Hare Ram Singh, Hooghly V. ITO, Ward-1(3), Hooghly, Hooghly

ITA 1854/KOL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 0665 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 16-08-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P K MONDAL
• Keywords: Business expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (SMC), KOLKATA [BEFORE HONBLE SHRI J. SUDHAKAR REDDY] I.T.A. NO. 1854/KOL/2017 ASSESSMENT YEAR : 2009-10 HARE RAM SINGH..........................................................................................APPELLANT 76/B, G.T. ROAD, BAGKHAL, RISHRA, HOOGHLY 712 248. [PAN : ALCPS 8642 K] INCOME TAX OFFICER............................RESPONDENT WARD 1(3), AAYAKAR BHAWAN, KHADINA MORE, CHINSURAH, HOOGHLY. APPEARANCES BY: SHRI SUBASH AGARWAL, ADVOCATE APPEARING ON BEHALF OF THE ASSESSEE. SHRI P.K. MONDAL, ADDL CIT APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : NOVEMBER 15, 2017 DATE OF PRONOUNCING THE ORDER : DECEMBER 20, 2017 ORDER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF CIT (APPEALS) 6, KOLKATA DATED 15.06.2017 FOR THE ASSESSMENT YEAR 2009-10 ON THE FOLLOWING GROUND: THE HONBLE CIT(APPEALS) HAS ERRED IN CONFIRMING THE ADHOC DISALLOWANCE OF RS. 26,03,585/- CALCULATED AS 20% OF CERTAIN BUSINESS EXPENSES OF THE COMPANY. THE ADDITIONS WERE MADE BY THE LD. ASSESSING OFFICER WITHOUT SOLID FOOTING TO BASE IT ON. THE DISALLOWANCE WAS THUS BASED ON A MERE SURMISE ON THE PART OF THE ASSESSING OFFICER WITHOUT ANY ESTABLISHED PROOF OR REASONING OF ANY WRONG DOING BY THE ASSESSEE IN CLAIMING THESE BUSINESS EXPENDITURES. 3. AFTER HEARING RIVAL CONTENTION, WE FIND THAT THE ASSESSEE IN THIS CASE IS A TRANSPORTER OF GOODS. THE ASSESSING OFFICER FOUND THAT EXPENSES RELATING TO FUEL, INSURANCE, REPAIRS AND MAINTENANCE, TOLL TAX, CHECK POST AND PERMIT EXPENSES ARE SUBSTANTIATED ONLY BY WAY OF SELF 2 I.T.A. NO. 1854/KOL/2017 A.Y. 2009-10 HARE RAM SINGH VOUCHERS. HENCE 20% OF THESE SUBSTANTIATED AMOUNTS WERE DISALLOWED ON ADHOC BASIS. ON THE GROUND THAT THE ASSESSEE COULD NOT SUBSTANTIATE THE SAME. THE LD. CIT(A) UPHELD THE DISALLOWANCE. BEFORE THE LD. CIT(A) AS WELL AS BEFORE US THE ASSESSEE COULD NOT FACTUALLY DISPUTE THE FINDINGS OF THE ASSESSING OFFICER THAT THE EXPENSES IN QUESTION ARE NOT FULLY SUPPORTED BY 3 RD PARTY EVIDENCE. 4. IN THESE CIRCUMSTANCES, KEEPING IN VIEW, THE FACTS AND CIRCUMSTANCES OF THE CASE, I AM OF THE VIEW THAT IN THE INTEREST OF JUSTICE THE DISALLOWANCE SHOULD BE RESTRICTED TO 10% OF THE SAID EXPENDITURE. THE ASSESSEE GETS RELIEF OF 10% OF THE SAID EXPENDITURE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED IN PART. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH DECEMBER, 2017. SD/- (J. SUDHAKAR REDDY) ACCOUNTANT MEMBER DATED: 20/12/2017 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. HARE RAM SINGH, 76/B, G.T. ROAD, BAGKHAL, RISHRA, HOOGHLY 712248. 2. ITO, WARD 1(3), AAYAKAR BHAWAN, KHADINA MORE, CHINSURAH, HOOGHLY. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, 3 I.T.A. NO. 1854/KOL/2017 A.Y. 2009-10 HARE RAM SINGH SR. P.S. / H.O.O. ITAT, KOLKATA