2018 (9) TMI 2099 - AT - Income Tax

Disallowance against claim of harbor expenditure and against C F charges - HELD THAT - Claim had rejected this claim noting that there was no date stamp or stamp of the Income Tax Office on the copy of the letter filed by the assessee. There is no mention about the remand report also. In the assessment order, it is mentioned by the AO that the disallowance has been made for want of evidence. We are of the opinion that the matter requires a fresh look by the AO. We set aside the orders of the lower authorities in so far it relates to the disallowance of harbour expense claimed by the assessee, and remit it back to the file of the AO for consideration afresh. Assessee may be given an opportunity to file evidence in support of its clam, and the AO shall proceed in accordance with law. Accordingly, we allow the appeal of the assessee for statistical purpose.

Summary

Issues: Stay of recovery of tax and interest

The judgment revolves around a stay petition filed by the assessee seeking to stay the recovery of tax and interest amounting to Rs. 10,28,540. The primary contention raised by the assessee was regarding the disallowance made by the Assessing Officer against harbor expenditure and C & F charges in the assessment for the relevant year. The Authorized Representative of the assessee argued that the Commissioner of Income Tax (Appeals) had deleted the disallowance against C & F charges but sustained the disallowance of harbor charges. The assessee had provided evidence to support the claim of harbor charges, including ledger copies and analysis of the charges. However, the lower authorities did not consider the evidence provided by the assessee, leading to financial difficulties for the assessee.

The Departmental Representative opposed the grant of a stay, stating that the assessee failed to provide sufficient reasons for the stay. After hearing both parties and reviewing the orders of the lower authorities, the Tribunal found that the matter required a fresh examination by the Assessing Officer. The Tribunal set aside the orders of the lower authorities regarding the disallowance of harbor expenses and remitted the issue back to the Assessing Officer for a fresh consideration. The Tribunal directed the Assessing Officer to allow the assessee an opportunity to submit evidence supporting its claim and to proceed in accordance with the law. Consequently, the appeal of the assessee was allowed for statistical purposes, rendering the stay petition moot.

In conclusion, the Tribunal allowed the appeal of the assessee for statistical purposes, while dismissing the stay petition. The judgment was pronounced on September 28, 2018, in Chennai.