ADITYA TELELINK PVT. LTD., JAIPUR V. DEPUTY COMMISSIONER OF INCOME TAX , JAIPUR

ITA 966/JPR/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2150 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 08-12-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VARINDER MEHTA CIT DHK
• Keywords: Capital asset; Business expenditure; Principle of natural justice

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH HKKXPAN] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI BHAGCHAND, A M VK;DJ VIHY LA-@ ITA NOS. 966 TO 968 & 1007/JP/2017 FU/KZKJ.K O'KZ@ ASSESSMENT YEARS : 2006-07 & 2010-11 TO 2012-13 ADITYA TELELINK PVT. LTD., 1 ST FLOOR, SOMANI BUILDING, M.I. ROAD, JAIPUR. CUKE VS. D.C.I.T., CENTRAL CIRCLE-1, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAECA 9522 E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : NONE (NOTICE RETURNED UNSERVED) JKTLO DH VKSJ LS@ REVENUE BY : SHRI VARINDER MEHTA (CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 08/02/2018 MN?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 08/02/2018 VKNS'K@ ORDER PER: BENCH THESE ARE THE APPEALS FILED BY THE ASSESSEE EMANATE S FROM THE COMPOSITE ORDER OF THE LD. CIT(A)-4, JAIPUR DATED 11 /09/2017 FOR THE A.YS. 2006-07 AND 2010-11 TO 2012-13. IN ALL THESE APPEALS, THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL:- GROUNDS IN ITA NO. 966/JP/2017 1. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE TH E LEARNED CIT(A) 4, JAIPUR HAS GROSSLY ERRED IN NOT ALLOWING THE ASSESS EE COMPANY TO REPRESENT ITS CASE BEFORE HIM BY IGNORING THE PRINC IPLES OF NATURAL JUSTICE AND THEREFORE MAKING EX PARTY ORDER OF CONF IRMATION OF ORDER PASSED BY LEARNED AO. ITA 966 TO 968 & 1007/JP/2017_ ADITYA TELELINK P LTD. VS DCIT 2 2. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE TH E LEARNED CIT(A) 4, JAIPUR HAS GROSSLY ERRED IN LAW AS WELL AS FACTS IN CONFIRMING THE ORDER PASSED BY THE LD. DCIT, CENTRAL CIRCLE -1, JA IPUR OF WRONGLY DISALLOWING LEGITIMATE MEMBERSHIP EXPENSES AND SUBS CRIPTION FEES OF CLUBS AMOUNTING TO RS. 3,00,000/- BY TREATING IT THE PERSONAL EXPENSES OF DIRECTORS OF ASSESSEE COMPANY AND NOT A LLOWABLE BUSINESS EXPENDITURE. 3. THAT THE APPELLANT ASSESSEE CRAVES FOR A LEAVE TO ADD, ALTER AND AMEND ANY GROUNDS OF APPEAL AT THE TIME OF APPELLAT E HEARING. GROUNDS IN ITA NO. 967/JP/2017 1. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE TH E LEARNED CIT(A) 4, JAIPUR HAS GROSSLY ERRED IN NOT ALLOWING THE ASSESS EE COMPANY TO REPRESENT ITS CASE BEFORE HIM BY IGNORING THE PRINC IPLES OF NATURAL JUSTICE AND THEREFORE MAKING EX PARTY ORDER OF CONF IRMATION OF ORDER PASSED BY LEARNED AO. 2. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE TH E LEARNED CIT(A) 4, JAIPUR HAS GROSSLY ERRED IN LAW AS WELL AS FACTS IN CONFIRMING THE ORDER PASSED BY THE LD. DCIT, CENTRAL CIRCLE -1, JA IPUR OF WRONGLY MAKING THE FOLLOWING DISALLOWANCES: (I) DISALLOWED THE ENTIRE FARM HOUSE MAINTENANCE EX PENSES AMOUNTING TO RS 2,20,420/- BY TREATING IT AS PERSON AL LEISURE EXPENSES OF DIRECTORS OR THEIR FAMILIES OF ASSESSEE COMPANY AND NOT FOR BUSINESS PURPOSE. (II) DISALLOWED LEGITIMATE MEMBERSHIP EXPENSES AND SUBSCRIPTION FEES AND CHARGES PAID TO CLUBS AMOUNTING TO RS 7,10 ,087/- BY TREATING IT THE PERSONAL EXPENSES OF DIRECTORS OF A SSESSEE COMPANY AND ARE NOT ALLOWABLE AS BUSINESS EXPENDITU RE. 3. THAT THE APPELLANT ASSESSEE CRAVES FOR A LEAVE T O ADD, ALTER AND AMEND ANY GROUNDS OF APPEAL AT THE TIME OF APPELLAT E HEARING. GROUNDS IN ITA NO. 968/JP/2017 1. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE TH E LEARNED CIT(A) 4, JAIPUR HAS GROSSLY ERRED IN NOT ALLOWING THE ASSESS EE COMPANY TO REPRESENT ITS CASE BEFORE HIM BY IGNORING THE PRINC IPLES OF NATURAL ITA 966 TO 968 & 1007/JP/2017_ ADITYA TELELINK P LTD. VS DCIT 3 JUSTICE AND THEREFORE MAKING EX PARTY ORDER OF CONF IRMATION OF ORDER PASSED BY LEARNED AO. 2. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE TH E LEARNED CIT(A) 4, JAIPUR HAS GROSSLY ERRED IN LAW AS WELL AS FACTS IN CONFIRMING THE ORDER PASSED BY THE LD. DCIT, CENTRAL CIRCLE -1, JA IPUR OF WRONGLY MAKING THE FOLLOWING ADDITIONS: (I) LD. A.O. DISALLOWED THE ENTIRE FARM HOUSE MAINT ENANCE EXPENSES AMOUNTING TO RS 2,10,413/- BY TREATING IT AS PERSONAL LEISURE EXPENSES OF DIRECTORS OF ASSESSEE COMPANY O R THEIR FAMILIES USING FARM HOUSE FOR LEISURE PURPOSE AND A LLEGING THAT EXPENDITURE INCURRED ON SUCH FARM IS NOT FOR THE PU RPOSE OF BUSINESS OF THE COMPANY. THEREFORE, SUCH EXPENSES A RE DISALLOWED. (II) LD. A.O. DISALLOWED LEGITIMATE MEMBERSHIP EXPE NSES AND SUBSCRIPTION FEES OF CLUBS AND CREDIT CARD EXPENSES TO THE EXTENT OF RS. 22,657/- BY TREATING IT THE PERSONAL EXPENSE S OF DIRECTORS OF ASSESSEE COMPANY AND ARE NOT ALLOWABLE AS BUSINE SS EXPENDITURE. (III) LD. A.O. HAS WRONGLY ADDED THE EXEMPTED LTGC OF RS. 6,05,518/- ARISING FROM THE COMPULSORY ACQUISITION OF AGRICULTURE LAND, BY ALLEGING THAT THE LAND ACQUIRE D BY NHAI IS NOT THE AGRICULTURE LAND BUT A NORMAL CAPITAL ASSET AND THEREFORE, THE LONG TERM CAPITAL GAIN ARISING FROM THIS LAND SHOULD BE CHARGED TO TAX. 3. THAT THE APPELLANT ASSESSEE CRAVES FOR A LEAVE T O ADD, ALTER AND AMEND ANY GROUNDS OF APPEAL AT THE TIME OF APPELLAT E HEARING. GROUNDS IN ITA NO. 1007/JP/2017 1. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE TH E LEARNED CIT(A) 4, JAIPUR HAS GROSSLY ERRED IN NOT ALLOWING THE ASSESS EE COMPANY TO REPRESENT ITS CASE BEFORE HIM BY IGNORING THE PRINC IPLES OF NATURAL JUSTICE AND THEREFORE MAKING EX PARTY ORDER OF CONF IRMATION OF ORDER PASSED BY LEARNED AO. ITA 966 TO 968 & 1007/JP/2017_ ADITYA TELELINK P LTD. VS DCIT 4 2. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE TH E LEARNED CIT(A) 4, JAIPUR HAS GROSSLY ERRED IN LAW AS WELL AS FACTS IN CONFIRMING THE ORDER PASSED BY THE LD. DCIT, CENTRAL CIRCLE -1, JA IPUR OF WRONGLY MAKING THE FOLLOWING ADDITIONS: (I) LD. A.O. HAS DISALLOWED THE ENTIRE FARM HOUSE M AINTENANCE EXPENSES AMOUNTING TO RS 1,87,357/- BY TREATING IT AS PERSONAL LEISURE EXPENSES OF DIRECTORS OF ASSESSEE COMPANY O R THEIR FAMILIES USING FARM HOUSE FOR LEISURE PURPOSE AND N OT FOR BUSINESS PURPOSE. (II) LD. A.O. HAD DISALLOWED LEGITIMATE ANNUAL REDI FFMAIL EXPENSES OF RS. 6,200/-, CREDIT CARD MEMBERSHIP FEES OF RS. 1,323/- AND OTHER PAYMENT OF CLUBS EXPENSES AMOUNTING TO RS. 1, 11,155/- BY TREATING THESE EXPENSES AS THE PERSONAL EXPENSES OF DIRECTORS OF ASSESSEE COMPANY AND ARE NOT ALLOWABLE AS BUSINESS EXPENDITURE. 3. THAT THE APPELLANT ASSESSEE CRAVES FOR A LEAVE T O ADD, ALTER AND AMEND ANY GROUNDS OF APPEAL AT THE TIME OF APPELLAT E HEARING. 2. THE NOTICE SENT BY THE TRIBUNAL TO THE LAST KNOWN ADDRESS OF THE ASSESSEE RETURNED UNSERVED. THE ASSESSEE HAS NOT INT IMATED THE CHANGE OF ADDRESS. AT THE TIME OF HEARING, NO ONE HAS APPE ARED ON BEHALF OF THE ASSESSEE. IT IS ALSO NOTED THAT NONE ATTENDED ON BE HALF OF THE ASSESSEE BEFORE THE LD. CIT(A). FROM THIS, IT SHOWS THAT THE A SSESSEE IS NOT SERIOUS TO PURSUE HIS CASE. 3. THE LAWS ASSIST THOSE WHO ARE VIGILANT AND NOT THOS E WHO SLEEP OVER THEIR RIGHTS. THIS PRINCIPLE IS EMBODIED IN THE WELL KNOWN DICTUM VIGILANTIBUS NON DORMENTIBUS, JURA SUBVENIUNT. CON SIDERING THE FACTS AND KEEPING IN MIND THE PROVISIONS OF RUL E 19(2) OF THE ITA 966 TO 968 & 1007/JP/2017_ ADITYA TELELINK P LTD. VS DCIT 5 INCOME TAX APPELLATE TRIBUNAL RULES, AS WERE CONSIDERE D IN 38 ITD 320 (DELHI) IN THE CASE OF CIT VS. MULTIPLAN INDIA LTD., AND ALSO ESTATE OF LATE TUKOJIRAO HOLKAR VS. CWT, 223 ITR 480 (MP), WE TR EAT THE APPEALS AS NOT ADMITTED AND DISMISSED IN LIMINE. 3. IN THE RESULT, ALL THESE APPEALS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 08/02/2018. SD/- SD/- FOT; IKY JKO HKKXPAN (VIJAY PAL RAO) (BHAGCHAND) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 08 TH FEBRUARY, 2018 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- ADITYA TELELINK PVT. LTD., JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE D.C.I.T., CENTRAL CIRCLE-1, JAIPU R. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 966 TO 968 & 1007/JP/2017) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR