Five Star Marine Exports Pvt. Ltd., CHENNAI V. DCIT Corporate Circle 2(1), CHENNAI

ITA 965/CHNY/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5737 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 20-03-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR CIT
• Section: 80HHC; 246

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI . . , . , BEFORE SHRI DUVVURU R.L. REDDY, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.965/CHNY/2018 /ASSESSMENT YEAR: 2004-05 M/S.FIVE STAR MARINE EXPORTS- PVT. LTD., #55, VENKATESAN STREET, CHINDADRIPET, CHENNAI-600 002. VS. THE DY. COMMISSIONER- OF INCOME TAX, CORPORATE CIRCLE-2(1), CHENNAI-600 034. [PAN: AAACF 3541 N] ( # /APPELLANT) ( $%# /RESPONDENT) # & / APPELLANT BY : MR. PHILIP GEORGE, ADV. $%# & /RESPONDENT BY : MR.R.CLEMENT RAMESH- KUMAR, ADDL.CIT & /DATE OF HEARING : 04.07.2019 & /DT. OF PRONOUNCEMENT : 30.09.2019 / O R D E R PER SHRI S. JAYARAMAN, ACCOUNTANT MEMBER : THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX (APPEALS)-13, CHENNAI, IN ITA NO.02/C IT(A)-13/AY 2004-05 DATED 22.11.2017 FOR THE AY 2004-05. 2. M/S.FIVE STAR MARINE EXPORTS LTD., THE ASSESSEE, IS ENGAGED IN THE BUSINESS OF EXPORTING SEA FOODS. WHILE MAKING THE ASSESSMENT FOR THE AY 2004-05, THE AO, INTER ALIA, DISALLOWED 50% OF THE BEHEADING EXPENSES ITA NO.965/CHNY/2018 :- 2 -: AND THE PEELING CHARGES CLAIMED BY THE ASSESSEE.AGG RIEVED AGAINST THAT ORDER, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT( A). THE LD.CIT(A) HELD, INTER ALIA, THAT THE ASSESSEE HAS PRODUCED THE LEDG ER ACCOUNT COPY OF BEHEADING EXPENSES AND PEELING CHARGES ONLY. THE P AYMENTS ARE MADE BY CASH AND THEY ARE NOT EXAMINED. SINCE THE ASSESS EE HAS NOT PRODUCED ANY BILLS OR VOUCHERS IN RESPECT OF SUCH CLAIM EITH ER BEFORE THE AO NOR BEFORE HIM, THEREFORE, HE UPHELD THE DISALLOWANCES MADE BY THE AO. AGGRIEVED AGAINST THE ORDER OF THE LD CIT(A), THE A SSESSEE FILED THIS APPEAL. 3. THE ASSESSEE CHALLENGED THE ORDERS PASSED BY THE LOWER AUTHORITIES. WHILE HEARING THE APPEAL, IT WAS FOUND THAT IN THE COMPUTATION, THE AO DETERMINED THE TOTAL INCOME IN HIS ORDER U/S 143( 3) DT 22.12.2006 AS UNDER: INCOME RETURNED BEFORE ALLOWING DEDUCTION U/S.80HHC RS. 88,70,381 LESS: DEDUCTION U/S.CHAPTER VIA (I) 80 GGA RS.12,000 (II) 80HHC (SEPARATE SHEET ENCLOSED) RS. NIL -------------- RS. 12,000 -------------- RS. 88,58,381 INCOME TAX THEREON RS. 31,00,438 ADD: SURCHARGE @ 2.5% RS. 77,510 --------------- RS. 31,77,943 --------------- SINCE THE IMPUGNED DISALLOWANCES ARE NOT FORMING P ART OF THE COMPUTATION IN THE ABOVE ORDER AND THE CORRESPONDIN G DEMANDS ARE NOT RAISED ON THE ASSESSEE, WE ASKED THE LD AR HOW THIS APPEAL IS MAINTAINABLE. THE LD AR SUBMITTED THAT THIS ASPECT WAS NOT NOTICED BY THEM AT ALL. ITA NO.965/CHNY/2018 :- 3 -: 4. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH THE RELEVANT MATERIALS. IT IS CLEAR FROM THE ABOVE, THOUGH THE A O DISCUSSED THE IMPUGNED ISSUES IN THE ASSESSMENT ORDER, NEITHER HE RAISED A DEMAND CORRESPONDING TO SUCH DISALLOWANCES NOR THE ASSESSE E HAS SHOWN THAT IT HAS ANY LIABILITY ON THE IMPUGNED ISSUES WHICH IS B EING DENIED IN THIS APPEAL WITHIN THE SCOPE OF CLASS (A) OF SUB-SECTION 1 OF SECTION 246 AND HENCE THE IMPUGNED APPEAL IS NOT MAINTAINABLE AND H ENCE DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS DISMISSED. ORDER PRONOUNCED ON THE 30 TH DAY OF SEPTEMBER, 2019, IN CHENNAI. SD/- SD/- ( - . . . / ) (DUVVURU R.L. REDDY) /JUDICIAL MEMBER ( . ) (S. JAYARAMAN) /ACCOUNTANT MEMBER /CHENNAI, 1 /DATED: 30 TH SEPTEMBER, 2019. TLN & $23 43 /COPY TO: 1. # /APPELLANT 4. 5 /CIT 2. $%# /RESPONDENT 5. 3 $ /DR 3. 5 ( ) /CIT(A) 6. /GF