TaxTMI 
TaxTMI 
2012 (9) TMI 721
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....he business of shipping agents and stevedores. The return was filed declaring total income at Rs. 36,06,10,969/-. However the assessment was completed at an income of Rs. 38,42,19,370/- including the disallowance of expenses Rs. 2,18,67,277/- and other expenses Rs. 17,41,127/-, vide order dtd. 14-5-2010 passed u/s 143(3) of the Income Tax Act, 1961 (the Act). On appeal the ld. CIT(A) partly allowed the appeal. 3. Being aggrieved by the order of the ld. CIT(A) the assessee and the Revenue both are in appeal before us. ITA No. 5606/Mum/2011 (Assessee's appeal). 4. All the grounds taken by the assessee are against the only relief allowed by the ld. CIT(A) of Rs. 3 lacs out of total disallowance of expenses Rs. 17,41,127/-. 5. Brief....
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....the other hand the ld. D.R. supports the order of the A.O. and ld. CIT(A). 8. We have carefully considered the submissions of the rival parties and perused the material available on record. We find the facts are not in dispute inasmuch as it is also not in dispute that the ld. CIT(A) while allowing the relief of Rs. 3 lacs has followed the appellate order for the A.Y. 2006-07. We further find that the Tribunal in assessee's own case in ITA No. 2474/M/2011 for A.Y. 2007-08 order dtd. 11-4-2012 while following the order of the Tribunal for A.Y. 2006-07 restricted the disallowance to 50% out of disallowance sustained by the ld. CIT(A) vide finding recorded in para 7 & 8 of the order as under:- "7 We have heard the ld AR of the asse....
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....d opinion, the ends of justice will meet adequately in these peculiar circumstances if the total disallowance sustained by the learned CIT(A)towards these expenses at Rs. 3.74 lakhs is reduced by 50% to Rs. I .81akhs. We hold accordingly". In the absence of any distinguishing features brought on record by the parties, we respectfully following the order of the Tribunal supra and keeping in view the rule of consistency, hold that it will meet the ends of justice if the total disallowance sustained by the Id. CIT(A) towards these expenses at Rs,7,57,390/- is reduced by 50% to Rs. 3,78,695/-. Accordingly, the assessee gets a relief of Rs. 3,78,695/-. We hold and order accordingly. The ground taken by the assessee is, therefor....
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....ssee submitted the same reasoning as in the earlier years. However, the A.O. following the order of the earlier year has made the disallowance of Rs. 2,18,67,277/- and added back the same to the taxable income. On appeal the ld. CIT(A) following the order of the Tribunal in assessee's own case, however, directed the A.O. to restrict the disallowance at 25% and deleted the balance amount of addition. 11. At the time of hearing the ld. D.R. supports the order of the A.O. 12. On the other hand the ld. Sr. Counsel for the assessee submits that this issue is covered by the order of the Tribunal in assessee's own case, therefore, following the same he has no objection if the disallowance of expenditure is restricted to 25% of the expenses. ....
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....lapse of almost 12 years no useful purpose would be served if the matter is restored back to the file of the A.O, to make fresh enquiries whether the clients of the assessee were aware that they were required to reimburse the illegal expenses. In fact it is clear that after assessee filed its reply neither the assessee nor the A.O. made any effort to prove that such expenditure was illegal and was being reimbursed by such clients/principals. Therefore, in the interest of justice we would like to decide the issue finally. 8. In the case of A.P.L. (India) P. Ltd. vs. DCIT 96 ITD 227 (Mum) it was held as under: - "I. Section 37(1) of the income-tax Act, 1961, Business expenditure - Allowability of - Block period 1-4-1989 to 1....