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Income Tax Appellate Tribunal, ‘H‘ BENCH
Before: SHRI VIKAS AWASTHY & SHRI M.BALAGANESH
आदेश / O R D E R PER M. BALAGANESH (A.M): This appeal in ITA No.779/Mum/2021 for A.Y.2015-16 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-7, Mumbai in appeal No.CIT(A)-7, Mumbai/10476/2017-18 dated 16/03/2021 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 29/12/2017 by the ld. Asst. Commissioner of Income Tax 16(2), Mumbai (hereinafter referred to as ld. AO). 2. The assessee has raised the following grounds of appeal:-
2 ITA No. 779/Mum/2021 M/s. Homeopathy India Pvt. Ltd.,
On the facts of the case and in law the learned CIT(A) erred in confirming addition of Rs.10,83,961 u/s.68. The Appellant prays that the addition is bad in law and ought to be deleted. 2. On the facts of the case and in law the learned CIT(A) erred in confirming addition of Rs.56,504 u/s.68. The Appellant prays that the addition is bad in law and ought to be deleted.
We have heard rival submissions and perused the materials available on record. We find that assessee is engaged in business consulting and dispensing of Homeopathic medicines. The assessee had declared income under the head ‘income from business and ‘income from other sources’ for the year under consideration. The ld. AO observed that during the year, the assessee had spent Rs.10,83,961/- towards advertisement expenses for insertion of advertisement in news papers about the activities carried out by the assessee and its various expertise and development in Homeopathic treatment. The break-up of same is as under:-
(i) Advertisement in Marisha Communique - Rs.10,76,461/- (ii) Advertisement in Bombay Times Journal – Rs. 7,500/ ------------------ Total Rs.10,83,961/- ========= 3.1. Similarly, the assessee claimed petty cash expenses amounting to Rs.2,82,521/- which was incurred on account of various expenses. The ld. AO disallowed the aforesaid advertisement expenses of Rs.10,83,961/- and adhoc disallowance of 20% of petty cash expenses amounting to Rs.56,504 (20% of Rs.2,82,521/-) for want of details and completed the assessment.
3 ITA No. 779/Mum/2021 M/s. Homeopathy India Pvt. Ltd.,
3.2. Before the ld. CIT(A), the assessee submitted that all the necessary details together with documentary evidences were indeed furnished before the ld. AO which fact was also been acknowledged by the ld. CIT(A) in page 4 of his order. But the ld. CIT(A) observed that those details were filed only before the ld. AO and not before him and accordingly, he upheld the action of the ld. AO. Before us, the ld. AR prayed for setting aside of this appeal to the file of the ld. CIT(A) for denovo adjudication in the light of the documentary evidences submitted by the assessee. We find lot of force in the said argument of the ld. AR and accordingly restore this appeal to the file of the ld. CIT(A) for denovo adjudication in accordance with law. The assessee is also at liberty to furnish fresh evidences, if any, in support of its contentions. Accordingly, the grounds raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on 22/02/2022 by way of proper mentioning in the notice board.
Sd/- Sd/- (VIKAS AWASTHY) (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated 22/02/2022 KARUNA, sr.ps
4 ITA No. 779/Mum/2021 M/s. Homeopathy India Pvt. Ltd.,
Copy of the Order forwarded to : The Appellant 1. The Respondent. 2. The CIT(A), Mumbai. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. 6. //True Copy//
BY ORDER,
(Asstt. Registrar) ITAT, Mumbai