CHORUS CALL CONFERENCING SERVICES INDIA P LTD, MUMBAI V. CIT(A) 21, MUMBAI

ITA 7375/MUM/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 92887 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2015
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 10-12-2014
• Court: TRIBUNAL
• Department Lawyers: V K BORA SR
• Assessee Lawyers: S IND RA BANSAL
• Keywords: Opportunity of being heard; Additional evidence
• Section: 143(3)

Judgement Text

IN THE INCO ME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER ./I.T.A. NO. 7375/M/2014 ( AY: 2010 - 2011 ) M/S. CHORUS CALL CONFERENCING SERVICES INDIA PVT. LTD., 302/303, TRADE CENTRE, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI - 400 051. / VS. THE INCOME TAX OFFICER, WARD 10(1)(1), MUMBAI. ./ PAN : AACCC6840K ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : MR S . IND RA BANSAL / RESPONDENT BY : SHRI V.K. BORA, SR. AR / DATE OF HEARING : 15.6.2015 / DATE OF PRONOUNCEMENT :15.6.2015 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 10.12.2014 IS AGAINST THE ORDER OF THE CIT (A) - 21, MUMBAI DATED 11.9.2014 FOR THE ASSESSMENT YEAR 2010 - 2011. IN THIS APPEAL, ASSESSEE RAISED THE FOLLOWING GROUNDS WHICH READ AS UNDER: 1. THAT THE ASSESSING OFFICER HAS ERRED IN LAW AND FACTS TO ARRIVE AT THE CONCLUSION THAT INCOME IS UNDERSTATED BY RS. 13,20,335/ - THE SAME DESERVES TO BE DELETED FULLY. 2. THAT AO HAS ERRED IN LAW AND FACTS WHILE DISALLOWING RS. 4,96,914/ - AS G & A ON TELEPHONE CHARGES PAID TO CHORUSCALL INC. USA AND IS L IABLE TO BE FULLY ALLOWED. 3. THE ADDITION OF RS. 6,000/ - TO THE INCOME AS PENALTY IS ERRONEOUS AND NEED TO BE DELETED. 2. BRIEFLY STATED RELEVANT FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TELECONFERENCING AND IS A SUBSIDIARY COMPANY OF US BASED COMPANY. ASSESSEE FILED THE RETURN OF INCOME DECLARING THE TOTAL INCOME OF RS. 25,662/ - . ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT AND THE ASSESSED INCOME WAS 2 DETERMINED AT RS. 25,660/ - . IN THE ASSESSMENT, AO MADE AN ADDITION OF RS. 13,20,335/ - ON ACCOUNT OF UNRECONCILED SALES AND ALSO DISALLOWED THE TELEPHONE CHARGES AMOUNTING TO RS. 4,96,920/ - . AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. ON APPEAL, AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, CIT (A) DISMISSED THE ASSESSEES APPEAL AND CONFIRMED THE AFORESAID ADDITIONS. AGGRIEVED AND DISSATISFIED WITH THE SAID DECISION OF THE CIT (A), ASSESSEE IS IN FURTHER APPEAL BEFORE THE TRIBUNAL. 3. DURING THE PROCEEDINGS BEFORE US, AT THE OUTSET, LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT GROUND NOS. 2 AND 3 ARE NOT PRESSED. AFTER HEARING THE LD DR ON THIS ISSUE, THE SAID GROUND NOS.2 AND 3 ARE DISMISSED AS NOT PRESSED. 4. IN CONNECTION WITH GROUND NO.1, LD COUNSEL FOR THE ASSESSEE SUBMI TTED THAT THE ISSUE INVOLVED IN THIS GROUND, REQUIRES REVISIT TO THE FILE OF THE AO CONSIDERING THE ADDITIONAL EVIDENCES PLACED AT PAGE NOS. 120 TO 146 IN GENERAL, AND THE RECONCILIATION PLACED AT PAGE 135 OF THE PAPER BOOK IN PARTICULAR. 5. ON CONSIDERING THE SAID PAGES AND AFTER HEARING BOTH THE PARTIES, I FIND MERIT IN THE LD COUNSELS PRAYER FOR REMANDING THE MATTER TO THE FILE OF THE AO. PRIMA FACIE, I FIND THAT ASSESSEE HAS BROADLY RECONCILED THE DIFFERENCES BETWEEN THE AIR FIGURES AND THE FIGURES OF THE ASSESSEE AS MENTIONED ON PAGE 135 OF THE PAPER BOOK. HOWEVER, I FIND IT NECESSARY TO REMAND THE SAME TO THE FILE OF THE AO TO ADMIT THE SAID ADDITIONAL EVIDENCE AND ADJUDICATE THE ISSUE AFRESH . AO IS DIRECTED TO GIVE AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW. ACCORDINGLY, GROUND NO.1 RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDE R PRONOUNCED IN THE OPEN COURT ON 15 TH JUNE, 2015 IMMEDIATELY AFTER COMPLETION OF HEARING. SD/ - (D. KARUNAKARA RAO) ACCOUNTANT MEMBER MUMBAI ; 15.6 .201 5 3 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT - 4. / 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI