BHALANI BIOMEDICALS PVT LTD.,MUMBAI vs. DCIT CC 3 (2), MUMBAI

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ITA 310/MUM/2020Status: DisposedITAT Mumbai27 November 2020AY 2014-152 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the appeal as withdrawn because the assessee had filed a declaration under the Direct Tax Vivad se Vishwas Act, 2020. The dismissal was subject to the assessee's right to seek restoration if the matter was not settled under the scheme.

What were the facts?

The assessee appealed against the CIT(A)'s order confirming the disallowance of sales promotion expenses. The assessee claimed these expenses were erroneously reflected in a third party's ledger and were actually borne by third parties.

What were the issues?

Whether the disallowance of sales promotion expenses was justified. The appeal was withdrawn due to settlement under the Vivad se Vishwas Act.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 153A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI ‘B’ BENCH, MUMBAI

O R D E R Per Bench:

1.

By way of this appeal, the assessee appellant has called into question correctness of the order dated 31st October 2019, passed by the learned Commissioner (Appeals) in the matter of assessment under section143(3)/153A of the Income Tax Act, 1961, for the assessment year 2014-15.

2. Grievance of the assessee appellant is as follows: On the facts and circumstances of the case, Hon'ble Commissioner of Income Tax Appeal has erred in confirming order passed by the learned assessing officer Assessment Years: 2014-15

Page 2 of 2 making disallowance of Sales promotion Expenses of Rs.9,12,468 alleged to have been incurred through M/s. ABCN Travel Management Pvt. Ltd. (Total Sales Promotion Expenses disallowance for the year made in the assessment order of Rs.61,44,443/-) without considering the facts and circumstances of the case. It is to state that said expenses are erroneously reflected in appellants ledger account in the books of M/s. ABCN Travel Management Pvt. Ltd. inspite of fact that payments for such expenses are paid / incurred and borne by third parties as appearing in the ledger account. In view of the above, addition made to the extent of Rs.9,12,468 needs to be deleted.

2.

When this appeal was called out for hearing, the ld. Counsel of the assessee submitted that he has filed the necessary declaration under Direct Tax Vivad se Vishwas Act, 2020 (Act 3 of 2020) and is awaiting for final resolution of the matter under the said scheme. He submitted that upon completion of the necessary formalities, he will withdraw the appeal. In response to the suggestion from the Bench, he fairly accepted that he has no objection to the appeal being dismissed as withdrawn as long as his right for revival of the appeal are protected, in the event of, for some unforeseen reason, the matter being not settled under the Vivad se Vishwas scheme.

3.

The ld. DR also did not object to disgrace so suggested. 4. In view of the above, we dismiss the appeal as withdrawn, subject to be rider that in the unlikely event of matter not being resolved under the Vivad se Vishwas scheme, the assessee shall have liberty to approach the Tribunal for restoration of his appeal. 5. In the result, the appeal is dismissed as withdrawn – subject to the observation above. Pronounced in the open court today on the 27th November, 2020.

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