Rajeev & Company, Barabanki V. Dy. Commissioner of Income Tax, Lucknow

ITA 180/LKW/2014

• Counselvise Citation: 18023714 RSA 2014
• Duration Of Justice: 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-07-2014
• Assessment Year: 2010-2011
• Appeal Filed On: 20-03-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.180/LKW/2014 ASSESSMENT YEAR:2010 - 2011 M/S RAJEEV & COMPANY, BHITRI PEER BATAWAN, B.P.13, NAWABGANJ, BARABANKI. PAN:AAEFR6741H VS. DY.C.I.T., RANGE - V, LUCKNOW. (APPELLANT) (RESPONDENT) APPELLANT BY NONE RESPONDENT BY SHRI AMIT NIGAM, D.R. DATE OF HEARING 16/07/2014 DATE OF PRONOUNCEMENT 2 2 /08/2014 O R D E R PER A. K. GARODIA, A.M. THIS IS AN ASSESSEES APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT(A) - II, LUCKNOW DATED 31/12/2013 FOR THE ASSESSMENT YEAR 2010 - 2011. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: THAT THE LEARNED COURTS BELOW ARE NOT JUSTIFIED IN CONFIRMING THE DISALLOWANCE OUT OF UNSECURED LOANS. THAT THE LEARNED COURTS BELOW ARE NOR JUSTIFIED IN ADDING RS.3,84,214/ - TOWARDS UNEXPLAINED SUNDRY CREDITORS. THAT THE TEAMED COURTS BELOW ARE NOT JUSTIFIED IN CONFIRMING DISALLOWANCE OF R S.15,55,744/ - OUT OF EXPENSES UNDER THE HEAD PURCHASES, FREIGHT AND CARTAGES, LABOUR AND WAGES, LOOSE TOOLS, SITE EXPENSES AND MACHINE (ROLLER RUNNING EXPENSES). 2 THAT THE LEARNED COURTS BELOW ARE NOT JUSTIFIED IN MAKING DISALLOWANCE OF RS.25,000/ - OUT OF D AMAGE AND SHORTAGES. THAT THE TOTAL INCOME ASSESSED IS HIGHLY EXCESSIVE. THAT THE FINDINGS OF THE LEARNED COURTS BELOW ARE CONTRARY TO LAW AND FACTS OF THE CASE. THAT THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX IS BAD IN LAW AS NO TAX HAS BEEN QUANTIFIED IN THE BODY OF ASSESSING OFFICER. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE ON THE DATE OF HEARING INSPITE OF NOTICE AND HENCE, WE PROCEED TO DECIDE THIS APPEAL OF THE ASSESSEE EX - PARTE QUA THE ASSESSEE. 4. LEARNED D.R. OF THE REVENUE SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF LEARNED D.R. OF THE REVENUE, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. REGARDING THE FIRST ISSUE I.E. CONFIRMING ADDITION OF RS.3,84,214/ - TOWARDS UNEXPLAINED SUNDRY CREDITORS, WE FIND THAT TOTAL ADDITION OF RS.2,20,87,655/ - WAS MADE OUT OF UNPAID LIABILITY. OUT OF THIS, CIT(A) HAS ALLOWED RELIEF OF RS. 2,17,03,387/ - . HE HAS CONFIRMED THE ADDITION OF RS.3,84,214/ - O NLY ON THE BASIS THAT THE ASSESSEE HAS FAILED TO PROVIDE DETAILS/INFORMATION IN RESPECT OF UNPAID TRADING LIABILITY SHOWN IN THE BALANCE SHEET AS ON 31/03/2010. SINCE NONE HAS APPEARED BEFORE US ON BEHALF OF THE ASSESSEE TO CONTROVERT THIS FINDING OF CIT( A), NO INTERFERENCE IS CALLED FOR IN HIS ORDER ON THIS ISSUE. 6. THE SECOND ADDITION CONFIRMED BY CIT(A) IS OF RS.15,55,744/ - . WE FIND THAT THE ASSESSING OFFICER HAS DISALLOWED RS. 38 , 89 , 36 0/ - ON ADHOC BASIS TO THE EXTENT OF 2.5% OF RS. 1554,74,390/ - ON THIS BASIS THAT THESE 3 EXPENSES ARE NOT VERIFIABLE . OUT OF THIS, CIT(A) HAS CONFIRMED ADDITION OF RS.15,55,744/ - ONLY I.E. TO THE EXTENT OF 1 % WITH A FINDING THAT THIS MUCH DISALLOWANCE IS CALLED FOR FROM THESE HEADS OF EXPENSES . SINCE NONE HAS APPEARED BEFORE US ON BEHALF OF THE ASSESSEE TO CONTROVERT THIS FINDING OF CIT(A), NO INTERFERENCE IS CALLED FOR IN HIS ORDER ON THIS ISSUE ALSO. 7. THE THIRD ADDITION UPHELD BY CIT(A) IS RS.25,000/ - OUT OF DAMAGE AND SHORTAGE. WE FIND THAT THE ASSESSING OFFICER HAS MADE ADDITION OF RS.6,02,731/ - OUT OF DAMAGE AND SHORTAGE. THIS DISALLOWANCE IS CONFIRMED BY CIT(A) ON THE BASIS OF PAST HISTORY OF THE ASSESSEES OWN CASE. HENCE, ON THIS ISSUE ALSO, WE DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF CIT(A). 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS DISMISSED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GAROD IA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 2 /08/2014. *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR