Income Tax Appellate Tribunal - Mumbai
Hind Musafir Agency Ltd, Mumbai vs Dcit Rg 2(3)(2), Mumbai on 6 September, 2017
ITA No 5622/Mum/2016 Hind Musafir Agency Limited Assessment Year 2012-13 आयकर अपीलीय अिधकरण "बी"
ायपीठ मुं बई म ।
IN THE INCOME TAX APPELLATE TRIBUNAL "B" BENCH, MUMBAI ी डी.टी. गरािसया, ाियक सद एवं ी मनोज कुमार अ वाल, लेखा सद के सम ।
BEFORE SHRI D.T. GARASIA, JM AND SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./I.T.A. No. 5622/Mum/2016 (िनधा रण वष / Assessment Year: 2012-13) Hind Musafir Agency Limited Deputy Com missioner of ( CI N : U6 0 100 M H1 96 2 P L C01 24 55) Income Tax Range 2(3)(2) 39,39 t h Floor Aaykar Bhavan Sunshine Tower बनाम/ M.K.Road Senapati, Bapat Marg Vs. Mumbai -400 020 Dadar(W) Mumbai - 400 013 थायी ले खा सं . /जीआइआर सं . /PAN/GIR No. AAACH-1250-Q (अ पीलाथ# /Appellant) : ($%थ# / Respondent) Assessee by : Kirit Kamdar & Parth Achwal, Ld. AR's Revenue by : Suman Kumar, Ld. DR सुनवाई की तारीख / : 17/08/2017 Date of Hearing घोषणा की तारीख / : 06 /09/2017 Date of Pronouncement 2 ITA No 5622/Mum/2016 Hind Musafir Agency Limited Assessment Year 2012-13 आदे श / O R D E R Per Manoj Kumar Aggarwal (Accountant Member)
1. The captioned appeal by Assessee for Assessment Year [AY] 2012-13 assails the order of Ld. Commissioner of Income Tax (Appeals)-6 [CIT(A)], Mumbai dated 29/06/2016 qua confirmation of certain additions.
2.1 Facts leading to the same are that the assessee, being resident corporate assessee engaged in the business of Travel & Tourism was assessed for impugned AY u/s 143(3) on 27/02/2015 at Rs.98,14,200/- after certain additions / disallowances as against returned income of Rs.95,60,325/- e-filed by the assessee on 28/09/2012. The subject matter of present appeal is disallowance u/s 14A and addition against certain bad debts.
2.2 In the return of income, the assessee made suo-moto disallowance u/s 14A for Rs.6,19,642/-. However, it filed revised computation thereof during assessment proceedings and re-worked the same as Rs.2,46,286/- by resorting to netting-off of the interest expenses. However, Ld. AO noted that there was no provision for netting-off of interest expenses and worked out the said disallowance as per Rule 8D which came to Rs.6,19,642/- i.e. original suo-moto disallowance offered by the assessee himself in the return of income. The aggregate disallowance comprised of interest disallowance of Rs.5,14,257/- u/r 8D(2)(ii) & expense disallowance of Rs.1,05,385/- u/r 8D(2)(iii).
3ITA No 5622/Mum/2016 Hind Musafir Agency Limited Assessment Year 2012-13 2.3 The second addition pertained to bad debts of Rs.1,12,575/- claimed by the assessee u/s 36(i)(vii). Since no evidence could be furnished by the assessee to substantiate the fact that the same were offered to tax in earlier years, the same were disallowed.
3. Aggrieved, the assessee contested both the additions with partial success before Ld. CIT(A) vide impugned order dated 29/06/2016 where Ld. CIT(A) was convinced with the assessee's contention that interest free funds exceeded the investments made by the assessee and therefore, no disallowance qua interest was warranted for. Finally, Ld. CIT(A) restricted the said disallowance to Rs.2,46,286/-, being the amount offered by the assessee as per revised calculations. Similarly Ld. CIT(A), after appreciating assessee's explanation / evidences restricted the addition against bad debts to Rs.78,620/-. Aggrieved, the assessee is in further appeal before us.
4. The Ld. Counsel for assessee [AR] pleaded for further relief against 14A disallowance on the premises that owned funds were more than investment and therefore, no addition qua interest was warranted for. No serious arguments were raised against claim of bad debts. Per Contra, Ld. DR contended that the disallowance has been restricted as per the calculations provided by the assessee and therefore, debarred from taking different stands.
5. Heard and perused relevant material on record. We see no reasons to interfere with the order of Ld. CIT(A) since the assessee himself made suo-moto disallowance in the return of income which was revised during assessment proceedings. The assessee was granted the requisite relief by the Ld. CIT(A) and the disallowance was restricted as 4 ITA No 5622/Mum/2016 Hind Musafir Agency Limited Assessment Year 2012-13 per the working provided by the assessee. The assessee is, therefore, debarred from taking different stands as per his convenience and there has to be finality to litigation. The addition of bad debts confirmed by Ld. CIT(A) was after due consideration of assessee's evidences and submissions and the same being quite fair, do not require any interference on our part.
6. Resultantly, the assessee's appeal stand dismissed.
Order pronounced in the open court on 06th September, 2017.
Sd/- Sd/-
(D.T. Garasia) (Manoj Kumar Aggarwal)
ाियक सद / Judicial Member लेखा सद / Accountant Member मुंबई Mumbai; िदनां क Dated : 06. 09.2017 Sr.PS:- Thirumalesh आदे श की ितिलिप अ !ेिषत/Copy of the Order forwarded to :
1. अपीलाथ# / The Appellant
2. $%थ# / The Respondent
3. आयकर आयु,(अपील) / The CIT(A)
4. आयकर आयु, / CIT - concerned
5. िवभागीय $ितिनिध, आयकर अपीलीय अिधकरण, मुंबई / DR, ITAT, Mumbai
6. गाड/ फाईल / Guard File आदे शानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, मुंबई / ITAT, Mumbai