Shri Ajit Kumar Baruah, Sivsagar V. Assistant Commissioner of Income Tax, Circle - Dimapur, Dimapur

ITA 02/GTY/2014

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0495 (ITAT-GUWAHATI)
• Duration Of Justice: 5 year(s) 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 04-01-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: M HAOKIP J
• Assessee Lawyers: J P GUPTA
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL GUWAHATI BENCH, GUWAHATI BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 02 / GAU / 2014 ASSESSMENT YEAR :2009-10 SHRI AJIT KUMAR BARUAH C/O B.S. PUBLICATION, HEMKOSH PRESS, SIVSAGAR, HCB ROAD, SIVSAGAR- 785640 [ PAN NO.AAJPB 9444 K ] V/S . ACIT, DIMAPUR, /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI J.P.GUPTA, FCA /BY RESPONDENT SHRI M. HAOKIP, JCIT-DR /DATE OF HEARING 04-07-2019 /DATE OF PRONOUNCEMENT 13-09-2019 / O R D E R PER BENCH:- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2009-10 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-GUWAHATIS ORD ER DATED 06.09.2013 PASSED IN CASE NO.DIM-7/2011-12, INVOLVING PROCEEDI NGS U/S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. ASSESSEES FIRST SUBSTANTIVE GROUND SEEKS TO REV ERSE BOTH THE LOWER AUTHORITIES ACTION TREATING HIS UNSECURED LOAN OF R S.6,80,000/- AS UNDISCLOSED INCOME. THERE IS NO DISPUTE THAT THIS ADDITION AMOU NT OF RS.6.80 LAC COMPRISES ITA NO.02/GAU/2014 A.Y.2009-10 SH AJIT KR. BARUAH VS. ACIT, DIMAPUR PAGE 2 INVOLVES TWO PARTIES NAMELY, M/S EASTERN TRADING CO MPANY AND MR. BISHESHWAR BORA WITH SUMS OF RS.5.80 LAC AND RS.1 L AC; RESPECTIVELY. LEARNED COUNSEL IS FAIR ENOUGH IN NOT DISPUTING THE LATTER COMPONENT OF 1 LAKH. THE SAME STANDS CONFIRMED. COMING TO THE FORMER CREDITOR NAMELY M/S EASTERN TR ADING COMPANY, WE FIND THAT THIS SUM FORM PART OF THE CORRESPONDING L EDGER ACCOUNT FROM 01.05.20007 TO 31.05.2007 THAN THAT PERTAKING RELEV ANT PREVIOUS YEAR. WE ACCORDINGLY CONCLUDE ALONE SINCE THE IMPUGNED SU M HAS NOT BEEN CREDITED IN THE RELEVANT PREVIOUS YEAR THE LEARNED AUTHORITIES HAVE ERRED IN ADDING THE SAME. THE ASSESSEES FIRST SUBSTANTIV E GROUND IS PARTLY ALLOWED IN FOREGOING TERMS. 3. THE ASSESSEES SECOND SUBSTANTIVE GROUND SEEKS T O DELETE 8% OF THE OTHER EXPENSE DISALLOWANCE COMING TO RS.1,31,150/- AND SALARY EXPENSE DECLINED OF RS.1,55,365/- OUT OF TOTAL SALARY OF RS .17,86,606/-. WE NOTICE THAT BOTH THE LOWER AUTHORITIES HAVE DISALLOWED THESE TW O CLAIM(S) ON AD HOC BASIS WITHOUT COMPARING CORRESPONDING DETAILS IN PRECEDIN G OR SUCCEEDING ASSESSMENT YEARS. THE FACT ALSO REMAINS THAT THE AS SESSEE HAS NOT BEEN ABLE TO PROVE THE TWO HEAD(S) OF EXPENDITURE BY FILING A LL THE NECESSARY COGENT EVIDENCE. WE THEREFORE CONCLUDE IN THESE PECULIAR F ACTS AND CIRCUMSTANCES THAT A LUMP SUM DISALLOWANCE OF 5% OF THE FORMER CO MPONENT AND RS.50,000/- IN THE LATTER COMPONENT WOULD MEET THE ENDS OF JUST ICE WITH A RIDER THAT THE SAME SHALL NOT BE TREATED AS A PRECEDENT IN ANY OTH ER ASSESSMENT YEAR. THIS SUBSTANTIVE GROUND IS PARTLY ACCEPTED IN ABOVE TERM S. 4. LASTLY COMES THE THIRD SUBSTANTIVE GRIEVANCE CHA LLENGING ADDITION OF RS.1,33,975/- IN CASE OF M/S CHORUS MACHINERIES. WE FIND THAT THIS ASSESSEE HAS BEEN HAVING RUNNING ACCOUNT WITH THE PARTY IN I SSUE RIGHT FROM 01.04.2008 INDICATING OPENING BALANCE OF RS.2,28,329/- FOLLOWE D BY SIMILAR ENTRIES IN THE RELEVANT PREVIOUS YEAR. THE ASSESSEE HAS ALSO PLACE D ON RECORD SIMILAR LEDGER ACCOUNT FROM 01.04.2017 TO 31.03.2018. WE MAKE IT C LEAR THAT WE ARE DEALING ITA NO.02/GAU/2014 A.Y.2009-10 SH AJIT KR. BARUAH VS. ACIT, DIMAPUR PAGE 3 WITH ASSESSMENT YEAR 2009-10. ALL THESE FACTS SUFFI CIENTLY INDICATE THAT THE ASSESSEE HAS BEEN CONSTANTLY MAINTAINED ITS LEDGER ACCOUNT WITH M/S CHORUS MACHINERIES WHEREIN THE SUM IN ISSUE HAS BEEN DULY ACCOUNTED WITHOUT INVOLVING ANY LACK OF RECONCILIATION. WE THEREFORE DIRECT THE ASSESSING OFFICER TO DELETE THE IMPUGNED ADDITION AS WELL. 5. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOV E TERMS. ORDER PRONOUNCED IN THE OPEN COURT 13 /09/2019 SD/- SD/- ( #) (%& #) ( A.L.SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) GUWAHATI, *DKP '- 13 / 09 /201 9 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-SHRI AJIT KR. BARUAH, C/O BB.S. PUBLICAT ION, HEMKOSH PRESS, SIVASAGAR, HC R OAD, SIVSAGAR-785640 2. /RESPONDENT-ACIT, CIRCLE-DIMAPUR 3. 2 3 8 / CONCERNED CIT GUWAHATI 4. 3- / CIT (A) GUWAHATI 5. ; &&2, 2, 8 / DR, ITAT, GUWAHATI 6. A / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY (ON TOUR) 2,