2014 (10) TMI 917 - HC - Income Tax

Addition on account of aircraft flying charges - tribunal deleted the addition - Held that - No adjudication required for the reasons we have stated in disposing of the matter wherein held Tribunal was justified in law in confirming the order of the CIT (A) against deletion of addition under the head Air Craft Flying Rights Charges .

Summary

Issues:
1. Addition of aircraft flying charges paid to M/s. Spencer Travel Service Ltd.
2. Deletion of addition on expenditure towards retainership fees paid to M/s. Sree Bala Pvt. Ltd.

Analysis:

Issue 1: Addition of Aircraft Flying Charges
The High Court addressed the first issue concerning the addition made by the Assessing Officer on account of aircraft flying charges paid to M/s. Spencer Travel Service Ltd. The Court mentioned that this issue does not require adjudication as per their decision in a related matter, indicating that the matter has been resolved in a previous judgment (ITAT No. 31 of 2014, G.A. No. 1382 of 2014).

Issue 2: Deletion of Addition on Retainership Fees
Regarding the second issue of deletion of addition on expenditure towards retainership fees paid to M/s. Sree Bala Pvt. Ltd., the Court noted that the advocate for the revenue, Mrs. Chatterjee, expressed having no instructions on the matter. Consequently, the Court inferred that the revenue is not interested in pursuing this question for adjudication. As a result, the Court dismissed the application and appeal without any order as to costs.

In conclusion, the High Court dismissed the appeal filed under section 260A of the Income Tax Act, 1961 against the order passed by the Income Tax Appellate Tribunal. The Court did not address the first issue related to aircraft flying charges due to a previous judgment and dismissed the second issue concerning retainership fees as the revenue showed no interest in pursuing it.