Spero Foundations Pvt Ltd., CHENNAI V. DCIT, CHENNAI

MA 344/CHNY/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0534 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 23 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-11-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 13-04-2018
• Assessment Year: 2011-2012
• Appeal Filed On: 07-12-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: G BASKAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER & S HRI S.JAYARAMAN , ACCOUNTANT MEMBER M.P.NOS.343 & 344/CHNY/2017 ( I.T.A.NOS.1189 & 1572/CHNY/2016) ASSESSMENT YEARS : 2011-12 & 2011-12) M/S.SPERO FOUNDATIONS PVT LTD ., 12/1,BASHYAM BASHEER AHMED STREET, ALWARPET, CHENNAI 600 018. VS. DY. COMMISSIONER OF INCOME TAX, CORPORATE WARD 6(2) CHENNAI. [PAN AAACU 1229L ] ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR.G.BASKAR,ADVOCATE /RESPONDENT BY : MR.AR.V.SREENIVASAN,JCIT,D.R ! / DATE OF HEARING : 30 - 11 - 201 8 '#$% ! / DATE OF PRONOUNCEMENT : 30 - 11 - 201 8 ! / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER BOTH THE MISCELLANEOUS PETITIONS ARE FILED BY T HE ASSESSEE. M.P NO.343/CHNY/2017 IN ITA NO.1189/CHNY/2016 BEING THE APPEAL FILED BY THE ASSESSEE, AND M.P NO.344/CHNY/2 017 IN ITA NO.1572/CHNY/2016 BEING THE APPEAL FILED BY THE REV ENUE, ARE M.P NOS.343 & 344/CHNY/2017 :- 2 -: DIRECTED AGAINST THE COMMON ORDER OF THE TRIBUNAL I N ITA NOS.1189 & 1572/CHNY/2016 DATED 04.09.2017. 2. SHRI G.BASKAR REPRESENTED ON BEHALF OF THE ASSESSEE AND SHRI AR.V.SREENIVASAN REPRESENTED ON BEHALF OF THE REVENUE. 3. THE ASSESSEE HAS FILED AN AFFIDAVIT STATING REA SONS AT PARA NOS. 4.1 TO 4.4 AS FOLLOWS:- 4.1 THE TOTAL EXPENDITURE CLAIMED IN THE PROFIT AN D LOSS A/C IS RS.1,91,59,586/-. OUT OF THIS, THE AO HAS DISALLOWE D THE FOLLOWING: A) BAD DEBT WRITTEN OF RS.67,86,631/- B) DISALLOWANCE U/S.14A RS.58,29,423/- AND C) EXPENSES RELATING TO HOUSE PROPERTY RS.48,15, 744/- 4.2 WITH REGARD TO THE ISSUE OF THE DISALLOWANCE OF PERSONNEL AND ADMINISTRATIVE EXPENSES IN THE ASSESSEES APPEA L, TO THE TUNE OF RS.48,15,744/- BEING 96% OF THE TOTAL OF SU CH EXPENDITURE CLAIMED, THIS HONBLE TRIBUNAL HAS CONF IRMED THE SAME WHILE HOLDING THAT IT WAS INADMISSIBLE U/S.24 OF THE INCOME TAX ACT. THE HONBLE TRIBUNAL HAS PROCEEDED ON THE BASIS THAT THE EXPENSES IS RELATABLE TO THE RENTAL INCOME OF RS.1,74,27,736/-. IT IS SUBMITTED THAT RS.5,33,544 REFERS TO RENTAL INCOME OF SILVER SPRING, WHICH IS ASSESSED U NDER THE HEAD M.P NOS.343 & 344/CHNY/2017 :- 3 -: INCOME FROM HOUSE PROPERTY AND THE EXPENDITURE CLAI MED IS IN RESPECT OF SILVER SPRING INCOME. 4.3 HOWEVER, IN THE REVENUES APPEAL, IN RESPECT OF THE DISALLOWANCE U/S.14A, THIS HONBLE TRIBUNAL CONFIRM ED THE DISALLOWANCE U/S.8D(2), THEREBY RENDERING IT A DOUB LE DISALLOWANCE OF EXPENDITURE, I.E. ONCE U/S.24 OF TH E ACT, AND AGAIN U/S.14A R.W. RULE 8D(2). 4.4. THEREFORE, DUE TO THE ABOVE MISTAKE APPARENT I N THE ORDER OF THIS HONBLE TRIBUNAL, IT IS IMPERATIVE THAT THE OR DER DATED 04.09.2017 IS RECTIFIED IN SO FAR AS IT CONFIRMS TH E DISALLOWANCE OF THE SAME EXPENDITURE TWICE. CONSEQUENTLY, THE ASSESSEE IS REQUESTING FOR RECALL OF THE COMMON ORDER OF THE TRIBUNAL AND TO RE-ADJUDICATE THE APPE ALS ON MERITS IN ACCORDANCE WITH LAW. IN REPLY, THE LD.D.R SUBMITTED THAT NO MISTAKE APPARENT ON RECORD FROM THE ORDER OF TRIBUNAL IS PO INTED OUT. WHAT IS PRAYED FOR BY THE ASSESSEE, IS IN FACT A COMPLETE R EVIEW OF THE ORDER OF TRIBUNAL, WHICH IS NOT PERMISSIBLE U/S.254(2) OF TH E ACT. LD.D.R VEHEMENTLY SUPPORTED THE ORDER OF TRIBUNAL. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. ADMI TTEDLY, THE ASSESSEE HAS NOT BEEN ABLE TO POINT OUT ANY MISTAKE APPARENT FROM THE RECORD IN RESPECT OF THE ORDER PASSED BY THE TRIBUN AL DATED 04.09.2017. THE PRAYER ITSELF IS RECALLING OF THE O RDER AND M.P NOS.343 & 344/CHNY/2017 :- 4 -: RE-ADJUDICATION, WHICH IS NOT SOMETHING, THAT COULD BE DONE IN MISCELLANEOUS PETITIONS U/S.254(2) OF THE ACT. CONS EQUENTLY, BOTH THE MISCELLANEOUS PETITIONS FILED BY THE ASSESSEE STAND DISMISSED. 5. IN THE RESULT, BOTH THE MISCELLANEOUS PETITIONS FILED BY THE ASSESSEE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 30 TH NOVEMBER, 2018, AT CHENNAI. SD/ - SD/ - ( ) (S. JAYARAMAN) ' # /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) $ # / JUDICIAL MEMBER & / CHENNAI ' / DATED: 30 TH NOVEMBER, 2018. K S SUNDARAM ( ) *+ , +$ / COPY TO: 1 . / APPELLANT 3. ( ( - () / CIT(A) 5. +01 23 / DR 2. / RESPONDENT 4. ( ( - / CIT 6. 145 6 / GF