M/s R.K.V. Agency, Bangalore V. DCIT, Bangalore

ITA 743/BANG/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0233 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 27-06-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 02-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SWAPNA DAS JT
• Assessee Lawyers: H V GOWTHAMA
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC C BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER ITA NO.743/BANG/2014 ASSESSMENT YEAR : 2009-10 M/S. R.K.V. AGENCY, NO.3B, 3 RD FLOOR, LAKSHMI RHYTHM APARTMENTS, OPP. KANTI SWEETS, KEMPAPURA HEBBAL, BANGALORE 560 024. PAN: AAJFR 5853K VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(2), BANGALORE. APPLICANT RESPONDENT APPELLANT BY : SHRI H.V. GOWTHAMA, CA RESPONDENT BY : SMT. SWAPNA DAS, JT. CIT(DR) DATE OF HEARING : 27.06.2016 DATE OF PRONOUNCEMENT : 30.06.2016 O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 27.03.2014 OF THE CIT(APPEALS)-VI, BANGALORE FOR TH E ASSESSMENT YEAR 2009-10 INTER ALIA ON THE FOLLOWING GROUNDS:- 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS ) ERRED IN CONFIRMING THE DISALLOWANCE OF SALARY PAID BY TH E APPELLANT FIRM TO THE EMPLOYEES OF THE FIRM FOR THE SERVICES RENDERED. 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE APPRECIATED THE FACT THAT THE FIRM CO ULD NOT HAVE EARNED INCOME WITHOUT THE SERVICES OF EMPLOYEES AND THE SALARIES ITA NO.743/BANG/2014 PAGE 2 OF 4 WERE ALL PAID BY THE MANAGING PARTNER TO THE EMPLOY EES AND SAID MANAGING PARTNER WAS REIMBURSED BY THE FIRM. 3. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN NOT ALLOWING BANK CHARGES PAID BY THE FIRM TO CL EAR VARIOUS CHEQUES RECEIVED BY THE FIRM AMOUNTING TO RS.25,650 /-. FOR THE ABOVE & ANY OTHER GROUNDS THAT MAY ADVANCED AT THE TIME OF HEARING, THE APPEAL BE ALLOWED. 2. DURING THE COURSE OF HEARING, THE LD. COUNSEL FO R THE ASSESSEE HAS INVITED OUR ATTENTION TO THE ORDERS OF LOWER AUTHOR ITIES WITH THE SUBMISSION THAT THE ASSESSEE COMPANY IS A INSURANCE AGENT OF B AJAJ ALLIANZ AND DURING THE COURSE OF ASSESSMENT PROCEEDINGS NONE REPRESENT ED THE ASSESSEE AND THE AO DISALLOWED THE ENTIRE EXPENDITURE AND ASSESS ED INCOME AT RS.4,52,76,540. 3. THOUGH THE ASSESSEE PREFERRED AN APPEAL BEFORE T HE CIT, BUT IT DID NOT FIND FAVOUR WITH HIM AND THE CIT(APPEALS) REJEC TED THE CONTENTIONS OF THE ASSESSEE ON THE GROUND THAT THE ASSESSEE HAS NE ITHER FURNISHED DETAILS OF EXPENDITURE NOR HAS JUSTIFIED THE EXPENDITURE IN CURRED. 4. THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT IN SIMILAR TYPE OF FACTS IN THE CASE OF SRI AGENCY (ITA NO.744/BANG/20 14 DATED 11.6.2015), THE TRIBUNAL HAS RESTORED THE MATTER TO THE ASSESSI NG OFFICER WITH A DIRECTION TO FRAME THE ASSESSMENT DE NOVO AFTER AFFORDING THE ASSESSEE AN OPPORTUNITY OF BEING HEARD. COPY OF THE ORDER IS P LACED ON RECORD. ITA NO.743/BANG/2014 PAGE 3 OF 4 5. THE LD. DR SIMPLY PLACED RELIANCE ON THE ORDER O F THE CIT(APPEALS). 6. HAVING CAREFULLY PERUSED THE ORDERS OF LOWER AUT HORITIES IN THE LIGHT OF RIVAL SUBMISSIONS, WE FIND THAT BEFORE THE AO NONE APPEARED ON BEHALF OF THE ASSESSEE AND THE CIT(APPEALS) DID NOT ADMIT THE EXPLANATION AND THE EVIDENCE FOR THE SIMPLE REASON THAT THE ASSESSEE CO ULD NOT FILE THE EVIDENCE BEFORE THE AO. WE HAVE ALSO CAREFULLY EXA MINED THE ORDER OF THE TRIBUNAL IN THE CASE OF SRI AGENCY (SUPRA) IN WHICH UNDER SIMILAR CIRCUMSTANCES, THE TRIBUNAL HAS SET ASIDE THE ORDER OF THE CIT(APPEALS) AND RESTORED THE MATTER TO THE AO FOR FRAMING THE A SSESSMENT DE NOVO. WE, THEREFORE, FOLLOWING THE SAME, SET ASIDE THE ORDER OF THE CIT(APPEALS) AND RESTORE THE MATTER TO THE AO TO FRAME THE ASSES SMENT DE NOVO AFTER AFFORDING THE ASSESSEE AN OPPORTUNITY OF BEING HEAR D. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF JUNE, 2016. SD/- (SUNIL KUMAR YADAV ) JUDICIAL MEMBER BANGALORE, DATED, THE 30 TH JUNE, 2016. /D S/ ITA NO.743/BANG/2014 PAGE 4 OF 4 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.