Income Tax Appellate Tribunal - Panji
M/S Arihant Enterprises, Jaipur vs Dcit, Jaipur on 14 June, 2017
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IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR
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BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YADAV, AM
vk;dj vihy la-@ITA No. 458/JP/2012
fu/kZkj.k o"kZ@Assessment Year : 2008-09.
M/s Arihant Enterprises, cuke The DCIT,
C-61, Sangram Colony, C-Scheme, Vs. Cirlce-6,
Jaipur. Jaipur.
LFkk;h ys[kk la-@thvkbZvkj la-@PAN No. AABFA 9509 M
vihykFkhZ@Appellant izR;FkhZ@Respondent
fu/kZkfjrh dh vksj ls@ Assessee by : Shri S.L Poddar(Advocate)
jktLo dh vksj ls@ Revenue by: Smt. Roshanta Meena ( Addl.CIT)
lquokbZ dh rkjh[k@ Date of Hearing : 08.06.2017.
?kks"k.kk dh rkjh[k@ Date of Pronouncement : 14/06/2017.
vkns'k@ ORDER
PER SHRI KUL BHARAT, JM.
This Appeal by the Assessee is against the order of Ld. CIT (A)-II, Jaipur dated 16.03.2012 pertaining to A.Y. 2008-09.
The Assessee has raised the following grounds of appeal :-
"1. On the facts and in the circumstances of the case and in law the Ld. CIT(A)-II erred in disallowing brokerage of Rs. 1600000.00 paid to M/s DTZ International Property Advisors Pvt. Ltd. on the basis of bill and audit report copy submitted by it without appreciating the fact that the same party has given confirmation of accounts contrary to the bill submitted by it later. The Ld. Appellate authority also erred in considering the bill issued by M/s DTZ International Property Advisors Pvt. Ltd. and not considering the confirmation issued by the same party without further inquiring about the facts of the said confirmation of Account or without reckoning it as a false one.
2. The appellant prays that the disallowance of Rs. 1600000.00 made in respect of brokerage to M/s DTZ International Property Advisors Pvt. Ltd. be deleted.
3. The appellant craves leave to add, amend any of the grounds of the appeal at or before the time of hearing of appeal."2 ITA No. 458/JP/2012
M/s Arihant Enterprises, Jaipur.
2. During the proceedings, the assessee has also taken an additional ground that reads as under:-
" In the facts and circumstances of the case the Ld. CIT(A) has erred in not considering the confirmation submitted by the assessee and also not confronting the additional evidences collected by the Ld. AO at the back of the assessee."
3. Briefly stated the facts given rise to the present appeal are that, the case of the assessee was picked up for scrutiny assessment and the assessment under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act) was framed vide order dated 08/12/2010. During the assessment proceedings, the AO observed that the assessee had claimed brokerage expenses amounting to Rs. 17,64,638/- which included payment of Rs. 16 lakhs to a single party namely M/s D.T.Z. This brokerage was claimed to have been paid against purchase of land. The AO observed that in support of this expenditure the assessee failed to furnish the supporting evidence. Hence, he disallowed the same. Further the AO treated the rental income declared as 'income from house property' treated the same as business receipts.
4. Aggrieved by this, the assessee preferred an appeal before Ld. CIT(A). Ld. CIT(A) confirmed the addition of Rs. 16 lakhs being expenses claimed as brokerage paid to M/s DTZ International Property Advisors Pvt. Ltd. However, the Ld. CIT(A) directed the AO to assessed rental income as 'income from house property'. The assessee has preferred the present appeal against the sustaining of disallowance of Rs. 16 lakhs.
5. Apropos to additional ground, Ld. Consel for the assessee submitted that invoice dated 21/2/2007 was collected at the back of the assessee and the assessee 3 ITA No. 458/JP/2012 M/s Arihant Enterprises, Jaipur.
was not given opportunity to rebut the same. He further submitted that the invoice so raised pertain to earlier years. Therefore, cannot be added in the income related to this year.
5.1 On the contrary, Ld. Departmental Representatives supported the order of the authorities below.
5.2 We have heard the rival contentions, perused the material available on record and gone through the order of the authorities below. The only issue to be examined whether the authorities below were justified in disallowing the expenditure of Rs.16 lakhs claim to be the brokerage paid to the M/s DTZ International Property Advisors Pvt. Ltd. The Ld. Counsel for the assessee has brought to our notice that invoice dated 21/02/2007 whereby it is stated that professional fees charged towards space acquired by ICFAI Institute at Chourdia Enclave, Janpath, Shayam Nagar, Jaipur, from this invoice it is clear that this was raised for a specific service. However, it is not coming out whether such service was related to the Assessment Year under appeal. Admittedly, the date of invoice is 21/2/2007. It is also noticed that the bill raised by M/s DTZ International Property Advisors Pvt. Ltd. pertained to FY 2006-07 relevant to AY 2007-08 and it has been only paid in FY 2007-08 relevant to AY 2008-
09. These facts require verification at the end of the AO for giving a definite finding whether the services as claimed in the invoice dated 21/02/2007 related to year under appeal. Further, we find the assessee has also enclosed the confirmation dated 1/4/2008 wherein it is confirmed against this invoice wherein debit entry payment of Rs. 14,18,720/- is made after deducting T.D.S. @ 11.33%, similar confirmation dated 10/12/2014 is also placed on record. Therefore, the order of the Ld. CIT(A) is set aside the issue is restore to the file of the AO for decision afresh. 4 ITA No. 458/JP/2012
M/s Arihant Enterprises, Jaipur.
The AO is directed to verify the claim of assessee with regard to the invoice dated 21/2/2007 and also verify whether the assessee has made payment to that party or not.
5.3 In the light of the above, the AO decided this issue afresh, both the grounds of the assessee are allowed for statistical purposes.
6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on Wednesday, the 14th day of June 2017.
Sd/- Sd/-
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(VIKRAM SINGH YADAV) ( KUL BHART )
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Jaipur
Dated:- 14/06/2017.
Pooja/
vkns'k dh izfrfyfi vxzfs "kr@Copy of the order forwarded to:
1. The Appellant- M/s Arihant Enterprises, Jaipur.
2. The Respondent- The DCIT, Cirlce-6, Jaipur.
3. The CIT(A).
4. The CIT,
5. The DR, ITAT, Jaipur
6. Guard File (ITA No. 458/JP/2012) vkns'kkuqlkj@ By order, lgk;d iathdkj@ Assistant. Registrar 5 ITA No. 458/JP/2012 M/s Arihant Enterprises, Jaipur.