M/S Adwise Consultations Pvt. Ltd, Mumbai DCIT, Cirlce 4(1)(2), Mumbai

Last updated: 02 January 2021

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This Income Tax Appellate Tribunal case involves M/s Edwise Consultants Pvt. Ltd. and the DCIT, Circle 4(1)(2), Mumbai, for the Assessment Year 2012-13. The assessee is appealing a disallowance of Rs. 13 Lacs confirmed by the CIT(A), which was originally made by the AO under Section 40A(2)(a). The assessee's representative argued that similar disallowances in previous years were deleted by the Tribunal, while the Revenue's representative pointed to excessive remuneration paid despite reduced profitability and turnover.

Court :
ITAT Mumbai

Brief :
In the captioned appeal for Assessment Year (AY) 2012-13,the assessee is aggrieved by confirmation of disallowance of Rs.13Lacs by Ld. Commissioner of Income Tax (Appeals)-2, Mumbai [CIT(A)], Appeal No.CIT(A)-2/IT/10084/2018-19 dated 30/08/2018.The impugned disallowance was made by Ld. AO invoking theprovisions of Sec.40A(2)(a) while framing assessment u/s 143(3) on 19/03/2015.

Citation :
I.T.A. No.275/Mum/2019

IN THE INCOME TAX APPELLATE TRIBUNAL
“E” BENCH, MUMBAI

BEFORE HON’BLE SHRI PAVAN KUMAR GADALE, JM
AND
HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

(Hearing through Video Conferencing Mode)
I.T.A. No.275/Mum/2019
Assessment Year: 2012-13

M/s Edwise Consultants Pvt. Ltd.
Jer Mahal, Opp. Metro Cinema
Dhobi Talao, Mumbai – 400 002
PAN/GIR No. AAACR-2363-N
Appellant

Vs.

DCIT-Circle 4(1)(2)
642, Aaykar Bhawan
M.K.Road, Mumbai – 400 020
Respondent

Assessee by : Shri Rajeev Khandelwal – Ld. AR
Revenue by : Shri T.R.Khalsa-Ld. DR

Date of Hearing : 30/12/2020
Date of Pronouncement : 30/12/2020

O R D E R

Manoj Kumar Aggarwal (Accountant Member)

1. In the captioned appeal for Assessment Year (AY) 2012-13,the assessee is aggrieved by confirmation of disallowance of Rs.13Lacs by Ld. Commissioner of Income Tax (Appeals)-2, Mumbai [CIT(A)], Appeal No.CIT(A)-2/IT/10084/2018-19 dated 30/08/2018.The impugned disallowance was made by Ld. AO invoking theprovisions of Sec.40A(2)(a) while framing assessment u/s 143(3) on 19/03/2015.

2. The Ld. AR relied on the order of this Tribunal in assessee’sown case for Assessment Years 2008-09 to 2010-11, ITA Nos. 5376/Mum/2011 & ors., common order dated 14/10/2015 to submit that similar disallowance made in those years has been deleted by the Tribunal. The Ld. DR, on the other hand, drawing attention to the orders of lower authorities, submitted that the assessee paidexcessive remuneration despite reduction in overall profitability andturnover.We have carefully heard the rival submissions. Our adjudication to the subject matter of appeal would be as given in succeeding paragraphs.

To know more in details find the attachment file

FAQ :

The main issue is the disallowance of Rs. 13 Lacs made by the Assessing Officer under Section 40A(2)(a) of the Income Tax Act, which was confirmed by the CIT(A).

This appeal relates to the Assessment Year 2012-13.

The assessee's representative argued that the Tribunal had deleted similar disallowances in previous assessment years (2008-09 to 2010-11).

The Revenue's representative argued that the assessee paid excessive remuneration despite a reduction in overall profitability and turnover.

The parties involved are M/s Edwise Consultants Pvt. Ltd. (Appellant) and the DCIT, Circle 4(1)(2), Mumbai (Respondent).