What did the Tribunal hold?

The tribunal decided to restore the issue of disallowance of business promotion expenses to the Assessing Officer for re-adjudication, following the order for the preceding assessment year.

The assessee appealed the disallowance of business promotion expenses. The tribunal noted that a similar issue for the preceding assessment year was restored to the Assessing Officer for fresh examination.

What were the issues?

The primary issue was the confirmation of disallowance of business promotion expenses. The tribunal considered the need for the assessee to provide sufficient material to justify the expenditure.

Leo Primecomp Private Limited vs ITO | ITAT Chennai 2019

Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI

Before: SHRI GEORGE MATHAN & SHRI S. JAYARAMAN

Hearing: 18.12.2019Pronounced: 18.12.2019

O R D E R

PER GEORGE MATHAN, JUDICIAL MEMBER:

These are appeals filed by the Assessee against the order of the learned Commissioner of Income Tax (Appeals)-8, Chennai in appeal Nos. dated 04.01.2018 and I.T.A. No.432/16-17 dated 12.12.2017 for the Assessment Years 2013-14 and 2014-15.

Mr. Kaushik. M, Advocate represented on behalf of the Assessee and Mr. AR.V.Sreenivasan, JCIT represented on behalf of the Revenue.

ITA Nos485 & 486Chny/2018 :- 2 -: 3. The only issue in the assessee’s appeal is against the action of the learned CIT(A) in confirming the disallowance of the business promotion expenses in the computation of the taxable income. It was fairly agreed by both the sides that the issue has been restored to the file of the Assessing Officer for the immediate preceding assessment year 2012-13 in vide order dated 16.10.2019, wherein it has been held as follows: “4. We have heard the rival submissions and gone through the relevant material on record. Though the assessee has provided statistical data etc., it is seen that it has not furnished the basic requirements like the nature of the expenditure, the relevancy of business expenditure etc. In the facts and circumstances of the case, we deem it fit to remit this issue back to the file of the Assessing Officer for a fresh examination. Since, the assessee is claiming the expenditure, the onus is on the assessee to lay all material in support of its contention and explain the nature of expenditure and the business expediency etc. before the authorities concerned. Therefore, the assessee shall lay all material in support of its contention before the Assessing Officer and comply with the requirements of the Assessing Officer in accordance with law. The Assessing Officer is at liberty to conduct appropriate enquiry as deemed fit, however, he shall afford adequate opportunity to the assessee on the material etc., to be used against it and after considering the assessee’s reply etc., shall pass an order in accordance with law.”

We have considered the rival submissions and perused the material available on record.

As it is noticed that the issues in the appeal has been restored to the file of the Assessing Officer for re-adjudication in the assessee’s own case for the immediate preceding assessment year, with the same findings the issue for the two assessment years under appeal are also restored to the file of the Assessing Officer for re-adjudication. Consequently, the appeals of the assessee are partly allowed for statistical purposes. & 486Chny/2018 :- 3 -: 6. In the result, the appeals of the assessee are partly allowed for statistical purposes.

Order pronounced in the open Court on 18th December, 2019 in Chennai.

LEO PRIMECOMP PRIVATE LIMITED,CHENNAI vs. ITO CORP WARD 4 (2), CHENNAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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