Assistant Commissioner of Income-tax, V. Sandhu Roadlines Pvt. Ltd., Pune

ITA 1234/PUN/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 7132 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 08-11-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 08-09-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Onus to prove
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO. 1 2 3 4 /P U N/201 5 / ASSESSMENT YEAR : 20 11 - 12 THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 10, PUNE . / APPELLANT VS. SANDHU ROADLINES PVT. LTD., 309, HOTEL JEE BUILDING, KASARWADI, PUNE 411034 . / RESPONDENT PAN: A ALCS1536M / APPELLANT BY : S HRI AJAY MODI / RESPONDENT BY : NONE / DATE OF HEARING : 0 8 . 11 . 2017 / DATE OF PRONOUNCEMENT: 23 . 11 .201 7 / O RDER PER SUSHMA CHOWLA, J M : TH E APPEAL FILED BY THE REVENUE IS AGAINST THE ORDER OF CIT (A) , PUNE - 6 , DATED 1 6 .0 6 .2015 RELATING TO ASSESSMENT YEAR 20 11 - 12 AGAINST ORDER PASSED UNDER SECTION 143(3) OF THE INCOME - TAX ACT , 1961 (IN SHORT THE ACT) . 2 . THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1 . WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) WAS JUSTIFIED IN RESTRICTING THE DISALLOWANCE TO 5% OUT OF TRAILER EXPENSES WHEN THE ONUS TO PROVE THE GENUINENESS OF TH E EXPENSES WAS NOT DISCHARGED BY THE ASSESSEE AND ALSO WHEN NO FINDING ON THE GENUINENESS OF THE CLAIM HAS BEEN BROUGHT OUT BY THE CIT(A)? ITA NO. 12 3 4 /P U N/20 1 5 S ANDHU ROADLINES PVT. LTD. 2 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) WAS JUSTIFIED IN DELETING THE DISALLOWANCE OUT OF EMPLOYEES CONTRIBUTION TO PROVIDENT FUND BY IGNORING THAT THE EMPLOYEES CONTRIBUTION IS GOVERNED BY PROVISION OF SECTION 2(24)(X) R.W.S. 36(1)(VA) OF THE I.T. ACT, 1961. 3. DESPITE SERVICE OF NOTICE, NONE APPEARED ON BEHALF OF THE ASSESSEE AND BECAUSE OF SMALLNESS OF THE ISSUE, WE PROCEED TO DECIDE THE PRESENT APPEAL FILED BY THE REVENUE AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE. 4. THE ISSUE IN GROUND OF APPEAL NO.1 RAISED BY THE REVENUE IS AGAINST RESTRICTION OF DISALLOWAN CE MADE OUT OF TRAILER EXPENSES. 5 . BRIEFLY, IN THE FACTS OF THE CASE, THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION HAD FURNISHED THE RETURN OF INCOME DECLARING TOTAL INCOME OF RS.5,55,999/ - . THE CASE OF ASSESSEE WAS PICKED UP FOR SCRUTINY. THE ASSESSE E WAS ENGAGED IN TRANSPORTATION OF GOODS. DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE HAD DEBITED SUM OF RS.3.30 CRORES ON ACCOUNT OF OWN TRAILER TRIP EXPENSES. THE ASSESSING OFFICER NOTED THAT EXPENSES CLAIMED AT RS.3.30 CRORES WERE ON ACCOUNT O F SELF MADE CASH VOUCHERS. THE ASSESSEE EXPLAINED THAT ALL THE GOODS TRANSPORT ED W ERE OF HIGH VOLUME AND HIGH TONNAGE AND NO VOYAGE OF LONG DISTANCE GETS COMPLETED WITHIN LESS THAN WEEK AND IN SOME CASES, MORE THAN A MONTH WAS REQUIRED TO REACH DESTINATIO N. INCIDENTAL VOYAGE EXPENSES I.E. ON ROUTE CRANE CHARGES, ON ROUTE OVER DIMENSION MOVEMENT CHARGES, ON ROUTE FUEL EXPENSES, ON ROUTE MAINTENANCE, ON ROUTE DAILY SNACKS, LUNCH, DINNER EXPENSES, TOLL EXPENSES AND SUCH OTHER INCIDENTAL EXPENSES, IN ADDITION TO TYRE, TUBE, SALARIES, REPAIRS, ETC. WERE SPENT IN CASH . THE ASSESSEE IN THIS REGARD FURNISHED DETAILS IN RESPECT OF DISTANCES COVERED BY EACH VEHICLE. HOWEVER, THE EXPLANATION OF ASSESSEE WAS NOT FULLY ACCEPTED AS THE ASSESSEE HAD DEBITED THE SAID ITA NO. 12 3 4 /P U N/20 1 5 S ANDHU ROADLINES PVT. LTD. 3 EX PENSES UNDER DIFFERENT HEADS ALSO. SINCE MOST OF RELATED EXPENSES HAD ALREADY BEEN DEBITED SEPARATELY UNDER DIFFERENT HEADS IN THE PROFIT AND LOSS ACCOUNT, THE PLEA OF ASSESSEE WAS NOT ACCEPTED IN ENTIRETY AND 10% OF EXPENSES AT RS.33,00,439/ - WAS DISALLO WED AND ADDED TO THE INCOME OF ASSESSEE. 6 . THE CIT(A) RESTRICTED THE SAID DISALLOWANCE TO 5%. 7 . THE REVENUE IS IN APPEAL AGAINST THE ORDER OF CIT(A). 8 . AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE AND ON PERUSAL OF RECORD, WE FIND NO MERIT IN THE GROUND OF APPEAL NO.1 RAISED BY THE REVENUE IN THIS REGARD. THE EXPENSES WHICH HAVE BEEN DEBITED UNDER THE HEAD OWN TRAILER TRIP EXPENSES ARE ON ACCOUNT OF EXPENDITURE INCURRED ON PASSAGE WHILE TRANSPORTING THE GOODS FROM ONE PLACE TO OTHER. THE EXPENSES WHICH HAVE BEEN DEBITED TO THE PROFIT AND LOSS ACCOUNT UNDER SIMILAR HEADS CANNOT BE THE BASIS FOR MAKING THE AFORESAID DISALLOWANCE. FURTHER, BOTH THE ASSESSING OFFICER AND THE CIT(A) HAD CONSIDERED THE FACTUM OF INCURRING EXPENS ES ON SELF MADE VOUCHERS. IN VIEW THEREOF, WE ARE IN CONFORMITY WITH THE ORDER OF CIT(A) IN RESTRICTING THE DISALLOWANCE TO 5%. CONSEQUENTLY, THE GROUND OF APPEAL NO.1 RAISED BY THE REVENUE IS DISMISSED. 9 . THE ISSUE IN GROUND OF APPEAL NO.2 RAISED BY T HE REVENUE IS AGAINST THE ORDER OF CIT(A) IN DELETING THE DISALLOWANCE MADE ON ACCOUNT OF EMPLOYEES CONTRIBUTION TO PROVIDENT FUND . THE ASSESSING OFFICER HAD NOTED THAT SUM OF RS.49,483/ - PERTAINING TO CONTRIBUTION OF EMPLOYEES CONTRIBUTION TO PROVIDENT F UND WAS NOT PAID WITHIN DUE DATE AS MENTIONED IN THE RESPECTIVE ACTS. THE ASSESSING OFFICER THUS, MADE THE AFORESAID DISALLOWANCE UNDER SECTION 36(1)(VA) R.W.S. 2(24)(X) OF THE ACT. ITA NO. 12 3 4 /P U N/20 1 5 S ANDHU ROADLINES PVT. LTD. 4 10 . THE CIT(A) ALLOWED THE CLAIM OF ASSESSEE IN VIEW OF VARIOUS DECISIONS OF THE PUNE BENCH OF TRIBUNAL AND ALSO OF THE HONBLE BOMBAY HIGH COURT IN CIT VS. HINDUSTAN ORGANIC CHEMICALS LTD. (2014) 366 ITR 0001 (BOM). 1 1 . THE REVENUE IS IN APPEAL AGAINST THE ORDER OF CIT(A). HOWEVER, WE FIND NO MERIT IN THE GROUND OF APPEAL N O.2 RAISED BY THE REVENUE SINCE THE ISSUE IS SQUARELY COVERED BY THE RATIO LAID DOWN BY THE HONBLE BOMBAY HIGH COURT IN CIT VS. HINDUSTAN ORGANIC CHEMICALS LTD. (SUPRA). THE GROUND OF APPEAL NO.2 RAISED BY THE REVENUE IS THUS, DISMISSED. 1 2 . IN THE RESU LT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED ON THIS 23 RD DAY OF NOVEMBER , 201 7 . SD/ - SD/ - (ANIL CHATURVEDI ) (SUSHMA CHOWLA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 23 RD NOVEMBER , 201 7 . GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APP ELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT (A) , PUNE - 6 ; 4. THE PR. CIT - 5 , PUNE ; 5. , , / DR A , ITAT, PUNE; 6. / GUARD FILE . / BY ORDER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE