Smt. Sunita Shrivastava, Pune V. Income-tax Officer,

ITA 106/PUN/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 85266 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 13-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MODI
• Keywords: Business income
• Section: 143(3); 153A; 234B; 147; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NOS.102 TO 107/PN/2014 (ASSESSMENT YEARS: 2004-05 TO 2009-10) SMT. SUNITA SHRIVASTAVA 15-C, DIAMOND PARK, PARK STREET, KALEWADI PHATA, WAKAD, PUNE 411018 PAN: AZJPS2667P . APPELLANT VS. THE INCOME TAX OFFICER, (CENTRAL)-II, PUNE . RESPONDENT APPELLANT BY : SHRI S.N. PURANIK RESPONDENT BY : SHRI A.K. MODI DATE OF HEARING : 08-12-2014 DATE OF PRONOUNCEMENT : 11-12-2014 ORDER PER SUSHMA CHOWLA, JM: THIS BUNCH OF APPEALS FILED BY THE ASSESSEE ARE AGAINST CONSOLIDATED ORDER OF CIT(A)-CENTRAL, PUNE, DATED 24.10.201 3 RELATING TO ASSESSMENT YEARS 2004-05 TO 2009-10 PASSED UNDER SE CTION 143(3) R.W.S. 153A OF THE INCOME TAX ACT. 2. ALL THE APPEALS RELATING TO THE SAME ASSESSEE ON SIMILAR ISSUE WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CONSOLID ATED ORDER FOR THE SAKE OF CONVENIENCE. HOWEVER, REFERENCE IS BEING MADE TO THE FACT S IN ITA NO.102/PN/2014 TO ADJUDICATE THE ISSUE. ITA NOS.102 TO 107/PN/2014 SMT. SUNITA SHRIVASTAVA 2 3. THE ASSESSEE IN ITA NO.102/PN/2014 HAS RAISED THE FO LLOWING GROUNDS OF APPEAL AND THE SAME WERE RAISED IN OTHER AP PEALS ALSO EXCEPT THE QUANTUM OF AMOUNT:- 1. COMMISSIONER (APPEALS) HAS ERRED IN CONFIRMING ADHOC DISALLOWANCE OF RS.46,070/-, SAME MAY PLEASE BE DELETED. 2. COMMISSIONER (APPEALS) HAS ERRED IN FAILING TO CONSID ER AND DIRECT THE ASSESSING OFFICER TO RESTRICT INTEREST U /S 234B, IN TERMS OF SECTION 234B(3) OF THE INCOME TAX ACT, 1961. 3. THE APPELLANT PRAYS TO ADD, ALTER, AMEND AND/OR WITHDRA W AS THE OCCASION MAY DEMAND. 4. APPELLANT PRAYS FOR JUST & EQUITABLE BELIEF. 4. THE ISSUE IN GROUND OF APPEAL NO.1 RAISED BY THE ASSESS EE IS AGAINST THE DISALLOWANCE MADE OUT OF THE DAIRY BUSINESS. 5. THE BRIEF FACTS OF THE CASE ARE THAT, SEARCH UNDER SE CTION 132 OF THE ACT WAS CARRIED OUT AT THE RESIDENTIAL PREMISES OF THE AS SESSEE ON 07.08.2009. THE ASSESSEE HAD ORIGINALLY FILED RETURN OF INCO ME DECLARING BUSINESS INCOME FROM DAIRY AND DAIRY PRODUCTS AT RS.49,60 0/-. THE SAID RETURN OF INCOME WAS PROCESSED UNDER SECTION 143(1) OF TH E ACT. PURSUANT TO THE SEARCH CARRIED OUT AT THE RESIDENTIAL P REMISES OF THE ASSESSEE, NOTICE UNDER SECTION 153A OF THE ACT WAS ISSUE D. THE ASSESSEE IN PURSUANT THERETO, FURNISHED RETURN OF INCOME DECLARING TOTAL INCOME AT RS.2,72,900/-, AFTER INCLUDING OTHER INCOME. DURING THE COURS E OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTED THAT THE ASSESSEE HAD DECLARED GROSS RECEIPTS FROM DAIRY PRODUCTS AT RS.1,1 7,040/- AFTER CLAIMING EXPENSES OF RS.92,140/-, THE NET INCOME WAS SHOWN AT RS.24,900/-. THE ASSESSING OFFICER NOTED THAT THE ASSESSE E HAD NOT FURNISHED ANY BILLS / VOUCHERS OR OTHER RELEVANT DOCUMENT S TO JUSTIFY THE SALE / PURCHASE / EXPENSES, ETC. THE ASSESSEE HAD PRO DUCED ITA NOS.102 TO 107/PN/2014 SMT. SUNITA SHRIVASTAVA 3 COMPUTERIZED ACCOUNTS WHICH WERE FOUND TO BE BASELESS, C ONSEQUENTLY, 50% OF EXPENSES AT RS.46,070/- WERE DISALLOWED AND ADDED BACK TO THE INCOME OF THE ASSESSEE. THE CIT(A) UPHELD THE ORDER OF AS SESSING OFFICER, AGAINST WHICH, THE ASSESSEE IS IN APPEAL. 6. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSES SEE POINTED OUT THAT THERE WAS NO MERIT IN THE ADHOC DISALLOWANCE OF EXPE NSES. IT WAS ALSO STATED BY THE LEARNED AUTHORIZED REPRESENTATIVE FO R THE ASSESSEE THAT HE WAS NOT REQUIRED TO MAINTAIN THE BOOKS OF ACCOU NT AS THE GROSS RECEIPTS WERE BELOW THE LIMITS PRESCRIBED UNDER SECTION 44 AA(2)(I) OF THE ACT. 7. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVEN UE HAS PLACED RELIANCE ON THE ORDERS OF AUTHORITIES BELOW. 8. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION WAS CARRYING ON THE BUSINESS OF DAIRY PRODUCTS, AGAINST WHICH IT HAD DECLARED GROSS RE CEIPTS OF RS.1,17,040/-. THE ASSESSEE HAD CLAIMED EXPENDITURE OF R S.92,140/- BUT HAD FAILED TO FURNISH ANY VOUCHERS OR BILLS JUSTIFYING TH E EXPENDITURE AGAINST THE SAID GROSS RECEIPTS. ADMITTEDLY, THE ASSESSE E FOR CARRYING ON ANY BUSINESS IS TO INCUR THE EXPENDITURE WHICH IS RELATED TO CARRYING THE BUSINESS. THE ONUS WAS UPON THE ASSESSEE TO ESTABLISH THE QUANTUM OF EXPENDITURE INCURRED FOR CARRYING ON THE DAIRY BUSINESS. IN THE ABSENCE OF ASSESSEE HAVING DISCHARGED ITS ONUS AND IN THE ABSENC E OF RELEVANT DOCUMENTS BEING NOT PRODUCED BY THE ASSESSEE, THE EXP ENDITURE OF RS.92,140/- CANNOT BE ALLOWED IN ENTIRETY. ACCORDINGLY, WE DIRECT THE ASSESSING OFFICER TO DISALLOW 25% OF THE SAID EXPENDITURE IN ORDER TO ITA NOS.102 TO 107/PN/2014 SMT. SUNITA SHRIVASTAVA 4 COMPUTE THE INCOME FROM DAIRY BUSINESS IN THE CASE OF THE ASSESSEE . THE GROUND NO.1 RAISED BY THE ASSESSEE IS PARTLY ALLOWED. 9. THE ISSUE RAISED IN GROUND NO.2 IS AGAINST THE CHARGING OF INTEREST UNDER SECTION 234B OF THE ACT. THE CASE OF THE ASSESS EE WAS THAT THE PROVISIONS OF SECTION 234B(3) OF THE ACT HAVE NOT BEEN CO RRECTLY APPLIED BY THE ASSESSING OFFICER WHILE COMPUTING THE INTEREST CHARG EABLE UNDER SECTION 234B OF THE ACT. 10. UNDER SUB-SECTION (3) TO SECTION 234B, IT IS PROVIDED TH AT THE ASSESSEE SHALL BE LIABLE TO PAY SIMPLE INTEREST AT THE RATE OF 1% FOR EVERY MONTH OR PART OF THE MONTH COMPRISED IN THE PERIOD COM MENCING FROM THE DATE OF INTIMATION UNDER SECTION 143(1) OF THE ACT AND WHERE REGULAR ASSESSMENT WAS MADE THEN, THE DATE OF SUCH REGULAR ASS ESSMENT AND ENDING ON THE DATE OF RE-ASSESSMENT OR RE-COMPUTATION UNDER SECTION 147 OF THE ACT OR SECTION 153A OF THE ACT, ON THE AMOUN T BY WHICH THE TAX ON THE TOTAL INCOME DETERMINED ON THE BASIS OF RE-AS SESSMENT OR RE- COMPUTATION, EXCEEDS THE TOTAL INCOME DETERMINED UNDER SECTION 143(1) OR ON THE BASIS OF REGULAR ASSESSMENT. THE CASE OF THE ASSESSEE BEFO RE US WAS THAT THE INTEREST UNDER SECTION 234B OF THE ACT HA S NOT BEEN CORRECTLY CHARGED. IN THE INTEREST OF JUSTICE, WE DEEM IT FIT TO RESTORE THIS LIMITED ISSUE OF DETERMINING THE PERIOD OF DEFAULT AND CHARGING OF INTEREST, BACK TO THE FILE OF ASSESSING OFFICER, WHO SHALL DEC IDE THE SAME IN ACCORDANCE WITH THE LAW. THE GROUND NO.2 RAISED BY T HE ASSESSEE IS THUS, ALLOWED. 11. THE FACTS AND ISSUE IN ITA NOS.103, 104, 105, 106 AND 107/PN/2014 ARE IDENTICAL TO THE FACTS AND ISSUE IN ITA ITA NOS.102 TO 107/PN/2014 SMT. SUNITA SHRIVASTAVA 5 NO.102/PN/2014 AND OUR DECISION IN ITA NO.102/PN/2014 SHALL APPLY MUTATIS MUTANDIS TO ITA NOS.103, 104, 105, 106 AND 107/PN/2014. 12. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEES ARE A LLOWED AS INDICATED ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 11 TH DAY OF DECEMBER, 2014. SD/- SD/- (R.K. PANDA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED: 11 TH DECEMBER, 2014. GCVSR COPY OF THE ORDER IS FORWARDED TO : - 1) THE ASSESSEE; 2) THE DEPARTMENT; 3) THE CIT(A)-CENTRAL, PUNE; 4) THE CIT-CENTRAL, PUNE; 5) THE DR B BENCH, I.T.A.T., PUNE; 6) GUARD FILE. BY ORDER //TRUE COPY// ASSISTANT REGISTRAR I.T.A.T., PUNE