M/s. Shriji Polymers (India) Ltd., Ujjain V. THE ACIT 2(1), Ujjain

ITA 168/IND/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2240 (ITAT-INDORE)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 03-03-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Assessee Lawyers: S S DESHPANDE

Judgement Text

KAILASH TIWARI ITA NO. 309/IND/2015 1 , , IN THE INCOME TAX APPELLATE TRIB UNAL, INDORE BENCH, INDORE BEFORE SHRI C.M. GARG, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER .../ I.T.A. NO. 168/IND/2017 / ASSESSMENT YEAR: 2013-14 M/S SHRIJI POLYMERS(INDIA) LTD. UJJAIN PAN AAICS-6990E :: / APPELLANT VS ACIT 2(1) UJJAIN :: ! / RESPONDENT '# $ % & / ASSESSEE BY SHRI S.S. DESHPANDE '( $ % & / REVENUE BY SHRI MOHD. JAVED ) * $ #+ DATE OF HEARING 3.5. 2017 ,-./ $ #+ DATE OF PRONOUNCEMENT 0 5 . 5 .2017 / O R D E R PER SHRI C.M. GARG, JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A), UJJAIN, DATED 24.1.201 7 IN FIRST APPEAL NO. U-310/2016-17 FOR THE ASSESSMENT YEAR 2013-14. KAILASH TIWARI ITA NO. 309/IND/2015 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL BY THE ASSE SSEE IS THAT THE COMMISSIONER OF INCOME TAX (APPEALS) WAS NOT JUSTIF IED IN CONFIRMING THE ADDITION OF RS.7,50,738/- BY MAKING 10% AD HOC DISALLOWANCE OF CERTAIN EXPENSES. 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER FOUND FROM THE BILLS AND VOUCHERS RELATING TO CAR RUNNING EXPENSES, REFRESHMENT EXPENSES, VEHICLE RUNNING EXPENSES AND TRAVELLING EXPENSES THAT THESE WERE NOT FULLY VER IFIABLE. HE ALSO NOTED THAT SOME OF THE BILLS WERE SELF-MADE WITHOUT ANY AUTHENTICATION. HE FURTHER OBSERVED THAT IN SUCH E XPENSES PERSONAL USER OF THE SAME CANNOT BE RULED. THE ASSESSING OFF ICER, THEREFORE, DISALLOWED 10% OF THE SAME I.E. RS. 7,50,738/- OUT OF THE SAME AND ADDED BACK TO THE TOTAL INCOME OF THE ASSESSEE. ON APPEAL, THE COMMISSIONER OF INCOME TAX (APPEALS) FOUND THAT IN EARLIER ASSESSMENT YEAR THE ASSESSING OFFICER HAD MADE THE DISALLOWANCE OUT OF TRAVELLING EXPENSES @ 10%. SINCE THE DISALLO WANCE DURING THE YEAR UNDER CONSIDERATION WAS THE SAME AS IN THE EAR LIER YEAR, THE COMMISSIONER OF INCOME TAX (APPEALS) CONFIRMED THE SAME. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. KAILASH TIWARI ITA NO. 309/IND/2015 3 4. BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS MAINTAINED REGULAR BOOKS OF ACCOUN TS AND THE BOOKS ARE DULY AUDITED AS PER THE COMPANIES ACT AND THE REPORT IN FORM NO. 3CD HAS BEEN FURNISHED. THE LEARNED COUNSE L FOR THE ASSESSEE FURTHER SUBMITTED THAT THAT THE ASSESSEE H AS RECORDED ALL EXPENSES PROPERLY IN THE BOOKS OF ACCOUNTS. HE, THE REFORE, PRAYED THAT AS SUCH THE CLAIM OF THE ASSESSEE MAY KINDLY B E ALLOWED. 5. ON THE OTHER HAND, THE LEARNED DR RELIED UPON TH E ORDERS OF THE AUTHORITIES BELOW. 6. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE S IDES. FROM A PERUSAL OF RECORD WE FIND THAT IN THE EARLIER ASS ESSMENT YEAR ALSO THE ASSESSING OFFICER MADE DISALLOWANCE OUT OF TRAV ELLING EXPENSES AT THE RATE OF 10%. THIS IS NOT THE CASE OF THE AS SESSEE BEFORE US THAT THIS DISALLOWANCE @ 10% IN EARLIER WAS EITHER DELETED OR REDUCED BY ANY APPELLATE AUTHORITY. WE, THEREFORE, FIND NO FLAW IN THE ORDERS OF THE AUTHORITIES BELOW AND ACCORDINGLY CONFIRM THE DISALLOWANCE % 10% AS MADE AND SUSTAINED BY THE ASS ESSING OFFICER AND THE COMMISSIONER OF INCOME TAX (APPEALS ). 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. KAILASH TIWARI ITA NO. 309/IND/2015 4 THE ORDER HAS BEEN PRONOUNCED IN OPEN COURT ON 5 TH MAY, 2017. SD/- SD/- &+ ( ( (O.P.MEENA) (C.M. GARG) ACCOUNTANT MEMBER J UDICIAL MEMBER MAY 5, 2017 . DN/