Parikh Patel & Co., Kolkata V. ACIT, Circle - 31, Kolkata

ITA 1106/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4486 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 11-02-2020
• Assessment Year: 2015-2016
• Appeal Filed On: 10-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 80G; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA SMC BENCH, KOLKATA [BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER] I.T.A. NO. 1106/KOL/2019 ASSESSMENT YEARS: 2015-16 PARIKH PATEL & CO................................................................................................................APPELLANT [PAN: AAEFP 2971 R] VS. ACIT, CIRCLE-31, KOLKATA.........................................................................RESPONDENT APPEARANCES BY: SH. RIP DAS, FCA, APPEARED ON BEHALF OF THE ASSESSEE. SH. JAYANTA KHANRA, JCIT, SR. DR, APPEARED ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : FEBRUARY 11 TH , 2020 DATE OF PRONOUNCING THE ORDER : FEBRUARY 26 TH , 2020 ORDER PER J. SUDHAKAR REDDY, AM : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-9, KOLKATA [CIT(A) FOR SHORT] DATED 12.02.2019 U/S 250 OF THE INCOME TAX ACT, 1961 (THE ACT FOR SHORT) FOR AY 2015-16. 2. AFTER HEARING RIVAL CONTENTIONS I HOLD AS FOLLOWS. 3. GROUND NO. 1 IS GENERAL IN NATURE. 4. GROUND NO. 2 IS AGAINST THE AD-HOC DISALLOWANCE OF VARIOUS EXPENDITURES INCURRED ON MOTOR CAR EXPENSES, CONVEYANCE EXPENSES, POSTAL & STAMP, PRINTING & STATIONERY ETC. THE AO DISALLOWED 50% OF THE CLAIM. THE ASSESSEE SUBMITTED A COMPARATIVE CHART TO DEMONSTRATE THAT THE AD-HOC DISALLOWANCE IS BAD IN LAW. IN MY VIEW ENDS OF JUSTICE WOULD BE MET IF THE DISALLOWANCE IS RESTRICTED TO 10% OF THE CLAIM MADE BY THE ASSESSEE UNDER THESE HEADS. THUS, THIS GROUND OF THE ASSESSEE IS ALLOWED IN PART. 5. GROUND NO. 3 IS AGAINST THE DISALLOWANCE OF DONATIONS & SUBSCRIPTIONS. THE ASSESSEE SUBMITS THAT THE AMOUNT OF 25,000/- WAS PAID TO ALUMNORUM SOCIETAS AND THIS SOCIETY WAS ENTITLED FOR EXEMPTION U/S 80G(5)(VI) OF THE ACT. THE AO IS DIRECTED TO GIVE A DEDUCTION U/S 80G ACCORDINGLY. THE BALANCE DISALLOWANCE IS HEREBY UPHELD. 2 I.T.A. NO. 1106/KOL/2019 ASSESSMENT YEARS: 2015-16 PARIKH PATEL & CO. 6. GROUND NO. 4 IS AGAINST THE DISALLOWANCE MADE ON EMPLOYEES CONTRIBUTION TO ESI OF INVOKING SECTION 2(24)(X) R.W.S. 36(1)(VA) OF THE ACT. THE UNDISPUTED FACT THAT THIS AMOUNT HAS BEEN PAID BEFORE DUE DATE OF FILING OF RETURN OF INCOME. THE LD. CIT(A) HAS IN FACT ALLOWED THIS GROUND RAISED BY THE ASSESSEE. HENCE, THE ASSESSEE SHOULD NOT HAVE ANY GRIEVANCE. IN THE RESULT THIS GROUND IS DISMISSED. 7. GROUND NO. 5 IS GENERAL IN NATURE. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED IN PART. KOLKATA, THE 26 TH FEBRUARY, 2020. SD/- [J. SUDHAKAR REDDY] ACCOUNTANT MEMBER DATED: 26.02.2020 BIDHAN COPY OF THE ORDER FORWARDED TO: 1. PARIKH PATEL & CO., 11/1, SARAT BOSE ROAD, IDEAL PLAZA, ROOM NO.-N414, KOLKATA-700 020. 2. ACIT, CIRCLE-31, KOLKATA. 3. CIT(A)-9, KOLKATA. (SENT THROUGH E-MAIL) 4. CIT- 5. CIT(DR), KOLKATA BENCHES, KOLKATA. (SENT THROUGH E-MAIL) TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES