M/s Anand Sales Corporation , Pune V. ITO, Ward-6(5), Pune

ITA 800/PUN/2022

AI Insights

The case involves M/s. Anand Sales Corporation, a partnership firm engaged in the wholesale distribution of Paragon Footwear, appealing against the order of the National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2010-11. The primary contention arose from the disallowance of excess remuneration amounting to Rs.11,81,142 under section 40(b) of the Income Tax Act, 1961, due to the non-credence given to a supplementary partnership deed which was neither registered nor notarized. The initial appeal to the ld. CIT(A) was dismissed ex-parte as the appellant failed to represent the matter despite several opportunities. The Tribunal's decision to remand the case back to the CIT(A) was based on the appellant's claim that relevant information was not considered in the initial appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137170 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 31-01-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 03-11-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 40(b)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S. S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.800/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year : 2010-11 M/s. Anand Sales Corporation, 97/98, Rasta Peth, Pune- 411011. PAN : AACFA1650N Vs. ITO, Ward-6(5), Pune. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 23.09.2022 for the assessment year 2010-11. 2. Briefly, the facts of the case are that the appellant is a partnership firm engaged in the business of wholesale distributor of Paragon Footwear. The Return of Income for the assessment year Assessee by : Shri Suhas P. Bora Revenue by : Shri Ramnath P. Murkunde Date of hearing : 01.02.2023 Date of pronouncement : 08.02.2023 ITA No.800/PUN/2022 2 2010-11 was filed on 23.09.2010 disclosing total income of Rs.42,32,980/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-6(5), Pune (‘the Assessing Officer’) vide order dated 04.12.2017 passed u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 (‘the Act’) at a total income of Rs.55,77,450/-. While doing so, the Assessing Officer made disallowance on account of excess remuneration of Rs.11,81,142/- u/s 40(b) by observing that no credence to the supplementary partnership deed be given, which is neither registered nor notarized. 3. Being aggrieved, an appeal was filed before the ld. CIT(A) contending that mere non-filing of supplementary partnership deed is only procedure of lapse, no disallowance can be made. However, the ld. CIT(A) had dismissed the appeal ex-parte by holding that the appellant had chosen not to represent the matter despite several opportunities were granted. 4. Being aggrieved, the appellant is in appeal before us in the present appeal. 5. It is submitted before us that the ld. CIT(A) had failed to take into consideration the information filed before him vide Acknowledge No.11012113772438. Thus, ld. AR prayed that the ITA No.800/PUN/2022 3 matter be restored to the file of the ld. CIT(A) for de novo adjudication after taking into information filed by the appellant. 6. On the other hand, ld. Sr. Dr has no serious objection to remand the matter for de novo consideration. We order accordingly. 7. In the result, the appeal filed by the assessee stands partly allowed. Order pronounced on this 08 th day of February, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 08 th February, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच, पुणे / DR, ITAT, “A” Bench, Pune. 4. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.