Smt. Vani Potluri, Hyd, Hyderabad V. Addl.CIT, Range-9, Hyderabad

ITA 1257/HYD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66492 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 22-08-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AMISHA S GUPT
• Assessee Lawyers: SESHAGIRI RAO

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO.1257/HYD/2012- ASSTT. YEAR:2009-10 SMT. VANI POTLURI, HYDERABAD. .... APPELLANT PAN: ADFPP 2331R VS. ADDL. CIT, RANGE-9, HYDERABAD. RESPONDENT APPELLANT BY : SRI SESHAGIRI RAO RESPONDENT BY : SMT. AMISHA S. GUPT DATE OF HEARING : 26-11-2012 DATE OF PRONOUNCEMENT: 26-11-2 012 ORDER PER CHANDRA POOJARI, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST ORDER OF CIT (A)-VI, HYDERABAD AND IT PERTAINS TO THE ASSESS MENT YEAR 2009-10. 2. THE ASSESSEE HAS RAISED THE FOLLOWING EFFECTIVE GROUND BEFORE US:- THE LD. CIT (A) ERRED IN CONFIRMING THE ADDI TION OF RS.5,65,950/- MADE BY THE AO BY DISALLOWING 20% OF THE EXPENDITURE INCURRED UNDER VARIOUS HEADS. THE LD. CIT (A) OUGHT TO HAVE HELD THAT THE ENTIRE EXPENDIT URE 2 ITA NO. 1257 OF 2012 SMT. VANI POTLURI.HYD.. IS RELATABLE TO THE BUSINESS AND NO PART OF SUCH EXPENDITURE IS DISALLOWABLE. 2. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ONLY GRIEVANCE IN THIS APPEAL IS WITH REGARD TO ESTIMATION OF DISALLOWANCE AT 20% ON EXPENDITURE OF RS.28,29,7 48/- ON ACCOUNT OF SELF-MADE VOUCHERS LIKE DETAILED NARRATION OF EXPEN DITURE AND ADDRESS OF THE RECIPIENTS OF CASH WAS NOT MENTIONED THEREIN . IN OUR OPINION, IN CASE OF SELF-MADE VOUCHERS, THERE IS EVERY CHANCE O F INFLATING EXPENDITURE. AFTER CONSIDERING TOTALITY OF FACTS A ND THE CIRCUMSTANCES OF THE CASE, WE ARE OF THE VIEW THAT DISALLOWANCE O F EXPENDITURE ON ACCOUNT OF SELF MADE VOUCHERS AT 20% ADOPTED BY THE LOWER AUTHORITIES IS ON HIGHER SIDE AND ACCORDINGLY WE RESTRICT THE S AME TO 10% . WE DIRECT ACCORDINGLY. 3. IN THE RESULT, APPEAL FILED BY THE ASSESSEE STAN DS PARTLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 26 -11-2012. SD/- (SAKTIJIT DEY) JUDICIAL MEMBER SD/- (CHANDRA POOJARI) ACCOUNTANTMEMBER HYDERABAD, DATED THE 26 TH NOVEMBER, 2012. COPY TO:- 1) C/O SRI S. RAMA RAO, ADVOCATE, FLAT NO.102, SHRIYAS ELEGANCAE, STREET NO.9, HIMAYATNAGAR, HYDERABAD. 2) ADDL. CIT, RANGE-9, HYDERABAD. 3) THE CIT (A)-VI, HYDERABAD. 4) THE CIT CONCERNED, HYDERABAD 5) THE DR, I.T.A.T., HYDERABAD. JMR* 3 ITA NO. 1257 OF 2012 SMT. VANI POTLURI.HYD..