M/s Associated Constructions., Rajahmundry V. The ACIT, Circle-1., Rajahmundry

ITA 166/VIZ/2006

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 2870 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 year(s) 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2009
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2003-2004
• Appeal Filed On: 10-04-2006
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R K SINGH

Judgement Text

PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.166/VIZAG/2006 ASSESSMENT YEAR: 2003-04 M/S. ASSOCIATED CONSTRUCTIONS, RAJAHMUNDRY VS. ACIT, CIRCLE-1, RAJAHMUNDRY (APPELLANT) (RESPONDENT) PAN NO. AAGPA 2543 L APPELLANT BY: SHRI G.V.N. HARI, CA, RESPONDENT BY: SHRI R.K. SINGH, DR ORDER PER SHRI B R BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 17.03.2006 PASSED BY THE LD CIT (A) RAJAHMUNDRY AND IT RELATES TO THE ASSESSMENT YEAR 2003-04. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: A) THE FIRST APPELLATE AUTHORITY VIZ., COMMISSIONER OF INCOME-TAX (APPEALS), RAJAHMUNDRY SHOULD HAVE DELETED THE ENTI RE ADDITION MADE BY THE ASSESSING OFFICER VIZ., ASSISTANT COMMI SSIONER OF INCOME TAX, CIRCLE-1, RAJAHMUNDRY. B) THE NATURE OF EXPENDITURE IN RESPECT OF LABOUR W AGES, DRILLING CHARGES ETC., SUCH THAT ARE COMPLETE VOUCHERS AND A DDRESSES WILL NOT BE POSSIBLE TO OBTAIN. PAGE 2 OF 3 C) THE ADDITION MADE BY THE ASSESSING OFFICER VIZ., ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-1, RAJAHMUNDRY A ND SUSTAINED BY THE FIRST APPELLATE AUTHORITY VIZ., COMMISSIONER OF INCOME-TAX (APPEALS), RAJAHMUNDRY ARE EXCESSIVE; D) ANY OTHER GROUNDS OF APPEAL THAT MAY BE URGED AT THE TIME OF HEARING. 3. SINCE THE GROUNDS RAISED ARE GENERAL IN NATURE, ON A QUERY FROM THE BENCH, THE LD AR SUBMITTED THAT THE APPEAL PERTAINS TO THE DISALLOWANCES MADE UNDER THE HEAD LABOUR CHARGES AND DRILLING CHARG ES. ACCORDINGLY THE FACT RELATING TO BOTH THE DISALLOWANCES ARE STATED IN BR IEF. THE ASSESSEE FIRM IS ENGAGED IN EXECUTION OF CONTRACT WORKS. DURING THE COURSE OF ASSESSMENT PROCEEDING, THE AO NOTICED THAT THE LABOUR CHARGES AND DRILLING CHARGES CLAIMED BY THE ASSESSEE ARE SUPPORTED BY SELF MADE VOUCHERS AND EXCESSIVE. ACCORDINGLY, HE DISALLOWED 10% OF LABOUR CHARGES CL AIMED BY THE ASSESSEE AND ALSO 6% OF THE DRILLING CHARGES CLAIMED BY THE ASSE SSEE (I.E. 10% OF THE 60% OF THE EXPENSES). IN THE APPEAL PREFERRED BY THE ASSESS EE, THE LD CIT (A) REDUCED THE DISALLOWANCES BY 50%. STILL AGGRIEVED THE ASSES SEE IS IN APPEAL BEFORE US. 4. THE LD AR SUBMITTED THAT THE ASSESSEE HAS OBTAIN ED SIGNATURES FROM THE RECIPIENTS AND HENCE THEY CANNOT BE TREATED AS SELF MADE VOUCHERS. LD AR ALSO INVITED OUR ATTENTION TO THE COPIES OF VOUCHERS PLA CED IN THE PAPER BOOK FILED BY THE ASSESSEE. HOWEVER, AS POINTED OUT BY THE LD DR , THE SAID VOUCHERS THOUGH SIGNED BY THE RECIPIENTS DID NOT CONTAIN THE ADDRES SES OF THE WORKERS. FURTHER, WE ALSO NOTICE FROM THE ORDER OF THE AO THAT THE SA ID DISALLOWANCES HAVE BEEN MADE NOT ONLY ON ACCOUNT OF SELF MADE VOUCHERS BUT ALSO FOR THE REASON THAT THEY ARE FOUND TO BE EXCESSIVE. THE DISALLOWANCES M ADE BY THE AO HAVE BEEN REDUCED TO THE EXTENT OF 50% BY THE LD CIT (A) FOR THE DEFECTS NOTICED. THE LD AR HAS FURNISHED A COMPARATIVE STATEMENT TO SHOW TH AT THE RESULTS OF INSTANT PAGE 3 OF 3 YEAR ARE COMPARABLE WITH THE IMMEDIATELY PRECEDING YEAR. SINCE THE DEFECTS POINTED BY THE AO ARE RELATED TO THE YEAR UNDER CON SIDERATION, IN OUR OPINION, THE COMPARABLE STATEMENT WILL NOT BE OF MUCH HELP. IN THESE CIRCUMSTANCES WE DO NOT FIND ANY REASON TO INTERFERE WITH THE DECISI ON OF THE LD CIT (A). 5. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 11-12-2009 SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, 11 TH DECEMBER, 2009. COPY TO 1 M/S.ASSOCIATED CONSTRUCTIONS, D.NO.82-4-9/3 VIDYU TH COLONY, AVA ROAD, RAJAHMUNDRY. 2 THE ACIT, CIRCLE-1, RAJAHMUNDRY 3 THE CIT RAJAHMUNDRY 4 THE CIT(A), RAJAHMUNDRY 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM