MADE CANNOT BE SUSTAINED. ACCORDINGLY THE SAME IS DELETED. ITA NO.660/KOL/2014 SHRI HARSH VARDHAN BHUWALKA A.YR.2008-09 3 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLO WED. ORDER PRONOUNCED IN THE COURT ON 09.12.2015. SD/- [N.V.VASUDEVAN] JUDICIAL MEMBER DATE: 09.12.2015. R.G.(.P.S.) COPY OF THE ORDER FORWARDED TO: 1. SRI HARSH VARDHAN BHUWALKA, 38/C, GARCHA 1 ST LANE, KOLKATA-700019. 2 THE I.T.O., WARD-30(1), KOLKATA. 3. THE CIT-X, KOLKATA. 4. THE CIT(A)-XIV, KOLKATA. 5. DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES