ACIT - 21(1), MUMBAI vs. ANAND ENTERPRISES, MUMBAI

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ITA 3037/MUM/2016Status: DisposedITAT Mumbai04 April 2017AY 2011-123 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal followed its co-ordinate bench's decision in the assessee's own case for prior assessment years, which allowed the claim for commission expenses. The revenue did not present any distinguishing facts.

What were the facts?

The revenue appealed against the CIT(A)'s order deleting an addition of Rs. 48,68,713/- made towards commission expenses for AY 2011-12. The assessee argued that a similar issue was decided in its favor by a co-ordinate bench for earlier assessment years.

What were the issues?

Whether the disallowance of commission expenses made by the Assessing Officer was justified. Whether the CIT(A) erred in deleting the addition.

Which sections of the Income-tax Act were involved?

Not explicitly mentioned, but relates to disallowance of expenses.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “I” BENCH, MUMBAI

Before: SHRI C.N.PRASAD, JM & SHRI RAJESH KUMAR, AM

Hearing: 05.01.2017Pronounced: 04.04.2017

आयकर अपीलीय अिधकरण, मुंबई "ायपीठ ‘आय’ मुंबई IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI "ी सी. एन. "साद, "ाियक सद", एवं "ी राजेश कुमार, लेखा सद", के सम" BEFORE SHRI C.N.PRASAD, JM AND SHRI RAJESH KUMAR, AM आयकर अपील सं/ (िनधा"रण वष" / Assessment Year: 2011-12) बनाम/ ACIT 21(1) M/s. Anand Enterprises Room No.116, 1st Floor, 337, Ashish Industrial Vs. Piramal Chambers, Parel, Estate, Gokhale Road, Mumbai - 400012 Dadar(W), Mumbai - 400028 "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAAFA1725C (अपीलाथ" /Appellant) (""थ" / Respondent) .. Revenue by: Shri Saurabhkumar Rai Assessee by: Shri Sameer G. Dalal सुनवाई की तारीख / Date of Hearing: 05.01.2017 घोषणा की तारीख /Date of Pronouncement: 04.04.2017 आदेश / O R D E R PER C.N.PRASAD, JM:

This appeal is filed by the revenue against the order dated 01.02.2016 passed by the Commissioner of Income Tax (Appeals)-33, Mumbai [hereinafter referred to as the “CIT(A)”] for the A.Y. 2011-12. 2. The only grievance of the revenue in its appeal is that the learned CIT(A) is not correct on facts and in law and in deletion the addition of Rs.48,68,713/- made towards commission expenses. A.Y.2010-11

3.

The learned counsel for the assessee at the outset submits that similar issue in appeal is decided in assessee’s own case in earlier assessment years by the co-ordinate bench in and 6747/Mum/2013 for the assessment years 2008-09 to 2010-11 by order dated 11.08.2016. The learned counsel referring to the said order submits that similar disallowance being the commission paid by the assessee for procurement of orders has been disallowed by the Assessing Officer in the earlier assessment years and the Tribunal allowed the claim of the assessee. Following the decisions of the co-ordinate bench in the assessees sister concern namely Harrison Garment Division in ITA No.3022/Mum/2012 and 6480/Mum/2012 by order dated 30.04.2014. The learned DR supported the orders of the Assessing Officer. We have heard the rival submissions and perused the orders of the authorities below and the decision of the co-ordinate bench in assessee’s own case. From a reading of the co-ordinate bench we find that the issue in appeal is decided in favour of the assessee in assessee’s case by the co-ordinate bench for assessment years 2008-09 to 2010-11 where similar disallowance of agency commission paid by the assessee for procurement of orders was disallowed and the Tribunal allowed the claim of the assessee by deleting the disallowance of agency commission. The revenue could not bring on record any distinguishable facts from the earlier years. Therefore, respectfully following the said decisions in assessee’s own case for the assessment 2 A.Y.2010-11 years 2008-09 to 2010-11 in ITA No.3021&6481/Mum/2012 and 6747/Mum/2013 dated 11.08.2016, we sustain the order of the learned CIT(A) in allowing the claim of the assessee and deleting the disallowance of Commission In the result, the appeal filed by the revenue is hereby 4. Dismissed.

Order pronounced in the open court on 4th April, 2017. (RAJESH KUMAR) (C.N.PRASAD) लेखा सद" / ACCOUNTANT MEMBER "ाियक सद"/JUDICIAL MEMBER मुंबई Mumbai; िदनांक Dated : 4th एि"ल, 2017 MP

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