TEJAS KIRIT SHAH, MUMBAI v. JT CIT RG 14(2), MUMBAI

ITA 4356/MUM/2009 | 2005-2006
Pronouncement Date: 22-07-2011 | Result: Dismissed

Appeal Details

RSA Number 435619914 RSA 2009
Assessee PAN AKXPS3428H
Bench Mumbai
Appeal Number ITA 4356/MUM/2009
Duration Of Justice 2 year(s) 5 day(s)
Appellant TEJAS KIRIT SHAH, MUMBAI
Respondent JT CIT RG 14(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 22-07-2011
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted E
Tribunal Order Date 22-07-2011
Date Of Final Hearing 18-05-2011
Next Hearing Date 18-05-2011
Assessment Year 2005-2006
Appeal Filed On 17-07-2009
Judgment Text
1 ITA NO. 4356/MUM/2009 (ASST YEAR 2005-06 ) IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI E BENCH MUMBAI BENCHES MUMBAI BEFORE SHRI PRAMOD KUMAR AM & SHRI VIJAY PAL RAO JM ITA NO. 4356/MUM/2009 (ASST YEAR 2005-06 ) SHRI TEJAS KIRIT SHAH KRISHNA NIWAS SHOP NO.8 496 KALBADEVI ROAD MUMBAI 40 002 VS THE JT COMMR OF INCOME TAX RANGE 14(2) MUMBAI (APPELLANT) (RESPONDENT) PAN NO. AKXPS3428H ASSESSEE BY SHRI SANJAY R PARIKH REVENUE BY SHRI G P TRIVDI PER VIJAY PAL RAO JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 7.5.2009 OF THE CIT(A) FOR THE AY 2005-06. 2 THE ONLY EFFECTIVE GROUND RAISED BY THE ASSESSEE IS AS UNDER: THE CIT(A) ERRED IN CONFIRMING DISALLOWANCE OF FORE IGN TRAVEL EXPENSES OF RS. 2 40 107/- 3 THE ASSESSEE HAS ALSO MOVED AN APPLICATION UNDER RULE 29 OF THE ITAT RULES FOR ADMISSION OF THE ADDITIONAL EVIDENCES. 4 WE HAVE HEARD THE LD AR OF THE ASSESSEE AS WELL A S THE LD DR ON THE APPLICATION U/S 29 OF THE ITAT RULES FOR ADMISSION OF THE ADDITIONAL EVIDENCES AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. THE L D AR OF THE ASSESSEE HAS SUBMITTED THAT THE FOREIGN TRAVEL EXPENDITURE CLAIM ED BY THE ASSESSEE IS A SUBJECT 2 ITA NO. 4356/MUM/2009 (ASST YEAR 2005-06 ) MATTER OF THIS APPEAL PERTAINS TO FOREIGN TOUR UNDE RTAKEN BY THE ASSESSEE TO PARTICIPATE IN AN EXHIBITION (CANTON FAIR) IN CHIN A. HE HAS FILED E-MAIL CORRESPONDENCE BETWEEN THE ASSESSEE AND BUYER SERVI CE SECTION FOREIGN LIAISON DEPARTMENT CHINA FOREIGN TRADE CENTRE PLACED AT P AGES 54 TO 56 OF THE PAPER BOOK AND PLEADED THAT THE SAME MAY BE ADMITTED AS A DDITIONAL EVIDENCE IN SUPPORT OF THE CLAIM OF THE ASSESSEE. HE HAS FURTH ER SUBMITTED THAT THE ADDITIONAL EVIDENCES COULD NOT BE FILED BEFORE THE LOWER AUTHO RITIES AS THE ASSESSEE FURNISHED OTHER EVIDENCES LIKE VOUCHERS DETAILS OF FOREIGN T RAVEL EXPENSES AND SUBSEQUENTLY THE ASSESSEE REQUESTED THE CHINA FOREIGN TRADE CENT RE FOR SENDING THE CONFIRMATION OF EXHIBITION AND PARTICIPATION OF THE ASSESSEE THR OUGH E-MAIL WHICH TOOK SOME TIME. 4.1 ON THE OTHER HAND THE LD DR HAS SUBMITTED THAT WHEN THE ASSESSEE FAILED TO PRODUCED THE INTENDED ADDITIONAL EVIDENCES BEFORE T HE LOWER AUTHORITIES DESPITE SUFFICIENT OPPORTUNITIES GIVEN; THEN IN THE ABSENCE OF SUFFICIENT REASONS FOR NOT PRODUCING THE EVIDENCES BEFORE THE LOWER AUTHORITIE S THE SAME CANNOT BE ACCEPTED. HE HAS POINTED OUT THE DETAILS FILED BE FORE THE ASSESSING OFFICER FOR THE EXPENDITURE CLAIMED BY THE ASSESSEE AND SUBMITTED I N PARA 11.3 OF THE ASSESSMENT ORDER THE ASSESSING OFFICER HAS GIVEN THE DETAILS FROM WHICH IT IS CLEAR THAT THE ENTIRE AMOUNTS WERE INCURRED BY THE ASSESSEE FOR THE PURCH ASE OF DOLLARS AND AIR TICKETS. NO DETAILS HAVE BEEN GIVEN BY THE ASSESSEE AS THE NATU RE OF THE EXPENDITURE INCURRED BY THE ASSESSEE RELATES TO FOREIGN TOUR. 5 WE HAVE CONSIDERED THE RIVAL CONTENTION AND PERUS ED THE RELEVANT MATERIAL ON RECORD. THE ADDITIONAL EVIDENCES INTENDED TO BE FILED BY THE ASSESSEE AT THE 3 ITA NO. 4356/MUM/2009 (ASST YEAR 2005-06 ) MOST WOULD SHOW THAT THE ASSESSEE VISITED CHINA IN THE MONTH OF OCT 2004 TO ATTEND SOME EXHIBITION/FAIR. ON OUR DIRECTION THE ASSESS EE FILED THE COPY OF THE PASSPORT WHICH REVEALS THAT THE ASSESSEE STAYED THERE FOR 10 DAYS FROM 15.10.2004 TO 25 10.2004. THUS THE ADDITIONAL EVIDENCE DOES NOT EVEN RELATE TO THE EXPENDITURE INCURRED BY THE ASSESSEE DURING THE FOREIGN TOUR BUT SHOWS ONLY THAT THE ASSESSEE VISITED CHINA. WE FURTHER NOTE THAT THE WIFE OF TH E ASSESSEE WAS ALSO ACCOMPANIED WITH THE ASSESSEE ON THIS FOREIGN TOUR. THERE IS NO MATERIAL OR THE EXPLANATION TO SHOW THAT HOW THE FOREIGN VISIT OF THE WIFE OF THE ASSES SEE IS FOR THE PURPOSE OF ASSESSEES BUSINESS AND STAY OF THE ASSESSEE FOR 10 DAYS IN CH INA IS ONLY FOR BUSINESS PURPOSES. APART FROM THIS THE ASSESSEE HAS NOT FILED ANY MAT ERIAL TO SHOW THE NATURE OF THE EXPENSES INCURRED BY THE ASSESSEE DURING THE FOREIG N TOUR. THE DETAILS GIVEN BY THE ASSESSEE ARE ONLY WITH REGARD TO PURCHASE OF FOREIG N CURRENCY BUT NOTHING HAS BEEN PRODUCED TO SHOW THAT HOW THE CURRENCY HAS BEEN UTI LISED AND FOR WHAT PURPOSE THE EXPENDITURE WAS INCURRED IN FOREIGN CURRENCY. ACCORDINGLY WE DO NOT FIND ANY MERIT OR SUBSTANCE IN THE PRAYER OF THE ASSESSEE FO R ADMISSION OF THE ADDITIONAL EVIDENCES AND THE SAME IS REJECTED. 6 ON MERITS AS WE HAVE OBSERVED THAT THE ASSESSEE HAS FAILED TO PRODUCE THE RELEVANT MATERIAL AS WELL AS EXPLANATION IN SUPPORT OF THE CLAIM OF THE EXPENDITURE ON FOREIGN TOUR TO ESTABLISH THAT THE EXPENDITURE H AS BEEN INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF THE BUSINESS. WHATE VER THE EXPLANATION OR DETAILS HAVE BEEN FILED BY THE ASSESSEE IS ONLY TO SHOW THE PURCHASE OF AIR TICKET AND PURCHASE OF FOREIGN CURRENCY. APART FROM THIS THE ASSESSEE HAS FAILED TO ESTABLISH THAT THE ENTIRE DURATION OF THE VISIT AND STAY IN THE FOREIGN COUNTRY IS FOR THE PURPOSE 4 ITA NO. 4356/MUM/2009 (ASST YEAR 2005-06 ) OF THE BUSINESS OF THE ASSESSEE. MOREOVER THE EXP ENDITURE INCURRED IN RESPECT OF FOREIGN VISIT OF WIFE OF THE ASSESSEE CANNOT BE TR EATED THE EXPENDITURE INCURRED FOR THE PURPOSE OF THE BUSINESS OF THE ASSESSEE. 7 IN VIEW OF THE ABOVE DISCUSSION WE DO NOT FIND A NY ERROR OR ILLEGALITY IN THE ORDER OF THE CIT(A); ACCORDINGLY THE SAME IS UPHEL D. 8 IN THE RESULT THE APPEAL FILED BY THE ASSESSEE I S DISMISSED. ORDER PRONOUNCED ON THE 22 ND DAY OF JULY 2011. SD/- SD/- ( PRAMOD KUMAR ) ACCOUNTANT MEMBER ( VIJAY PAL RAO ) JUDICIAL MEMBER PLACE: MUMBAI : DATED:22 ND JULY 2011 RAJ* COPY FORWARDED TO: 1 APPELLANT 2 RESPONDENT 3 CIT 4 CIT(A) 5 DR /TRUE COPY/ BY ORDER DY /AR ITAT MUMBAI