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Income Tax Appellate Tribunal, “C” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY, JM & SHRI S. RIFAUR RAHMAN, AM
IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JM & SHRI S. RIFAUR RAHMAN, AM आयकरअपीलसं./ I.T.A. No.5969/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2014-15) I.T.O 1(2)(1) M/s. ITL Tours & Travels Room No. 536, 5th Fl., Aaykar P.Ltd. बिधम/ 1st Fl., 10 Nazmi Bldg., Bhavan, M.K. Road, Mumbai- Vs. D.N Rd. R.D Street, Fort, 400020. Mumbai-400 001. स्थायीलेखासं./जीआइआरसं./PAN No. AABC12337L (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant by : Shri Kumar Padmapani Bora, DR प्रत्यथीकीओरसे/Respondentby : None सुनवाईकीतारीख/ : 16.12.2019 Date of Hearing घोषणाकीतारीख / : 20.12.2019 Date of Pronouncement आदेश / O R D E R Per S. Rifaur Rahman, Accountant Member: The present Appeal has been filed by the revenue against the order of Ld. Commissioner of Income Tax (Appeals) -2 in short referred as ‘Ld. CIT(A)’, Mumbai, dated 04/07/2018 for Assessment Year (in short AY) 2014-15 on the following grounds of appeal:-
ITA No. 5969/Mum/2018 A.Y 2014-15 M/s. ITL Tours & Travels P.Ltd. - 2 - 1. "Whether on the facts and in the circumstances of the case and in Law, the Ld. CIT (A) was right in deleting the addition of Rs. 1,93,99,235/- made by the Assessing Officer, on account of disallowance u/s. 40(a)(ia) of the Income tax Act,1961, ignoring the findings and justifications given by the Assessing Officer given in the assessment order?". 2. "Whether on facts and in the circumstances of the case and in Law, the Ld. CIT(A) was justified in holding that the provisions of section 194H are not applicable o payments made by the assessee company to its intermediaries as commission for bringing business to the Assessee Company?" 3. "Whether on facts and in the circumstances of the case and in Law, the Ld. CITI was justified in holding that the relation between the assessee and the intermediaries is that of principal to principal and not that of a principal to agent even though the intermediary brings business to the assessee company and commission is paid in form of handling charges?"
Brief facts of the case are that that assesse company is engaged in operation of foreign tours and sold foreign currency notes/cheques to the foreign travelers. However, the assessee company filed its e-return of income on 24-11- 2014 for the A.Y 2014-15, declaring total income of Rs. 21,02,670/- and claimed a refund of Rs. 19,10,280/-. The case of the assessee was selected under CASS. During the scrutiny the AO issued notice u/s. 143(2) of the Income-tax Act, 1961 ( in short, the ‘Act’). The AO also issued notice u/s. 142(1) of the Act. Both the said notices were duly served upon the assessee. In response to said notices issued by the AO,
ITA No. 5969/Mum/2018 A.Y 2014-15 M/s. ITL Tours & Travels P.Ltd. - 3 - the A/R of the assessee appeared before the AO and filed the copies of ROI, Balance sheet, P & L, computation and also the details in response to notice issued u/s. 142(1) of the Act. On perusal of the details with Audited profit & loss account, the AO observed that the assessee has claimed the expenses towards Discount (Domestic of Rs.11,94,328/-) and Discount (International of Rs. 2,00,61,582/-). Details/ break up of such expenditure of Rs. 2,12,55,910/- are given in para 7.2, at page-3 of the assessment order 2,12,55,910/- by the AO. On examination of said details of expenditure of Rs. 2,12,55,910/- the AO asked the assessee to provide details of TDS deduction on such payment/expenditure of Rs.2,12,55,910/-. In response, the assessee vide its submission dt. 19-08-2016 has explained the same in detail along with an earlier order of ITAT, ‘I ‘Bench, Mumbai, in assessee’s own case, wherein it was held that no TDS is required to be deducted on handling charges/discount paid for the A.Ys 2006-07 to 2010-11 and the ld. CIT(A) has also held in favour of assessee for A.Ys 2010-11 to 2012-13. The details of assessee’s explanation has been reproduced by the AO in his order in para 7.1at pages 3-4 of the assessment order. The AO found that the assessee has deducted TDS of
ITA No. 5969/Mum/2018 A.Y 2014-15 M/s. ITL Tours & Travels P.Ltd. - 4 - Rs. 127,675/- on expenses of Rs. 12,75,218/- and balance amount of Rs. 1,93,99,235/- as incurred on account of commission expenses, the TDS was not paid by the assessee and as such, he made a disallowance u/s. 40(a)(ia) of the Act of Rs. 1,49,47,949/- and added the same to the total income of the assessee
Aggrieved with the order of the A.O the assessee preferred an appeal before the CIT(A). The ld. CIT(A) by considering the earlier order of ITAT Mumbai Bench in assessee’s own case for the A.Ys 2006-07 to 2013-14 except AY 2007-08) directed the AO to delete the impugned addition by observing ”Therefore, fact being broadly the same, respectfully following binding judicial precedent, we confirm the stand of ld. CIT(A) and dismiss this ground of revenue’s appeal. “ 4. Aggrieved with the above order the revenue is in appeal before us and raised the aforementioned grounds of appeal. 5. After hearing the ld. DR and perusing the material available on record, we find that the issue involved in the appeal is squarely covered in favour of assessee and against
ITA No. 5969/Mum/2018 A.Y 2014-15 M/s. ITL Tours & Travels P.Ltd. - 5 - the revenue by the earlier order of ITAT Mumbai [in assessee’s own case starting from AY 2006-07 to AY 2013- 14, except AY 2007-08]. Thus, the ld. CIT(A) following the same has rightly directed the AO to delete the impugned addition as made by the AO on this count. We uphold the same. The grounds raised by the revenue are dismissed. 6. In the result the appeal filed by the revenue is dismissed.
This Order pronounced in Open Court on 20/12/2019. Sd/- Sd/- (S RIFAUR RAHMAN ) (SAKTIJIT DEY) (JUDICIAL MEMBER) ACCOUNTANT MEMBER Mumbai, Dated 20/12/2019 **PP,SPS आदेश की प्रतिलिपि अग्रेपिि/Copy of the Order forwarded to : अपीलार्थी / The Appellant 1. प्रत्यर्थी / The Respondent. 2. संबंधित आयकर आयुक्त / The CIT(A) 3. आयकर आयुक्त(अपील) / Concerned CIT 4. 5. विभागीय प्रतततिधि, आयकर अपीलीय अधिकरण, अहमदाबाद / DR, ITAT, Mumbai गार्ड फाईल / Guard file. 6. आदेशानुसार/ BY ORDER, सत्यावपत प्रतत //True Copy// 1. उि/सहायक िंजीकार ( Asst. Registrar) आयकर अिीिीय अधिकरण, अहमदाबाद / ITAT, Mumbai