SANGEETAA BALACHANDRAN, MUMBAI v. ITO WD 19(3)(4), MUMBAI

ITA 8883/MUM/2010 | 2007-2008
Pronouncement Date: 23-10-2013 | Result: Allowed

Appeal Details

RSA Number 888319914 RSA 2010
Assessee PAN AGNPB6055F
Bench Mumbai
Appeal Number ITA 8883/MUM/2010
Duration Of Justice 2 year(s) 10 month(s) 3 day(s)
Appellant SANGEETAA BALACHANDRAN, MUMBAI
Respondent ITO WD 19(3)(4), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 23-10-2013
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted E
Tribunal Order Date 23-10-2013
Date Of Final Hearing 07-10-2013
Next Hearing Date 07-10-2013
Assessment Year 2007-2008
Appeal Filed On 20-12-2010
Judgment Text
` IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E MUMBAI . . ! ' #'' '$ % ! & BEFORE SHRI P.M. JAGTAP ACCOUNTANT MEMBER AND SHRI VIVEK VARMA JUDICIAL MEMBER . 8883 / / 2010 A.Y. 2007-2008 ITA NO. : 8883/MUM/2010 (ASSESSMENT YEAR: 2007-2008) SANGEETAA BALACHNDRAN 8 JEEVAN JAGRITI DR. AMBEDKAR ROAD BANDRA (WEST) MUMBAI -400 050 .: PAN: AGNPB 6055 F VS ITO -19(3)(4) PIRAMAL CHAMBERS LALBAUG PARLE MUMBAI -400 012 (APPELLANT) (RESPONDENT) APPELLANT- REVENUE BY : SHRI BRIJMOHAN POORANAND AGARWAL RESPONDENT- ASSESSEE BY : SHRI PITAMBAR DAS /DATE OF HEARING : 07-10-2013 !' / DATE OF PRONOUNCEMENT : 23-10-2013 ) O R D E R #'' '$ : PER VIVEK VARMA JM: THE APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORD ER OF CIT(A) 30 MUMBAI DATED 30.09.2010 WHEREIN THE FOLLOWING GRO UNDS HAVE BEEN TAKEN: 1. THE LD. CIT(A) ERRED IN NOT APPRECIATING THE CO MPLETE DETAILS OF BAD DEBTS CLAIMED RS. 99 161/- PRODUCED DURING APPELLAT E PROCEEDINGS. THE LD. CIT(A) ERRED IN REJECTING THE CLAIMS ONLY BECAU SE THE DETAILS WERE NOT FILED BEFORE THE AO. WHICH IS NOT JUSTIFIED IN THE LIGHT OF FACTS OF THE MATTER. THE APPELLANT PRAYS THAT CLAIM OF BAD DEBTS OF RS. 99 161/- BE ALLOWED. 2. THE LD. CIT(A) ERRED IN CONFIRMING IN ADDITION O F RS. 41 54 752/- U/S 40(A)(IA) BECAUSE TDS WHICH WAS PROVIDED IN BOOKS B EFORE 28.02.2007 WAS NOT PAID BY 31.03.2007. FURTHER RS. 2 55 800/- WAS DISALLOWED BECAUSE PAYMENTS OF SOME PARTIES WERE PROVIDED IN T HE BOOKS BEFORE 31.03.2007 AND THE DUE DATE FOR PAYMENT OF TDS WAS ON OR BEFORE 31.03.2007. THE APPELLANT PRAYS THAT THE AMENDMENT MADE IN PROVISIONS FOR SECTION 40(A)(IA) BY THE FINANCE ACT 2010 ARE REMEDIAL/CURATIVE IN NATURE AND THEY RETROSPECTIVEL Y WITH EFFECT FROM SANGEETAA BALA CHNDRAN ITA 8883/MUM/2010 2 01.04.2005. THEREFORE THE APPELLANT PRAYS THAT ENTI RE ADDITION OF RS. 44 10 552/- (RS. 41 54 752 + RS. 2 55 800) BE REJEC TED. 3. THE LD. CIT(A) SERIOUSLY ERRED IN CONFIRMED ADDI TION OF RS. 1 00 000/- PAID TO DEEDS ALLEGEDLY TREATING THE SAME AS DONA TION BUT IGNORED THE SUBMISSION THAT THE SAME AMOUNT IS ALSO DISALLOWED VIDE PARA NO. 9.4 OF THE ASSESSMENT ORDER & INCLUDED IN RS. 2 55 800/ - AND HENCE WOULD AMOUNT TO DOUBLE ADDITION. THE APPELLANT PRAYS THAT THE ADDITION OF RS. 1 00 000/- BE DELETED SINCE IT WOULD AMOUNT TO DOUB LE ADDITION. ALSO THE ITEM IS COVERED IN RS. 2 55 800/- STATED IN GRO UND NO. 2 ABOVE. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL WHO IS IN THE BUSINESS OF EVENT MANAGEMENT. IN THE ASSE SSMENT PROCEEDINGS THE AO SOUGHT CERTAIN DETAILS WHICH THE ASSE SSEE COULD PRODUCE ONLY IN PART. THE AO THEREFORE FOR LACK OF COOPE RATION FROM THE ASSESSEE ADDED BACK CERTAIN CLAIMS WHICH ACCORDING T O THE AO WERE NOT SATISFACTORILY EXPLAINED. THE ASSESSEE AGGRIEVED WITH THE DECISION OF THE AO APPROACHED THE CIT(A) WHO SUSTAINED TH E ADDITIONS MADE. 3. AGGRIEVED THE ASSESSEE IS NOW BEFORE THE ITAT WHER EIN SHE HAS AGITATED THE ABOVE MENTIONED GROUNDS ONLY. 4. GROUND NO. 1 PERTAINS TO DISALLOWANCE OF BAD DEBTS AM OUNTING TO RS. 99 161/-. 5. THE AO AND THE CIT(A) HAVE COME TO THE FINDING THAT T HE ASSESSEE DID NOT FILE ANY DETAILS WITH REGARD TO THE CLAIM O F BAD DEBTS DESPITE ADEQUATE OPPORTUNITIES. EVEN THE CIT(A) HAS OBSER VED THAT NO JUSTIFICATION HAS BEEN FURNISHED WITH REGARD TO THE FACT TH AT THE DETAILS WERE NOT FILED. HOWEVER IN THE SOF FILED ALONG WITH THE APPE AL THE ASSESSEE HAS MENTIONED THAT DETAILS HAD BEEN PRODUCED BEFORE THE AO. 6. WE CANNOT IGNORE THE STATEMENT MADE BY THE ASSESS EE IN SOF. WE THEREFORE IN THE INTEREST OF JUSTICE RESTORE THE ISSU E TO THE FILE OF THE AO WHO SHALL RE-ADJUDICATE THE ISSUE IN THE LIGHT OF T HE DETAILS AND EVIDENCE PRODUCED BEFORE HIM AS MENTIONED IN THE SOF AN D AFTER AFFORDING REASONABLE AND ADEQUATE OPPORTUNITY TO THE ASS ESSEE TO REPRESENT HER CASE. SANGEETAA BALA CHNDRAN ITA 8883/MUM/2010 3 7. GROUND NO. 1 IS THEREFORE ALLOWED FOR STATISTICAL PURPOSES. 8. GROUND NO. 2 PERTAINS TO DISALLOWANCE OF RS. 41 54 752/- U/S 40(A)(IA). 9. THE FACTS RELATING TO THIS GROUND IS THAT THE ASSESSE E DEDUCTED TAS ON PAYMENTS MADE BUT WERE NOT DEPOSITED WITHIN THE DUE DATE BUT WERE DEPOSITED BEFORE THE DATE FOR FILING OF RETURN. TH E DETAILS AS PROVIDED ARE AS UNDER: S NO. DATE NATURE OF PAYMENT AMOUNT PARTY NAME PAYMENT OF TDS 1 29.5.06 ADVERTISEMENT 98 547 ESPN ADS AFTER DUE DATE 2 29.5.06 ADVERTISEMENT 43 944 PIONEER PUBLICITY AFTER DUE DATE 3 12.06.06 ARTIST MANAGEMENT EXPENSES 33 000 MEGHA KINI AFTER DUE DATE 4 20.06.06 ARTIST MANAGEMENT EXPENSES 240000 THE PRIME TIME THEATRE AFTER DUE DATE 5 22.07.06 ARTIST MANAGEMENT EXPENSES 300000 PT SHIV KUMAR SHARMA AFTER DUE DATE 6 22.07.06 ARTIST MANAGEMENT EXPENSES 421500 KISHORI AMONKAR AFTER DUE DATE 7 22.07.06 HIRING CHARGES 21000 GAUTAM JOSHI AFTER DUE DATE 8 10.09.06 ARTIST MANAGEMENT EXPENSES 204810 INTERCON REAL ESTATE DEV. P. LTD AFTER DUE DATE 9 02.11.06 ARTIST MANAGEMENT EXPENSES 1235000 JAGJIT SINGH AFTER DUE DATE 10 18.11.06 ARTIST MANAGEMENT EXPENSES 40000 KULDEEP DESAI AFTER DUE DATE 11 18.11.06 ARTIST MANAGEMENT EXPENSES 40000 ABHINAV UPADHYAY AFTER DUE DATE 12 18.11.06 ARTIST MANAGEMENT EXPENSES 30000 JAVED SHAIKH AFTER DUE DATE 13 18.11.06 ARTIST MANAGEMENT EXPENSES 40000 DEEPAK PANDIT AFTER DUE DATE 14 18.11.06 ARTIST MANAGEMENT EXPENSES 40000 ATUL RANINGA AFTER DUE DATE 15 16.12.06 EVENT MANAGEMENT EXPENSES 27212 AMJAD KHAN AFTER DUE DATE 16 16.12.06 HIRING CHARGES 274397 SHABIENA SHOW STAR AFTER DUE DATE 17 02.01.07 ARTIST MANAGEMENT EXPENSES 750000 AMG INDIA AFTER DUE DATE 18 06.02.07 HIRING CHARGES 80432 SHINE ENTERPRISES AFTER DUE DATE 19 13.02.07 ARTIST MANAGEMENT EXPENSES 150000 ASHAAN QURESHI AFTER DUE DATE 20 28.02.07 ARTIST MANAGEMENT EXPENSES 85000 MANSI PAREKH AFTER DUE DATE TOTAL 41 54 752 10. IT WAS SUBMITTED THAT THE TDS COLLECTED WAS DEP OSITED IN THE ACCOUNT OF THE GOVERNMENT ON VARIOUS DATES IN THE MONTHS OF AUGUST 2007 TO OCTOBER 2007. HENCE THE DISALLOWANCE IS NOT CALLED FOR. 11. WE HAVE GONE THROUGH THE DETAILS AND THE CHART REPRODUCED BY THE AO IN THE ASSESSMENT ORDER. FROM THE ORDERS OF THE REV ENUE AUTHORITIES IT IS NOT CLEAR AS TO WHEN THE TDS WAS DEPOSITED IN THE GOVER NMENT ACCOUNT. THIS IS NOT CLEAR FROM THE DETAILS FILED BY THE ASSESSEE AS WELL. SANGEETAA BALA CHNDRAN ITA 8883/MUM/2010 4 12. IN THESE CIRCUMSTANCES WE RESTORE THE ISSUE TO THE FILE OF THE AO WHO SHALL SATISFY HIMSELF AS TO THE DEPOSITS MADE IN TH E GOVERNMENT ACCOUNT & ALSO THE EXACT DATE WHEN THE PAYMENTS MADE. ON SAT ISFACTION OF THE CLAIM MADE BY THE ASSESSEE THE AO SHALL ALLOW APPROPRIAT E RELIEF. 13. GROUND NO. 2 IS THEREFORE ALLOWED FOR STATISTI CAL PURPOSES. 14. GROUND NO. 3 PERTAINS TO PAYMENT OF RS. 1 00 00 0/- MADE TO DEEDS AND TREATING THE SAME TO BE DONATION IN PLACE OF A BUSINESS EXPENSES. IN THE ASSESSMENT ORDER THE AO TREATED THE AMOUNT OF RS. 1 00 000/- PAID TO DEED PUBLIC CHARITABLE TRUST OR DONATION WHEREAS THE AS SESSEE EXPLAINED THAT THE PAYMENT WAS MADE TO AMARA ORGANISOR OF A FASHION S HOW. 15. HOWEVER IN THE SOF FILED ALONG WITH THE APPEAL THE ASSESSEE HAS CLAIMED THE PAYMENT MADE TO DEEDS WHICH WAS COLL ECTED FROM THE SPONSORS AND AS CERTIFIED/CONFIRMED BY THEM VIDE TH EIR LETTER DATED 19.02.2007. THE ASSESSEE THEREFORE EMPHASIZED THA T THIS PAYMENT WAS NOT ON ACCOUNT OF DONATION BUT WAS IN FACT A NORMAL BUS INESS EXPENDITURE. THE AR FURTHER MENTIONED THAT ADDITION ON ACCOUNT OF DE EDS WAS TAKEN BY THE AO IN THE FIGURE OF RS. 2 55 800/-. THIS ACCORDING TO THE AR BECAME A DOUBLE ADDITION. SN DATE OF TDS ACCOUNTED NATURE OF PAYMENT AMOUNT PARTY NAME REMARKS 1 02.03.07 ARTIST MANAGEMENT EXPENSES 1 00 000 DEEDS PAYMENT OF RS. 50 000/- WAS MADE ON 19.07.07 HENCE TDS WAS PAYABLE WITHIN THE FY 06-07 2 26.03.07 HIRING CHARGES 98 000 MARUTI CREATIONS PAYMENTS OF RS. 65 000/- WERE MADE BEFORE FEB 07 AND TDS WAS PAYABLE WITHIN THE FY 06-07 3 26.03.07 HIRING CHARGES 57 800 FRIENDS OF SHIVA PVT. PAYMENT WAS MADE SANGEETAA BALA CHNDRAN ITA 8883/MUM/2010 5 LTD. ON 28.01.07 AND THEREFORE TDS WAS PAYABLE WITHIN THE FY 06-07 16. SINCE NO DETAILS HAD BEEN FORTHCOMING AND ALSO BEFORE US NO DETAILS HAVE BEEN FILED THE ADDITION IS SUSTAINABLE. BUT WE C ANNOT IGNORE THE STATEMENT MADE IN THE SOF. FOR THIS REASON IN THE INTEREST OF JUSTICE WE RESTORE THE ISSUE TO THE FILE OF THE AO BEFOR E WHOM THE ASSESSEE SHALL BE AT LIBERTY TO FILE EVIDENCE TO SUPPORT HE R CLAIM. WE THEREFORE DIRECT THE AO TO RE-ADJUDICATE THE ISSUE AFTER AFFORDING REASONABLE & ADEQUATE OPPORTUNITY TO THE ASSESSEE. IT IS ALSO DIRECTED THAT THE AO SHALL EXAMINE THE SUBMISSION OF THE ASSESSEE WITH REGARD TO THE DOUBLE ADDITION OF THE AMOUNT OF RS. 1 00 000/-. THE AO SHALL SATISFY HIMSELF ON THE FACT AND IF FOUND CORRECT THE AO IS D IRECTED TO REMOVE FROM THE ADDITION OF RS. 1 00 000/- INCLUDED IN THE DE TAIL OF RS. 2 55 800 WHICH APPARENTLY SEEMS TO BE A REASONABLE P RAYER OF THE ASSESSEE. 17. GROUND NO. 3 IS THEREFORE ALLOWED FOR STATISTICAL PURPOSES. 18. IN THE RESULT THE APPEAL AS FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD OCTOBER 2013. SD/- SD/- ( . . ) ( #'' '$ ) ! ! (P.M. JAGTAP) (VIVEK VARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI DATE: 23 RD OCTOBER 2013 SANGEETAA BALA CHNDRAN ITA 8883/MUM/2010 6 / COPY TO:- 1) / THE APPELLANT. 2) / THE RESPONDENT. 3) & & ' ( ) - 30 MUMBAI / THE CIT (A)-30 MUMBAI. 4) & & ' )-19 MUMBAI / THE CIT CITY -19 MUMBAI 5) -. / & / 01 / THE D.R. E BENCH MUMBAI. 6) .2 3 COPY TO GUARD FILE. &45 / BY ORDER / / TRUE COPY / / [ 6 / 7 8 & / 01 DY. / ASSTT. REGISTRAR I.T.A.T. MUMBAI *:;7 . . * CHAVAN SR. PS