CHEMET, V. ADDL CIT RG 19(2),

MA 143/MUM/2012

• Counselvise Citation: [2012] 123 COUNSELVISE.COM (IT) 9127 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 5 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-08-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 05-03-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S K SINGH
• Assessee Lawyers: S C TIWARI; NATASHA MANGAT

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C, MUMBAI . !, '#$ % % % % .%. & , '( )& , ' $ BEFORE D.MANMOHAN, VP AND SHRI R.S.SYAL, AM ** ')! ./ MA NO.143/MUM/2012 ( ' ',- . / ARISING OUT OF ITA NO.5938/MUM/2010) ( /! 0 /! 0 /! 0 /! 0 / / / / ASSESSMENT YEAR : 2006-2007) M/S.CHEMET SPAN CENTRE, 2 ND FLOOR 556 RAMKRISHNA MISSION MARG SANTACRUZ (WEST) MUMBAI 400 054. PAN : AAAFC0996P. THE ADDL.COMMISSIONER OF INCOME-TAX RANGE 19(2) MUMBAI. ( ') / // / APPLICANT) ! ! ! ! / VS. ( 1234/ RESPONDENT) ') 5 55 5 6 ' 6 ' 6 ' 6 ' / APPLICANT BY : S/SHRI S.C.TIWARI & MS.NATASHA MANGA T 1234 5 6 ' 5 6 ' 5 6 ' 5 6 ' / RESPONDENT BY : SHRI S.K.SINGH ! 5 -( / / / / DATE OF HEARING : 10.08.2012 70 5 -( / DATE OF PRONOUNCEMENT : 10.08.2012 )'8 )'8 )'8 )'8 / / / / O R D E R PER R.S.SYAL, AM : THIS MISCELLANEOUS APPLICATION U/S.254(2) OF THE IN COME-TAX ACT, 1961 HAS BEEN MOVED BY THE ASSESSEE PRAYING FO R THE RECTIFICATION OF THE ORDER OF THE TRIBUNAL DATED 28 .10.2011 IN ITA NO.5938/MUM/2010. 2. THE LEARNED COUNSEL FOR THE ASSESSEE CONTENDED T HAT THE TRIBUNAL ERRED IN SUSTAINING THE DISALLOWANCE OF ` 2,18,868 BY IGNORING GROUND NO.1.1 RAISED IN THE MEMORANDUM OF APPEAL AS PER WHICH 1/5 TH OF MOTOR CAR EXPENSES WERE CONSIDERED FOR THE PURP OSE OF MA NO.143/MUM/2012 M/S.CHEMET. 2 FRINGE BENEFIT TAX. IT WAS, THEREFORE, CONTENDED TH AT ONCE THE SAID AMOUNT WAS CONSIDERED FOR THE PURPOSE OF FRINGE BEN EFIT TAX, THE SAME SHOULD NOT HAVE BEEN CONSIDERED FOR THE PURPOSE OF DISALLOWANCE BY CONSIDERING SECTION 38(2) OF THE INCOME-TAX ACT, 19 61. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD. WE FIND THAT THERE IS NO SUBSTA NCE IN THE SUBMISSION ADVANCED ON BEHALF OF THE ASSESSEE. FRIN GE BENEFIT TAX IS AN ALTOGETHER DIFFERENT LEVY WITH A DIFFERENT SCOPE , WHICH IS CHARGED IN ADDITION TO THE INCOME-TAX. THE RELEVANT SECTION S GOVERNING THE CHARGE OF FRINGE BENEFIT TAX OR SECTION 38(2) OF TH E INCOME-TAX ACT, 1961 NOWHERE LAY DOWN THAT THERE CANNOT BE ANY DISA LLOWANCE ON ACCOUNT OF PERSONAL EXPENSES WHILE COMPUTING THE TO TAL INCOME UNDER THE ACT ONCE AN EXPENDITURE HAS BEEN SUBJECTED TO F RINGE BENEFIT TAX. ON A SPECIFIC QUERY, THE LD. AR COULD NOT BRING TO OUR NOTICE ANY DECISION IN SUPPORT OF HIS CONTENTION. IN VIEW OF T HE ABOVE FACTS WE ARE NOT INCLINED TO ACCEPT HIS VIEW POINT ON THIS A SPECT OF THE MATTER. 4. SECOND GROUND IS AGAINST CONFIRMATION OF DISALLO WANCE AT 5% OUT OF MISCELLANEOUS EXPENSES. AFTER CONSIDERING TH E RIVAL SUBMISSIONS AND PERUSING THE RELEVANT MATERIAL ON R ECORD, WE FIND THAT THERE IS NO WARRANT FOR CARRYING OUT ANY RECTI FICATION IN THE IMPUGNED ORDER. IT IS SO FOR THE REASON THAT THE TR IBUNAL, AFTER CONSIDERING THE RELEVANT FACTS, TOOK A CONSCIOUS D ECISION THAT THE DISALLOWANCE SO SUSTAINED IS REASONABLE. IT IS NOT OPEN TO REQUEST FOR THE REDUCTION OR DELETION OF DISALLOWANCE IN THE RE CTIFICATION MA NO.143/MUM/2012 M/S.CHEMET. 3 PROCEEDINGS WITHOUT SHOWING ANY MISTAKE IN THE ORDE R. WE, THEREFORE, DISMISS THIS GROUND OF MISCELLANEOUS APPLICATION AL SO. 5. 9 -: ') 5 ** ')! (9; 5 ;- < IN THE RESULT, THE MISCELLANEOUS APPLICATION IS DISMISSED. ORDER PRONOUNCED ON THIS 10 TH AUGUST, 2012. . )'8 5 70 =)!: 5 > SD/- SD/- (D.MANMOHAN) (R.S.SYAL) '#$ '#$ '#$ '#$ / VICE-PRESIDENT '( )& '( )& '( )& '( )& / ACCOUNTANT MEMBER MUMBAI ; =)! DATED 10 TH AUGUST, 2012. DEVDAS* )'8 5 1/-?* @'*0- )'8 5 1/-?* @'*0- )'8 5 1/-?* @'*0- )'8 5 1/-?* @'*0-/ COPY OF THE ORDER FORWARDED TO : 1. ') / THE APPLICANT. 2. 1234 / THE RESPONDENT. 3. A () / THE CIT(A) - XIX, MUMBAI. 4. A / CIT 5. *D> 1/-/! , , / DR, ITAT, MUMBAI 6. > E / GUARD FILE. )'8! )'8! )'8! )'8! / BY ORDER, 2*- 1/- //TRUE COPY// ' ' ' '/ // / ; ; ; ; ( DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI