Income Tax Appellate Tribunal - Chandigarh
M/S Kapsons Fashion Pvt. Ltd., ... vs Acit, C-2(1), Chandigarh on 29 August, 2019
आयकर अपील य अ धकरण,च डीगढ़ यायपीठ "ए", च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL,
CHANDIGARH BENCH "A" , CHANDIGARH
ीमती दवा संह, याय$क सद%य एवं ीमती अ नपण
ू ा( गु*ता, लेखा सद%य
BEFORE SMT.DIVA SINGH, JUDICIAL MEMBER
AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER
आयकर अपील सं./ ITA Nos.1014 to 1016/Chd/2017
नधा रण वष / Assessment Years : 2011-12 to 2013-14
M/s Kapsons Fashion बनाम The A.C.I.T.
Private Ltd., SCO 104-105, Circle-2(1),
Sector 17C, Chandigarh. Chandigarh.
थायी लेखा सं./PAN NO: AACCK3369D
अपीलाथ /Appellant यथ /Respondent
नधा रती क ओर से/Assessee by: Shri Jaspal Sharma, Adv.
राज व क ओर से/ Revenue by: Smt.Chanderkanta, Sr.DR
सन
ु वाई क तार$ख/Date of Hearing : 06.08.2019
उदघोषणा क तार$ख/Date of Pronouncement: 29.08.2019
आदे श/ORDER
PER BENCH:
Al l th e a b ove a pp e a ls ha v e bee n p r e fe r re d b y th e sa me a sse sse e , a ga i nst s e p a r a te or der s of the C ommi s si one r of I nc ome Ta x ( Ap p e a l s) -I , C h a nd i gar h [( i n sh or t 'C I T( A )'] d a te d 26 . 4. 2 0 17 , 7 .3 . 2 01 7 & 2 6 . 4. 2 0 1 7 , r e l a ti ng to a sse ssme nt ye a r s 20 1 1 -1 2 to 2 0 1 3 -14 re sp e c ti ve l y, p a sse d u/s 2 5 0( 6 ) of the I nc ome Ta x A ct, 1 9 6 1 ( he re i naf te r re fe r re d to as 'A ct') .2 ITA Nos.1014 to 1016/Chd/2017
A.Ys. 2011-12 to 2013-14 At the o utse t i t w a s st a te d b y b oth t he p a r tie s that com mon is sue s w e re i nv ol ve d in a l l th e a p pe al s. Al l t he a pp e a ls we re ther e f ore ta ke n u p tog e the r for he a rin g a nd a r e be in g d is po se d off b y th i s c om mon c ons oli d a te d or de r .
We s ha l l fi r st be de a l in g w i th the a p pe a l of t he a sse sse e in I TA N o. 10 1 4 /C hd /2 0 1 7 r e l a ti ng to A. Y 2 0 1 1-1 2 . ITA N o. 10 1 4/C h d/2 01 7 (A. Y. 2 01 1- 12 ):
2. G r oun d N os .1 a n d 9 , i t w a s s ta te d b y the Ld. C ou ns e l for t he a sse ssee , w e re ge ne ra l i n na t ur e . Th e s a m e the re fore nee d n o a d j ud i cat ion .
3. G r oun d N o. 2 r a i se d b y the a s se s se e re a d s a s u nde r:
"2. On the facts and circumstances of the case, the learned CIT(A) has erred , both on facts and in law in having confirmed the addition of Rs.3,92,453/- made to the income of the appellant being the difference in the amounts of commission and interest received as per form No. 26AS and as accounted for in the books of accounts of the appellant."
4. B r i e f ly s ta te d, th e is sue re l a te s to a d d iti on mad e on a ccou nt o f d if fe re n ce i n i nc ome a s r e fle c te d i n th e An nu a l sta te me n t of ta x de du cte d a t s ourc e of the a sse ssee i n F or m N o.2 6 AS a nd tha t r e fle c te d i n th e b ook s of t he a s se s se e , a moun ti ng to R s.3 , 9 2, 4 5 3/-. Ld . C oun se l for t he a ss e ssee con te n de d th a t d e sp i te p oin ti ng o ut the s pe ci fi c r e a s on for 3 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 the d i ffe re n ce , th e Ld. C I T( A) ha d up h e l d the a d di ti on wi th out d e a l i ng w i th t he spe ci fi c f a ctu a l su b mis s i ons ma de be fore h im. Ld . C oun se l fo r the asse ssee con te n ded tha t it wa s p oi nte d out to th e Ld . C I T( A) a n d e ve n t he As se s si ng Of fi ce r ( A. 0 ), th at t he a sse ssee ha d e a r ne d c om mi ssi on in come on s a le of ga r me nts of a p a r ty ma d e on c o n si gnme nt ba s is . Th a t t he a ss e ss ee wa s to be r e i mb ur se d the VA T comp on e nt of th e sa le s ma d e on b e h a l f of the sa i d p a r ty a lon gw i th com mi ss ion . Tha t a cco rd i ng ly b il l w a s r a i se d on the sa i d p a r ty f or b oth t he c ommi ssi on a nd VA T re imb u rs e me n t an d th oug h t he sa i d p a rt y w a s re q ui r e d to de du ct TD S onl y on th e c ommi ss i on , I t de d ucte d t he sa me on the V A T c o mp one nt a l so. A cco rd i ng ly VA T r e i mb ur se d wa s a l so d i scl ose d a s i nc ome on w hi ch TD S w a s d e d uc te d . thou gh i t w a s no t i n the n a ture of i n come of t he a s se s se e. Th a t for the a f or e sa i d re a s on the re a r ose d if fe ren ce in t he in come r e tu rne d b y t he a sse ssee a n d th a t sh own in F or m 26 A S. Ou r a tte n tion w a s d r a w n to th e su b mis si ons ma de b y the a s se sse e in th is r e g a r d b e f ore th e CI T( A) r e p r od uce d at pa r a 4 .1 o f the ord e r a s un de r :
"The facts in brief are that during the course of assessment proceedings, the appellant was required to reconcile the income/payments which were reflected in Form NBo.26AS with the corresponding entries/income shown in the books 4 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 of the appellant. Necessary reconciliation along with the explanation was submitted. However, the AO was not satisfied with the explanation of the appellant and made an addition of Rs. 3,78,337/~ to the income of the appellant being the difference in the receipts from M/s Priority Marketing Put, Ltd, (Supplier of readymade garments) to the tune of Rs. 2,22,673/- and from M/s Mohan Clothing Co. Put. Ltd. (Supplier of readymade garments) to the tune of Rs. 1,69,780/- respectively and as reflected inform NO. 26AS and the books of the appellant.
In this regard, it is submitted, that a statement showing the difference in the amounts as reflected in the payments inform No. 26AS and as shown in the books of the appellant was submitted during the course of assessment proceedings which forms Annexure 'B' of the assessment order itself. As per this statement there was a difference of Rs. 2,22,673/- in the payments received from M/s Priority Marketing Put. Ltd and Rs. 1,69,780 in the payments of M/s Mohan Clothing Co. Put Ltd. Subsequently, a revised statement (Annexure 'A' forming part of assessment order) was also furnished to the Assessing Officer showing the nil difference in the payments received from the above persons as reflected inform No. 26 and as per the books of the appellant. The reasons for filing the revised statement where no difference in the payments as per form No. 26AS and as per the books was shown in these two accounts was that the appellant was selling the goods of M/s Priority Marketing Put. Ltd. the on consignment basis. As per the arrangement with this company, the appellant was to receive commission on sales as also the vat paid on their behalf. A consolidated bill for the commission as well as vat charges was issued by the appellant to this supplier. However, instead of deducing TDS on commission only the supplier have deducted TDS on vat reimbursed in some cases because of oversight as a single bill for the commission and vat recoverable was raised by the appellant."
5. Th e Ld . C oun se l for the a s se s see c ont e nde d th a t t he C I T( A) d id n ot e ve n c ons ide r t he con te n ti on of the a sse ssee a nd w r ong ly h e ld tha t the a sse ss ee h a d not b e e n a b le to 5 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 e xp la in the re aso n i n th e d i ffe re nce . O u r a t te n ti on w as dr a w n to th e f ind in gs of th e Ld . C I T( A) a t p a r a 4 . 2 of t he or de r a s un de r :
"4 . 2 I h ave e x a min ed the i ssu e in d e ta i l . T h e As se ss ing Of f ic er ha s r igh tl y a p pl ied th e se c tio n . T h e inc ome i s ch arged to ta x in t he ye ar th e r igh t to th a t in co me ha s acc ru ed or ar i sen a s per sec ti on 5 of th e Ac t. T h e Asse ssin g Of f ice r h a s tax ed th e a mou n t in th i s y ear a s mer c an ti l e sy ste m i s be in g f oll o wed b y th e ap pel l an t. T h e a p pel l an t h a s no t bee n a bl e to e xpl ain th e e x ac t re a son s f or d if f e ren ce be twe en the t wo a mou n ts l i s ted in F or m 2 6 AS an d inc o m e tax re tu rn . In repl y i t is sta ted th a t the re ason m a y be bec au se th e de du c to r h a s d ed uc ted on c on sol id a ted a mou n t. T h e ap pel l an t i s n o t su re. T h e ad d iti on is conf irm ed an d Grou n d of a p pe al No .2 i s d i sm is sed "
6. Th e Ld . D R, on th e othe r h a nd , re l ie d u p on the ord e r of the a u tho ri tie s be l ow .
7. W e h a ve he a r d the r iv a l con te n tion s a n d ca re f ul ly go ne thr ou gh th e or de r s of the a u tho ri ti e s be l ow . We fi nd me r i t i n the con te n ti ons of t he Ld. C ou ns el for th e a s se s se e th a t due e xp la na ti on f or th e d i ffe re n ce in the i nc ome re fle c te d in For m N o. 2 6A S a n d t ha t s how n i n the bo ok s of a c cou nt w a s giv e n by the a sse ssee . We ha v e ta ke n note of t he sub mi ss ion s ma d e by t he a s ses se e be fore the Ld .C I T(A ) sta ti n g th a t in f a ct , the re w a s no d i ff e re n ce i n th e i n come a nd TD S ha d b e en d e d uc te d on t he se rv ice ta x c omp one nt of 6 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 ce r ta i n b il l s ra i se d w h ic h w a s n ot in t he n a ture of i nc ome . A de ta i l e xp la in in g the d if fe re n ce as a b ov e w a s a l so f i le d. B u t, we h a ve note d fr om the or d e r of th e Ld . C I T( A) , tha t no cogn i za n ce of the sa me ha s bee n t a k e n w hi le ad j ud ic a ti ng the i ssue . Th e Ld. C I T( A) h a s in f a ct sum ma r i l y d i smi sse d the g ro un d r a i se d b y the a sse ssee w i th out de a l i ng w i th t he fa ct ua l con te n tions ma d e b e f ore h im. Th e fi n di n gs of t he Ld. C I T( A) tha t t h e a s se s se e hi mse lf wa s not s ur e a b out t he e xp la na ti on be i ng c or r e ct or not, w e f in d , i s i l l c on ce i ve d si nc e t he w r it te n s ub mi ssi on s o f t he a s se s se e , r e p rod uc e d in the or de r of th e CI T( A) s how th a t s p e ci fi c de ta i le d sub mi ss ion s h a d be e n ma de a nd n ow he re the a ss e ssee ha s e xp re sse d u nce rta i nt y a b out hi s e xp l a na ti on . Si nc e t he fa ct ua l co nte ntion s o f t he a ssess ee ne e d ve r if ica ti on , w e con si de r i t fi t to r e s tore the is sue b a ck t o the AO t o ve r i fy the co nte nti on s ma d e by th e a s se s se e and th e re a fte r a dj ud i ca t e t he same i n a cc or da n ce w i th la w. N e e d less to a d d the a s se s se e be gra n te d d ue op p ortun i ty of h e a r in g.
Th e gr ou nd of a p p e a l N o. 2 ra is ed b y th e a ss e ssee i s a ll ow e d for sta t istic a l p ur p os e s.
8. G r oun d N o. 3 r a i se d b y the a s se s se e re a d s a s u nde r : 7 ITA Nos.1014 to 1016/Chd/2017
A.Ys. 2011-12 to 2013-14 "3. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in confirming the disallowance of an amount of Rs 4,01,065/- under section 36(1)(iii) being the amount of interest paid on bank loan taken for acquiring of assets not put to use in the year under reference."
9. B r i e f f a cts re la t in g to th e i ssue a r e th a t the A O n ote d tha t th e a ss e s see ha d ope ne d e igh t n e w st or e s du r in g t he ye a r and d one r e n ova t ion /a l ter a ti on in the m and a l so fu rn i sh e d t he m. H e fu r the r note d t ha t the te rm l oa n ha s be e n ta ke n f r om b a nk for t he sa me on w hi ch i n t e re s t h a d be e n pa i d a nd c la i me d a s r e ven ue e xpe n d itu re. The A O note d tha t in te re st e xpe nd i tu re pe r ta i ni n g to l oa ns us e d f or a cq ui r i ng n e w a s se t s, h a d to b e ca p ita l i ze d ti l l the a s se t w a s pu t to us e , a s pe r t he p r ov is ion s of se c ti on 3 6 (1 ) (i i i) of t he Act . A cc or di n gl y, the AO di sa ll ow e d t he p ro po rt ion ate in te re st pa i d o n lo a ns u se d for a cq u ir i ng a s se ts/sh op s not pu t to u se d ur in g th e ye a r , w h ic h was c a lcul a te d at Rs. 4, 0 1 ,0 6 5 /-.
10 . Th e Ld . C I T( A) u p he l d t he d i sa l lowa n ce ma d e b y the A O . 11 . B e f ore u s t he Ld . C ou nse l f or the a s se s se e p oi nted out tha t i de nti c a l di sa ll ow a n ce ha d be e n ma d e in the cas e of t he si ste r c once r n of th e a s se s see , M /s Ka p son s Ag e n cies Pr i va te Li mi te d i n A. Y 2 0 1 0- 11 , 2 0 1 1 -1 2 & 2 01 3 -1 4 a n d t he 8 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 ma tte r h a d tr a v el le d u p to the I TA T. I t w a s p oi n te d out tha t the sa i d a s se s se e h a d c ha l le nge d the d is a ll ow a n ce in g r oun d N o.2 & 3 of it s a p p e a l f ile d be fore th e I TA T, i n I TA N o.1 0 1 0 & 10 1 1 /C hd /2 0 17 , w hi ch ha d been he a r d o n 1 8 .07 .2 0 1 9 . It wa s co nte nde d tha t in th ose ca ses th e a sse s see ha d p le a de d tha t i t h a d n ot p ur c ha s e d a ny s hop s a n d tha t t he e nt ire e xpe n d itu re re lat e d on ly to re n ova ti on of s hop s w hi ch w as re le a se d b y w a y of l oa n b y t he b ank onl y a f te r in cu r ri n g t he e xpe n se s. Th a t th e re f ore the i nte re s t p a id on the lo a ns pe r ta ine d to the p e r i od a fte r the a ss e t w a s p u t t o u se a n d the re fo re the re w a s no occ a si on f o r ma k in g a ny d is all ow a n ce of i nte re st u /s 3 6( 1 ) (i i i) of th e Ac t. I t wa s po in ted ou t tha t a dd i ti ona l e vi de nce s to sub s ta nt iat e the con te n ti on w a s a l so fi le d a l ong w ith a n a pp l i ca ti on se ek i ng a d mis si on o f th e sa me sta ti n g th a t th e y c oul d no t be fi le d e a r l ie r si n ce the doc ume nts ha d g ot mi sp l a ce d o n s hi ft in g t he off i ce o f the a sse sse e .
12 . Ld .C o un se l con te nde d th a t i ts a r gu me n ts in t he imp ug ne d gr oun d w e re i de nt ic a l to t ha t in t he ca s e of t he si ste r con ce r n of th e a ss e ssee M /s Ka p so ns Ag e n cies (s up r a ).
9 ITA Nos.1014 to 1016/Chd/2017
A.Ys. 2011-12 to 2013-14 13 . Ld .D R con ce d e d tha t th e i ss ue wa s i d e n tic a l to t ha t of the si ste r c oncer n a s sta te d b y t he Ld .C ou ns e l f or the a sse sse e .
14 . W e ha ve he a r d the con te nti on s o f bot h the p a r ti e s. I t is a n a d mitt e d f a ct th a t th e is su e ra i s e d i n th e a b ove g r oun d is i d e n tic a l to t ha t r a i se d i n I TA N o. 1 0 10 /C h d /20 1 7 (s up r a ) in gr oun d N o. 2. W e ha v e go ne t hr ou gh the or de r pa s se d i n tha t ca s e w hi ch w a s p r on oun ce d on 2 3 -0 8-1 9 . The i ss ue , we fi nd ,h a s bee n d e a l t w ith a t p a ra 8 & 9 of the o rde r ,a d mi tti ng the a dd it ion a l e v ide nces a nd t he re a fte r r e s tor i ng the ma tte r ba c k to th e A O for ve ri fy in g th e fa ct s of th e c a se a nd a d j ud ic a ti ng th e i ssue a fre sh i n a cc or da n ce w it h l a w . Th e s a id d e ci si on w il l s q ua r e ly a p p l y to th e p rese nt c a se a ls o, f ol lo w in g wh ic h w e re st ore th e i ss ue b a ck to the AO to be de c ide d a f res h in a cc or d a nc e w i th law ,as per the di r e c tio ns gi ve n in t he ca se of M/ s Ka p son s Ag e nc ie s (s up r a ) in I TA N o.1 0 1 0 /C hd /2 0 17 (s up r a ).
Th i s g ro un d of a pp e a l N o. 3 i s a l l ow e d f or sta t is ti ca l pu r po se s .
15 . G r oun d of a p p e a l N o. 4 r a is e d b y th e a sse s see r e ad s a s un de r :
10 ITA Nos.1014 to 1016/Chd/2017
A.Ys. 2011-12 to 2013-14 "4. (I) On the facts and circumstances of the case, the CIT (Appeals) has erred in having confirmed additions of Rs.1,59,572/- and Rs.1,24,782/- being the amount of expenditure incurred by the appellant towards rent by holding that as the expenditure incurred related to earlier assessment year, the same could not be allowed in the year under reference as the appellant was following mercantile system of accounting whereas the liability to pay the same crystallized in the year under reference itself."
16 . B r i e f f a cts re le va n t to th e i ssu e a r e th a t th e AO on pe r usa l of the Pr of i t & Lo ss A cc oun t of t he a sse sse e a nd de ta i ls a tt a che d th e re to f ou nd t ha t th e a sse ssee ha d cl a ime d the f ol low i ng e xpe n di tu re s pe r ta i ni n g t o p r e ce d i ng ye a r:
a) re nt pa i d to M/s A lp h a G . C or p . D e ve lo pme nt Pv t.
Ltd . b e i ng for t he mont h o f Ma r c h, 2 01 0 a mou nt in g to Rs .1 , 59 , 57 2 /- a n d
b) C AM ch a rg e s p a i d t o M /s P a ra Re - fa ci l it ie s f or t he mon th of Ma r c h, 2 0 1 0 a mou nti n g t o Rs .1 , 2 4, 7 8 2/-. 17 . Th e AO a c cor d i ngl y d i sa l lo we d t he s a id e xpe nd iture hol d in g th e m to be p r i or p e ri od e xpe n se s. Th e sa me w a s up he ld by the Ld. C I T( A) sta ti n g th a t the a s se s se e was fol l ow in g me r c a nti l e sy ste m of a c cou nti n g a nd th e r e f ore t he pr i or p e ri od e xpen se s cou ld not be a ll owe d . 18 . B e f ore u s t he Ld . C ou nse l f or the a s se s se e p oi nted out tha t i de nti c a l di sa ll ow a n ce ha d be e n ma d e in the cas e of t he si ste r c once r n of th e a s se s see , M /s Ka p son s Ag e n cies 11 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 Pr i va te Li mi te d i n A. Y 2 0 11 -1 2 and the ma tt e r h a d tr a v e l le d up to the I TA T. I t w a s p oi nte d ou t th a t t he sa i d a s se s see h a d cha ll e n ge d the is sue i n g ro un d n o.4 of th e a p p e a l fi le d i n I TA N o. 1 01 1 /C hd /2 01 7 , w hi ch had b ee n he a r d on 18 . 07 . 2 01 9 . I t w a s con te nde d th a t i n th e sa i d ca s e t he a sse sse e ha d plea de d th a t t he e xpe nse s a cc r ue d a nd a r ose in th e i mp ugn ed y e a r on ly on a cco un t of a gr ee me n t for in cu rr i n g th e sa me e n te re d i nt o i n th i s ye a r. I t wa s p oi nte d out t ha t a dd i ti ona l e v i de nce s to su b sta n ti a te t he con te n ti on wa s a l so fi le d a long wi th a n a p p li ca t ion s ee k i ng ad mis si on of the sa me s ta ti ng th a t th e y cou l d not b e fi le d e a rl i e r s in ce the d ocu me nt s h a d got mis pl a c e d on sh if ti ng the of fi ce of the a s se s se e .
19 . Ld .C o un se l con ten d e d th a t it s a r gume nts w e re i d en tic a l to th a t i n th e c ase of the si s te r conc e r n of the a s se s se e M/s Ka p son s Age nc ie s (s up r a ).
20 . Ld .D R con ce d e d tha t th e i ss ue wa s i d e n tic a l to t ha t of the si ste r c oncer n a s sta te d b y t he Ld .C ou ns e l f or the a sse sse e .
21 . W e ha ve he a r d the con te nti on s o f bot h the p a r ti e s. I t is a n a d mitt e d f a ct th a t th e is su e ra i s e d i n th e a b ove g r oun d 12 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 is i d e n tic a l to t ha t r a i se d i n I TA N o. 1 0 11 /C h d /20 1 7 (s up r a ) in gr oun d N o. 4. W e ha ve go ne thr ou gh the or de r pa s se d i n tha t ca se w hi ch w a s pr on ou nce d on 23 . 0 8. 2 01 9 . The is sue , we fi nd , ha s be e n de a l t w i th a t p a r a 3 2 o f th e or de r, a dmi tti n g th e a dd iti on a l e vi de n ces a nd the re a f te r r e s tor i ng the ma tte r ba c k to th e A O for ve ri fy in g th e fa ct s of th e c a se a nd a d j ud ic a ti ng th e i ssue a fre sh i n a cc or da n ce w it h l a w . Th e s a id d e ci si on w il l s q ua r e ly a p p l y to th e p rese nt c a se a ls o, f ol lo w in g wh ic h w e re st ore th e i ss ue b a ck to the AO to be de c ide d a f res h in a cc or d a nc e w i th law ,as per the di r e c tio ns gi ve n in t he ca se of M/ s Ka p son s Ag e nc ie s (s up r a ) in I TA N o.1 0 1 1 /C hd /2 0 17 (s up r a ).
G r oun d of a pp e a l N o .4 r a i se d by t he a sse ssee is a ll ow e d for sta t istic a l p ur p os e s.
22 . G r oun d of a p p e a l N o. 5 r a is e d b y th e a sse s see r e ad s a s un de r :
"5. On the facts and circumstances of the case, the learned CIT(Appeals) has erred in having confirmed disallowance of an amount of Rs.1,18,825/- being the amount of expenditure incurred on foreign travel of the Directors by treating the same as non business expenditure."
23 . Th e a b ove g ro un d r a i se d r e l a te s to d i sa l l ow a n c e of for e i gn t ra ve l e xp e n se s of the D i re cto r of th e a sse ssee 13 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 comp a ny S hr i V i p in K a po or b e ing on a cc oun t of vi si t to C hi na for the re a s on tha t the a s se s se e w a s no t a b l e to e sta b l i sh a nd p rove th a t the s a id e x pe nse s we re in cur r e d i n con ne cti on w i th th e bu si ne ss of t he a s se s see . 24 . Th e Ld . C I T( A) u p he l d the a d di tio n r e i te r a ti n g t he fi nd i ng s of th e AO th a t n o e v ide nce re ga r d in g the bu si ne ss pu r po se of f ore i gn tr i p w e re f ile d b y t he a s se s see . 25 . B e f ore u s t he Ld . C ou nse l f or the a s se s se e p oi nted out tha t i de nti c a l di sa ll ow a n ce ha d be e n ma d e in the cas e of t he si ste r c once r n of th e a s se s see , M /s Ka p son s Ag e n cies Pr i va te Li mi te d i n A. Y 2 0 11 -1 2 and the ma tt e r h a d tr a v e l le d up to the I TA T. I t w a s p oi nte d ou t th a t t he sa i d a s se s see h a d con te s te d the disa ll ow a nc e i n gr ou nd n o. 5 ra i se d i n t he a pp e a l f ile d i n I TA N o. 1 0 11 /C h d/2 0 1 7 , w h ic h h a d b e e n he a r d o n 1 8 . 07 . 2 01 9 . I t w a s c ont en de d th a t i n the s a id c a se the a sse s see h a d p le a de d th a t the th oug h the a s se s see w as not in p os se s sion of a ny d ire ct e vi de n ce to pr ov e the bu si ne ss p ur p ose of the tr i p b ut at th e s a me t ime con si de r in g the na tu r e of the b us in e ss of the a ssessee de a li n g i n se l li n g b r a nd e d c l oths , the D ire ctor s a re r e q u ire d to ma k e vi si t to for e i gn c oun tr i es f or r e v ie w in g the f or ei gn ma rk e t t re nd s and f or ma ki n g pu r ch a se s a nd vi si ti ng 14 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 pr os p e cti ve s up p li e r s of c lot hs and the re f ore t he di sa l l ow a nc e of the e n tire a moun t of for e i gn tr a ve l w a s tota l ly u nj us ti fi ed .
26 . Ld .C o un se l con te nde d th a t i ts a r gu me n ts in t he pr e se n t ca se w e re i de n ti ca l to th a t i n th e ca s e of the si ste r con ce r n of the a sse s se e M/s Ka p s on s Age nc ie s (s up r a ). 27 . Ld .D R con ce d e d tha t th e i ss ue wa s i d e n tic a l to t ha t of the si ste r c oncer n a s sta te d b y t he Ld .C ou ns e l f or the a sse sse e .
28 . W e ha ve he a r d the con te nti on s o f bo th the p a r ti e s. I t is a n a d mitt e d f a ct th a t th e is su e ra i s e d i n th e a b ove g r oun d is i d e n tic a l to t ha t r a i se d i n I TA N o. 1 0 11 /C h d /20 1 7 (s up r a ) in gr oun d N o. 5. W e ha ve go ne thr ou gh the or de r pa s se d i n tha t ca s e w h ic h wa s p r ono un ce d o n 2 3 -0 8 -1 9. Th e i ss ue , we fi nd , ha s b ee n de a lt w it h a t p a r a 3 8 of the or de r , r e s tr ic ti ng the d i sa l l ow a nce to 5 0 % o f th e exp e n se s. Th e sa i d d e ci si on wi l l sq ua r e ly a p pl y to th e pre se n t c a se a ls o, fol l owin g wh i ch we r e str i ct the d is a ll ow a n ce of f or e i gn tr a ve ll i ng e x pe nse s to 5 0 % of th a t in cu r re d , a s pe r t he d i re cti on s give n in t he ca se of M/s Ka p s ons A ge n cie s ( sup r a ) in I TA N o.1 0 1 1 /C hd /2 0 1 7 (s up r a ).
15 ITA Nos.1014 to 1016/Chd/2017
A.Ys. 2011-12 to 2013-14 Th e gr ou nd of a p p e a l N o. 5 ra is ed b y th e a ss e ssee i s pa r tl y a l low e d.
29 . G r oun d N o. 6 r a i se d b y the a s se s se e re a d s a s u nde r :
"6. On the facts and circumstances of the case, the learned CIT(Appeals) has erred in having confirmed disallowance of an amount of Rs. 8,53,062/- made by the Assessing officer by taking resort to the provisions of section 40(a)(ia) by holding that as no TDS was deducted out of the expenditure incurred on which TDS was deductable as per the provisions of the Act, the same was as such not an allowable expenditure.
30 . B r i e f ly s ta te d , the A O h a d ma de d i sa l l ow a nce of t he fol l ow in g e xpe n se s on f i nd i ng th at th e a sse ssee ha d fa i l e d to de du ct ta x a t sou r ce on the sa me :
Head of Expenditure Name of party
Advertisement Roshan Studios 32,450.00
Advertisement Wire & Wireless 38,913.00
Advertisement Synergy 174,384.00
Media Entertainment
AMC Cool Tech Corporation 35,394.00
Sales Promotion Hotel Mountview 394,621.00
Events Swastic Audio 77,300.00
Professional Charges Kuldip Singh (Advocate) 100,000.00
Total 8,53,062.00
31 . Th e Ld. C I T( A) up h e l d the di s a ll owa n ce s ta ti ng t ha t t he
a sse sse e ha d con te ste d on ly tw o a mou nts b e for e h im b e i ng pa y me n t ma d e to Ros ha n S tu dios and W i re & W ir e le ss pa y me n t ma d e to Hot e l Moun tv ie w. H e f ur the r hel d th a t on bot h th e s a id a mou nt s th e c onte ntio ns of th e a s se sse e we re 16 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 not a c ce p ta b le si n ce TD S w a s d e d uc tib le on t he p a yme nt ma de to Ros ha n S tud i os s in ce it e xcee de d the a moun t on wh i ch TD S w a s de du cti b le a nd vi s-à -vi s th e pa yme n t ma d e to H ote l Mou ntv ie w , he s ta te d tha t i t wa s i n the nat ur e of wo rk con tr a c t a nd , th e re f ore , r e je cte d t he a s se sse e 's con te n ti on th a t it w a s not s o.
32 . B e f ore u s the Ld . C oun se l f or the a sse ssee c onten de d tha t he ha d ma d e spe c if ic su b mis si ons b e f ore the Ld. C I T( A) , wh o ha d pa s se d th e or de r w i th out sp e c if i ca l ly de a li ng w i th the con te nti on of th e a s se sse e thu s p a s si ng a n on sp e a k i ng or de r on the i s sue . Th e Ld .C oun se l f or the a ssess ee dre w our a t te n ti on to the s ub mi ssi on s ma de be f ore th e C I T(A ) re p ro du ce d a t pa ra 8 .1 of th e or de r a s u nde r :
"Payment to Roshan Studios and Wire & Wireless amounting of Rs. 32,450/- and Rs. 38,913/- respectively have been made for photography/ providing of sound system at the time of opening of two stores of the appellant. There was no single contract with them and the amount paid was below the limit of Rs. 75,000/- on which TDS is required to be deducted as provided u/s 194C of the Act.
Similarly, payment of Rs. 3,94,621 / - to Mount View has been made for booking of hall charges for organizing fashion show. This payment does not fall under the category of any work contract and as such, no TDS was required to be deducted for such payment as there was no single contract with the hotel In any case, no addition is called for in the hands of the appellant on account of non deduction of TDS in other cases as the expenditure were genuine and was incurred for 17 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 business expediency and were actually paid in the year under reference."
33 . Re fe rr i ng to the s a me it was c onte nde d t hat t he a sse sse e h a d pl ea de d be fore the Ld .C I T( A ) th a t th e p a yme nt ma de to hote l Moun tv ie w w a s f or b ook i ng of ha l l ch ar ge s f or or ga ni z in g fa s hi on s how a nd thus d id not f a ll un d e r t he ca te g or y of w or k con tr a ct a nd n o TDS w a s re q ui r e d to be de du cte d on th e s a me . S i mil a r l y , th e Ld .C oun s e l f or t he a sse sse e poi n ted out tha t it was p le a de d b e f ore t he Ld. C I T( A) t ha t th e re w a s n o s in gl e con tr a ct w it h Rosh a n Stu d ios a n d W ir e & W i r e l e ss a n d th e a moun t p a i d w a s b e l ow the p re s cr i be d li mit on w h ic h TD S wa s r e q ui re d to be de du cte d a s pe r se cti on 1 94 C of the Ac t. The Ld .C ou ns e l for the a sse ssee con te n de d th a t th e Ld. C I T( A) h a d fa i l e d to de a l wi th the s pe ci fic c ont e nt io n of th e a sse s see a nd has sum ma r i l y d i s mi sse d the sa me w i th out gi vi ng a n y p ro pe r re a son s. He d rew ou r a tte nt ion to the f i nd i ng of the C I T( A) a t p a r a 8. 2 of the or de r a s un de r :
"8.2 I have considered the reply of the appellant and perused the order of the Assessing Officer. The appellant has contested only 2 amounts and not given reply with respect to others. As regards the payment to Roshan Studios, TDS was deductible because the annual payment exceeded the amount on which TDS is deductible. As regards the payment to Hotel Mountview, the expense has been booked under sales promotion and from the nature of expense it is a work contract in which 18 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 TDS was deductible. Hence, the order of the Assessing Officer on this issue is upheld and ground of appeal No. 6 is dismissed."
34 . Th e Ld. D R, on th e othe r h a nd , re lie d u po n the or d e rs of th e a u th or it ie s be lo w.
35 . W e h a ve he a r d the ri v a l co nte ntion s a n d h a ve pe r use d the o rde rs of a u thor i ti e s be low . We a gree w i th the Ld. C ou ns e l f or th e a sse ssee th a t d e s p ite s p e ci fi c sub mi ss ion s ma d e b y the a s se sse e, th e Ld. C I T( A) h a s up h e l d the a d d it io n/d i sa l low a n ce , gi vi ng no b a s is /re a son i ng f or a rr i vi n g a t h i s fi nd i ng s tha t th e na t ur e of e xpe nse re l a ti ng to Hot e l Mo un tvi e w w a s not i n th e n a ture of w o rk con tr a ct a s c on te n de d b y the a s se s se e , n or h a s he gi ve n a ny b a si s f or sta ti n g th a t TDS w a s de d u cti b le on to ta l p a yme nt made to Roha n stu d ios a nd e ve r y p a yme n t ma de wa s not to be con si de re d se p a ra te l y a s ple a de d b y t he a sse s see . Th e o rde r pa s se d b y the Ld .C I T(A ), is , w e f in d , n ot a re a so ne d a nd sp e a k i ng or de r on th e i ssue . Si nce the f a cts ple a de d b y t he a sse sse e ne e d ver i fi ca t ion , w e con si d e r i t fi t to re sto re t he ma tte r b a ck to the AO to ve rif y th e c on te n tions of t he a sse sse e a nd the re a f te r a dj ud i cat e t he i ssue in a cco rd a n ce wi th l a w .
19 ITA Nos.1014 to 1016/Chd/2017
A.Ys. 2011-12 to 2013-14 Th e gr ou nd of a p p e a l N o. 6 is all ow e d f or sta t istic a l pu r po se s .
36 . G r oun d N o. 7 r a i se d b y the a s se s se e re a d s a s u nde r :
"7. On the facts and circumstances of the case, the learned CIT(Appeals) has erred in having confirmed disallowance of an amount of Rs. 1,28,000/- made by the Assessing officer by invoking the provisions of section 40A(3) of the Act."
37 . B r i e f f a cts re la t in g to th e i ssue a r e th a t the A O n ote d tha t th e a sse ssee ha d ma de p a yme nt f or f ood a n d h osp i ta li ty du r in g cr ic k e t m a tch on 3 0 .3 . 2 01 1 o f Rs. 1, 2 8 ,0 0 0 /- i n ca sh . He he l d tha t the s a me w a s in vi ol a tio n of se c tio n 4 0 A( 3) of the Ac t a nd a c cor d i ng ly, d i sa l low e d the sa me . Th e Ld .C I T(A ) up he ld the d i sa l low a nc e so ma de b y th e AO . 38 . B e f ore us, t he Ld .C ou ns e l f or the a s se s se e c onten de d tha t it h a d b e e n e xp l a i ne d t o th e a ut hor i ti e s be low t ha t t he e xpe n d itu re h a d b ee n i nc ur re d f or b uyi n g ti ck e t s f or cr i ck e t ma tch a n d f ood for sta ff d u ri n g c r ic k e t ma tch a nd w a s not pa i d t o a n y si ng le p a r ty a n d th e re f ore , t he p rovi s ion s of se c tio n 4 0 A (3 ) of th e A ct we re n ot a ttr a ct e d . Th e L d. C ou ns e l for th e a sse s see p oin te d ou t tha t th e Ld .C I T(A ) w i th out a pp r e c ia t in g the c ont e n tio ns ma de , h a d su mma r i l y up h e l d the a d di ti on b y s imp l y s ta ti ng t ha t th e p ur c ha se s in ca sh 20 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 e xce e de d Rs .2 0 ,00 0 /-, the di s a ll ow a n ce h a d bee n r i ght ly ma de .
39 . Th e Ld. D R, on th e othe r h a nd , re lie d u po n the or d e rs of a uth or i ti e s be low .
40 . W e h a ve he a r d th e r i va l co nte ntion s a nd p e r u se d t he or de r s of a uth or iti e s be low . We d o n ot f in d a n y me r i t i n the con te n ti ons of th e Ld . C oun s e l f or the a sse ssee . The a sse ssee , we h a ve n ote d , h a s consi s te n tly p le a de d th a t the pa y me n t w a s ma d e i n c a sh for pu rc ha s in g ti ck e ts of cr i cke t ma tch f or i ts sta f f/c ust o me r s a nd f or p r ov id i ng fo o d to the m du r in g cr i ck e t ma tc h a n d th a t the p a y me nt wa s ma d e to di f fe re nt ve n d or s a t th e s p ot w he re the cr i cke t ma tc h w a s con du cte d f or b uyi n g food i te ms . B u t no e v ide nce has be e n fi le d to su b sta n ti a te t he sa me . Th e re f ore the f a ct r e ma i ns tha t th e a sse ssee has i nc ur re d e xpe nd i ture in c a sh e xce e d i ng Rs. 2 0, 0 0 0/-, th us vi ol a ti ng t he p rovi si ons of se c tio n 40 A (3 ) of th e Act ca l l ing for d i sa l l ow a nc e of t he sa me . The or de r of t he Ld . C I T( A) , up hol d i ng t he di sa l l ow a nc e of Rs .1 ,2 8 , 00 0 /-, a cc or d i ng ly i s up h e ld.
Th e gr oun d of a p pe a l N o. 7 r a ise d by the a sse ssee di smi ss e d 21 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 41 . G r oun d of a p p e a l N o. 8 r a is e d b y th e a sse s see r e ad s a s un de r :
"8. On the facts and circumstances of the case, the learned CIT(Appeals) has erred in having confirmed an addition of Rs. 1,16,000.00 being the amount of pre- paid expenses relating to the subsequent assessment year. In any case. In all fairness, directions should have been issued to allow this expenditure in the year to which the expenditure related."
42 . B r i e f f a cts re l a ting to th e i ss ue a r e th a t the a sse ssee ha d i n cur r e d the e xpe n di tu re of Rs. 1 ,7 4 ,0 0 0 /- on a c cou nt of musi c p e r mi ss io n e xp e n se a nd th e sa i d a moun t h a d b e en pa i d f or th r ee ye a r s. O n ta k i ng not e of the a fore sai d fa ct, the AO a p p or ti one d the e xpe nse s t o th r ee y e a r s a nd a l lo we d the c la i m of on l y Rs. 5 8, 0 0 0/- f or the i mp ug ne d ye a r di sa l l ow in g th e ba l a n ce of Rs .1 , 16, 0 00 /-. 43 . Th e Ld . C I T( A) u p he l d t he d i sa l lo wa n ce ma d e b y the A O . 44 . B e f ore u s the Ld . C oun se l f or the a sse ssee c onten de d tha t th e p a yme nt ha d be e n ma d e f or a c q ui r in g the l ice nce pe r ta in i ng to mu si c pe r mis si on for t hr ee ye a r s an d h a vi ng in cu rr e d in t he i mpu gn e d yea r was a l low a b l e in the imp ug ne d ye a r on l y. The Ld . C oun se l fo r th e a sse ssee poi n te d o ut th a t th i s w a s n ot a ca p i ta l e x pe nd i tur e a n d the re we re n o p r ov is ion s un d e r t he Ac t f or d e fe r me nt of 22 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 re ve n ue e x pe nd i tur e a n d the same ha d t o be a l low e d i n t he ye a r in w h ic h i t w a s i nc ur r e d .
45 . Th e Ld . D R, on th e othe r h a nd , re l ie d u p on the ord e r of the a u tho ri tie s be l ow .
46 . W e h a ve he a r d the r iv a l c onte n tions . I t i s n ot d i sp ute d tha t t he e xpen d it ur e i nc ur red on a cq u ir i ng mus ic pe r mi s si on f or a p e r io d o f th ree y e a r s, w a s i n the n a tu re of re ve n ue e xpe n d itur e of the a sse ss ee . I t is not t he c la i m of the Re ve n ue t hat the imp u gne d e xpe n d it ure w a s a ca p i ta l e xpe n d itu re . On th e co ntr a r y, we f in d tha t the Rev e n ue h as a cce pte d th a t i t w a s i n t he na tu r e of re ve n ue exp e nd i ture bu t on fi n di n g tha t th e pe rmi ss i on p e r ta ine d to thr e e ye a r s, the e xpe n d it ur e w a s s p re a d ove r th r ee ye a r s a n d th e cl a i m a ll ow e d a cco rd in gly . The Ld . DR ha s been un a b le to con tr ove rt the c onte nt ion of the Ld . C ou nse l for t he a sse ssee tha t h a vi ng t r e a te d the e xpe nse s a s r e ve n ue , the sa me w a s a ll ow a b le i n the i mpu gn e d ye a r an d cou ld n ot be d e fe r re d in the ne xt tw o ye ar s. The Re ve n ue h a s be e n un a b le to d r a w our a tt e nt ion to a ny pr ov i si on u n d e r the I n come Ta x Ac t f or de fe rr i n g re ve nue e xpe n d itu re . We , the re f ore , a gree w it h t he Ld. C ou ns e l for t he a sse ssee tha t th e s a id re ve n ue e x pe nse s 23 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 we re to be a ll owe d i n the i mp ugn e d ye a r it se l f . Th e cl a i m of the a s se s se e o f Rs. 1 ,1 6 ,0 0 0 /- i s, t he re fo re , a l lowe d.
Th e gr ou nd of a p p e a l N o. 8 r a i sed b y the a sse s see i s, the re fo re , a l lowe d .
47 . I n e ffe c t, the a pp e a l o f the a s ses see i s pa rt ly a llow e d for sta ti st ic a l p ur p ose s.
W e n ow t a ke up the a p pe a l of th e a s se s se e in I TA N o.1 0 1 5 /C hd /2 0 1 7 re la t in g to A.Y 2 0 12 -1 3 ITA N o. 10 1 5/C h d/2 01 7 (A. Y. 20 1 2 -1 3) :
48 . G r oun d of a p p e a l N o.1 a nd 8 , i t wa s s ta te d b y t he Ld. C ou ns e l f or th e a sse ssee , we r e ge ne r a l i n na t ur e . t he sa me th e re f ore ne e d n o a dj ud i ca t ion .
49 . G r oun d of a p p e a l N o. 2 ra is e d b y th e a sse s see r e ad s a s un de r :
"2. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law in having confirmed the addition of Rs.3,76,661/- made to the income of the appellant being the difference in the receipts as per form No. 26AS and as accounted for in the books of accounts of the appellant."24 ITA Nos.1014 to 1016/Chd/2017
A.Ys. 2011-12 to 2013-14 50 . Th e a b ove gr ou n d r e l a te s to a d d it ion ma d e on a c cou nt of d if f e re n ce i n i nc ome a s p e r F or m N o .2 6 AS a n d a s pe r in come ta x r e tu rn.
51 . I t w a s co m mon gr ou nd th a t th e i s sue ra i se d in the pr e se n t gr ou nd w a s id e n ti ca l t o t ha t r a i se d i n gr ou nd N o. 2 of a s se s se e 's a pp e a l f or A .Y 2 0 11 -12 , in I TA N o.1 0 1 4 /C hd /2 0 1 7 .
I n vie w o f the s a me , w it h th e i ssue a d mitt e d ly b e i ng id e n ti ca l to th a t ra i s e d in gr oun d N o .2 in I TA N o.1 0 1 4 /C hd /2 0 1 7 , our d e ci si on r e nde re d th er e i n w il l sq ua r e ly a p p ly t o t he sa i d gr oun d a l so, fol l ow in g w hi ch w e re store t he i ss ue b a c k to the A O to d e c ide t he s ame a fr e sh in a cco rd a n ce w i th o ur di r e c ti ons g iv e n a t p a r a 7 of ou r or de r a b ove .
Th e g ro un d of a p p e a l N o. 2 i s a ll ow e d for sta t is tic al pu r po se s .
52 . G r oun d of a p p e a l N o. 3 r a is e d b y th e a sse s see r e ad s a s un de r :
"3. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in confirming the disallowance of an amount of Rs 7,23,239/- under section 36(1)(iii) being the amount of interest paid on bank loan taken 25 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 for acquiring of assets not put to use in the year under reference."
53 . Th e a b ove gr ou n d r e l a te s to d is a ll ow a n ce o f a n a mou nt of 7 ,2 3 ,2 9 9 /- u /s 3 6 ( 1) ( ii i ) of th e Act be i n g t he amou nt of in te re st p a id on b a n k l oa n t a ke n f or a c q ui r i ng of asse t not pu t to u se i n the ye a r un de r re fe re nce .
54 . I t w a s commo n gr oun d th a t the i ss ue r a i se d in t he pr e se n t gr ou nd w a s id e n ti ca l t o t ha t r a i se d i n gr ou nd N o. 3 of a s se s se e 's a pp e a l f or A .Y 2 0 11 -12 , in I TA N o.1 0 1 4 /C hd /2 0 1 7 .
I n vie w o f the s a me , w it h th e i ssue a d mitt e d ly b e i ng id e n ti ca l to th a t ra i s e d in gr oun d N o .3 in I TA N o.1 0 1 4 /C hd /2 0 1 7 , our d e ci si on r e nde re d th er e i n w il l sq ua r e ly a p p ly t o t he sa i d gr oun d a l so, fol l ow in g w hi ch w e re store t he i ss ue b a c k to the A O to d e c ide t he s ame a fr e sh in a cc or d a nc e wi th our d i r e ct ions gi ve n a t p a r a 1 4 of ou r or de r a b ove .
Th e g ro un d of a p p e a l N o. 3 i s a ll ow e d for sta t is ti ca l pu r po se s .
55 . G r oun d N o. 4 r a i se d b y the a s se s se e re a d s a s u nde r :
"4. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in 26 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 having confirmed the allowance of depreciation on electrical installations and fittings at 10% instead of 15% as claimed by the appellant thereby confirming an addition of Rs. 11,64,638/-to the income of the appellant."
56 . Th e is sue ra i se d in t he a b ov e gr oun d re la tes to a ll ow a n ce of de p re c ia t ion o n e le c tric i ns ta l la t ion & fi tt in gs @ 15 % a s c la i me d b y the a s se s se e a s a ga i n st 1 0 % a l l ow e d by the re ve n ue a u tho ri ti e s .
57 . At th e outse t i tse lf the Ld .C ou ns e l f or the a sse ssee pl e a de d th a t it s sol i ta r y pr a y e r on th e imp u gne d i ss ue w a s tha t th e cl a i m of d e p re ci a ti on be a l l owe d a t the e n ha n ce d WD V a f te r a ll owi ng d e p re c ia tio n @ 1 0 % on th e imp u gne d a sse ts. I n v ie w of th e a b ove , we d i r e ct the A O t o r e c omp ute the c la i m o f de p re ci a ti on on the i mpu gn e d a s se ts a t t he pr e scr i be d r a te in a cc or d a nc e wi th law. The g ro un d of a pp e a l N o. 4 ra i se d b y t he a s se sse e i s d is mis se d w i th t he a bo ve d ire c ti ons .
58 . G r oun d of a p p e a l N o. 5 r a is e d b y th e a sse s see r e ad s a s un de r :
"5. On the facts and circumstances of the case, the learned CIT(Appeals) has erred in having confirmed disallowance of an amount of Rs. 13,61,132/- being the amount of expenditure incurred on foreign travel of the Directors by treating the same as non business expenditure."27 ITA Nos.1014 to 1016/Chd/2017
A.Ys. 2011-12 to 2013-14 59 . Th e a b ove gr ou nd r e l a te s to cla im of f or e i gn tr a v e l e xpe n se s i nc ur red on the d ire ctors of t he a sse ssee c omp a ny a moun ti ng to Rs .1 3 ,6 1 , 13 2 /- w hi ch wa s e nt ir e l y d i sal lo we d by th e AO tre a ti ng t he sa me a s n on b us in e s s e xpe nse s in t he a bs e n ce o f a n y e vi de nce f ur n is he d by the a sse ssee for i ts cl a im.
60 . I t w a s commo n gr oun d th a t the i ss ue r a i se d in t he pr e se n t gr ou nd w a s id e n ti ca l t o t ha t r a i se d i n gr ou nd N o. 5 of a s se s se e 's a pp e a l f or A .Y 2 0 11 -12 , in I TA N o.1 0 1 4 /C hd /2 0 1 7 .
61 . I n vie w o f the s a me , w it h th e i ssue a d mitt e d ly b e i ng id e n ti ca l to th a t ra i s e d in gr oun d N o .5 in I TA N o.1 0 1 4 /C hd /2 0 1 7 , our d e ci si on r e nde re d th er e i n w il l sq ua r e ly a p p ly t o t he sa i d gr oun d a l so, fol l ow in g w hi ch w e re str i ct the di sa ll ow a nc e to 50 % of th e e xpe n se s ,i n a ccor d a n ce w ith o ur d i r e cti on s giv e n a t pa r a 2 8 of our o rd e r a bo ve .
Th e g r oun d of a p p e a l N o.5 is p a rtly a l l ow e d . 62 . G r oun d of a p p e a l N o. 6 r a is e d b y th e a sse s see r e ad s a s un de r :
28 ITA Nos.1014 to 1016/Chd/2017
A.Ys. 2011-12 to 2013-14 "6. On the facts and circumstances of the case, the learned CIT(Appeals) has erred in having confirmed disallowance of an amount of Rs. 1,42,500/- made by the Assessing officer by taking resort to the provisions of section 40(a)(ia) by holding that as no TDS was deducted out of the expenditure incurred on which TDS was deductable as per the provisions of the Act, the same was as such not an allowable expenditure."
63 . Th e is sue ra i se d in t he a b ov e gr oun d re la tes to di sa l l ow a nc e of e x pe nse s on a cco un t o f no n d e d uc tio n of ta xe s at sou r ce by a p p l yin g the p r ovi si on s of se c ti on 40 ( a )( i a ) o f th e Ac t. Th e AO h a d ma d e d i sa l l ow a nc e on a ccou nt of t he s ame o f the f ol lo win g e xpe n se s:
1) Le ga l & Pr of e s si on a l Fe e s = Rs. 7 5, 0 00 /-
2) AMC = Rs. 67 , 5 00 /-
To ta l = Rs. 1, 4 2 ,5 0 0 /- 64 . B e f ore u s a t the o uts e t i tse lf the Ld .C ou ns e l fo r t he
a sse sse e ple a de d th a t the f a cts o f the c a se a r e th at the a sse sse e ha d de d uct e d ta x a t sou r ce on b oth t he e x pe nse s a nd d e p osi te d the sa me a ls o i n t he Go ve r n me n t Tr e a su r y.
Th e Ld .C o un se l for th e a sse ssee st a te d tha t t he c hal l a ns e vi de n ci ng the de du cti on of ta x at sou r ce on the se p a yme n ts a nd t he de p os it th e re of in t he G ove rn me n t Tre a su ry w a s a va i la b l e w i th the a sse ssee a nd d r e w ou r a tte nti on to t he sa me fi l e d i n th e Pa p e r B ook pl a ce d be f ore us a t p age 5. Ou r a tte n ti on was a l so d ra wn to th e a c kn ow l e dge me nt of sta te me n t of TDS , e vi de n ci ng ta x d e d u cte d o n t he imp u gne d 29 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 pa y me n t a n d de p osi te d in the Go ve r n me n t Tr e a su ry . I t w a s con te n de d th a t the se d ocu me nts w e re ve r y rel e v a nt for de ci d in g the i ssu e a n d t he Ld . C oun se l f or the a ss e ssee pl e a de d t ha t the sa me ma y b e a dmi tte d for a d j ud i ca ti on . An a pp l ic a ti on f or a d mi ss ion of th e a d di ti on a l e v ide nce s was fi le d be f ore us d ate d 1 5 .1 0 .2 0 1 8.
65 . Th e Ld . D R ob je cte d to the sa me .
66 . W e ha ve con si der e d the con te n tions o f the Ld . C oun se l for t he a ss e ssee a n d w e a re i n a gr ee me n t w i th th e s a me tha t the d i sa l low a n ce h a vi ng bee n ma d e on a ccou nt of n on de du cti on of ta x a t s our c e on cer ta i n pa y me n ts ma d e , t he e vi de n ce s now f ile d b y the a sse ssee p r ov in g to the c ont ra r y a re ve r y re le v a nt for t he is su e a nd a l low a n ce of the cl a i m of the a s se s se e . We, the re fo re , a d mit th e a d d iti on a l e vi de nce s fi le d b y the a sse ssee i n t he f orm of ch a l la n s evi d e n ci ng de po si t of ta x d e du cte d a t sou r ce a nd th e s ta te me nt sh ow i ng ta x d e d ucte d a t sou r ce on the imp u gne d p a y me nt s. We fu rt he r re s tore th e i ssue to the AO w it h th e d ir e c ti on to ve r i fy the e vi de nce s n ow f ile d b y th e a s se s se e a n d th e re a fte r a dj ud i ca t e t he i ss ue i n a cc or da n ce w i th l a w . 30 ITA Nos.1014 to 1016/Chd/2017
A.Ys. 2011-12 to 2013-14 Th e gr ou nd of a p p e a l N o. 6 r a i sed b y the a sse s see i s, the re fo re , a l lowe d f or s ta ti sti ca l pu r po se s . 67 . G r oun d of a p pe al N o. 7 ra i se d b y th e a s se s see was not pr e sse d be f ore us a n d , th e re f ore , t he sa me i s d i smi sse d a s not p r e sse d .
I n e f fe ct the a pp e a l o f the a sses see i s pa rt ly a llow e d for sta ti st ic a l p ur p ose s.
W e n ow t a ke up the a p pe a l of th e a s se s se e in I TA N o.1 0 1 6 /C hd /2 0 1 7 re la t in g to A.Y 2 01 3 -1 4 ITA N o. 10 1 6/C h d/2 01 7 (A. Y. 20 1 3 -1 4) :
68 . G r oun d of a p p e a l N o .1 a n d 9 r a i se d b y the a s se s see are ge ne r a l i n n a ture a n d h e nce , nee d n o a d j ud i ca ti on . 69 . G r oun d N o. 2 r a i se d b y the a s se s se e re a d s a s u nde r:
"2. On the facts and circumstances of the case, the learned CIT(A) has erred , both on facts and in law in having confirmed the addition of Rs.3,78,337/- made to the income of the appellant being the difference in the receipts as per form No. 26AS and as accounted for in the books of accounts of the appellant."31 ITA Nos.1014 to 1016/Chd/2017
A.Ys. 2011-12 to 2013-14 70 . Th e a b ove gr ou n d r e l a te s to a d d it ion ma d e on a c cou nt of d if f e re n ce i n i nc ome a s p e r F or m N o .2 6 AS a n d a s pe r in come ta x r e tu rn.
71 . I t w a s commo n gr oun d th a t the i ss ue r a i se d in t he pr e se n t gr ou nd w a s id e n ti ca l t o t ha t r a i se d i n gr ou nd N o. 2 of a s se s se e 's a pp e a l f or A .Y 2 0 11 -12 , in I TA N o.1 0 1 4 /C hd /2 0 1 7 .
I n vie w o f the s a me , w it h th e i ssue a d mitt e d ly b e i ng id e n ti ca l to th a t ra i s e d in gr oun d N o .2 in I TA N o.1 0 1 4 /C hd /2 0 1 7 , our d e ci si on r e nde re d th er e i n w il l sq ua r e ly a p p ly t o t he sa i d gr oun d a l so, fol l ow in g w hi ch w e re store t he i ss ue b a c k to the A O to d e c ide t he s ame a fr e sh in a cco rd a n ce w i th o ur di r e c ti ons g iv e n a t pa r a 7 of ou r or de r a b ove .
Th e g ro un d of a p p e a l N o. 2 i s a ll ow e d for sta t is ti ca l pu r po se s .
72 . G r oun d N o. 3 r a i se d b y the a s se s se e re a d s a s u nde r :
"3. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in confirming the disallowance of an amount of Rs 6,95,680/- under section 36(1)(iii) being the amount of interest paid on bank loan taken for acquiring of assets not put to use in the year under reference."32 ITA Nos.1014 to 1016/Chd/2017
A.Ys. 2011-12 to 2013-14 73 . Th e a b ove gr ou n d r e l a te s to d is a ll ow a n ce o f a n a mou nt of 6 ,9 5 ,6 8 0 /- u /s 3 6 ( 1) ( ii i ) of th e Act be i n g t he amou nt of in te re st p a id on b a n k l oa n t a ke n f or a c q ui r i ng of asse t not pu t to u se i n the ye a r un de r re fe re nce .
74 . I t w a s c ommon gr ou nd t ha t the i ssue r a i se d i n t he pr e se n t gr ou nd w a s id e n ti ca l t o t ha t r a i se d i n gr ou nd N o. 3 of a s se s se e 's a pp e a l f or A .Y 2 0 11 -12 , in I TA N o.1 0 1 4 /C hd /2 0 1 7 .
I n vie w o f the s a me , w it h th e i ssue a d mitt e d ly b e i ng id e n ti ca l to th a t ra i s e d in gr oun d N o .3 in I TA N o.1 0 1 4 /C hd /2 0 1 7 , our d e ci si on r e nde re d th er e i n w il l sq ua r e ly a p p ly t o t he sa i d gr oun d a l so, fol l ow in g w hi ch w e re store t he i ss ue b a c k to the A O to d e c ide t he s ame a fr e sh in a cc or d a nc e wi th our d i r e ct ions gi ve n a t p a r a 1 4 of ou r or de r a b ove .
Th e g ro un d of a p p e a l N o. 3 i s a ll ow e d for sta t is tic a l pu r po se s .
75 . G r oun d of a p p e a l N o. 4 r a is e d b y th e a sse ssee r e ad s a s un de r :
"4. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in confirming the disallowance of an amount of Rs 33 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 5,26,052/- under section 36(1)(iii) being the amount of interest paid on loans that should have been capitalized on capital work in progress in the hands of the appellant at the end of the year."
76 . Th e fa c ts r e l a ti n g to th e i ssue a re th a t the A O n oti ce d tha t th e a sse ssee h a d s how n cap it a l w or k i n p rogr e s s of Rs. 40 , 4 6, 5 5 8/- wh i ch ha d n ot b e e n pu t to use . Acc or d in gl y, he d i sa l l owe d the i nte re st pe r ta ini n g to th e i n te re s t be a r i ng fu nd s u se d fo r th e s a me on a p r op or ti ona te ba s i s, a moun ti ng to Rs. 5 ,2 6 ,0 5 2 /-. The Ld . C I T( A) u ph e l d t he sa me 77 . Th e Ld. C ou ns e l f or th e a sse ssee c on te n de d tha t it h a d be e n ple a de d bef or e the l owe r au th or iti e s th a t no i nte re st be a r in g fu nd s ha d b ee n u se d f or th e sa i d p ur p os e a n d t he a sse sse e ha d u se d i ts ow n f un d s w hi ch we re a va il a bl e w i th it by way of f r ee re se r ve s. Tha t no term loan or a ny un se c ure d lo a n w a s r a is e d d ur i ng th e ye a r, w hi ch f act w a s cl e a r f r om the B a l a n ce S he et of the a ssess ee . The Ld. C ou ns e l f or the a s se sse e sta te d tha t t he Ld . C I T( A ) wi th out d e a l in g w i th the spe c ifi c a s se r ti on ma d e b y the a sse sse e h a d up h e l d the or d e r of th e A O. O ur a tt e nt io n w a s dr a w n to th e pl ea d i ng s ma de b e f or e the C I T(A ) r e p r od uc e d a t pa r a 5 .1 o f th e ord e r As u nde r:
"5.1 In appeal, following explanation was offered by the appellant.34 ITA Nos.1014 to 1016/Chd/2017
A.Ys. 2011-12 to 2013-14 "In this regard, it is submitted that the learned AO did not firstly appreciated the fact that opening of retail stores by the appellant was an ongoing process and the assets were not acquired by the appellant for any expansion of the existing business of the appellant Opening of stores to market its products for retail purposes was an integrated, part of the business of the appellant and cannot be termed as expansion of the existing business. Secondly, it was also submitted before the learned AO that as no term loan was either raised by the appellant nor any borrowings were made for acquiring the assets of these new stores, no interest out of the interest paid by the appellant was disallowable under the proviso to section 36(l)(iii) of the Act in as much as it is only the interest paid on capital borrowed for acquisition of assets not put to use in the year under reference which is required to be disallowed under the proviso and otherwise. As already submitted no capital was borrowed for the acquisition of these assets which were acquired by using its own funds which were available with the appellant by way of free reserves with it. Neither any term loan was raised from the bank nor any unsecured loan was raised by the appellant in the year under reference as will be evident from the copy of the balance sheet attached herewith. The accretion in the unsecured loans is only on account of interest payable to them on their loans. Copies of their accounts are also attached herewith for your ready reference and kind perusal."
An d a t pa ra 6 .1 a s un de r :
"6.1 In appeal, the Ld. Counsel for the appellant made the following reply:-
"This ground of appeal relates to the disallowance of a sum of Rs. 5,26,052/- out of the interest paid by the assessee on loans raised by the appellant by taking resort to the proviso to section 36(l)(iii) being the amount of interest required to the capitalized on the capital work in progress of the assets not put to use or where no commercial activity has been started in the year under reference.
Our submissions are the same as has been made against ground No. 3 above for this ground of appeal.35 ITA Nos.1014 to 1016/Chd/2017
A.Ys. 2011-12 to 2013-14 They may kindly be taken into consideration while deciding this ground of appeal by your honour."
78 . O ur a tte n ti on was d r a wn to t he f in d in gs of t he Ld. C I T( A) a t p a r a 6. 2 of h i s or de r a s u nd e r :
"6.2 I have examined the arguments extended by the Ld. Counsel for the appellant and also perused the assessment order. It is observed that the borrowed funds were used by the appellant for making investment in capital work in progress and the interest has not been capitalized. Therefore, the claim of interest as a revenue expense gets covered by the proviso to section 36(1)(iii) and accordingly upheld. The addition is confirmed and ground of appeal No.4 is dismissed."
79 . Th e Ld . D R, on th e othe r h a nd , re l ie d u p on the ord e r of the CI T(A ).
80 . W e ha ve he a r d th e r iv a l c onte nt ion s. We f i nd mer it i n the c onte n tio n of th e Ld .C o un se l for the a sse ssee . The a sse sse e , we fi nd , h a d ma de sp e ci f ic p le a di n gs b e f ore t he Ld. C I T( A) of n ot ha vi ng u se d a n y in te re st be a r i ng f un d s f or in ve s ti ng i n it s ca p it a w or k i n p r o gr e s s a n d h a d a l so p oi nte d out th a t no f re sh loa n s e i the r se cure d or un se cur e d h a d be e n ta ke n b y th e a sse ssee d ur ing th e ye a r . The Ld .C I T(A ) ha s , w e fi n d, up h e l d the d i sa l lo wa n ce o f i nte rest w i th out de a li n g w i th the sp e ci fi c s ub mi ssi on s o f t he a sse ssee a nd in a su m ma r y ma n ne r . Th e or d e r p a sse d on the i ssue b y the C I T( A) i s a non sp e a k in g or de r . Sinc e t he fa cts ca nva s se d b y 36 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 the a sse ssee nee d v e r i fi ca ti on , We re store the ma tte r to t he AO to ve ri f y t he fa cts a nd de a l w ith the s pe ci fi c submi ss i ons ma de b y th e a ss e ssee a nd th e re a f te r de ci de th e i ss ue i n a ccor d a n ce w ith l a w . The gr ou nd of a p pe a l N o. 4 r a i se d by the a s se s se e i s al lo we d f or s ta ti sti ca l pu r p ose s . 81 . G r oun d N o. 5 r a i se d b y the a s se s se e re a d s a s u nde r:
"5. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in having confirmed the allowance of depreciation on electrical installations and fittings at 10% instead of 15% as claimed by the appellant thereby confirming an addition of Rs. 18,88,632/- to the income of the appellant."
82 . Th e is sue ra i se d in t he a b ov e gr oun d re la tes to a ll ow a n ce of de pr e ci a ti on of e le ctr i c in sta l l a ti on of f itt in gs @ 15 % a s c la i me d b y the a s se s se e a s a ga i n st 1 0 % a l l ow e d by the re ve n ue a u tho ri ti e s .
83 . I t w a s c ommon gr ou nd t ha t t he i ssue r a i se d i n t he pr e se n t gr ou nd w a s id e n ti ca l t o t ha t r a i se d i n gr ou nd N o. 4 of a s se s se e 's a pp e a l f or A .Y 2 0 12 -13 , in I TA N o.1 0 1 5 /C hd /2 0 1 7 .
I n vie w o f the s a me , w it h th e i ssue a d mitt e d ly b e i ng id e n ti ca l to th a t ra i s e d in gr oun d N o .4 in I TA N o.1 0 1 4 /C hd /2 0 1 7 , our de ci si on r e nde re d th er e i n w il l 37 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 sq ua r e ly a p p ly t o t he sa i d gr oun d a l so, fol l ow in g w hi ch w e di smi ss th e sa i d gr oun d i n a cc or da n ce w i th our d i r e c tio ns giv e n a t p a r a 5 7 of our or d e r a b ove .
Th e gr ou nd of a pp e a l N o. 5 r a i se d by th e a s se sse e is di smi ss e d w i th t he a b ove d i re ct ion s.
84 . G r oun d N o. 6 r a i se d b y the a s se s se e re a d s a s u nde r :
"6. On the facts and circumstances of the case, the learned CIT(Appeals) has erred in having confirmed disallowance of an amount of Rs.2,24,097/- being the amount of expenditure incurred on foreign travel of the Directors by treating the same as non business expenditure."
85 . The a b ov e gr ou nd r e l a te s to c la i m of for e ign tr a ve l e xpe n se s i nc ur red on the d ire ctors of t he a sse ssee c omp a ny a moun ti ng t o Rs . 2 ,2 4 ,0 9 7 /- w hi c h w a s e nti r e l y di sa l lo we d by th e AO tre a ti ng t he sa me a s n on b us in e s s e xpe nse s in t he a bs e n ce o f a n y e vi de nce f ur n is he d by the a sse ssee for i ts cl a im.
I t w a s commo n gr oun d th a t the i ss ue r a i se d in t he pr e se n t gr ou nd w a s id e n ti ca l t o t ha t r a i se d i n gr ou nd N o. 5 of a s se s se e 's a pp e a l f or A .Y 2 0 11 -12 , in I TA N o.1 0 1 4 /C hd /2 0 1 7 .
38 ITA Nos.1014 to 1016/Chd/2017
A.Ys. 2011-12 to 2013-14 86 . I n vie w o f the s a me , w it h th e i ssue a d mitt e d ly b e i ng id e n ti ca l to th a t ra i s e d in gr oun d N o .5 in I TA N o.1 0 1 4 /C hd /2 0 1 7 , our d e ci si on r e nde re d th er e i n w il l sq ua r e ly a p p ly t o t he sa i d gr oun d a l so, fol l ow in g w hi ch w e re str i ct the di sa ll ow a nc e to 50 % of th e e xpe n se s ,i n a ccor d a n ce w ith o ur d i re cti on s g iv e n a t pa r a 2 8 of our o rd e r a bo ve .
Th e g r oun d of a p p e a l N o.6 is p a rtly a l l ow e d . 87 . G r oun d of a p pe al N os .7 a n d 8 r a i se d b y the a sse ssee re a d a s u nde r :
"7. The CIT(Appeals) has erred in not having adjudicated the ground of appeal taken before him as regards the disallowance of an amount of Rs. 25,159/- made by the Assessing officer by taking resort to the provisions of section 40(a)(ia) by holding that as no IDS was deducted out of the expenditure incurred on which IDS was deductable as per the provisions of the Act, the same was as such not an allowable expenditure.
8. The CIT(Appeals) has also erred in not having adjudicated the ground of appeal taken before him as regards the disallowance of an amount of Rs. 6,37,708/- .made by the Assessing officer being the amount of one fourth of the expenditure incurred by the appellant towards running and maintenance of cars including deprecation on the same by treating the same as personal expenses of the Directors."
88 . Th e a bo ve gr ou nd s w e re ta ke n up toge the r by t he Ld. C ou ns e l fo r th e a s se s se e s ta ting th a t b ot h the i ss ue s h ad 39 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 not been a d j ud i ca te d by t he Ld . C I T( A) . D r a w in g ou r a tte n ti on to the or de r p a sse d by th e Ld . C IT( A) , t he Ld. C ou ns e l f or th e a s se s see p oin te d ou t th a t i n g r oun d N os. 7 a nd 8 r a i se d be fo re the Ld .C I T( A ) the a ss e s see h a d cha ll e n ge d the d is a l low a n ce ma d e b y th e A O by i nv ok in g t he pr ov is io ns of se c ti on 4 0 ( a )( i a ) of the Ac t of i nte re st a moun ti ng to Rs. 2 5 ,1 5 9 /- a n d of 1 /4 t h of the e xp e nd i ture tow a r ds r un ni ng a nd ma in te na n ce of ca r s a mo un tin g to Rs. 6, 3 7 ,7 0 8 /-. The Ld . C oun se l for the a sse ssee th e re a fte r took us th r oug h th e or de r of th e Ld .C I T(A ) a n d p o i n te d out tha t the Ld .C I T( A ) h a d d e a l t w it h on l y u p t o gr ou nd N o. 6 a nd had left the i ss ue s r a i se d in gr ou nd N os. 7 & 8 un a dj ud i ca t e d . The Ld . D R a gr ee d to the s a me . 89 . In v ie w of the a b ove , the se is su e s nee d to be a dj ud i ca t e d a f re sh b u t si n ce w e ha ve re s tore d ce r tai n i ssu e s ra i se d i n t hi s a p p e a l t o th e A O , w e re st ore th e se i s sue s a l so to th e A O t o de a l w i th t he sa me a fr e s h. We d i re ct the AO to de a l w i th the is su e of d i sa l l ow a nc e of e xpe n se s inc ur r e d on ve h ic le r u nn in g a nd ma in te n a n ce on a cc oun t of p e r son a l usa g e of t he s ame b y th e D ire ctor s o f th e co mpa n y on a re a son a b le b a sis c ons id e r i n g th e p a st hi story of t he a sse sse e , nu mb er of d i r e ct or s i n th e c omp a ny, nu mb e r of 40 ITA Nos.1014 to 1016/Chd/2017 A.Ys. 2011-12 to 2013-14 ve h ic le s ow ne d b y th e a sse s see comp a n y, t he n a tu r e of bu si ne ss ca r r ie d o ut by th e a sse ss ee a nd suc h othe r f a ct or s. Th e A O i s d i r e ct e d to p ro vi de d ue op p or tu ni ty of h e a r in g to the a s se s se e a n d t he re a fte r d e c ide the i ssu e in a cco rd a n ce wi th l a w .
G r oun d N os. 7 a n d 8 ra i s e d b y the a sse ssee a re a l lo we d for sta ti st ic a l p ur p ose s.
I n e ffe c t, the a pp e a l o f the a s ses se e i s p a rt ly a llow e d for sta ti st ic a l p ur p ose s.
90. I n the re su lt , a l l th e a p pe a l s filed b y th e a sse ssee a re pa r tl y a l low e d f or st a ti sti ca l p u r po se s .
O r de r p r o n o u n ce d i n t he O p e n C ou r t .
Sd/- Sd/- दवा संह अ नपणू ा( ग*ु ता (DIVA SINGH) (ANNAPURNA GUPTA) याय$क सद%य/Judicial Member लेखा सद%य/Accountant Member दनांक /Dated: 29th August, 2019 *रती* आदे श क त*ल+प अ,े+षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकर आयु-त/ CIT 4. आयकर आयु-त (अपील)/ The CIT(A)
5. +वभागीय त न0ध, आयकर अपील$य आ0धकरण, च2डीगढ़/ DR, ITAT, CHANDIGARH
6. गाड फाईल/ Guard File आदे शानस ु ार/ By order, सहायक पंजीकार/ Assistant Registrar