CONTROL & APPLICATIONS AUTOMATION INDIA P.LTD, MUMBAI V. ITO 8(3)(4), MUMBAI

ITA 765/MUM/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3069 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 12-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N V NADKARNIDR
• Keywords: Principle of natural justice; Additional evidence

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER ITA NO.765/MUM/2016 ASSESSMENT YEAR: 2011-12 M/S CONTROL & APPLICATIONS AUTOMATION INDIA PVT. LTD. 217, PIONEER INDUSTRIAL ESTATE, SUBHASH ROAD, JOGESHWARI (W) MUMBAI-400060 / VS. ITO-8(3)(4), ( ! /ASSESSEE) ( ' / REVENUE) PAN. NO . AADCV1896P ! / ASSESSEE BY SHRI MILIN DATTANI ' / REVENUE BY SMT. N.V. NADKARNI-DR # '$ % ! & / DATE OF HEARING : 14/06/2016 % ! & / DATE OF ORDER: 14/06/2016 ITA NO.765/MUM/2016 M/S CONTROL & APPLICATIONS AUTOMATION INDIA PVT. LTD. 2 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 30/11/2015 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI, ON THE GROUND OF CONFIRMING DISALLOWANCE OF BUSINES S DEVELOPMENT EXPENDITURE OF RS.12,06,679/-. 2. DURING HEARING, THE LD. COUNSEL FOR THE ASSESSE E, SHRI MILIN DATTANI, FILED PAPER BOOK CONTAINING ADD ITIONAL EVIDENCE, WHICH COULD NOT BE FILED BEFORE THE LD. A SSESSING OFFICER/LD. COMMISSIONER OF INCOME TAX (APPEAL). I T WAS EXPLAINED THAT THE ADDITIONAL EVIDENCE, FILED BY TH E ASSESSEE GOES TO THE ROOT OF THE MATTER AND THUS THE DISALLO WANCE MADE BY THE ASSESSING OFFICER MAY BE DELETED. 2.1. ON THE OTHER HAND, THE LD. DR, SMT. N.V. NADKARNI, THOUGH DEFENDED THE ADDITION BUT CONTENDE D THAT THE ADDITIONAL EVIDENCE, FILED BY THE ASSESSEE, BEF ORE THIS TRIBUNAL, REQUIRES EXAMINATION BY THE ASSESSING OFF ICER SO THAT THE INTEREST OF REVENUE CAN BE SAFEGUARDED. 2.2. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS , IN BRIEF, ARE THAT THE ASSESSEE WAS PROVIDING R & D SUPPORT S ERVICES TO ITS PARENT COMPANY FOR WHICH THE ASSESSEE CHARGE D 15% MARKUP ON THE COST INCURRED FOR SUCH SERVICES. THE ASSESSEE HAS ALSO CLAIMED TO HAVE INCURRED COST FOR ACHIEVIN G SOLUTION BUSINESS IN INDIA BY APPOINTING A DEDICATED BUSINES S ITA NO.765/MUM/2016 M/S CONTROL & APPLICATIONS AUTOMATION INDIA PVT. LTD. 3 DEVELOPMENT MANAGER IN INDIA, FOR WHICH COST IS CHA RGED AS BUSINESS DEVELOPMENT COST IN INDIA BEING AN EXPENDI TURE OF INDIAN COMPANY. THE ASSESSEE CLAIMED TO HAVE INCURR ED RS.12,06,679/- TOWARDS ADMINISTRATIVE EXPENSES AND BUSINESS RELATED ACTIVITIES INCURRED TO SECURED BUS INESS IN INDIA. THE LD. ASSESSING OFFICER DOUBTED THE GENUIN ENESS OF THE EXPENDITURE. KEEPING IN VIEW, THE PRINCIPLE OF NATURAL JUSTICE AND WITHOUT GOING INTO MERITS OF THE CLAIM, SINCE THE ASSESSEE HAS FILED ADDITIONAL EVIDENCE FOR ITS CLAI M, THEREFORE, TO EXAMINE THE GENUINENESS OF SUCH CLAIM, WE REMAND THIS FILE TO THE FILE OF THE ASSESSING OFFICER. THE ASSE SSEE IS DIRECTED TO FURNISH THE ADDITIONAL EVIDENCE BEFORE THE ASSESSING OFFICER, WHO WILL EXAMINE THE CLAIM OF TH E ASSESSEE AND ITS GENUINENESS AND THEN SHALL DECIDE IN ACCORD ANCE WITH LAW. THE ASSESSEE BE GIVEN OPPORTUNITY. THUS, THE A PPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES ON LY. FINALLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 14/06/2016. SD/- SD/- ( ASHWANI TANEJA ) (JOGINDER SINGH) '# / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER # $ MUMBAI; ( DATED : 14/06/2016 F{X~{T? P.S/. . . ITA NO.765/MUM/2016 M/S CONTROL & APPLICATIONS AUTOMATION INDIA PVT. LTD. 4 %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. *+,- / THE APPELLANT 2. ./,- / THE RESPONDENT. 3. 0 0 # 1! ( *+ ) / THE CIT, MUMBAI. 4. 0 0 # 1! / CIT(A)- , MUMBAI 5. 3'4 .! , 0 *+& * 5 , # $ / DR, ITAT, MUMBAI 6. 6$ / GUARD FILE. / BY ORDER, /3+! .! //TRUE COPY// / (DY./ASSTT. REGISTRAR) , # $ / ITAT, MUMBAI