DACUNHA COMMUNICATIONS P. LTD, MUMBAI v. ITO 2(1)(2), MUMBAI

ITA 2102/MUM/2010 | 2001-2002
Pronouncement Date: 20-12-2010 | Result: Allowed

Appeal Details

RSA Number 210219914 RSA 2010
Assessee PAN AAACD2938B
Bench Mumbai
Appeal Number ITA 2102/MUM/2010
Duration Of Justice 9 month(s) 5 day(s)
Appellant DACUNHA COMMUNICATIONS P. LTD, MUMBAI
Respondent ITO 2(1)(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 20-12-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted D
Tribunal Order Date 20-12-2010
Assessment Year 2001-2002
Appeal Filed On 15-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D MUMBAI BEFORE SHRI R.S.SYAL AM AND SHRI VIJAY PAL RAO JM ITA NO.2102/MUM/2010 : ASST.YEAR 2001-2002 M/S.DACUNHA COMMUNICATIONS PVT.LTD. ELYSIUM MANSION 4 TH FLOOR WALTON ROAD COLABA MUMBAI 400 001. PA NO.AAACD2938B. VS. THE INCOME TAX OFFICER WARD 2(1)(2) MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : MS. J.S.PARIKH RESPONDENT BY : SHRI R.S.SRIVASTAVA O R D E R PER R.S.SYAL AM : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 07.01.2010 IN RELATION TO THE ASSESSMENT YEAR 2001-2002. 2. THE ONLY ISSUE IS AGAINST THE CONFIRMATION OF DI SALLOWANCE OF EXPENDITURE OF RS.8 21 581 INCURRED BY THE ASSESSEE-COMPANY ON FOR EIGN TRAVEL OF ITS EXECUTIVES. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE A SSESSEE CLAIMED DEDUCTION OF RS.8 21 581 AS TRAVEL EXPENSES UNDER THE HEAD `FORE IGN TOUR. THE ASSESSING OFFICER MADE DISALLOWANCE FOR THE SAID SUM ON THE G ROUND THAT THE ASSESSEE COULD NOT FURNISH THE DETAILS AS TO HOW SUCH EXPENDITURE WAS INCURRED FOR THE PURPOSE OF BUSINESS. THE LEARNED CIT(A) UPHELD THE ASSESSMENT ORDER ON THIS POINT. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD IT IS SEEN THAT THE ASSESSEE CATEGORICALLY S TATED BEFORE THE AUTHORITIES BELOW THE PURPOSE OF FOREIGN TOUR. AS CAN BE SEEN FROM PA RA 8 OF THE IMPUGNED ORDER THAT SHRI RAHUL DA CUNHA DIRECTOR OF THE COMPANY VISITE D U.S. FROM 30.06.2000 TO 28.07.2000 FOR THE PURPOSE OF STUDYING THE VIABILI TY OF ENTERING INTO A JOINT VENTURE WITH AN U.S. BASED AD AGENCY. SIMILARLY SHRI RAHUL DA CUNHA ALONG WITH SHRI JAGDEESH SHIVDASANI VICE PRESIDENT TRAVELLED FROM 16.11.2000 TO 21.11.2000 TO ITA NO.2102/MUM/2010 M/S.DACUNHA COMMUNICATIONS PRIVATE LIMITED. 2 ATTEND A MANAGEMENT CONFERENCE AT THE 2000 ASIA PAC IFIC REGIONAL MEETING. SHRI SYLVESTER DA CUNHA THE FOUNDER DIRECTOR OF THE COM PANY TRAVELLED TO U.K. FOR MEETING REPRESENTATIVES OF DUPONT FILAMENTS UK FOR GETTING CERTAIN CLARIFICATIONS ON THE MARKET RESEARCH REPORT SUBMITTED TO ITS US H EADQUARTERS. THE ABOVE NARRATION OF FACTS AMPLY PROVES THAT THE DIRECTORS AND EXECUTIVES OF THE COMPANY VISITED FOREIGN DESTINATIONS IN CONNECTION WITH THE BUSINESS PURPOSE. THE ASSESSING OFFICER CANNOT STEP INTO THE SHOES OF THE ASSESSEE- COMPANY AND TAKE A DECISION AS TO WHETHER A PARTICULAR EXPENDITURE IS TO BE INCURR ED OR NOT. WHEN DETAILS REGARDING THEIR FOREIGN TRAVEL WERE GIVEN AND FOREIGN EXCHANG E WITHDRAWALS FOR THIS PURPOSE WERE USED THERE CANNOT BE ANY QUESTION OF MAKING A NY DISALLOWANCE MORE SO WHEN THE BUSINESS PURPOSE WAS AMPLY ESTABLISHED. IT IS F URTHER A MATTER OF RECORD THAT THE ASSESSEE-COMPANY RECEIVED 880 U.S. $ AND 1000 U.K. POUND TOWARDS FEES WHICH WAS INCLUDED IN THE TOTAL INCOME. OVERTURNING THE I MPUGNED ORDER ON THIS ISSUE WE ORDER FOR THE DELETION OF ADDITION. 4. IN THE RESULT THE APPEAL IS ALLOWED. ORDER PRONOUNCED ON THIS 20 TH DAY OF DECEMBER 2010. SD/- SD/- ( VIJAY PAL RAO ) ( R.S.SYAL ) JUDICIAL MEMBER ACC OUNTANT MEMBER MUMBAI : 20 TH DECEMBER 2010. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) - IV MUMBAI. 5. THE DR/ITAT MUMBAI. 6. GUARD FILE. ITA NO.2102/MUM/2010 M/S.DACUNHA COMMUNICATIONS PRIVATE LIMITED. 3 TRUE COPY. BY ORDER ASSISTANT REGISTRAR ITAT MUMBAI.