CHROMAPRINT INDIA PRIVATE LIMITED, COIMBATORE V. DEPUTY COMMISSIONER OF INCOME-TAX, COIMBATORE

ITA 757/CHNY/2022

AI Insights

The case involves M/s. Chromaprint India Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals) confirming the disallowance of excess rent claimed as an expense. The assessee had claimed rent expenses amounting to Rs.1,60,59,120, but could only provide evidence for Rs.1,50,00,000 during the assessment. The remaining Rs.10,59,120 was disallowed by the AO due to lack of evidence. The CIT(A) upheld this decision, leading the assessee to appeal to the Tribunal. The Tribunal found that the assessee was not given a proper opportunity to present their case and thus remitted the matter back to the AO for a thorough examination of the newly presented evidences.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132706 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 26-02-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 04-09-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

अपीलीय अिधकरण, ‘ए’ ᭠यायपीठ,चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ᮰ीमहावीर ᳲसह, उपा᭟यᭃ एवं ᮰ी मनोज कुमार अᮕवाल, लेखा सद᭭य के समᭃ BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपीलसं./ITA No.: 757/CHNY/2022 िनधाᭅरण वषᭅ/Assessment Year: 2015-16 M/s. Chromaprint India Pvt. Ltd., SF No.215/2, 216/3, N G G O Colony Post, Vattamalaypalayam, Idigarai Main Raod, Coimbatore – 641 022. PAN: AACCC 6021A vs. The DCIT, Corporate Circle -1, Coimbatore. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri RK.V. Sundar, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri AR.V. Sreenivasan, Addl.CIT सुनवाई कᳱ तारीख/Date of Hearing : 27.02.2023 घोषणा कᳱ तारीख/Date of Pronouncement : 27.02.2023 आदेश /O R D E R PER MAHAVIR SINGH, VICE PRESIDENT: This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals, National Faceless Appeal Centre (NFAC), Delhi in Appeal No.CIT(A), Coimbatore- 1/10155/2017-18 dated 07.07.2022. The assessment was framed by 2 ITA No. 757/Chny/2022 the DCIT, Corporate Circle-1, Coimbatore for the assessment year 2015-16 u/s.143(3) of the Income Tax Act, 1961 (hereinafter the ‘Act’) vide order dated 29.12.2017. 2. The only issue in this appeal of assessee is against the order of CIT(A) confirming the action of AO in disallowing excess rent of Rs.10,59,120/- claimed as expenses without considering the evidences. For this, assessee has raised various grounds which need not be reproduced. 3. Briefly stated facts are that the assessee is a domestic company engaged in the business of manufacturing printed materials. The AO during the course of assessment proceedings, on perusal of P & L account of the assessee, noted that the assessee company had debited an amount of Rs.1,60,59,120/- under the head ‘rent’ and claimed the same as expenses. When enquired, the assessee produced evidences for rent paid to the extent of Rs.1,50,00,000/- but could not produce any evidence in respect of balance amount of Rs.10,59,120/-. Accordingly, the excess claim of rent expenditure amounting to Rs.10,59,120/- was disallowed and added to the returned income of the assessee. Aggrieved, assessee came in appeal before CIT(A). 3 ITA No. 757/Chny/2022 4. The CIT(A) also confirmed the action of the AO by noting that the assessee has been issued five notices from 02.02.2021 till 14.06.2022. The assessee neither filed any submissions nor any adjournment letter. Therefore, he disposed off the appeal based on material available on record and dismissed the appeal of assessee. Aggrieved, assessee came in appeal before the Tribunal. 5. We have heard rival contentions and gone through the facts and circumstances of the case. Before us the ld.counsel for the assessee filed details of service tax paid on rent and rent amounting to Rs.1,60,59,120/- and also agreement for lease between assessee and Smt. L. Sundari to whom the total rent of Rs.5,40,000/- being paid for the premises No.45, Ganesh Nagar, G.N Mills Post, Mettupalayam Road, Coimbatore. The ld.counsel for the assessee, on query stated that these evidences were not produced before the AO or CIT(A) as the assessee was never provided opportunity and even the order of CIT(A) is ex-parte. We noted that the service tax paid on rent of Rs.5,19,120/- and rent paid to Smt. L. Sundari amounting to Rs.5,40,000/- needs verification. Hence, these evidences are remitted back to the file of AO who will reconsider these evidences and after verification, will allow the claim of 4 ITA No. 757/Chny/2022 assessee as per law. In term of the above, the appeal of the assessee is allowed for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 27 th February, 2023 at Chennai. Sd/- Sd/- (मनोज कुमार अᮕवाल) (MANOJ KUMAR AGGARWAL) लेखा सद᭭य/ACCOUNTANT MEMBER (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 27 th February, 2023 RSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ /CIT 4. िवभागीय ᮧितिनिध/DR 5. गाडᭅ फाईल/GF.