Holidays To Treasure India Tours Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 87/DEL/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58769 (ITAT-DELHI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 06-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y S KAKKAR
• Assessee Lawyers: K K ARORA
• Keywords: Opportunity of being heard; Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C: NEW DELHI BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND SHRI I.P. BANSAL, JUDICIAL MEMBER ITA NO. 87/DEL/2012 ASSESSMENT YEAR: 2006-07 HOLIDAYS TO TREASURE INDIA TOURS PVT. LTD., 3, AR COMPLEX, R.K. PURAM, NEW DELHI. AABCH6332C VS. ITO, WARD 12(4), NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SH. K.K. ARORA, CA RESPONDENT BY : MS. Y.S. KAKKAR, SR. DR O R D E R PER S.V. MEHROTRA, A.M. THIS APPEAL IS FILED BY THE ASSESSEE. IT IS DIREC TED AGAINST THE ORDER OF LD. CIT(A) DATED 31.10.2010 FOR A.Y. 2006-07. 2. BRIEF FACTS OF THE CASE ARE THAT DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE COMPANY WAS ENGAGED IN THE BUSINESS OF TOURS AND TRAVELING. IT HAD FILED ITS RETURN OF INCOME DECLA RING NIL INCOME. THE ASSESSING OFFICER NOTICED THAT ASSESSEE HAD CLAIMED COMMISSION OF RS. 81,145/-. HE REQUIRED THE ASSESSEE TO FURNISH COPY OF AGREEMENT AND CONFIRMATION IN SUPPORT OF COMMISSION PAID. AFTER CONSIDERING THE ASSESSEES SUBMISSION THE AO DISALLOWED RS. 81,145/ -, INTER-ALIA, OBSERVING THAT ASSESSEE FAILED TO FURNISH CONCRETE EVIDENCES IN SUPPORT OF COMMISSION. HE FURTHER MADE A DISALLOWANCE OF RS. 13,710/- CLAIMED ON ITA NO. 87/D/2012 2 ACCOUNT OF ENTRANCE AND MONUMENT EXPENSES FOR WANT OF EVIDENCES. LD. CIT(A) DECIDED THE APPEAL EX-PARTE AS ASSESSEE FAIL ED TO AVAIL THE OPPORTUNITIES GRANTED TO HIM AND UPHELD THE ASSESSM ENT ORDER OBSERVING THAT ASSESSEE HAD NO EVIDENCE TO SUBSTANTIATE ITS C LAIM. 3. BEFORE US, THE ASSESSEE HAS, INTER-ALIA, TAKEN T HE FOLLOWING GROUND OF APPEAL: 1. THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON FA CTS IN NOT ACCORDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE APPELL ANT AND TO FILE EVIDENCE/SUPPORT IN RESPECT OF DISALLOWANCE OF RS. 81,145/- ON ACCOUNT OF COMMISSION EXPENSES AND RS. 13,710/- ON ACCOUNT OF ENTRANCE FEES. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND HAVE PERUSED THE RECORD OF THE CASE. THE ASSESSEE HAS F ILED WRITTEN SUBMISSIONS DATED 02.03.2012 WHICH READS AS UNDER: - THE LD. INCOME TAX OFFICER DISALLOWED A SUM OF RS. 81,145/- PAID BY THE COMPANY AS COMMISSION FOR SALE OF TOUR PACKAGES THROUGH SUB AGENTS. THE ASSESSEE BEING AN AUTHORIZED AGENT FOR MARKETING OF TOUR PACKAGES ON THE TRAIN RUN BY RAJASTHAN TOURISM AS PALACE ON WHEELS DOES AT TIMES GET BUSINESS THROUGH AGENTS W HO ARE NOT REGISTERED WITH RAJASTHAN TOURISM AND THEREFORE PAY S COMMISSION TO THEM FOR REFERRING THE BUSINESS. IT IS RESPECTFULLY SUBMITTED THAT SINCE THE APPELLA NT HAD DERIVED BUSINESS FROM THE OTHER TRAVEL AGENTS, THE APPELLAN T HAD PAID COMMISSION TO THE TRAVEL AGENT NAMELY RS. 67,159/- TO M/S KATHA TOURS AND TRAVELS PRIVATE LIMITED AND RS. 13,986/- TO M/S INDIAN HOLIDAYS PRIVATE LIMITED TOTALING TO RS. 81,145/-. THIS COM MISSION WAS PAID AS PER THE UNDERSTANDING BETWEEN THE APPELLANT AND THE OTHER TRAVEL AGENTS FROM WHOM THE BUSINESS WAS SOURCED AND IN AC CORDANCE WITH THE NORMAL BUSINESS PRACTICE IN THE INDUSTRY. THE APPE LLANT HAD ALSO DULY DEDUCTED TDS ON SUCH PAYMENTS AND TDS CERTIFICATES WERE DULY ISSUED BY THE APPELLANT. HOWEVER, THE LD. ASSESSING OFFICER DISALLOWED THE C OMMISSION PAYMENT ON THE GROUND THAT CONFIRMATION IN SUPPORT OF COMMI SSION PAID COULD NOT BE FURNISHED AT THE TIME OF ASSESSMENT PROCEEDI NGS. IT IS RESPECTFULLY SUBMITTED THAT APPROPRIATE OPPOR TUNITY WAS NOT ACCORDED TO THE ASSESSEE TO OBTAIN THE CONFIRMATION AND NEITHER DID THE ITA NO. 87/D/2012 3 LD. ITO EXPLORE OTHER AVENUES OF GETTING THE SAME C ONFIRMED ON ITS OWN ACCOUNT. THE APPELLANT HAS NOW OBTAINED THESE CONF IRMATIONS AND COPIES OF THE CONFIRMATIONS ARE BEING FILED HEREWIT H (AS AN ADDITIONAL EVIDENCE). FURTHER, THE LD. AO DISALLOWED EXPENSE OF RS. 13710 /- ON ACCOUNT OF ENTRANCE AND MONUMENTS EXPENSES STATING THAT NO EVI DENCE WAS FURNISHED IN SUPPORT OF THESE EXPENSES. THE ASSESS EE BEING INTO THE BUSINESS OF TOUR OPERATOR, THE TOUR PACKAGES OFTEN INCLUDES VISITS OF VARIOUS MONUMENTS AGAINST WHICH ENTRANCE FEES IS PA ID BY THE APPELLANT. THE ENTRANCE FEES ARE OFTEN IN THE FORM OF ENTRY TICKETS WHICH ARE REQUIRED TO BE CARRIED BY THE INDIVIDUAL TOURIST TO BE PRODUCED AT THE ENTRANCE GATE IN ORDER TO GAIN THE ENTRY TO THE MONUMENT. UNDER THE CIRCUMSTANCES, IT MAY NOT BE P OSSIBLE TO GET INVOICES FOR SUCH ENTRY TICKETS. HOWEVER, SINCE TH E ASSESSEE HAD OUTSOURCED SOME OF THE SUCH SERVICES TO OTHER VENDO RS CERTAIN BILLS WERE OBTAINED WHICH WERE DULY PRODUCED BEFORE THE LD. IT O BUT NO COPY OF THESE BILLS WERE FILED AS IT WAS NOT SO REQUIRED BY THE LD. AO. THE COPIES OF SUCH BILLS ARE BEING SUBMITTED HEREWITH ( AS AN ADDITIONAL EVIDENCE). 5. KEEPING IN VIEW THE SUBMISSIONS NOTED ABOVE, WE ARE OF THE OPINION THAT ASSESSEE BE AFFORDED ONE MORE OPPORTUNITY TO S UBSTANTIATE ITS CLAIM. WE, THEREFORE, SET ASIDE THE ORDER OF LD. CIT(A) AN D RESTORE THE MATTER BACK TO THE FILE OF AO TO DECIDE THE ISSUE DENOVO. THE ASSESSEE SHOULD COOPERATE IN THE PROCEEDINGS BEFORE AO. 6. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 07.03.2012 SD/- SD/- (I.P. BANSAL) JUDICIAL MEMBER (S.V. MEHROTRA) ACCOUNTANT MEMBER DATED: 07.03.2012 *KAVITA ITA NO. 87/D/2012 4 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. TRUE COPY BY ORDER DEPUTY REGISTRAR