SRI MANOJ CHAKRABORTY,KOLKATA vs. ACIT, CIRCLE - 27, KOLKATA, KOLKATA

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ITA 1606/KOL/2018Status: DisposedITAT Kolkata20 December 2018AY 2011-123 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the documents were not produced due to the assessee's overseas employment. For the interest of justice, the matter was remanded to the AO to allow the assessee to produce the supporting documents.

What were the facts?

The assessee claimed HRA exemption, but the AO disallowed it for lack of rent agreement and receipts. The CIT(A) confirmed the disallowance. The assessee argued that documents were unavailable due to employment in Singapore.

What were the issues?

Whether HRA exemption can be allowed without production of rent agreement and receipts, and if the matter should be remanded for production of these documents.

Which sections of the Income-tax Act were involved?

Section 10(13A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C(SMC

Hearing: 20.12.2018Pronounced: 20.12.2018

This appeal preferred by the assessee is against the order of the Ld. CIT(A)- 19, Kolkata dated 04.01.2018 for AY 2011-12.

2.

The main grievance of the assessee is against the action of the Ld. CIT(A) in confirming the disallowance of HRA amounting to Rs.5,34,564/-. Brief facts of the case are that the assessee is an individual who has income from salary, house property and other sources of income. The AO noted after perusal of Form No. 16 given by M/s. S. C. Johnson Products Pvt. Ltd. which reflected that assessee was allowed the exemption of Rs.5,34,564/- u/s. 10(13A) of the Act on account of HRA. Since the assessee did not file copy of the rent agreement and the receipt of rent paid by the assessee, the claim of the assessee for exemption of Rs.5,34,564/- u/s. 10(13A) of HRA was not allowed. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A), who by a cryptic order has confirmed the order of the AO. Aggrieved, the assessee is before us.

Manoj Chakraborty, AY 2011-12 3. We have heard rival submissions and gone through the facts and circumstances of the case. The facts are not repeated for the sake of brevity. The AO has not allowed the claim of exemption of Rs.5,34,564/- u/s. 10(13A) of the Act on account of HRA for the reason that assessee failed to produce rent agreement and the copies of the receipt of the rent paid by the assessee. The Ld. AR submitted that since the assessee is presently employed at Singapore, the documents sought by the AO were not readily available during assessment proceedings, so the Ld. AR could not produce the same before the AO. Since documents are now in her possession, she pleaded that the matter may be remanded back to the AO, so that she would be able to produce the same before the AO. We note that only because the assessee failed to produce the rent agreement and receipt of the rent, the claim of the assessee was not accepted by the AO. Since the assessee was in Singapore and the documents could not be produced before the AO, the impugned addition was made and now since the Ld.AR is in possession of the documents sought by the AO, for the interest of justice and fair play, we set aside the order of Ld. CIT(A) and remand the matter back to the file of the AO for de novo adjudication of this issue after hearing the Ld. AR of the assessee. The assessee is at liberty to produce the documents to substantiate the claim. Therefore, this appeal of assessee is allowed for statistical purposes.

4.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order is pronounced in the open court. Sd/- (A. T. Varkey) Judicial Member

Dated: 20th December, 2018 Jd.(Sr.P.S.)

Copy of the order forwarded to: 1 Appellant – Shri Manoj Chakraborty, 1st floor, 29A, Bentinck Street, Kolkata-700 001. 2 Respondent – ACIT, Circle-27, Kolkata. 3 CIT(A)-19, Kolkata. (sent through e-mail) CIT , Kolkata 4 DR, Kolkata Benches, Kolkata (sent through e-mail) 5

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