JAMES SCARIA KOCHUPUTHENPARAMPIL, MUMBAI V. ASST CIT CIR20(1), MUMBAI

ITA 7264/MUM/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3056 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 05-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SOMANATH S UKKALI
• Section: 43B; 143(3); 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH , MUMBAI BEFORE SRI MAHAVIR SINGH, J UDICIAL MEMBER ITA NO . 7264 /MUM/2014 (A.Y.:2010 - 11 ) MR. JAMES SC A RIA KOCHUPUTHEPARAMPIL (PROP. J & J TOURS & TRAVELS), B/7, SAI ASHISH, MAHAKALI CAVES ROAD, ANDHERI (E), MUMBAI 400 093 VS. THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 20(1), C - 13, PRATYAKSHAKAR BHAVAN, BKC, MUMBAI 51. PAN:AAYPK 4258 M APPELLANT .. RESPONDENT APPELLANT BY NONE RESPONDENT BY SHRI SOMANATH S. UKKALI, DR DATE OF HEARING 21 - 06 - 16 DATE OF PRONOUNCEMENT 21 - 06 - 2016 O R D E R PER MAHAVIR SINGH , JM : THIS APPEAL BY THE REVENUE IS DIRECTED AGA INST THE ORDER OF THE CIT (A) - 31 , MUMBA I PASSED IN APPEAL NO.CIT (A) - 31 / IT - 127 / ACIT - 20(1)/12 - 13 DATED 25 - 09 - 2014 . ASSESS MENT W AS FRAMED BY TH E AC IT, CIRCLE - 20 (1), MUMBAI FOR ASSESSMENT YEAR 2010 - 11 VIDE HIS ORDER DATED 08 - 11 - 2012 U/S 143(3) OF THE INCOME TAX ACT, 1961 (H EREINAFTER REFERRED TO AS THE ACT). 2. THE FIRST ISSUE IN THIS APPEAL OF THE ASSESSEE IS AS REGARDS TO THE ORDER OF THE CIT (A) CONFIRMING THE ACTION OF THE AO IN MAKING AD - HOC DISALLOWANCES OF TRAVELLING & CONVEYANCE EXPENSES AND TELEPHONE CHARGES @15% IN EACH OF THE CASE I.E. AMOUNTING TO RS.79,140/ - AND RS.45,752/ - . 3. I HAVE HEARD THE LEARNED SR. DR AND GONE THROUGH T HE FACTS OF THE CASE. I FIND FROM THE CASE RECORDS THAT THE ASSESSEE HAS CLAIMED TRAVELLING AND CONVEYANCE EXPENSES AT RS.5,27,598/ - AND TELEPHONE CHARGES AT RS.3,05,014/ - . THE AO DISALLOWED 15% OF EACH OF THE EXPENSES I.E. TRAVELLING & CONVEYANCE AT RS.79 ,140/ - AND TELEPHONE CHARGES AT RS.45,752/ - . THE AO DISALLOWED TRAVELLING & CONVEYANCE EXPENSES FOR THE REASONS THAT VOUCHERS ARE NOT PROPERLY MADE AND TELEPHONE CHARGES FOR THE REASON THAT SAME ARE ITA NO. 7264 /MUM/20 1 4 2 FOR PERSONAL USER. THE CIT (A) ALSO CONFIRMED THE ACTION OF THE AO. I HAVE EXAMINED THE CASE RECORDS AND FIND THAT THESE ARE PURELY ON AD - HOC DISALLOWANCES AND NO REASON IS ADDUCED FOR MAKING THE DISALLOWANCE AS IS EVIDENT FROM THE ASSESSMENT ORDER. THE DISALLOWANCES CAN ONLY BE SUSTAINED IF THERE IS REASON FOR THE SAME. ACCORDINGLY I DELETE BOTH THE DISALLOWANCES AND THESE TWO ISSUES OF THE ASSESSEES APPEAL ARE ALLOWED. 4 . THE NEXT ISSUE IN THIS APPEAL OF THE ASSESSEE IS AGAINST THE ORDER OF THE CIT (A) CONFIRMING THE DISALLOWANCE OF RS. 1,39,665/ - AND RS.2,35 ,583/ - ON ACCOUNT OF EMPLOYEES CONTRIBUTION TOWARDS ESI AND PF RESPECTIVELY AS NOT PAID WITHIN THE PRESCRIBED DUE DATE AND ALSO U/S 43B OF THE ACT. 5. I HAVE HEARD THE LEARNED SR. DR AND GONE THROUGH THE FACTS OF THE CASE. I FIND FROM THE DETAILS FILED IN ASSESSEES PAPER BOOK THAT THE DETAILS OF ESI AND PF ARE MADE WITHIN THE DUE DATE OF FILING OF RETURN OF INCOME. IT IS FOUND THAT THE LAST PAYMENT OF PF AND ES I WAS MADE BY T HE ASSESSEE ON 27 - 04 - 2010 AND ALL OTHER ARE PRIOR TO THIS DATE. THE ASSESSEES DUE DATE OF FILING OF RETURN WAS 30 - 09 - 2010 U/S 139(1) OF THE ACT AND THIS DATE WAS EXTENDED TO 15 - 10 - 2010 FOR THE RELEVANT ASSESSMENT YEAR 2010 - 11. IN VIEW OF THIS FACT THAT THESE PAYMENTS ARE MADE MUCH BEFORE THE DUE DATE OF FILING OF RETURN OF INCOME, T HE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HONBLE CALCUTTA HIGH COURT IN THE CASE OF CIT VS VIJAY SHREE LTD. 224 TAXMAN 12 (CAL). SINCE, THE ISSUE IS COVERED AND THE PAYMENTS ARE MADE WITHIN THE DUE DATE OF FILING OF RETURN BY TH E ASSESSEE IN RESPECT TO PF AND ESI, THE ASSESSEE IS ENTITLED FOR CLAIM OF DEDUCTION U/S 43B OF THE ACT . ACCORDINGLY, I ALLOW THE CLAIM OF THE ASSESSEE. 6 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. O RDER PRONOUNCED IN THE OPEN COURT ON 21 /06 / 201 6 . SD/ - ( MAHAVIR SINGH ) JUDICIAL MEMBER MUMBAI , DATED 21 /6 / 201 6 LAKSHMIKANTA DEKA/SR.PS ITA NO. 7264 /MUM/20 1 4 3 COPY OF THE ORDER FORWARDED TO : BY ORDER, ASSISTANT REGISTRAR ITAT, MUMBAI DATE INITIAL DICTATION PAD ATTACHED WITH THE DRAFT ORDER YES 1. DRAFT DICTATED ON 21 - 06 - 16 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 22 - 06 - 16 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. AM 5. AP PROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. 1. THE APPELLANT 2. TH E RESPONDENT. 3. THE CIT ( A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//