Ramdayal Hanumandas Soni, Nashik V. Deputy Commissioner of Income-tax,

ITA 1664/PUN/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1649 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 02-08-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJEEV GHEI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO . 1664 /P U N/201 6 / ASSESSMENT YEAR : 20 12 - 13 RAMDAYAL HANUMANDAS SONI, TILAK MAIDAN, YEOLA, NASHIK 423401 PAN : AABFR7037B ....... / APPELLANT / V/S. DEPUTY COMMISSIONER OF INCOME TAX, MALEGAON CIRCLE, MALEGAON / RESPONDENT ASSESSEE BY : S HRI PRAMOD SHINGTE REVENUE BY : SHRI SANJEEV GHEI / DATE OF HEARING : 2 3 - 08 - 201 8 / DATE OF PRONOUNCEMENT : 31 - 0 8 - 201 8 / ORDER PER VIKAS AWASTHY, JM : TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 1 , NASHIK DATED 19 - 05 - 2016 FOR THE ASSESSMENT YEAR 20 12 - 13 . 2. THE ASSESSEE IN APPEAL HAS RAISED ONLY ONE GROUND. THE SAME READS AS UNDER : 1. IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE CASE, EVIDENCES ON RECORD AND THE PROVISIONS OF LAW, THE LEARNED CIT (APPEALS) ERRED IN 2 ITA NO . 1664/PUN/2016, A.Y. 2012 - 13 UPHOLDING THE DISALLOWANCE OF CASH PURCHASES TO THE EXTENT OF 10% OF TOTAL CASH PURCHASES MADE BY APPELLANT DURING THE PRE VIOUS YEAR RELEVANT TO A.Y. 2012 - 13. THEREFORE, IT IS PRAYED TO DELETE THE SAID DISALLOWANCE, CONFIRMED BY THE LEARNED CIT (A). 3. SHRI PRAMOD SHINGTE APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRADIN G IN PAITHANI, SAREES, KAD & SILK ETC. IN SCRUTINY ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER DISALLOWED RS.14,67,310/ - ON ACCOUNT OF PURCHASES MADE IN CASH BY THE ASSESSEE. THE ASSESSING OFFICER ESTIMATED AFORESAID DISALLOWANCE @ 20% OF CASH PURCHASE S. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS). THE COMMISSIONER OF INCOME TAX (APPEALS) RESTRICTED THE ADDITION TO 10% OF THE CASH PURCHASES I.E. RS. 7,33,655/ - . NOW, THE ASSESSEE IS IN SECOND APPEAL BEFORE THE TRIBUNAL AGAINST THE ADDITION CONFIRMED BY THE COMMISSIONER OF INCOME TAX (APPEALS). THE LD. AR SUBMITTED THAT IN ASSESSMENT YEAR 2010 - 11 SIMILAR DISALLOWANCE WAS MADE BY THE ASSESSING OFFICER IN RESPECT OF CASH PURCHASES. THE ASSESSING OFFICER DISAL LOWED 20% OF THE CASH PURCHASES. THE COMMISSIONER OF INCOME TAX (APPEALS) RESTRICTED THE DISALLOWANCE TO 10% I.E. RS.45,88,950/ - . THE TRIBUNAL FURTHER REDUCED THE ADDITION BY ESTIMATING DISALLOWANCE AT RS.25,00,000/ - . THE LD. AR FURNISHED THE COPY OF TR IBUNAL ORDER IN ASSESSEES OWN CASE IN ITA NO. 645/PUN/2015 FOR ASSESSMENT YEAR 2010 - 11 DECIDED ON 08 - 09 - 2017. 4. ON THE OTHER HAND SHRI SANJEEV GHEI REPRESENTING THE DEPARTMENT VEHEMENTLY DEFENDED THE FINDINGS OF COMMISSIONER OF INCOME TAX (APPEALS) AND PRAYED FOR DISMISSING THE APPEAL OF ASSESSEE. 5. W E HAVE HEARD THE SUBMISSIONS MADE BY REPRESENTATIVES OF RIVAL SIDES AND HAVE PERUSED THE ORDERS OF AUTHORITIES BELOW . WE HAVE ALSO CONSIDERED THE ORD ER OF CO - ORDINATE BENCH IN ASSESSEES OWN CASE IN ITA NO. 645/PUN/2015 (SUPRA). THE ONLY GRIEVANCE OF THE ASSESSEE IN APPEAL 3 ITA NO . 1664/PUN/2016, A.Y. 2012 - 13 IS AGAINST CONFIRMING OF DISALLOWANCE RS.7,33,655/ - ON ACCOUNT OF CASH PURCHASES MADE BY THE ASSESSEE. WE FIND THAT IN ASSESSMENT YEAR 2010 - 11 AD HOC DISALLOWANCE WAS MADE BY THE ASSESSING OFFICER IN RESPECT OF CASH PURCHASES IN SIMILAR MANNER . THE TRIBUNAL REDUCED THE DISALLOWANCE FROM RS.45,88,950/ - TO RS.25,00,000/ - . THE FACTS IN THE ASSESSMENT YEAR UNDER APPEAL ARE IDENTICAL. TAKING INTO CONSIDERATION ENTIRETY OF FACTS , WE ARE OF CONSIDERED VIEW RESTRICTING DISALLOWANCE TO RS.4,00,000/ - IN ASSESSMENT YEAR UNDER APPEAL WOULD BE REASONABLE AND WOULD MEET THE ENDS OF JUSTICE. ACCORDINGLY, THE IMPUGNED ORDER IS MODIFIED AND THE GROUND RAISED BY THE ASSESSEE IN APPEAL IS PARTLY ALLOWED. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS PARTLY ALLOWED IN THE TERMS AFORESAID. ORDER PRONOUNCED ON FRIDAY, THE 31 ST DAY OF AUGUST, 201 8 . SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 31 ST AUGUST, 2018 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 1 , NASHIK 4. THE PR. COMMISSIONER OF INCOME TAX - 1, NASHIK 5. , , , / DR, ITAT, A BENCH, PUNE. 6. / GUARD FILE. / / // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE