Manjula Narayanan, CHENNAI V. ACIT, CHENNAI

MA 53/CHNY/2017

• Counselvise Citation: [2017] 124 COUNSELVISE.COM (IT) 5691 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 28-07-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-06-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 23-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K HEMALATHA ACA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI ... , . !'# ! ,% !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER '' / M.P. NO.53/MDS/2017 (IN I.T.A. NO.1524/MDS/2016) ( )( / ASSESSMENT YEAR : 2009-10 SMT. MANJULA NARAYANAN, NEW NO.12, OLD NO.71, 3 RD MAIN ROAD, KASTURIBA NAGAR, ADYAR, CHENNAI - 600 020. PAN : AAKPN 7776 J V. THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 5(1), CHENNAI - 600 034. (+,( /PETITIONER) (+-,./ RESPONDENT) +,( 0 1 /PETITIONER BY : MS.K. HEMALATHA, ACA +-,. 0 1 / RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT 2 0 3% / DATE OF HEARING : 28.07.2017 4') 0 3% / DATE OF PRONOUNCEMENT : 28.07.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THE ASSESSEE HAS FILED THE PRESENT MISCELLANEOUS PETITION ON THE GROUND THAT THERE IS AN ERROR IN THE ORDER O F THIS TRIBUNAL DATED 23 RD SEPTEMBER, 2016, WHICH NEEDS TO BE RECTIFIED. 2. MS. K. HEMALATHA, THE LD. REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT THE ASSESSEE CLAIMED BEFORE THE ASSE SSING OFFICER 2 M.P. NO.53/MDS/17 THAT NO EXPENDITURE WAS INCURRED FOR EARNING THE EX EMPTED INCOME. ALL THE EXPENDITURES WERE INCURRED IN POUNDS OUTSID E THE COUNTRY. NO EXPENDITURE WAS INCURRED IN INDIAN CURRENCY FOR EARNING EXEMPTED INCOME. WHEN THE ASSESSEE HAS NOT INCURRE D ANY EXPENDITURE IN INDIAN CURRENCY FOR EARNING EXEMPTED INCOME, ACCORDING TO THE LD. REPRESENTATIVE, THERE CANNOT B E ANY DISALLOWANCE. THE ENTIRE EXPENDITURE INCURRED BY T HE ASSESSEE IN POUNDS IS FOR PROMOTING THE CDS. THEREFORE, ACCORD ING TO THE LD. REPRESENTATIVE, THE DISALLOWANCE MADE BY THE ASSESS ING OFFICER IS NOT JUSTIFIED. TO THAT EXTENT, THERE IS AN ERROR I N THE ORDER OF THIS TRIBUNAL. THE LD. REPRESENTATIVE FURTHER SUBMITTED THAT THERE WAS NO INVESTMENT MADE DURING THE YEAR UNDER CONSIDERATION ALSO. 3. ON THE CONTRARY, SHRI AR.V. SREENIVASAN, THE LD. DEPARTMENTAL REPRESENTATIVE, SUBMITTED THAT THERE I S NO ERROR IN THE ORDER OF THIS TRIBUNAL. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE ASSESSEE CLAIMS THAT ALL THE EXPENDITURES WERE INCURRED IN P OUNDS AND NO EXPENDITURE WAS INCURRED IN INDIAN CURRENCY. ADMIT TEDLY, THE INVESTMENTS IN SHARES WERE MADE IN INDIA, THEREFORE , EXPENDITURE IF ANY, HAS TO BE NECESSARILY INCURRED IN INDIAN RUPEE . THE ASSESSEE 3 M.P. NO.53/MDS/17 CLAIMED THAT NO EXPENDITURE WAS INCURRED IN INDIAN RUPEE AND ALL THE EXPENDITURES WERE MADE IN POUNDS WHICH ARE RELATABL E TO MARKETING CDS. THIS FACT WAS NOT EXAMINED BY THE TRIBUNAL. THEREFORE, TO THAT EXTENT THERE IS AN ERROR IN THE ORDER OF THIS TRIBUNAL DATED 23.09.2016. SINCE THE EXPENDITURE CLAIMED BY THE A SSESSEE FOR MARKETING CDS IN POUNDS AND NO EXPENDITURE WAS INCU RRED IN INDIAN RUPEE GOES TO THE ROOT, THIS TRIBUNAL IS OF THE CON SIDERED OPINION THAT THE ORDER OF THIS TRIBUNAL DATED 23.09.2016 NEEDS T O BE RECALLED TO APPRECIATE THE FACTS OF THE CASE IN A BETTER MANNER . ACCORDINGLY, THE ORDER OF THIS TRIBUNAL DATED 23.09.2016 IS HERE BY RECALLED AND THE APPEAL OF THE ASSESSEE IN I.T.A. NO.1524/MDS/20 16 STANDS RESTORED ON THE FILE OF THE TRIBUNAL. 5. THE REGISTRY IS DIRECTED TO POST THE APPEAL FOR FINAL DISPOSAL BEFORE REGULAR BENCH ON 04.10.2017. IT IS MADE CL EAR THAT NO NOTICE OF HEARING NEEDS TO BE ISSUED SINCE THE DATE OF HEA RING WAS PRONOUNCED IN THE OPEN COURT. IN OTHER WORDS, A CO PY OF THIS ORDER SHALL SERVE AS NOTICE OF HEARING DATED 04.10.2017. 6. IN THE RESULT, THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE IS ALLOWED. 4 M.P. NO.53/MDS/17 ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH JULY, 2017 AT CHENNAI. SD/- SD/- (. !'# ! ) ( ... ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 6 /DATED, THE 28 TH JULY, 2017. KRI. 0 +37' 8')3 /COPY TO: 1. +,( / PETITIONER 2. +-,. /RESPONDENT 3. 2 93 () /CIT(A) 4. 2 93 /CIT 5. ': +3 /DR 6. ;( < /GF.