KL Hitech Secure Print Ltd., Hyd, Hyderabad V. ACIT, Circle-8(1), Hyderabad, Hyderabad

ITA 1185/HYD/2015

• Counselvise Citation: 118522514 RSA 2015
• Duration Of Justice: 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 05-10-2015
• Court: TRIBUNAL
• Department Lawyers: E SUNIL BABU
• Assessee Lawyers: A V RAGHURAM
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. NO. 1185/HYD/2015 ASSESSMENT YEAR: 2011-12 M/S. KL HITECH SECURE PRINT LTD., HYDERABAD [PAN: AAACK4241N] VS ACIT, CIRCLE-8(1), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI A.V. RAGHU RAM , AR FOR REVENUE : S HRI E. SUNIL BABU , DR DATE OF HEARING : 1 2 - 11 - 201 5 DATE OF PRONOUNCEMENT : 18 - 1 1 - 2015 O R D E R PER B. RAMAKOTAIAH, A.M. : THIS IS AN ASSESSEES APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-2, HYDERABAD, DATED 30-07-2015. ASSESSEE IS CONTESTING THAT THE DISALL OWANCES SUSTAINED BY THE CIT(A) IS NOT CORRECT AND SHOULD H AVE DELETED THE ENTIRE AMOUNT. I.T.A. NO. 1185/HYD/2015 M/S. KL HITECH SECURE PRINT LTD., :- 2 -: 2. BRIEFLY STATED, ASSESSEE-COMPANY IS ENGAGED IN T HE BUSINESS OF PRINTING HIGH SECURITY DOCUMENTS LIKE CHEQUES, DDS, PUBLIC ISSUE STATIONERY ETC. ASSESSING OFFICER (AO) WHILE COMPLETING THE ASSESSMENT U/S. 143(3) OF THE INCOME TAX ACT [ACT] MADE THE FOLLOWING DISALLOWANCES: I. DISALLOWANCE OF CANTEEN MAINTENANCE - RS. 5,35,072 /- II. ADDITION TOWARDS TRAVELLING & CONVEYANCE - RS. 4,53 ,143/- III. ADDITION TOWARDS MISCELLANEOUS EXPENSES - RS. 2,93, 018/- 3. ASSESSEE CONTESTED THE SAME BEFORE THE LD. CIT(A ) STATING THAT AO PASSED ROUTINE COMMENTS LIKE SELF-MADE VOUC HERS, BILLS ARE UN-SIGNED AND BILLS ARE NOT PROPERLY MAINTAINED WITHOUT IDENTIFYING SPECIFIC EXPENDITURE. AFTER CONSIDERIN G THE CONTENTIONS OF ASSESSEE, LD. CIT(A) RESTRICTED THE DISALLOWANCE ON CANTEEN EXPENDITURE TO 10% AND OTHER DISALLOWANCES LIKE TRA VELLING, CONVEYANCE AND MISCELLANEOUS EXPENSES TO 5%. ASSES SEE IS AGGRIEVED. 4. AFTER CONSIDERING THE RIVAL CONTENTIONS, WE ARE OF THE OPINION THAT CERTAIN CLAIMS OF EXPENDITURE ON SELF-MADE VOU CHERS BEING UN- VARIABLE, THE ACTION OF AO DISALLOWING SAID EXPENDI TURE ON ESTIMATE BASIS IS JUSTIFIED. HOWEVER, CONSIDERING THE NATUR E OF EXPENDITURE, WE ARE OF THE OPINION THAT DISALLOWANCE WITH RESPEC T TO CANTEEN EXPENDITURE ALSO CAN BE RESTRICTED TO 5%. THEREFOR E, WHILE CONFIRMING THE DISALLOWANCE OF TRAVELLING, CONVEYAN CE AND MISCELLANEOUS EXPENSES AT 5% AS WAS DONE BY THE LD. CIT(A), WE MODIFY THE RATE OF DISALLOWANCE IN RESPECT OF CANTE EN EXPENDITURE I.T.A. NO. 1185/HYD/2015 M/S. KL HITECH SECURE PRINT LTD., :- 3 -: FROM 10% TO 5% OF THE CLAIM. WITH THIS, ASSESSEES GROUNDS ARE CONSIDERED PARTLY ALLOWED. 5. IN THE RESULT, APPEAL IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH NOVEMBER, 2015 SD/- SD/- (P. MADHAVI DEVI) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEM BER HYDERABAD, DATED 18 TH NOVEMBER, 2015 TNMM COPY TO : 1. M/S. KL HITECH SECURE PRINT LTD., PLOT NO. 230, ROAD NO. 36, JUBILEE HILLS, HYDERABAD. C/O. K. VASANT K UMAR, A.V. RAGHU RAM & P. VINOD, ADVOCATES, 610, BABUKHAN ESTATE, BASHEERBAGH, HYDERABAD. 2. ACIT, CIRCLE-8(1), I.T. TOWERS, A.C. GUARDS, HYD ERABAD. 3. CIT (APPEALS)-2, HYDERABAD. 4. PR. CIT - 2 , HYDERABAD. 5 . D.R. ITAT, HYDERABAD. 6 . GUARD FILE.