DCIT, Circle-12(2), Kolkata, Kolkata V. M/S. Shree Baidyanath Ayruved Pvt. Ltd., Kolkata

ITA 90/KOL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1626 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 16-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAVID Z CHOWNGTHU ADD L

Judgement Text

ITA NO.90/KOL/2015 M/S. SHREE BAIDYANATH AYURVED PVT. LTD. A.Y.2010-11 1 IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH C KOL KATA [BEFORE HONBLE SHRI J.SUDHAKAR REDDY, AM & SHRI S.S.VISWANETHRA RAVI, JM ] ITA NO.90/KOL/2015 ASSESSMENT YEAR : 2010-11 D.C.I.T., CIRCLE-12(2), -VERSUS- M/S. SHREE B AIDYANATH AYURVED KOLKATA PVT. LTD., KOLKATA (PAN: AAECS 5408 D) (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI DAVID Z. CHOWNGTHU, ADD L. CIT(DR) FOR THE RESPONDENT: SHRI SUNIL SURANA, FCA DATE OF HEARING : 10.08.2017. DATE OF PRONOUNCEMENT : 23.08.2017. ORDER PER J.SUDHAKAR REDDY, AM: THIS IS AN APPEAL BY THE REVENUE DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX-(A)-XII, KOLKATA RELATI NG TO A.Y. 2010-11ON THE FOLLOWING GROUNDS : I. 'THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND AS PER LAW ID. CIT(A) ERRED IN DELETING THE DISALLOWANCE OF RS. 41 ,49,152/- WITHOUT CONSIDERING THE FACT THAT THE SCHOLARSHIP EXPENSES ACTUALLY INC URRED FOR EDUCATION OF TWO SONS OF DIRECTORS IN ABROAD.' 2. 'THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND AS PER LAW LD. CIT(A) ERRED IN DELETING THE DISALLOWANCE ON ACCOUN T OF SCHOLARSHIP EXPENSES WITHOUT CONSIDERING THE FACT THAT WHETHER THE EXPEN DITURE IS IN THE NATURE OF BUSINESS OR PERSONAL EXPENDITURE.' 2. AFTER HEARING THE RIVAL CONTENTIONS WE FIND TH AT THE TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO.1314/KOL/2014 FOR A.Y.2009-10 ORDER DATED 23.02.2017 HAD CONSIDERED THE VERY SAME ISSUE IN THE EARLIER ASSES SMENT YEAR AT PARA 4.3 HELD AS FOLLOWS :- 4.3. HAVING HEARD THE RIVAL SUBMISSIONS, PERUSED T HE MATERIAL ON RECORD, WE ARE OF THE VIEW THAT THERE IS MERIT IN THE SUBMISSIONS OF THE ASSESSEE, AS THE PROPOSITION CANVASSED BY LD. AR FOR THE ASSESSEE AR E SUPPORTED BY THE JUDGMENT CITED BY HIM AND FACTS NARRATED BY HIM ABOVE. AS LD . AR FOR THE ASSESSEE HAS ITA NO.90/KOL/2015 M/S. SHREE BAIDYANATH AYURVED PVT. LTD. A.Y.2010-11 2 POINTED OUT THAT AFTER COMPLETION OF THE HIGHER STU DY THEY JOINED THE COMPANY AND SERVED THE COMPANY THEREFORE THE EXPENDITURE IS FOR THE PURPOSE OF BUSINESS. 'HENCE, CONSIDERING THE FACTUAL POSITION, WE ARE OF THE VIEW THAT THE ORDER PASSED BY THE ID CIT(A) IS A REASONED ORDER AND DOES NOT R EQUIRE INTERFERENCE. THEREFORE, WE CONFIRM THE ORDER OF ID CIT(A). 3. RESPECTFULLY FOLLOWING THE ORDER OF THE CO-ORD INATE BENCH OF THE TRIBUNAL WE UPHOLD THE ORDER OF THE FIRST APPELLATE AUTHORITY A ND DISMISS THE GROUNDS RAISED BY THE REVENUE. 4. IN THE RESULT THE APPEAL BY THE REVENUE IS DISMISSED. O RDER PRONOUNCED IN THE COURT ON 23.08.2017. SD/- SD/- [S.S.VISWANETHRA RAVI] [ J.SUDHAKAR REDDY ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 23.08.2017. [RG PS] COPY OF THE ORDER FORWARDED TO: 1.M/S. SHREE BAIDYANATH AYURVED PVT. LTD., 1, GUPTA LANE, KOLKATA-700006. 2. D.C.I.T., CIRCLE-12(2), KOLKATA. 3. C.I.T.(A)- XII, KOLKATA 4. C.I.T-IV, KOLKA TA 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER, SENIOR PRIVATE SECRETARY HEAD OF OFFICE/D.D.O, ITAT KOLKATA BENCHES