Rakesh Kumar Singh, Aligarh V. A.C.I.T., Circle-1, Aligarh

ITA 123/AGR/2013

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0705 (ITAT-AGRA)
• Duration Of Justice: 6 year(s) 24 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 20-06-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 22-04-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: SHRI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 123 AGRA/ 2013 ASSESSMENT YEAR 2008-09 RAKESH KUMAR SINGH VS. ASSTT. COMMISSIONER OF IN COME TAX C/O SURYA BUILDERS, CIRCLE-1 ARJUN NAGAR, QUARSI BYEPASS ROAD ALIGARH, ALIGARH. . (PAN ACEPS4008G) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PANKAJ GARGH, ADVOCATE RESPONDENT BY : SHRI K.K. MISHRA, JR. D.R. DATE OF HEARING : 20.06.2013 DATE OF PRONOUNCEMENT : 28.06.2013 ORDER PER BHAVNESH SAINI, JUDICIAL MEMBER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A), MUZAFFARNAGAR DATED 12.01.2013 FOR A.Y. 2008-09, CH ALLENGING THE ADDITION OF RS.5,00,000/- MADE BY THE A.O OUT OF VARIOUS EXPENS ES. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEE IS AN INDIVIDUAL DERIVING INCOME FROM CIVIL CONTRACT IN THE NAME & STYLE M/S SURYA BUILDERS. RETURN OF ITA NO.123/AGRA/2013 A.Y.2008-09 2 INCOME WAS FILED AT RS.25,65,090/- . THE A.O. FOUND THAT ASSESSEE HAS DEBITED VARIOUS EXPENSES UNDER THE DIFFERENT HEADS, WHICH W ERE INCURRED IN CASH ON THE BASIS OF SELF MADE VOUCHERS. THE DETAILS OF THE SAM E ARE NOTED IN PARA 2 OF THE APPELLATE ORDER. THE EXPENSES WERE NOT SUBJECTED TO VERIFICATION. LABOUR EXPENSES WERE NOT VERIFIABLE AND PAYMENTS GIVEN TO THE PARTI ES DID NOT HAVE ANY PANS DETAILS OR MATERIAL PRODUCED TO JUSTIFY THE EXPENSE S. THE ULTIMATE FINDING OF THE A.O. WAS THAT THE EXPENSES ARE NOT FULLY VERIFIABLE AND FURTHER THERE IS A FALL IN N.P. RATE AS COMPARED TO THE EARLIER ORDER. THEREFO RE, A.O. IN LUMP-SUM DISALLOWED RS.5,00,000/- OUT OF VARIOUS EXPENSES. T HE ASSESSEE DID NOT PUT IN APPEARANCE BEFORE LD. CIT(A), THEREFORE, THE APPEAL OF THE ASSESSEE WAS DISMISSED. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THE ADDITION IS STILL ON EXCESSIVE SIDE. IT IS NOT IN D ISPUTE THAT THE EXPENSES WERE NOT FULLY VERIFIABLE AND THE OBJECTION OF THE A.O. IN M AKING DISALLOWANCE HAVE NOT BEEN MET BY THE ASSESSEE. THEREFORE, IN PRINCIPLE D ISALLOWANCE OUT OF VARIOUS EXPENSES IS FULLY JUSTIFIED. IT IS ALSO NOT IN DISP UTE THAT THERE IS FALL IN N.P. RATE AS COMPARED TO THE EARLIER YEARS. IN ASSESSMENT YEAR U NDER APPEAL ASSESSEE HAS SHOWN N.P. RATE OF 3.79% AND IN PRECEEDING A.YS. 20 07-08 AND 2006-07 THE N.P. ITA NO.123/AGRA/2013 A.Y.2008-09 3 RATE WAS 3.92% AND 3.96% RESPECTIVELY. THEREFORE, T HERE IS MARGINAL FALL IN N.P. RATE IN THE ASSESSMENT YEAR UNDER APPEAL BUT THERE IS SUBSTANTIAL INCREASE OF THE TURNOVER OF THE ASSESSEE IN ASSESSMENT YEAR UNDER A PPEAL WHICH IS RS.7.04 CRORES AND IN PRECEEDING ASSESSMENT YEAR THE TURNOVER OF THE ASSESSEE WAS 4.35 CRORES AND 6.08 CRORES IN A.Y. 2007-08 AND 2006-07. 4. CONSIDERING THE HISTORY OF THE ASSESSEE AND THER E IS SUBSTANTIAL INCREASE IN THE TURNOVER OF THE ASSESSEE WOULD SHOW THAT ASSESS EE HAS NOT INFLATED THE EXPENSES TO THE EXTENT WHICH WERE FOUND BY THE A.O. CONSIDERING THE HISTORY OF THE ASSESSEE, WE FIND IT REASONABLE AND APPROPRIATE TO RESTRICT THE DISALLOWANCE OF THE EXPENSES TO RS.1,50,000/- AS AGAINST DISALLOWAN CE MADE BY THE AUTHORITIES BELOW AT RS.5,00,000/-. THE ORDERS OF THE AUTHORITI ES BELOW ARE THEREFORE, MODIFIED TO THE ABOVE EXTENT AND ADDITION IS RESTRI CTED TO RS.1,50,000/- ONLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT) SD/- SD/- (A.L. GEHLOT) (BHAV NESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER AMIT/ ITA NO.123/AGRA/2013 A.Y.2008-09 4 COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL, AGRA TRUE COPY