M/s Club India Resorts and Metro Hotels Limited, CHENNAI V. DCIT, CHENNAI

ITA 717/CHNY/1999

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 6529 (ITAT-CHENNAI)
• Duration Of Justice: 12 year(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 24-05-2011
• Assessment Year: 1995-1996
• Appeal Filed On: 03-05-1999
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN
• Assessee Lawyers: S SRIDHAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH A CHENNAI BEFORE SHRI U.B. BEDI, J.M. AND SHRI N.S. SAINI, AM .. I.T.A. NO. 717/MDS/1999 ASSESSMENT YEARS 1995-96 CLUB INDIA RESORTS AND METRO HOTELS LIMITED CEEBROS CENTRE, 45, MONTIETH ROAD MADRAS 600 008. (PAN NO. 808 C) VS. THE INCOME-TAX OFFICER WARD 1(3) KUMBAKONAM (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S. SRIDHAR DEPARTMENT BY : SHRI K.E.B RENGARAJAN O R D E R PER N.S. SAINI, A.M :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER PASSED BY THE LD. CIT(A), MADRAS DATED 19.01.1999 F OR ASSESSMENT YEAR 1995-96. PAGE 2 OF 5 I.T.A. NO. 717/MDS/1999 2. GROUND NOS. 1 TO 7 OF THE APPEAL RELATES TO THE ISSUE THAT THE COMMISSIONER OF INCOME-TAX [APPEALS] ERRED IN HOLDI NG THAT THE ASSESSEE WAS NOT ENTITLED TO DEDUCTION OF `. 10,80, 513/- AS EXPENDITURE INCURRED ON ACCOUNT OF PROVISION OF ALT ERNATE ACCOMMODATION. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE AUTHORITIES BELOW AND MATERIAL ON RECORD. IN TH E INSTANT CASE, ASSESSEE CLAIMED DEDUCTION OF ` 17,21,144/- UNDER THE HEAD ALTERNATE ACCOMMODATION EXPENSES. THE ASSESSING OF FICER ALLOWED DEDUCTION OF ` 6,20,633/- OUT OF THE ABOVE AND DISALLOWED THE BALANCE AMOUNT OF ` 10,80,513/- ON THE GROUND THAT THE ASSESSEE COULD NOT PRODUCE BILLS AND VOUCHERS OF SAID AMOUNT . IN APPEAL, THE COMMISSIONER OF INCOME-TAX [APPEALS] CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 4. BEFORE US, THE LD. A.R. SUBMITTED THAT THE ACCOU NTS OF THE ASSESSEE ARE AUDITED AND THE AUDITOR HAS GIVEN NO A DVERSE REMARKS REGARDING THE AVAILABILITY OF VOUCHERS OF THE EXPEN DITURE IN QUESTION. HE FURTHER SUBMITTED THAT AT THE MATERIA L TIME, THE PAGE 3 OF 5 I.T.A. NO. 717/MDS/1999 VOUCHERS OF ` 10,80,513/- WERE MISPLACED AND THEREFORE COULD NOT BE PRODUCED BEFORE THE LOWER AUTHORITIES AND STATED THAT GIVEN THE OPPORTUNITY, THE ASSESSEE IS IN A POSITION TO PRODU CE ALL THE VOUCHERS AND BILLS OF THE EXPENDITURE FOR VERIFICAT ION. IN THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE, IN OUR CONSIDE RED OPINION, IT SHALL BE FAIR AND JUST TO RESTORE THE ISSUE BACK TO THE FILE OF HT ASSESSING OFFICER FOR ADJUDICATING THE ISSUE AFRESH AFTER VERIFICATION OF THE VOUCHERS AND BILLS. ASSESSEE IS ALSO DIRECT ED TO PRODUCE ALL THE BILLS AND VOUCHERS AS AND WHEN CALLED UPON TO D O SO BY THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL ALL OW REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE BEFORE ADJUD ICATING THE ISSUE AFRESH. 5. GROUND NOS. 8 TO 11 ARE DIRECTED AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME-TAX [APPEALS] HOLDING THAT T HE AMOUNT OF `. 5933/- HAS BEEN PROPERLY DISALLOWED OUT OF ENTERTAI NMENT EXPENSES INCURRED BY THE ASSESSEE. PAGE 4 OF 5 I.T.A. NO. 717/MDS/1999 6. AT THE TIME OF HEARING, THE LD. A.R. OF THE ASSE SSEE DID NOT MAKE ANY SUBMISSION ON THIS GROUND. THEREFORE, THE SAME IS DISMISSED FOR WANT OF PROSECUTION. 7. THE ASSESSEE HAS ALSO RAISED AN ADDITIONAL GROUN D WHICH READS AS UNDER: 1. THE COMMISSIONER OF INCOME-TAX [APPEALS], CHENNA I AHS ERRED IN PASSING THE ORDER WITHOUT ADJUDICATING THE GROUND NO. 10 RAISED IN THE GROUNDS OF APPEAL RAISED BEFORE HIM THUS RESULTING IN INCORRECT ASSESSMENT OF TAXABLE INCOME WITHOUT ADJUSTMENT/SET OFF OF THE CARR Y FORWARD LOSS OF ASSESSMENT YEAR 1993-94. 2. IT IS HUMBLY SUBMITTED THAT IN THE GROUNDS OF APPE AL RAISED BEFORE THE ITAT, IN ITA NO. 717/MDS/99 WITH THE ASSISTANCE OF THE CONSULTANTS, THE APPELLANT HAD BY OVERSIGHT OMITTED TO RAISE A SPECIFIC GROUND ON THE ISSUE OF NON ADJUSTMENT OF THE CORRECT CARRY FORWARD POSITION. SINCE THE ISSUE IS ONE WHICH THE APPELLAN T IS ENTITLED TO AND HAS A SUBSTANTIVE BEARING ON THE TAX PAYABLE AND DETERMINATION OF TAXABLE INCOME, THE ADDITIONAL GROUND RAISED HEREIN MAY KINDLY BE CONSIDERED AND TAKEN FOR ADJUDICATION. 8. AT THE TIME OF HEARING, THE LD. A.R. SUBMITTED T HAT THE ASSESSING OFFICER MAY BE DIRECTED TO COMPUTE THE TA XABLE INCOME AFTER ADJUSTMENT/SET OFF OF CARRIED FORWARD LOSSES FOR THE ASSESSMENT YEAR 1993-94. PAGE 5 OF 5 I.T.A. NO. 717/MDS/1999 9. WHEN THE BENCH POINTED OUT TO THE LD. A.R. THAT THE INCOME OF ASSESSEE WAS TO BE DETERMINED BY THE ASSESSING OFFI CER AS PER THE PROVISIONS OF THE I.T. ACT, AND THEREFORE, WHAT IS THE GRIEVANCE OF THE ASSESSEE IN THE ABOVE ADDITIONAL GROUNDS NOW RA ISED BEFORE US, THE LD. A.R. COULD NOT POINT OUT ANY GRIEVANCE OF T HE ASSESSEE AND SUBMITTED THAT MAY BE HELD AGAINST THE ASSESSEE. T HEREFORE, THE ADDITIONAL GROUNDS OF APPEAL OF THE ASSESSEE ARE DI SMISSED AS UNADMITTED. 10. IN THE RESULT, APPEAL FILED BY THE ASSESSEE STA NDS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 27 TH MAY, 2011. SD/- SD/- ((U.B.S BEDI ) (N.S. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 27 TH MAY, 2011. VL COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE