Shri Ranbir Singh Bagga, Hyderabad V. DCIT, Central Circle - I, Hyderabad

MA 260/HYD/2010

• Counselvise Citation: [2011] 111 COUNSELVISE.COM (IT) 0424 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 31-03-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 25-03-2011
• Assessment Year: misc
• Appeal Filed On: 31-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E SUNIL BABU
• Assessee Lawyers: S RAMA RAO
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER M.A. NO. 260/HYD/2010 ARISING FROM I.T.A. NO. 581/HYD/2006 (ASSESSMENT YEAR : 2002-03) SHRI RANBIR SINGH BAGGA HYDERABAD PAN: ACXPB4130B VS. THE DCIT CENTRAL CIRCLE 1 HYDERABAD APPELLANT RESPONDENT APPELLANT BY: SHRI S. RAMA RAO RESPONDENT BY: SHRI K.E. SUNIL BABU O R D E R PER CHANDRA POOJARI, AM: THIS MISCELLANEOUS APPLICATION IS BY THE ASSESSEE SEEKING RECTIFICATION OF THE ORDER OF THIS TRIBUNAL IN I.T.A. NO. 581/HYD/2006 DATED 12 TH NOVEMBER, 2010 FOR A.Y. 2002-03. 2. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE RAISED GROUND NO. 3 IN I.T.A. NO. 581/HYD/2006 FOR A.Y. 2002-03 AS UNDER: THE LEARNED CIT(A) ERRED IN CONFIRMING THE SECTION ACTION OF THE ASSESSING OFFICER IN DETERMINING THE BUSINESS INCOME FROM SERVICE CHARGES AT RS. NIL. THE LEARNED CIT(A) FURTHER ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN LIMITING THE EXPENDITURE TO THE EXTENT OF THE RECEIPT OF SERVICE CHARGES. 3. THE ABOVE GROUND IS SIMILAR TO GROUND NO. 1 IN I.T.A. NO. 340/HYD/2007 AND THE TRIBUNAL HAS GIVEN A M.A. NO. 260/HYD/2010 SHRI RANBIR SINGH BAGGA =================== 2 FINDING THAT 10% OF DISALLOWANCE OF EXPENDITURE ON SALARY, STAFF WELFARE, SALE AND BUSINESS PROMOTION AND TRAV ELLING EXPENSES CLAIMED BY THE ASSESSEE IS TO BE DISALLOWE D. THERE WAS NO FINDING ON THIS ISSUE IN A.Y. 2002-03. HENCE HE SUBMITTED THAT SUITABLE DIRECTION MAY BE G IVEN FOR A.Y. 2002-03 ALSO. 4. THE LEARNED DR HAS NO OBJECTION TO ISSUE A PROPER DIRECTION ON THIS ISSUE. 5. WE HAVE HEARD BOTH THE PARTIES AND ALSO PERUSED THE CONSOLIDATED ORDER OF THE TRIBUNAL DATED 12 TH NOVEMBER, 2010 IN I.T.A. NO. 340/HYD/2007 AND I.T.A . NO. 581/HYD/2006 FOR A.YS. 2001-02 AND 2002-03, RESPECTIVELY. ADMITTEDLY THERE WAS A GROUND RAISED BY THE ASSESSEE IN I.T.A. NO. 581/HYD/2006 FOR A.Y. 2002-0 3 WHICH IS REPRODUCED ABOVE. SIMILAR GROUND WAS CONSIDERED FOR A.Y. 2001-02 IN I.T.A. NO. 340/HYD/2 007 AND WHILE DECIDING SIMILAR ISSUE FOR A.Y. 2001-02 T HE TRIBUNAL HAS GIVEN A FINDING THAT 10% OF EXPENSES O N SALARY, STAFF WELFARE, SALE AND BUSINESS PROMOTION AND TRAVELLING EXPENSES CLAIMED BY THE ASSESSEE BE DISA LLOWED. IN OUR OPINION, THE CONTENTION OF THE ASSESSEE IN T HIS MA IS JUSTIFIED. ACCORDINGLY AS DECIDED FOR A.Y. 2001 -02, WE DIRECT THE ASSESSING OFFICER TO DISALLOW 10% OF THE M.A. NO. 260/HYD/2010 SHRI RANBIR SINGH BAGGA =================== 3 EXPENSES ON SALARY, STAFF WELFARE, SALE AND BUSINES S PROMOTION AND TRAVELLING EXPENSES FOR THE A.Y. 2002 -03 ALSO. 6. IN THE RESULT, THE MA FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST MARCH, 2011. SD/- (G.C. GUPTA) VICE PRESIDENT SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED 31 ST MARCH, 2011 TPRAO COPY FORWARDED TO: 1. SHRI RANBIR SINGH BAGGA, C/O. S. RAMA RAO, ADVOCATE, 103, INDIRADEVI NILAYAM, STREET NO. 7, HIMAYATNAGAR, HYDERABAD-500 029 2. THE DCIT, CENTRAL CIRCLE - 1, HYDERABAD. 3. THE CIT(A) - I, HYDERABAD. 4 THE CIT (CENTRAL) , HYDERABAD 5. THE DR B BENCH, ITAT, HYDERABAD