Chetan H Negandhi, Mumbai vs Assessee

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH "C", MUMBAI ᮰ी आर. आर. सी. सी. शमाᭅ, लेखा सद᭭य एवं ᮰ी िववेक वमाᭅ, ᭠याियक सद᭭य के समᭃ । BEFORE SHRI R C SHARMA, ACCOUNTANT MEMBER AND SHRI VIVEK VARMA, JUDICIAL MEMBER ITA No. : 1722/Mum/2013 (Assessment year: 2006-07) Shri Chetan H Negandhi, Vs ITO 19(2)(1), 13, Samarat, 36, Pedar Road, Piramal Chambers, Parel Santacruz(West), Mumbai - 400 054 Lalbaug, PAN: AAAPN 4771 B Mumbai 400 012 अपीलाथȸ (Appellant) ू×यथȸ (Respondent) Appellant by : Shri D M Shah Respondent by : Shri Premanand J

सुनवाई कȧ तारȣख /Date of Hearing : 08-12-2014 घोषणा कȧ तारȣख /Date of Pronouncement : 21-01-2015 आदेश ORDER ᮰ी िववेक वमाᭅ, ᭠या स: स: PER VIVEK VARMA, JM:

Instant appeal is filed by the assessee against the order of CIT(A) II, Mumbai, dated 24.01.2013, wherein, the following grounds have been raised:

"1. (a) On the facts and in the circumstances of the case, the learned CIT(A) erred in passing order without considering the facts and details and based on presumption the appellant is not interested in prosecuting his appeal.

(b)The appellant prays the order of the CIT(A) be set aside.

2. On the facts and in the circumstances of the case, the learned CIT(A) erred in not appreciating that the notice u/s. 143(2) dt:26/1 0/2007 was not served within statutory time limit and hence the asst. order is bad in law and it be cancelled.

3. (a) On the facts and in the circumstances of the case, the learned assessing officer erred in disallowing the whole of the travelling expenses of Rs.5,25,150/- which addition be deleted.

(b) The appellant prays that all such expenditure having been incurred in course of the business and details having been filed the addition be deleted.

(c) Without prejudice, the disallowance of the whole of the amount being excessive it be reduced. 4 (a) On the facts and in the circumstances of the case, 2 Shri Chetan H Negandhi ITA 1722/Mum/2013 the learned assessing officer erred in making disallowance on ad hoc basis at 25% of the following expenses, which addition be deleted

(i) Business promotion expenses 60,241

(ii) Gifts and presentation 63,879

(iii) Incentive paid 51,750

(iv) Motor car expenses 64,628

(v) Telephone expenses 22,877

(vi) Conference expenses 11,740

(b) The learned assessing officer erred in observing that the payments made could not be verified.

(c) The learned CIT(A) erred in rejecting the grounds of appeal related to the above expenses without considering the same.

The appellant prays that all such expenses having been incurred in coarse of the business, it shall be allowed in full and addition be deleted.

Without prejudice, the disallowance being made on ad hoc basis the same being excessive, it be reduced.

5. The appellant craves leave to add, amend or alter any or all of the ground of appeal".

2. The first ground being agitated before us pertains to the passing of order by the CIT(A), based on presumptions and not considering the facts. Since the CIT(A) has apparently not considered the submissions of the assessee, we deem it fit to restore the appeal to the file of the CIT(A).

3. The DR did not have any objection for the appeal being restored to the file of the CIT(A).

4. We, therefore, set aside the order of CIT(A) and direct him to adjudicate the entire appeal as filed by the assessee afresh.

5. Ground no. 1 is therefore, allowed for statistical purposes.

6. Since we have restored the appeal to the CIT(A) for fresh adjudication, grounds no. 2, 3 & 4 become infructuous.

7. In the result, the appeal is treated as allowed for statistical purposes.

Order pronounced in the open Court on 21st January, 2015.

3 Shri Chetan H Negandhi ITA 1722/Mum/2013

(आर.

आर. सी.

सी. शमाᭅ) (िववेक वमाᭅ) Sd/- Sd/-

लेखा सद᭭य ᭠याईक सद᭭य (R C SHARMA) (VIVEK VARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER

Mumbai, Date: 21st January, 2015

ूित/Copy to:-

1) अपीलाथȸ /The Appellant.

2) ू×यथȸ /The Respondent.

3) The CIT(A) -11, Mumbai.

4) The CIT-19, Mumbai/CIT -19, Mumbai.

5) ǒवभागीय ूितिनिध "िस", आयकर अपीलीय अिधकरण, मुब ं ई/ The D.R. "C" Bench, Mumbai.

6) गाड[ फाईल Copy to Guard File.

आदे शानुसार/By Order / / True Copy / /

उप/सहायक पंजीकार आयकर अपीलीय अिधकरण, मुबं ई Dy./Asstt. Registrar I.T.A.T., Mumbai

*च᭪हान व.िन.स *Chavan, Sr.PS