Sri. S. Basheer, Kayamkulam V. The DCIT, Alappuzha

ITA 163/COCH/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96689 (ITAT-COCHIN)
• Duration Of Justice: 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 26-08-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 09-03-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K P GOPAKUMAR

Judgement Text

ITA NO.163/COCH/2015 1 IN THE INCOME TAX APPEL L A TE T R IBUNAL COCHIN BENCH , COCHIN BESORE SH RI B P JAIN , ACCOUNTANT MEMBER ITA NO . 163/COCH/2015 (ASST YEAR 2008 - 09 ) SH S BASHEER LIC AGENT RAGAMALIKA PERUNGALA PO KAYAMKULAM VS THE DY COMMR OF INCOME TAX CIR 1 ALAPUZHA ( APP LICA NT ) (RESPONDENT) PAN NO. ADWPL9135F ASSESSEE BY NONE (ADJOURNMENT APPLICATION FILED) REVENUE BY SHRI K P GOPAKUMAR SR DR DATE OF HEARING 26 TH AUG 2015 DATE OF PRONOUNCEMENT 26 TH AUG 2015 OR D ER PER B P JAIN, AM : THIS APPEAL FILED BY T HE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) - V, KOCHI DATED 31.10.2014 AND ITS RELATES TO THE AY 20 0 8 - 09. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: I) THE LD CI(A) ERRED IN SUSTAINING THE ADHOC ADDITION OF RS 1 LAKH MADE BY THE AO ON THE GROUND THAT THE APPELLANT COULD NOT ESTABLISH THE VERACITY OF CLAIM OF BUSINESS PORTION AND TRAVELING EXPENSES. II) THE LD CIT(A) HAVING CONCEDED THE FACT THAT THE APPELLANT HAD TO INCUR EXPENSES UNDER THE HEARD BUSINESS PROMOTION AND TRAVELLING, THE ADHOC DISALLOWANCE OF RS 1 LAKH WAS NOT WARRANTED. ITA NO.163/COCH/2015 2 2 NONE APPEARED ON BEHALF OF THE ASSESSEE. THE ASSESSEE HAS FILED AN APPLICATION FOR ADJOURNMENT ; BUT NO SUFFICIENT CAUSE IN THE APPLICATION WAS MENTIONED AND ALSO THE APPLICATION WAS NOT REPRESENTED BY ANY R EPRESENTATIVE; THEREFORE, THE APPLICATION IS REJECTED AND I PROCEED TO HEAR THE APPEAL EXPARTE AFTER HEARING THE LD DR. 3 THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL AND A LIC AGENT D URING THE ASSESSMENT PROCEEDING THE AO NOTICED THAT THE ASSESSEE HAD DEBITED RS. 2,77,988/ - AS BUSINESS PROMOTION EXPENSES AND RS. 4,65,469/ - AS TRAVELLING EXPENSES. THE TOTAL EXPENSE INCURRED WAS RS. 7,43,457/ - . THE AO FURTHER OBSERVED THAT AS PER THE DETAILS FILED, THE TRAVELLING EXPENSE WAS INCURRED FOR OFFICE STAFF FOR COLLECTING PREMIUM AND CANVASSING POLICIES AND BUSINESS PROMOTION EXPENSE WAS INCURRED FOR CUSTOMERS MEET. THE AO FURTHER OBSERVED THAT FULL SUPPORTING VOUCHERS OF EXPENSES INCURRED HAVE NOT BEEN PRODUCED. ACCOR DING THE AO MADE A DISALLOWANCE OF RS 1 LAC . THE CIT(A) ALSO CONFIRMED THE ACTION OF THE AO. 4 T HE LD D R RELIED ON THE ORDERS OF BOTH THE LOWER AUTHORITIES AND FILED WRITTEN SYNOPSIS. 5 I HAVE HEARD THE LD DR AND PERUSED THE RELEVANT MATERIAL ON RECORD. TH E STAND OF THE ASSESSEE BEFORE THE AO AND THE LD CIT(A) WA S THAT THE TRAVELLING EXPENSE WAS INCU RRED FOR OFFICE STAFF FOR COLLECTING PREMIUM AND CANVASSING POLICIES AND BUSINESS PROMOTION EXPENSES WAS INCURRED FOR CUSTOMERS MEET. THOUGH THE SUPPOR TING VOUCHERS WERE NOT PRODUCED, THE AO MADE DISALLOWANCE O F 1 LAKH WHICH WAS ALSO CONFIRMED BY THE LD CIT(A). IN MY VIEW, THE DISALLOWANCE APPEARS TO BE ON THE ITA NO.163/COCH/2015 3 EXCESSIVE SIDE AND TO MEET THE END OF JUSTICE TO BOTH ENDS, I GIVE RELIEF OF RS 50 , 000 / - AND S USTAIN THE DISALLOWANCE OF RS. 50 000 / - . 6 IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 26 TH AUG 2015 . SD/ - ( B P JAIN ) ACCOUNTANT MEMBER COCHIN: DATED 26 TH , AUG 2015 RAJ* COPY TO: 1 . APPELLAN T 2 . RESPONDENT 3 . CIT(A) 4 . CIT , 5 . DR 6 . GUARD FILE BY ORDER ASSISTANT REGISTRAR ITAT, COCHIN