Shri Amit Kumar Bajaj, Kolkata V. ITO, Ward - 44(1) , Kolkata

ITA 16/KOL/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2410 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 17-06-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 04-01-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PRAVASH ROY J
• Assessee Lawyers: HARSH VARDHAN BHARDWAJ
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.16/KOL/2019 ASSESSMENT YEAR:2012-13 SHRI AMIT KUMAR BAJAJ 124, JAMUNA LAL BAJAJ STREET, KOLKATA-700007 [ PAN NO.ADBPB 4449 E ] / V/S . INCOME TAX OFFICER, WARD-4(1), 3, GOVT. PLACE WEST, GR. FLOOR, ROOM NO. 14, KOLKATA-700001 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI HARSH VARDHAN BHARDWAJ, FCA /BY RESPONDENT SHRI PRAVASH ROY, JCIT-DR /DATE OF HEARING 17-06-2019 /DATE OF PRONOUNCEMENT 21-06-2019 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2012-13 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-13, KOLKATAS ORDER DATED 11.09.2018 PASSED IN CASE NO.39/CIT(A)-13/WD.-44(1)/KOL/2015-16 INVO LVING PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES FIRST SUBSTANTIVE GROUND SEEKS TO DELETE 10% AD HOC BASIS OF MOTOR CAR EXPENSE OF 20,485/- OUT OF TOTAL CLAIM OF 2,04,855/- MADE IN THE COURSE OF ASSESSMENT AND UPHELD IN THE CIT(A)S ORDER UNDER C HALLENGE. I FIND AT THE OUTSET THAT NEITHER THE ASSESSEE HAS BEEN ABLE TO PROVE THE IMP UGNED CLAIM WHOLLY AND EXCLUSIVELY INCURRED FOR THE PURPOSE OF HIS SILK MA TERIAL BUSINESS NOR ASSESSING OFFICER AND THE CIT(A) HAVE DRAWN ANY COMPARISON VI S--VIS THE SIMILAR CLAIMS IN PRECEDING AND SUCCEEDING ASSESSMENT YEAR. I THEREFO RE DEEM IT APPROPRIATE IN THIS BACKDROP OF FACTS THAT A LUMP SUM DISALLOWANCE OF 5 % WOULD MEET THE ENDS OF JUSTICE WITH A RIDER THAT SAME SHALL NOT BE TREATED AS A PR ECEDENT IN ANY OTHER ASSESSMENT YEAR. THE ASSESSEE GETS PART RELIEF ACCORDINGLY. ITA NO.16/KOL/2019 A.Y. 2012-13 SH. AMIT KR. BAJAJ VS. ITO WD-44(1) K OL. PAGE 2 3. NEXT COMES THE SECOND ISSUE OF CORRECTNESS OF BO TH THE LOWER AUTHORITIES ACTION DISALLOWING THE ASSESSEES INTEREST CLAIM OF UNSECU RED LOAN INVOLVING SUM OF 5,01,684/-. THERE IS NO DISPUTE THAT ASSESSEE HAD I NCURRED TOTAL INTEREST EXPENDITURE OF 6,53,541/- AS AGAINST INTEREST RECEIPT OF FIXED DEP OSIT OF 1,51,857/- MADE FOR THE PURPOSE OF GETTING LETTER OF CREDIT PERTAINING TO H IS EXPORT BUSINESS. IT TRANSPIRES DURING THE COURSE OF HEARING AND AFTER A PERUSAL OF THE IN STANT CASE FILE PAGE 13 OF THE CIT(A)S ORDER THAT THE ASSESSEE HAD INDEED APPLIED HIS FUNDS IN INCREASING CURRENT ASSET, FIXED DEPOSIT ( IN LIEU OF BANK LIMIT ETC), PURCHASE OF FIXED ASSET ONLY I.E. WHOLLY AND EXCLUSIVELY FOR HIS BUSINESS. THESE CLINCHING F ACTS LEAD TO THE CONCLUSION THAT IT IS NOT A CASE OF DIVERSION OF INTEREST BEARING FUNDS F OR NON-BUSINESS PURPOSES. I THEREFORE DELETE THE IMPUGNED INTEREST DISALLOWANCE. 4. LEARNED COUNSEL REPRESENTING ASSESSEE DOES NOT W ISH TO PRESS FOR THE THIRD SUBSTANTIVE GROUND INVOLVING ADDITION OF 11,434/- ON ACCOUNT OF DIFFERENCE BETWEEN BALANCE-SHEET SHOWN BY M/S JALAN SYNTHETICS AND IN HIS BOOKS WITH A RIDER THAT SAME SHALL NOT BE TREATED AS A PRECEDENT IN VIEW OF SMAL LNESS OF THE AMOUNT INVOLVED. I DECLINE THIS THIRD SUBSTANTIVE GROUND IN FOREGOING TERMS. 5. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOV E TERMS. ORDER PRONOUNCED IN OPEN COURT ON 21/06/2019 SD /- (S.S. GODARA) JUDIC IAL MEMBER KOLKATA, *DKP/SR.PS - 21/06/2019 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-SHRI AMIT KR. BAJAJ, 124, JAMUNA LAL BAJ AJ ST. KOLKATA-007 2. /RESPONDENT-ITO WD-44(1) 3, GOVT. PLACE W4EST, GR. FL. R. NO.14 KOL-001 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , /TRUE COPY/ ',