RELIANCE COMMUNICATIONS LTD, V. DDIT (IT) 2(1),

MA 234/MUM/2014

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0257 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 7 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-12-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: L
• Assessment Year: misc
• Appeal Filed On: 30-04-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR SINGH LD
• Assessee Lawyers: NISHIT GANDHI LD

Judgement Text

MA NO.234/MUM/2018 ARISING OUT OF ITA NO.7498/MUM/2016 SANTOSH B.POWLE ASSESSMENT YEAR 2009-10 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI , , BEFORE HONBLE SHRI JOGINDER SINGH, VP AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM MISCELLANEOUS APPLICATION NO.234/MUM/2018 (ARISING OUT OF ITA NO.7498/MUM/2016) ( / ASSESSMENT YEAR: 2009-10) SANTOSH B.POWLE 101, 10 TH FLOOR, PARSHURAM NIKETAN SHIVAJI PARK, MAHIM, MUMBAI 16 / VS. ASSISTANT COMMISSIO NER OF INCOME TAX-18(3) MUMBAI ./ ./ PAN/GIR NO.AAJPP-1107-A ( /APPELLANT ) : ( / RESPONDENT ) ASSESSEE BY : SHRI NISHIT GANDHI, LD. AR REVENUE BY : SHRI MANOJ KUMAR SINGH, LD. DR / DATE OF HEARING : 02/11/2018 / DATE OF PRONOUNCEMENT : 11/12/2018 ORDER UNDER SECTION 254(2) OF INCOME TAX ACT, 1961 PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. BY WAY OF THIS MISCELLANEOUS APPLICATION, THE AS SESSEE SEEKS RECTIFICATION / RECALL OF TRIBUNAL ORDER ITA NO.7498/MUM/2016 DATED 06/09/2017 WHICH HAS PARTLY ALLOWED THE ASSESSEES APPEAL. THE LD. AUTHORIZED REPRESENTATIVE HAS POINTED THAT AN ADDIT ION OF RS.70,979/- ON ACCOUNT OF USAGE OF MOBILE PHONES HAS BEEN CONFI RMED ONLY ON THE MA NO.234/MUM/2018 ARISING OUT OF ITA NO.7498/MUM/2016 SANTOSH B.POWLE ASSESSMENT YEAR 2009-10 2 PREMISE THAT THE CONNECTION WAS ISSUED IN ASSESSEE S WIFE NAME WHEREAS THE DEDUCTION OF THE EXPENDITURE WAS CLAIME D IN VIEW OF THE FACT THAT MOBILE NUMBER WAS USED BY THE ASSESSEE EXCLUSI VELY FOR HIS PROFESSIONAL WORK AND THEREFORE, IT WAS AN ALLOWABL E EXPENDITURE NOTWITHSTANDING THE FACT THAT THE CONNECTION WAS HE LD IN THE NAME OF ASSESSEES WIFE. THE ATTENTION HAS BEEN DRAWN TO TH E FACT THAT NO EXPENDITURE HAS BEEN CLAIMED BY THE ASSESSEE AGAINS T ANY OTHER MOBILE NUMBER. IN VIEW OF THE STATED FACT, WE ARE OF THE O PINION THAT FULL DISALLOWANCE OF THE EXPENDITURE, UNDER THE CIRCUMST ANCES, WAS NOT JUSTIFIED AND THEREFORE, WE RESTRICT THE DISALLOWAN CE TO 10% WHICH COMES TO RS.7098/-. THE GROUND RAISED BY THE ASSESSEE TO THAT EXTENT STAND PARTLY ALLOWED. 2. ANOTHER ADDITION CONFIRMED IN THE ORDER WAS INTEREST & BANK CHARGES OF RS.3,74,188/- & RS.28,474/- RESPECTIVELY BY OBSE RVING THAT THE YEAR-END CURRENT LIABILITIES FAR EXCEEDED THE C URRENT ASSETS AND MAJORITY OF THE RECEIPTS WERE RECEIVED BY THE ASSES SEE AT THE BEGINNING OF THE YEAR. THE LD. AR SUBMITTED THAT THE WORKING CAPITAL LOAN WAS OBTAINED TO MEET THE WORKING CAPITAL REQUIREMENTS O F THE ASSESSEE AND AN ALLOWABLE EXPENDITURE IN TERMS OF VARIOUS JUDICI AL PRONOUNCEMENTS AND THE ASSESSEE IS ABLE TO SUBSTANTIATE THIS FACT. KEEPING IN VIEW THE SUBMISSIONS MADE BY LD. AR, IN THE INTEREST OF JUST ICE, THE MATTER STAND REMITTED BACK TO THE FILE OF LD. AO FOR RE-ADJUDICA TION IN THE LIGHT OF SUBMISSIONS MADE BY LD. AR BEFORE US WITH A DIRECTI ON TO THE ASSESSEE TO SUBSTANTIATE THE SUBMISSIONS. THIS GROUND STAND ALLOWED FOR STATISTICAL PURPOSES. THE APPEAL, AS IN THE ORIGINAL ORDER, STA ND PARTLY ALLOWED. MA NO.234/MUM/2018 ARISING OUT OF ITA NO.7498/MUM/2016 SANTOSH B.POWLE ASSESSMENT YEAR 2009-10 3 3. THE MISCELLANEOUS APPLICATION STANDS DISPOSED-OF F IN THE TERMS OF OUR ABOVE ORDER. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH DECEMBER, 2018. SD/- SD/- (JOGINDER SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 11/12/2018 SR.PS:-THIRUMALESH/SR.PS, JAISY VARGHESE / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. ! / THE RESPONDENT 3. '# '#$ ( ) / THE CIT(A) 4. '# '#$ / CIT CONCERNED 5. %&# ' , '# #' , / DR, ITAT, MUMBAI 6. &()* / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.