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Income Tax Appellate Tribunal, HYDERABAD ‘ A ‘ BENCH, HYDERABAD.
O R D E R Per Shri S.S. Godara, J.M. : This assessee’s appeal for Asst. Year 2014-15 arises from the Commissioner of Income Tax (Appeals)-5, Hyderabad’s order dt.81.04.2018 passed in case No.0139/2017-18/CIT(A)-5 in proceedings under Section 143(3) of Income Tax Act, 1961 (‘the Act’).
Heard both the parties. Case file perused.
We notice at the outset that assessee's instant appeal suffers form 312 days delay in filing. Learned counsel submitted that due to the outbreak of pandemic covid 19 unable to get the documents from the department which caused the impugned delay in filing of the instant appeal.
Case law Collector Land Acquisition Vs. Mst. Katiji & Ors, 1987 AIR 1353 (SC) and University of Delhi Vs. Union of India, Civil Appeal No.9488 & 9489/2019 dated 17th Dec., 2019, hold that such a delay; supported by cogent reasons, deserves to be condoned so as to make way for the cause of substantial justice. We accordingly hold that assessee's impugned delay of 312 days is neither intention nor deliberate but due to the circumstances beyond his control. The case is now taken up for adjudication on merits.
The assessee's sole substantive grievance canvassed in the instant appeal challenges the correctness of both the lower authorities’ action in sustaining the disallowance of entire expenses to the tune of Rs.36,63,212 paid to the associates of M/s. TCS employees in cash. The Revenue’s case as per both the lower authorities detailed discussion is that the impugned addition has not been made for the first time as well.
We notice in this factual backdrop that the Tribunal, recent order in assessee's case itself dt. 24.03.2012 involving for preceding Assessment Year 2013-14 has restricted the very disallowance @ 50% thereby partly accepting assessee's as well as Revenue’s submissions.
We further find that the factual position is not different in the impugned assessment year as well wherein the assessee had claimed the expenditure as having paid cash incentives to M/s. TCS employees, as a goodwill tactic. We thus adopt judicial consistency in the given circumstances to adopt the very course of action herein as well. The Assessing Officer is directed to restrict the impugned disallowance to the tune of 50% with a rider that the same shall not be treated as a precedent.
Necessary computation shall follow as per law.