M/s. Scan Holdings Pvt. Ltd., New Delhi V. ACIT, New Delhi

ITA 1463/DEL/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6469 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2007-2008
• Appeal Filed On: 10-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SARAS KUMAR
• Assessee Lawyers: S KRISHNAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G, NEW DELHI BEFORE SH. KULDIP SINGH, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 1463/DEL/2017 : ASSTT. YEAR : 2008-09 ITA NO. 1464/DEL/2017 : ASSTT. YEAR : 2012-13 M/S SCAN HOLDINGS PVT. LTD., F-4, SHOPPING COMPLEX, A-BLOCK, MEERA BAGH, NEW DELHI-110087 VS ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-22(2), NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. AABCS0852N ASSESSEE BY : SH. S. KRISHNAN, ADV. REVENUE BY : SH. SARAS KUMAR, SR. DR DATE OF HEAR ING: 20 . 01 .20 20 DATE OF PRONOUNCEMENT: 07 .02 .20 20 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEALS HAVE BEEN FILED BY THE ASSESSEE AGAINST THE ORDERS OF LD. CIT (A)-17, NEW DELHI DAT ED 20.01.2017. 2. SINCE, THE ISSUES INVOLVED IN BOTH THE APPEALS A RE COMMON, THEY WERE HEARD TOGETHER. 3. IN ITA NO. 1463/DEL/2017 FOR THE ASSESSMENT YEAR 2007-08, FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESSEE: 1. ON THE FACTS & IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) ERRED IN SUSTAINING ESTIMATED ADDITION O F RS.1,00,000 ON ACCOUNT OF CASH EXPENSES. 4. THE LONE GROUND IN THE APPEAL RELATES TO THE CON TENTION OF THE ASSESSEE AGAINST AD-HOC DISALLOWANCE MADE BY THE AS SESSING OFFICER. THE ASSESSING OFFICER MADE DISALLOWANCE OF RS.1,00,000/ - OUT OF THE CAR ITA NOS. 1463 & 1464/DEL/2017 SCAN HOLDINGS PVT. LTD. 2 RUNNING EXPENSES, COURIER AND POSTAGE EXPENSES, MIS CELLANEOUS EXPENSES, PRINTING AND STATIONERY, STAFF WELFARE AND CONVEYAN CE EXPENSES ON THE GROUND THAT NO BILLS/VOUCHERS WERE PRODUCED TO SUBS TANTIATE THE CLAIM OF EXPENSES AND THE EXPENSES WERE CLAIMED TO HAVE BEEN INCURRED IN CASH AND SINCE, THE ASSESSING OFFICER FOUND THE CLAIM OF THE AASSESSEE AS NON- VERIFIABLE, THEREFORE, HE DISALLOWED RS.1,00,000/- OUT OF THE SAME. 5. DURING THE ARGUMENTS BEFORE US, THE LD. AR REFER RED TO THE ENTIRE BILLS SUBMITTED BEFORE THE AUTHORITIES BELOW AND AR GUED THAT THE BILLS HAVE NOT BEEN DULY CONSIDERED BY THE REVENUE AUTHORITIES . THE LD. DR RELIED ON THE ORDERS OF THE REVENUE. 6. HEARD THE ARGUMENTS OF BOTH THE PARTIES AND PERU SED THE MATERIAL AVAILABLE ON RECORD. 7. ON PERUSAL OF THE FACTS AND PAPER BOOK FILED BEF ORE US, WE FIND THAT THE ASSESSEE HAS DISCHARGED THE ONUS AND ALLOWABILI TY OF THE EXPENSES BY FURNISHING THE RELEVANT BILLS/VOUCHERS BEFORE THE A SSESSING OFFICER, WHICH THEY FAILED TO GIVE DUE CONSIDERATION. UNDER THESE CIRCUMSTANCES, WE HOLD THAT THE AUTHORITIES ARE NOT REASONABLE TO DISALLOW RS.1,00,000/- OUT OF THE CAR RUNNING, COURIER & POSTAGE, PRINTING & STATIONE RY, CONVEYANCE AND STAFF WELFARE EXPENSES. THEREFORE, APPEAL OF THE ASSESSEE ON THIS GROUND IS ALLOWED. 8. IN ITA NO. 1464/DEL/2017 FOR THE ASSESSMENT YEAR 2012-13, FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESSEE: 1. ON THE FACTS & IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) ERRED IN SUSTAINING ESTIMATED ADDITION O F RS.2,00,000 ON ACCOUNT OF CASH EXPENSES. 9. THE LONE GROUND RELATE TO CONTENTION OF THE AASS ESSEE AGAINST AD- HOC DISALLOWANCE OF RS.2,00,000/- MADE BY THE ASSES SING OFFICER, OUT OF CAR RUNNING, STAFF WELFARE AND CONVEYANCE EXPENSES. THE DISALLOWANCE WAS ITA NOS. 1463 & 1464/DEL/2017 SCAN HOLDINGS PVT. LTD. 3 MADE ON THE GROUND THAT NO BILLS/VOUCHERS OF BOARDI NG AND LODGING CHARGES WERE FURNISHED. 10. DURING THE ARGUMENTS BEFORE US, THE LD. AR REFE RRED TO THE ENTIRE BILLS SUBMITTED BEFORE THE AUTHORITIES BELOW AND AR GUED THAT THE BILLS HAVE NOT BEEN DULY CONSIDERED BY THE REVENUE AUTHORITIES . THE LD. DR RELIED ON THE ORDERS OF THE REVENUE. 11. HEARD THE ARGUMENTS OF BOTH THE PARTIES AND PER USED THE MATERIAL AVAILABLE ON RECORD. 12. ON PERUSAL OF THE FACTS AND PAPER BOOK FILED BE FORE US, WE FIND THAT THE ASSESSEE HAS DISCHARGED THE ONUS AND ALLOWABILI TY OF THE EXPENSES BY FURNISHING THE RELEVANT BILLS/VOUCHERS BEFORE THE A SSESSING OFFICER, WHICH THEY FAILED TO GIVE DUE CONSIDERATION. UNDER THESE CIRCUMSTANCES, WE HOLD THAT THE AUTHORITIES ARE NOT REASONABLE TO DISALLOW RS.2,00,000/- OUT OF THE CAR RUNNING, COURIER & POSTAGE, PRINTING & STATIONE RY, CONVEYANCE AND STAFF WELFARE EXPENSES. THEREFORE, APPEAL OF THE ASSESSEE ON THIS GROUND IS ALLOWED. 13. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 07/02/2020. SD/- SD/- (KULDIP SINGH) (D R. B. R. R. KUMAR) JUDICIAL MEMBER ACCO UNTANT MEMBER DATED: 07/02/2020 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR