Ankit Gupta, New Delhi V. ITO, Ward 36(7), New Delhi

ITA 1063/DEL/2023

AI Insights

The case involves Ankit Gupta, the proprietor of P L Agro, who appealed against the order of the Ld. Commissioner of Income Tax (Appeals) - National Faceless Appeal Centre, Delhi. The appeal was related to the assessment year 2017-18, where the primary contention was the disallowance of freight charges. The Assessing Officer had initially disallowed 15% of the freight charges claimed by the assessee, citing discrepancies in the location of the freight services compared to the purchase locations. The CIT(A) later reduced this disallowance to 10%. The Tribunal, after hearing the arguments and reviewing the evidence, upheld the CIT(A)'s decision, finding the reduced disallowance reasonable.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113327 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 12-07-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 11-04-2023
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

I.T.A.No.1063/Del/2023 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER आ.अ.स ं /.I.T.A No.1063/Del/2023 /Assessment Year: 2017-18 Ankit Gupta Prop. P L Agro, DU-38, Pitampura, New Delhi. ब म Vs. ITO Ward 36(7) New Delhi. PAN No. BEZPG0153C अ Appellant /Respondent िनधा रतीक ओरसे /Assessee by None राज वक ओरसे /Revenue by Shri Om Prakash, Sr. DR स ु नवाईक तारीख/ Date of hearing: 13.07.2023 उ ोषणाक तारीख/Pronouncement on 27.07.2023 आदेश /O R D E R 1. This appeal is filed by the assessee against the order of the Ld. Commissioner of Income Tax(Appeals)- National Faceless Appeal Centre(NFAC), Delhi dated 22.02.2023 for the AY 2017-18. Assessee challenged the order of the Ld.CIT(A) in sustaining the disallowance of freight charges at 10% as against 15% disallowed by the Assessing Officer. 2. In spite of issue of several notices, none appeared on behalf of the assessee nor any adjournments were sought. Notices issued on several occasions through speed post with acknowledgement due I.T.A.No.1063/Del/2023 2 returned un-served with the endorsement of postal authorities that “no such person in the address”. In the circumstances, the appeal is disposed of on hearing the Ld. DR on merits. 3. It is observed that the Assessing Officer while completing the assessment noticed that the assessee debited freight charges of Rs.72,21,589/- in the profit and loss account. The assessee was required to furnish complete bills and vouchers in respect of freight charges incurred by the assessee and the assessee produced certain bills and vouchers in support of freight charges. On perusal of the bills and vouchers the AO came to the conclusion that most of the purchase bills furnished are of Naya Bazar, New Delhi or nearby areas of Delhi and NCR, whereas 70 to 80% of freight bills are from transportation from Mumbai to Delhi. The AO made an adhoc disallowance of 15% of freight charges observing that if most of the purchases made from Delhi or NCR then the majority of freight bills also must be from Delhi and NCR and not from Mumbai. 4. On appeal the Ld.CIT(A) restricted the disallowance to 10% of the freight charges observing that the assessee could not fully controvert the findings of the AO. The Ld.CIT(A) estimated the disallowance at 10% as reasonable disallowance keeping in view the volume of business of the appellant. I.T.A.No.1063/Del/2023 3 5. Before me, the findings of the lower authorities have not been controverted with the evidences. The order of the Ld.CIT(A) in restricting the disallowance to 10% of freight charges is sustained as reasonable. 6. In the result, appeal of the assessee is dismissed. Order pronounced in the open court on 27/07/2023 Sd/- (C.N. PRASAD) JUDICIAL MEMBER Dated: 27.07.2023 *Kavita Arora, Sr. P.S. Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. By order Assistant Registrar, ITAT: Delhi Benches-Delhi