Sri Agency, Bangalore V. DCIT, Bangalore

ITA 744/BANG/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 89947 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 02-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P DHIVAHAR
• Assessee Lawyers: NARAYAN HA TWAR
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO. 744/BANG/2014 (ASSESSMENT YEAR: 200 9 - 10 ) SRI AGENCY, NO.3B, 3 RD FLOOR, LAKSHMI RHYTHM APARTMEN TS, OPP. KANTI SWEETS, KEMPAPURA HEBBAL, BANGALORE - 560024 . PAN: ABHFS9767Q VS. APPELLANT DEPUTY COMMISSIONER OF INCOME - TAX, CENTRAL CIRCLE 2(2), BANGALORE. RESPONDENT A PPELLANT BY: SHRI NARAYAN HA TWAR, CA. RE SPONDENT BY: SHRI P.DHIVAHAR, JCIT (DR). DATE OF HEARING : 1 6 /04/2015 DATE OF PRONOUNCEMENT: 11 /0 6 /2015 O R D E R PER SMT. P.MADHAVI DEVI, JM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) - VI, BANGALO RE, DATED 26/03/2014 FOR THE ASSESSMENT YEAR 2009 - 10. THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE CIT(A) IN CONFIRMING THE DISALLOWANCE OF SALARY PAID BY THE ASSESSEE - FIRM TO I T S EMPLOYEES FOR THE SERVICES RENDERED BY SUCH EMPLOYEES AND ALSO IN NOT ALL OWING BANK CHARGES PAID BY IT A NO . 744 /BANG/201 4 SRI AGENCY PAGE 2 OF 4 THE FIRM TO CLEAR VARIOUS CHEQUES RECEIVED BY THE FIRM AMOUNTING TO RS.25,650/ - . 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE - FIRM FILED ITS RETURN OF INCOME ON 27/09/2009 ADMITTING INCOME OF RS.3,27,29,880/ - . DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] THE ASSESSING OFFICER (AO) EXAMINED THE CLAIM OF THE ASSESSEE AND FOUND THAT THE ASSESSEE HAS NOT FILED ANY EVIDENCE/PROOF IN SUPPORT OF ITS CLAIM OF SALARY AND BONUS AND OTHER EXPENDITURE PAID TO ITS EMPLOYEES. THEREFORE, THE AO MADE THE DISALLOWANCE AND BROUGHT IT TO TAX. 3. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) WHO HAS CONFIRMED THE ADDITIONS HOLDING THAT TH E ASSESSEE HAS NOT FILED ANY DETAILS BEFORE HIM AS WELL. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 4. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THERE IS NO DISPUTE THAT THE ASSESSEE - FIRM HAD EMPLOYEES WHO RENDERED SERVICES FOR WHICH THE ASSESSEE WAS BOUND TO MAKE PAYMENT OF SALARY. HE SUBMITTED THAT NECESSARY DETAILS ARE AVAILABLE WITH THE ASSESSEE AND HE MAY BE GIVEN AN OPPORTUNITY TO PRESENT THE SAME BEFORE THE AO. THE LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHER HAND , SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW AND IT A NO . 744 /BANG/201 4 SRI AGENCY PAGE 3 OF 4 SUBMITTED THAT THE ASSESSEE OUGHT TO HAVE FILED ALL THE DETAILS BEFORE THE AUTHORITIES BELOW. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE MATERIAL ON RECORD, IT IS NOT IN DISPUTE THAT THE AS SESSEE - FIRM EMPLOYED CERTAIN PEOPLE AND THESE PEOPLE MUST HAVE RENDERED SERVICES TO THE ASSESSEE - FIRM. IN SUCH CASES, PAYMENT OF SALARY CANNOT BE DOUBTED BUT THE QUANTUM OF PAYMENT MAY HAVE TO BE EXAMINED. FOR VERIFICATION, THE ASSESSEE IS REQUIRED TO FI LE ALL THE RELEVANT DETAILS BEFORE THE AUTHORITIES BELOW. IN VIEW OF THE FACT THAT THE ASSESSEE HAS NOT FILED THE DETAILS BEFORE THE AO AND THE CIT(A) AND HAVING REGARD TO THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE THAT THE ASSESSEE POSSESSES ALL THE REQUIRED DOCUMENTS, IN THE INTEREST OF JUSTICE AND EQUITY, WE DEEM IT FIT AND PROPER TO REMIT THIS ISSUE TO THE FILE OF THE AO WITH A DIRECTION TO EXAMINE THE DETAILS TO BE FILED BY THE ASSESSEE IN ACCORDANCE WITH LAW. THE ASSESSEE SHALL CO - OPERA TE WITH THE AO BY FILING ALL THE REQUIRED DETAILS. 6. IN THE RESULT, THE ASSESSEE S APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 11 TH JUNE , 2015. SD/ - SD/ - (PRAMOD KUMAR) (SMT. P.MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER EKSRINIVASULU IT A NO . 744 /BANG/201 4 SRI AGENCY 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 INCOME - TAX AP PELLATE TRIBUNAL BANGALORE.