Daga Trading Co., Kolkata V. ACIT, Circle - 43, Kolkata, Kolkata

ITA 1056/KOL/2018

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 0871 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 18-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KAPIL MONDAL J
• Keywords: Revenue expenditure
• Section: 40A(3); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO1056./KOL/2018 ASSESSMENT YEAR:2010-11 DAGA TRADING CO. 5,ASHUTOSH CHOUDHURY AVENUE, KOLKATA-19 [ PAN NO.AACFD 1465 E ] / V/S . ACIT, CIRCLE-43, 3, GOVT. PLACE (WEST), KOLKATA-700 001 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI ANIL KOCHAR, ADVOCATE /BY RESPONDENT SHRI KAPIL MONDAL, JCIT-DR /DATE OF HEARING 18-09-2018 /DATE OF PRONOUNCEMENT 05-10-2018 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2010-11 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-13, KOLKATAS ORDER DATED 25.04.2018 PASSED IN CASE NO.769/CIT(A)-13/CIR-43/KOL/2014-15 INVOLV ING PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. I COME TO FIRST ISSUE OF SEC.40A(3) OF THE ACT OF 1,95,129/- MADE IN THE BOTH THE LOWER PROCEEDINGS AFTER HOLDING THAT ASSESSEE H AS PAID THE SAME IN CASH FOR ITS TRAVELLING EXPENSES. I NOTICE AT THE OUTSET THAT TH E ASSESSEES PAYEE, SHRI PAWAN KUMAR ROHILA IS ITS EMPLOYEE ONLY AS PER THE RELEVANT DET AILS OF SALARY AND BONUS COMPRISES IN PAGE 3 OF THE PAPER BOOK. THIS IS NOT THE REVENU ES CASE THAT AN EMPLOYEE/PAYEE IS COVERED WITHIN THE RIGOR SEC. 40A(3) OF THE ACT. I THEREFORE DELETE THE FIRST DISALLOWANCE HEREIN OF 1,95,129/-. 3. NEXT COMES THE ASSESSEES SECOND SUBSTANTIVE GRO UND SEEKING TO DELETE ESTIMATED REVENUE EXPENDITURE DISALLOWANCE OF 1,30,816/- @ 20% OF TELEPHONE EXPENSE, SCOOTER/MOTORCYCLE EXPENSES, OFFICE AND MO TOR CAR EXPENSES; INVOLVING SUMS ITA NO.1056/KOL/2018 A.Y. 2010-1 1 DAGA TRADING CO. VS. ACIT CIR-43, KOL . PAGE 2 OF 2,47,894/-, 37,389/-, 1,45,938/- & 2,22,853/-; RESPECTIVELY TOTALING TO 6,54,074/- ON THE GROUND THAT THERE ARE NO DETAILS AVAILABLE IN THE NATURE OF PERSONAL CALL REGISTER OR LOG BOOK AND EXCEPT SELF-MADE VOUC HERS FOR REMAINING HEADS. I FIND THAT NEITHER THE ASSESSEE HAS BEEN ABLE TO PROVE IT S CASE TO THE HILT NOR BOTH THE LOWER AUTHORITIES HAVE PREPARED ANY COMPARATIVE CHART OF SIMILAR CLAIMS IN PRECEDING OR SUCCEEDING ASSESSMENT YEARS. I THEREFORE DEEM IT AP PROPRIATE TO RESTRICT THE IMPUGNED DISALLOWANCE @ 20% TO @ 5% ONLY WITH A RIDER THAT S AME SHALL NOT BE TAKEN AS A PRECEDENT IN ANY OTHER CASE. THIS SECOND SUBSTANTIV E GROUND IS TAKEN AS PARTLY ACCEPTED IN ABOVE TERMS. 4. LEARNED COUNSEL DOES NOT PRESS FOR ASSESSEES TH IRD SUBSTANTIVE GRIEVANCE CHALLENGING CORRECTNESS OF ADDITION OF 6,131/- DIFFERENT SHOWN IN ACCOUNTS RECEIVED FROM VARIOUS PARTIES. THE SAME STANDS CONFIRMED ACC ORDINGLY. 5. THIS, ASSESSEES APPEAL IS PARTLY ALLOWED IN ABO VE TERMS. ORDER PRONOUNCED IN OPEN COURT ON 05/10/2018 SD/- (S.S. GODARA) JUDICIAL MEMB ER KOLKATA, *DKP/SR.PS - 05/10/2018 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-DAGA TRADING CO. 5, ASHUTOSH CHOUDHURY A VENUE, KOL-19 2. /RESPONDENT-ACIT, CIRCLE-43, 3, GOVT. PLACE (WEST), KOLKATA-001 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY, HEAD OF OFFICE/DDO ',