TaxTMI 
TaxTMI 
2019 (1) TMI 645
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....r the provisions of Income Tax Act, 1961 (herein referred to as 'Act') for the Assessment Year 2013-14, Previous Year and Accounting Year being 2012-13, on 30-09-2013. 3. The above Return of Income was processed u/s 143(3) by the Income Tax Officer, Ward 2(1)(1), Bengaluru and passed an order vide order dated 30-06-2015. 4. In the above Assessment Order the Learned Income Tax Officer disallowed the expenditure claimed under the head salaries, which included bonus paid to Directors to the extent of Rs. 17,00,000/-, under section 36(1)(ii) of the Act. 5. The Appellant Company challenged the above disallowance before the Commissioner of Income Tax Appeals-2, Bengaluru who dismissed the Appeal vide order dated 23-11- 2016. 6. This has resulted in taxation of Rs. 17,00,000/- at 30% in the hands of the Company and by virtue of this, the refund available to the Company was reduced by Rs. 5,25,368/-. 7. The Directors of the Company, on the other hand, had included the bonus amount of Rs. 17, 00,000/- in their respective Income Tax Returns during the Assessment Year 2014-15 and paid taxes @30%. 8. The above situation resulted in taxation of the bonus amount of Rs. ....
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....lay of 571 days in filing the appeal before Tribunal was due to the reasons narrated in the preceding paragraphs. No sooner the Principal Commissioner of Income Tax-2, Bengaluru rejected the application filed before him u/s 119 of the Act, the Appellant reviewed the whole matter, once again, and decided to come up before this Honorable Court, in appeal, without delaying further. 18. The appellant did not have any other mala fide intention in delaying the appeal. 19. The issue involved in the appeal is of very high importance, "whether an income can be taxed twice" "whether an income, already taxed by disallowance of expenditure, can be taxed in the hands of the Directors as income". 20. Submit the above the Appellant hereby humbly prays this Honorable Court the delay of 571 days in filing the appeal may kindly be condoned and the appeal may be admitted for the hearing." 3. Accordingly the ld. AR requested for condonation of delay of 571 days in filing the appeal before this Tribunal. 4. On the other hand, the ld. DR has not put forth any serious objection condonation of delay. 5. I have heard both the parties with regard to condonation of delay. There was a delay of 57....
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....not filed within the period of limitation. 6. The assessee filed an appeal stating that it was pursuing alternative remedy before the lower authorities. In support of the same, the assessee has filed documents in the form of condonation petition before Pr. CIT-II, Bangalore dated 16.02.2017 and 11.06.2018, copy of revised return of directors dated 15.02.2018. The revenue has not filed any counter affidavit to deny the facts brought on record by the assessee. Being so, in my opinion, when substantial justice and technical consideration are pitted against each other, the cause of substantial justice deserves to be preferred, for the other side cannot claim to have vested right for injustice being done because of non-deliberate delay. In the case on hand, the issue on merits of allowability of expenditure towards bonus in the hands of assessee is covered in favour of assessee by the judgments cited supra. It is not the case of revenue that the assessee filed appeal belatedly deliberately. Therefore, I have to prefer substantial justice rather than technical consideration in deciding the issue. Therefore, I am inclined to condone the delay by placing reliance on the judgment of the Ho....
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....ts paid to the Director shareholders at the rate of 30.9% and that such bonus has also been included as income in the hands of the recipients in their personal tax assessment. There was therefore no intention on the part of the assessee or the Director shareholders to evade tax. Since the amount has already been taxed in the hands of the company, by disallowing the same as not an allowable expenditure, the same cannot be added in the hands of the director. Reliance was placed on the decision of the ITAT Mumbai in the case of Mrs Bakhtawar B Dubash v DCIT, Central Mumbai 2009-TIOL-288-ITAT-MUM. It is well-settled legal proposition of taxation that no income should be tax doubled though the recipient is changed as held by the ITAT Mumbai Bench in the case of SSKI Investor Services Pvt Ltd v DCIT, Central Mumbai 120091 34 SOT 412 (ITAT[MUM]). The ld. AR further relied on the following decisions:- - CIT v. Career Launcher India Ltd., 358 ITR 179 (Del) - CIT vs. Convertech Equipments (P) Ltd., (2013) 081 DTR 0409 - Chryscapital Investment Advisors (India) P. Ltd. v. DCIT, 376 ITR 183 (Del) - AMD Metplast P. Ltd. V. DCIT 314 ITR 563 (Del) 9. The ld. AR thus submitted that pa....
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....page 33 of the PB. These two persons are duly qualified and experienced as follows:- "Directors' profile (refer www.ecandor.com) Umadevi S Y is a pioneer in the payroll outsourcing space and has over 23 years of experience in setting up and running HR & Accounting functions with a strong focus on Payroll & Statutory Compliance. Having spent over 10 years in the complex environment of BPL Ltd. her strong entrepreneurial spirit and deep insight on the potential opportunity encouraged her to set up her own firm in this space. She has been a part of the transition period of handling manual to computerized processes and is sought out by multiple payroll software companies to provide thought leadership in this space. Uma has done her M.Com. & is a 1st Rank Holder and Gold Medalist in Business Taxation from Mysore University N. Shilpi brings over 21 years of cross functional experience in Business Process Management, Quality Control, Knowledge Management, Business Development and Web Solutions across companies like LG, Star and Indiainfo. With her previous experience as Management Representative responsible for ISO 9001 for India info she brings a strong process focus to th....