Country Club (India) Limited, ... vs Assessee

This is an assessee's appeal against the order of the Commissioner of Income Tax (Appeals)-II, Hyderabad dated 25-08-2014 on the issue of Fringe Benefit Tax (FBT) in a re-assessment. Assessing Officer (AO) reopened the order u/s. 115WH of the Income Tax Act [Act] on the reason that assessee has not paid FBT on the gifts, marketing expenses, meeting expenses, travelling and hotel expenses, even though assessee has explained the nature of expenses. On the reason that assessee has not brought out any specific objections nor furnished any evidences in support of its contentions, the said amounts were considered for the purpose of FBT and demands were raised accordingly. Before the CIT(A), assessee has not appeared and sought repeated adjournments and filed written submissions on 22-07-2014. Subsequently, CIT(A) has issued a letter dt. 28-07-2014 asking assessee to submit information in the ITA No. 1553 /Hyd/2014 :- 2 -: M/s. Country Club (India) Ltd.,

prescribed proforma. As there is neither any response to the above notice nor assessee furnished any evidence, Ld.CIT(A) dismissed assessee's grounds. Assessee is aggrieved.

2. At the outset, Ld. Counsel submitted that assessee could not appear before the Ld.CIT(A) due to various reasons and given a chance it would substantiate its claim before the Ld.CIT(A). Since voluminous evidences are to be filed, it was requested that the appeal may be restored to the Ld.CIT(A) for necessary examination and deciding on merits.

3. After considering the rival contentions, we are of the opinion that assessee can be given one more opportunity to explain its claims viz-a- viz evidence it possesses. In view of this, without going into merits of the claims, we set aside the order of the CIT(A) with a direction to give due opportunity to assessee and consider the claims on the basis of evidence which assessee may furnish or rely and decide the appeal afresh.

4. In the result, assessee's appeal is considered allowed for statistical purposes.

Order pronounced in the open Court on 30th June, 2015.

Sd/- Sd/- (ASHA VIJAYARAGHAVAN) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER

Hyderabad, Dated 30th June, 2015

TNMM ITA No. 1553 /Hyd/2014 :- 3 -: M/s. Country Club (India) Ltd.,

Copy to :

1. M/s. Country Club (India) Ltd., C/o. P. Murali & Co., Chartered Accountants, 6-3-655/2/3, 1st Floor, Somajiguda, Hyderabad.

2. Asst. Commissioner of Income Tax, Circle-1(2), Hyderabad.

3. CIT(Appeals)-II, Hyderabad.

4. CIT-I, Hyderabad.

5. D.R. ITAT, Hyderabad.

6. Guard File.