SHAKTI HARDWARE COLLECTIONS P.LTD, MUMBAI V. DCIT CC 22, MUMBAI

ITA 1799/MUM/2014

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0926 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 14-03-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A K DHONDIAL
• Assessee Lawyers: RACHANA KANVI
• Section: 143(3)

Judgement Text

, - , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC, MUMBAI ,!' , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, ITA NO.1799/MUM/2014 ASSESSMENT YEAR: 2010-11 M/S SHAKTI HARDWARE COLLECTIONS PVT. LTD. 60/62, KIKA STREET, GULABWADI, MUMBAI-400004 / VS. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-22, MUMBAI / ASSESSEE / REVENUE P.A. NO. AAECS6501K $%& / ASSESSEE BY SMT. RACHANA KANVI $%& / REVENUE BY SHRI A.K.DHONDIAL-CIT-DR / DATE OF HEARING 09/06/2015 & / DATE OF ORDER: 10/06/2015 &/ O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE ASSESSEE IS AGGRIEVED BY IMPUGNED ORDER DATED 16/12/2013 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI. THE ONLY GROUND RAISED BY THE ASSESSEE PERTAINS TO CONFIRMING AD-HOC DISALLOWANCE TO THE EXTENT OF RS. 5 LAKH TOWARDS EXPENSES DEBITED TO THE PROFIT & LOSS ACCOU NT, WITHOUT APPRECIATING THE FACT THAT NO SUCH EXPENSE WHICH HAS BEEN CLAIMED BY THE ASSESSEE IS NOT GENUINE OR UNVE RIFIABLE ITA NO.1799/MUM/2014 M/S SHAKTI HARDWARE COLLECTIONS PVT. LTD 2 AND ALL THE EXPENSES ARE DULY SUPPORTED BY VOUCHERS AND FURTHER RELATED TO THE BUSINESS OF THE ASSESSEE. 2. DURING HEARING OF THIS APPEAL, SMT. RACHNA KANV E, LD. COUNSEL FOR THE ASSESSEE, ADVANCED HER ARGUMEN TS WHICH ARE IDENTICAL TO THE GROUNDS RAISED, BY FURTHER SUB MITTING THAT A REASONABLE VIEW MAY BE TAKEN BY THE BENCH. ON THE OTHER HAND, SHRI A.K.DHONDIAL, LD. CIT-DR, DEFENDED THE CONCLUSION ARRIVED AT IN THE IMPUGNED ORDER. 2.1. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS , IN BRIEF, ARE THAT THE ASSESSEE DECLARED LOSS OF RS.43,26,781 /- WHICH WAS SUBSEQUENTLY REVISED TO RS.3,14,213/-. THE ASS ESSMENT WAS COMPLETED ASSESSING THE INCOME AT RS.11,85,790/ - U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT). THE ASSESSEE DEBITED VARIOUS EXPENSES IN ITS PROFIT AND LOSS ACCOUNTS, WHICH INCLUDES STAFF WELFARE EXPENSES, EL ECTRICITY, OFFICE EXPENSES PRINTING AND STATIONARY EXPENSES, TELEPHONE/CONVEYANCE EXPENSES, REPAIR AND MAINTENAN CE EXPENSES, FREIGHT CHARGES, GENERAL EXPENSES. THE A SSESSING OFFICER MADE AD-HOC DISALLOWANCE OF RS.15 LAKH ON T HE GROUND THAT NECESSARY DETAILS WERE NOT SUBMITTED. ON APPEAL, BEFORE THE LD. COMMISSIONER OF INCOME TAX ( APPEALS), THE AD-HOC DISALLOWANCE WAS RESTRICTED TO RS.5 LAKH . THE ASSESSEE IS IN FURTHER APPEAL BEFORE THIS TRIBUNAL BY CONTENDING THAT NECESSARY DETAILS/BILLS AND VOUCHER S WERE DULY SUBMITTED, THEREFORE, NO AD-HOC DISALLOWANCE I S WARRANTED. I HAVE PERUSED THE RECORD, OBSERVATION MADE IN ITA NO.1799/MUM/2014 M/S SHAKTI HARDWARE COLLECTIONS PVT. LTD 3 THE ASSESSMENT ORDER AND ALSO THE REASONING CONTAIN ED IN THE IMPUGNED ORDER. THERE IS A FINDING IN THE IMPUGNED ORDER THAT THE ASSESSEE CLARIFIED TO WHOM THE PAYMENTS WE RE MADE AND THE SAME WERE REFLECTED IN THE BOOKS. CONSIDER ING THE TOTALITY OF FACTS, THE DISALLOWANCE WAS RESTRICTED TO RS.5 LAKH. KEEPING IN VIEW, THE TOTALITY OF FACTS, NATURE OF D ISALLOWANCE AND TO PUT AN END TO LITIGATION, THE DISALLOWANCE I S RESTRICTED TO RS.3.50 LAKHS IN PLACE OF RS.5 LAKH SUSTAINED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS). THUS, THIS A PPEAL OF THE ASSESSEE IS PARTLY ALLOWED. FINALLY, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOW ED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LEARNED REPRESENTATIVES FROM BOTH THE S IDES AT THE CONCLUSION OF THE HEARING ON 09 TH JUNE 2015. SD/- (JOGINDER SINGH) !' / JUDICIAL MEMBER MUMBAI; DATED : 10/06/2015 F{X~{T? P.S / ! &$)!*+,&+-* / COPY OF THE ORDER FORWARDED TO : 1. '#$%& / THE APPELLANT 2. '(%& / THE RESPONDENT. 3. ) ) * ( '#$ ) / THE CIT, MUMBAI. 4. ) ) * / CIT(A)- , MUMBAI 5. -./ ' , ) '#$ ' 1 , / DR, ITAT, MUMBAI 6. /2 3$ / GUARD FILE. & / BY ORDER, (-# ' //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI