DCIT, Central Circle-6, Hyderabad V. M/s. Agri Gold Organics P. Ltd, Hyderabad

ITA 1325/HYD/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66293 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 14-07-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M H NAIK
• Assessee Lawyers: CHANDRA MOULI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER I.T.A. NO. 1325/HYD/2011 A.Y. 2008-09 THE DY. CIT CENTRAL CIRCLE-6 HYDERABAD VS. M/S. AGRI GOLD ORGANICS PVT. LTD., VIJAYAWADA PAN: AACCA4315M APPELLANT RESPONDENT APPELLANT BY: SRI M.H. NAIK RESPONDENT BY: SRI CHANDRA MOULI DATE OF HEARING: 25 .0 9 .2012 DATE OF PRONOUNCEMENT: 25.09.2012 O R D E R PER CHANDRA POOJARI, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-I, HYDERABAD DATED 9.5.2011 FOR ASSESSMENT Y EAR 2008-09. 2. THE REVENUE RAISED THE GROUND THAT THE CIT(A) ERRED IN DELETING THE DISALLOWANCE OF 5% MADE TOWARDS UNVERIFIABLE SE LF-MADE VOUCHERS. 3. THE ASSESSING OFFICER DISALLOWED 5% OF MANUFACTURIN G EXPENSES WORKED OUT AT RS. 21,01,550 AS THE EXPENDITURE WAS SUPPORTED BY SELF- MADE VOUCHERS AND NOT VERIFIABLE. THE CIT(A) DELET ED THIS ADDITION HOLDING THAT THIS IS AN AD-HOC DISALLOWANCE AND PLA CED RELIANCE ON THE ORDER OF THIS TRIBUNAL IN ASSESSEES OWN CASE FOR A .YS. 2004-05 TO 2006-07 PASSED BY CIT(A)-III, HYDERABAD. AGAINST T HIS, THE REVENUE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATE RIAL ON RECORD. IN OUR OPINION, THE EXPENDITURE RELATING T O MANUFACTURING AT RS. 4,20,30,965 WAS SUPPORTED BY SELF-MADE VOUCHERS AND IS NOT PROPERLY VERIFIABLE. BEING SUPPORTED BY SELF-MADE VOUCHERS, THERE IS EVERY CHANCE OF INFLATING THE EXPENDITURE BY THE AS SESSEE. ACCORDINGLY, DELETION OF DISALLOWANCE BY THE CIT(A), HOLDING THA T THIS IS AN AD-HOC I.T.A. NO. 1325/HYD/2011 M/S. AGRI GOLD ORGANICS PVT. LTD. ========================== 2 DISALLOWANCE, IS NOT JUSTIFIED. HOWEVER, CONSIDER ING THE FACTS OF THE CASE, WE REMIT THE ENTIRE ISSUE TO THE FILE OF THE ASSESSING OFFICER TO DISALLOW THE EXPENDITURE WHICH IS NOT SUPPORTED BY PROPER VOUCHERS THAT IS OUTSIDE BILLS AND RECEIPTS AND IF THE EXPEN DITURE IS SUPPORTED BY ONLY SELF-MADE VOUCHERS, THE ASSESSEE SHALL SUBSTAN TIATE THE EXPENDITURE TO THE SATISFACTION OF THE ASSESSING OF FICER. ACCORDINGLY, THE ISSUE IS REMITTED BACK TO THE FILE OF THE ASSES SING OFFICER TO PASS AN ORDER DE NOVO. 5. IN THE RESULT, APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH SEPTEMBER, 2012. SD/ - (SAKTIJIT DEY) JUDICIAL MEMBER SD/ - (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED 25 TH SEPTEMBER, 2012 TPRAO COPY FORWARDED TO: 1. THE DY. CIT, CENTRAL CIRCLE - 6, 7 TH FLOOR, AAYAKAR BHAVAN, LB STADIUM, BASHEERBAGH, HYDERABAD-500 004. 2. M/S. AGRI GOLD ORGANICS PVT. LTD., 40 - 1 - 21/3, 1 ST FLOOR, SURYA TOWERS, MG ROAD, VIJAYAWADA. 3 . THE CIT(A) - I, HYDERABAD 4 . THE CIT (CENTRAL), HYDERABAD. 5 . THE DR A BENCH, ITAT, HYDERABAD