Vasani Builders, Ahmedabad V. The Jt.CIT, Range-9, Ahmedabad

CO 93/AHD/2015

• Counselvise Citation: [2017] 123 COUNSELVISE.COM (IT) 3113 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 10 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 18-09-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 08-06-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: GULAB THAKOR
• Keywords: Bogus purchase; Retrospective amendment; Corroborative evidences; Tax effect
• Section: 143(3); 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH BEFORE: SHR I S. S. GODARA , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER DY. COMMISSIONER OF INCOME TAX, CIRCLE - 5(3) AHMEDABAD (APPELLANT /RESPONDENT ) VS M/S. VASANI BUILDERS F/1 TRIMURTI COMPLEX, INDIA COLONY ROAD, NR. APPROACH BUS STAND, T B NAGAR, AHMEDABAD PAN: AADFV0533A (RESPONDENT /CROSS OBJEC TOR ) REVENUE BY : S H RI PRASOON KABRA , SR. D . R. ASSESSEE BY: S H RI GULAB THAKO R , A.R. DATE OF HEARING : 30 - 08 - 2 017 DATE OF PRONOUNCEMENT : 18 - 09 - 2 017 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS REVENUE S APPEAL AND ASSESSEE S CO FOR A.Y. 2011 - 12 , AR ISE FROM ORDER OF THE CIT(A) - 5, AHMEDABAD DATED 16 - 02 - 2015 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT TH E ACT . I T A NO . 1214 & CO NO. 93 / A HD/20 15 A SSESS MENT YEAR 2011 - 12 I.T.A NO. 1214 & CO NO. 93 /AHD/20 15 A.Y. 2011 - 12 PA GE NO DY. CIT VS. M/S. VASANI BUILDERS 2 ITA NO. 1214/AHD/2015 FILED BY REVENUE 2. THE REVENUE S SOLE SUBSTANTIVE GROUND CHALLENGES THE LOWER APPELLATE ORDER DELETING THE DISALLOWANCE MADE ON ACCOUNT OF BOGUS PURCHASE OF RS. 23, 51, 33 6 / - MADE IN ASSESSMENT ORDER DATED 27 - 03 - 2014 . TH ERE IS NO DISPUTE THAT THE NET TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN RS. 10 LACS. WE FIND THAT THE CENTRAL BOARD OF DIRECT TAXES; HEREAFTER THE BOARD HAS ISSUED THE CIRCULAR NO. 21/2015 DATED 10 - 12 - 2015 CLEARLY ENVISAGING THEREIN THAT DEPARTMENT S PENDING APPEALS BEFORE THE TRIBUNAL/HIGH COURTS ARE TO BE WITHDRAWN/NOT PRESSED AS PER THE ABOVE STATED CIRCULAR. THE SAME HAS BEEN DECLARED TO BE HAVING RETROSPECTIVE EFFECT IN OTHER WORDS. WE TAKE INTO CONSIDERATION THE ABOVE STATED BOARD S CIRCULAR AND DISMISS THE INSTANT APPEAL ACCORDINGLY. 3. THIS REVENUE S APPEAL IS DISMISSED AS HAVING LOW TAX EFFECT. CO NO. 93/AHD/2015 FILED BY ASSESSEE 4. IN THIS CASE , THE ASSESSING OFFICER HAD MADE DISALLOWANCE OF RS. 23 , 51 , 336/ - OF THE UNVERIFIABLE PURCHAS E S @ 25% OF THE TOTAL PURCHA SES AMOUNTING TO RS. 94 , 05 , 346/ - . THE ASSESSING OFFICER HAS MADE DISALLOWANCE ON FURTHER CONSIDERING THE CASE OF M/S. VIJAY PROTEINS LTD. VS. ACIT 58 ITD 428. THE ASSESSING OFFICER COULD NOT VERIFY THE GENUINENESS OF THE PURCH ASES AS NO COMPLIANCE TO NOTICE S ISSUED U/S. 133(6) OF THE ACT WAS RECEIVED. T HE ASSESSEE HAS ALSO I.T.A NO. 1214 & CO NO. 93 /AHD/20 15 A.Y. 2011 - 12 PA GE NO DY. CIT VS. M/S. VASANI BUILDERS 3 NOT PRODUCE D THE PERSON S FOR EXAMINATION AND VERIFICATION BEFORE THE ASSESSING OFFICER. HOWEVER, THE LD. CIT(A) HAS RESTRICTED THE DISALLOWANCE @ 5% TO THE AMOUNT OF RS. 7 , 05 , 400/ - AFTER PLACING RELIANCE ON THE CASE OF THE CO - ORDINATE BENCH OF GUJARAT AM BUJA EXPORT LTD. VS. ACIT IN IT(SS)A NO. 123,124 & 428/AHD/2012 DATED 17 TH APRIL, 2013 WHICH WAS CONFIRMED BY THE HON BLE JURISDICTIONAL HIGH COURT IN TAX APPEAL NO. 845/AHD/20 DATED 10 TH FEB, 2014. 5. WE HAVE HEARD RIVAL CONTENTIONS ON THIS ISSUE AND PERUSED THE MATERIAL ON RECORD. W E OBSERVED THAT LD. CIT(A) HAS ALREADY PROVIDED RELEVANT RELIEF TO THE ASSESSEE , THEREFORE , WE DO NOT FIND ANY MERIT IN THE CROSS OBJECTION PETITION OF THE ASSESSEE AND THE SAME IS DISMISSED. VEHICLE EXPENSES DISALLOWANCE OF RS. 1,14,166/ - 6. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER HAS MADE DISALLOWANCE OF 20% OF VEHICLE EXPENSES ON THE G ROUND THAT ASSESSEE HAS NOT PRODUCED DOCUMENTARY EVIDENCES LIKE LOG BOOK ETC. TO JUSTIFY THE CLAIM OF THE EXPENDITURE. THE LD. CIT(A) HAS RESTRICTED THE DISALLOWANCE @ 10% OF RS. 1 , 14 ,166 / - . 7. WE HAVE HEARD RIVAL CONTENTIONS . WE FIND THAT EVEN IN THE A PPELLATE PROCEEDINGS, THE ASSESSEE COULD NOT DEMONSTRATE THE MAINTENANCE OF LOG BOOK AND SUPPORTING EVIDENCES .IN VIEW OF ABOVE I.T.A NO. 1214 & CO NO. 93 /AHD/20 15 A.Y. 2011 - 12 PA GE NO DY. CIT VS. M/S. VASANI BUILDERS 4 FACTS WE DO NOT FIND ANY ERROR IN THE DECISION OF THE LD. CIT(A) WHO HAS ALREADY REDUCED THE DISALLOWANCE FROM 20% TO 10%. THER EFORE, THE CO OF THE ASSESSEE STAND DISMISSED. 8. IN THE COMBINED RESULT, THE APPEAL FILED BY R EVENUE AND CO FILED BY ASSESSEE ARE DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 18 - 09 - 201 7 SD/ - SD/ - ( S.S. GODARA ) ( AMAR JIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 18 /09 /2017 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,