Sri Niranjan Kr. Agarwal, V. I.T.O.,

ITA 182/RAN/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0352 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2004-2005
• Appeal Filed On: 20-05-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: CHOUDHARY ORAON

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL: CIRCUIT BENCH : RANCHI [BEFORE HONBLE S/SHRI N. S. SAINI, AM AND GEORGE M ATHAN, JM] ITA NO. 182/RAN/2014 ASSESSMENT YEAR: 2004-05 SRI NIRANJAN KUMAR AGRAWAL, PROP: ALLIED CARRIERS, CHIRKUNDA, DHANBAD PAN: ACHPA 0443Q VS THE INCOME TAX OFFICER, WARD-2(1), DHANBAD (APPELLANT) (RESPONDENT) APPELLANT BY SHRI S. K. PODDAR WITH SHRI M. K. CHOUDHARY, ADVOCATES RESPONDENT BY SHRI CHOUDHARY ORAON, DR DATE OF HEARING: 28-10-2015 DATE OF PRONOUNCEMENT: 28-10-2015 O R D E R PER GEORGE MATHAN, JM: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A),DHANBAD (JHARKHAND) IN APPEAL NO.118 /DHN/2006-07 DATED 29-12-2006 FOR THE ASSESSMENT YEAR 2004-05. 2. SHRI S. K. PODDAR AND SHRI M. K. CHOUDHARY REPRE SENTED ON BEHALF OF THE ASSESSEE AND SHRI CHOUDHARY ORAON, LE ARNED DR REPRESENTED ON BEHALF OF THE REVENUE. 3. IN RESPECT OF GROUND NO.1, IT WAS SUBMITTED BY T HE LEARNED AR THAT THE ASSESSEE IS IN THE BUSINESS OF TRANSPORTAT ION. THE ASSESSEE HAD CLAIMED PAYMENT OF RS.1,38,18,246/- AS FREIGHT CHARGES. IT WAS A SUBMISSION THAT THE AO HAD, IN THE COURSE OF ASSESS MENT DISALLOWED 1% OF THE SAID EXPENDITURE ON THE GROUND THAT THERE WERE SELF-MADE VOUCHERS. IT WAS A SUBMISSION THAT ON APPEAL, THE L EARNED CIT(A) HAD ITA NO.182/RAN/2014 (AY: 2004-05) 2 RESTRICTED THE DISALLOWANCE TO RS.50,000/-. IT WAS A SUBMISSION THAT NO DEFECT IN THE BOOKS OF ACCOUNT OR VOUCHERS PRODUCED BY THE ASSESSEE HAD BEEN POINTED OUT. IT WAS ALSO A SUBMISSION THAT THE DISALLOWANCE OF RS.50,000/- TO COVER POSSIBLE LEAKAGES AND INFLA TION OF EXPENSES WAS NOT LIABLE TO BE MADE. IT WAS A SUBMISSION THAT THE DISALLOWANCE CONFIRMED BY THE LEARNED CIT(A) WAS LIABLE TO BE DE LETED. 4. IN REGARD TO GROUND NOS. 2 AND 3 IN RESPECT OF G IFTS RECEIVED BY THE ASSESSEE OF RS.1,00,000/- EACH FROM TWO UNRELAT ED PERSONS, IT WAS SUBMITTED THAT HE DID NOT WISH TO PRESS THESE GROUN DS. NO OTHER GROUNDS WERE SERIOUSLY ARGUED. 5. IN REPLY, THE LEARNED DR SUBMITTED THAT THE DISA LLOWANCE OF RS.50,000/- IN RESPECT OF TRANSPORTATION CHARGES WA S LIABLE TO BE UPHELD. HE VEHEMENTLY SUPPORTED THE ORDERS OF THE L EARNED CIT(A) AND THE AO. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PERU SAL OF THE ASSESSMENT ORDER AS ALSO THE ORDER OF THE LEARNED C IT(A) CLEARLY SHOWS THAT NEITHER OF THE LOWER AUTHORITIES HAD POINTED O UT ANY DEFECTS IN THE TRANSPORTATION EXPENSES CLAIMED BY THE ASSESSEE. TH E DISALLOWANCES AS MADE BY THE AO AND THE REDUCED DISALLOWANCE AS CONF IRMED BY THE LEARNED CIT(A) ARE CLEARLY ON AD HOC BASIS WHICH I S NOT PERMISSIBLE UNDER THE LAW. CONSEQUENTLY, THE DISALLOWANCE OF RS .50,000/- ON THE TRANSPORTATION CHARGES PAID, AS CONFIRMED BY THE LE ARNED CIT(A) STANDS DELETED. ACCORDINGLY, GROUND NO.1 OF THE APP EAL STANDS ALLOWED. GROUND NOS. 2 AND 3 OF THE ASSESSEES APPEAL ARE DI SMISSED AS NOT PRESSED. ITA NO.182/RAN/2014 (AY: 2004-05) 3 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. THE ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE CLOSE OF HEARING ON 28-10-2015. SD/- SD/- (N.S. SAINI) ACCOUNTANT MEMBER (GEORGE MATHAN) JUDICIAL MEMBER DATE : 28.10.15 LK DEKA/SR.PS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) - 5. THE DR, ITAT, RANCHI 6. GUARD FILE BY ORDER ITA NO.182/RAN/2014 (AY: 2004-05) 4 DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 28.10.15 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 28.10.15 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 28.10.15 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 28.10. 15 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 28.10.15 S R.PS 6. DATE OF PRONOUNCEMENT 28.10.15 SR.PS 7. FILE SENT TO THE BENCH CLERK 28.10.15 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER