Shri Babubhai laxmanbhai Sheladiya, Surat V. The Income tax Officer,Ward-9(1), Surat

ITA 1867/AHD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6925 (ITAT-AHMEDABAD)
• Duration Of Justice: 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 01-04-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 31-05-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MRS R K TOPIWALA

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH C AHMEDABAD BEFORE S/SHRI D.K. TYAGI, JM AND D.C.AGRAWAL, AM SHRI BABUBHAI LAXMANBHAI SHELADIYA, 73, VARSHA SOCIETY, L H ROAD, SURAT. VS. INCOME-TAX OFFICER, WARD 9(1), SURAT. (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI HARDIK VORA, AR RESPONDENT BY:- MRS. R. K. TOPIWALA, DR O R D E R PER D.C. AGRAWAL, ACCOUNTANT MEMBER . THIS IS AN APPEAL FILED BY THE ASSESSEE RAISING FO LLOWING GROUNDS:- (1) ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE AS WE LL AS LAW ON THE SUBJECT, THE LD. CIT (A) HAS ERRED IN CONFIRMIN G THE ACTION OF THE AO IN MAKING DISALLOWANCE OF RS.4,01,437/- BEIN G 1/3 RD OF THE DIESEL AND LABOUR EXPENSES CLAIMED BY ASSESSEE. (2) ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE AS WE LL AS LAW ON THE SUBJECT, THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF THE AO IN MAKING DISALLOWANCE OF RS.65,124/- BEING 1/5 TH OF PETROL EXPENSES CLAIMED BY ASSESSEE. 2. THE FIRST GROUND RELATES TO 1/3 RD DISALLOWANCE OF LABOUR EXPENSES CLAIMED BY THE ASSESSEE. THE AO EXAMINED THE VOUCHE RS AND CASH BOOK AND FOUND THAT CASH BOOK WAS NOT DEBITED FOR THE AM OUNTS FOR WHICH VOUCHERS WERE MADE ON THE DATE MENTIONED ON THE VOU CHERS. SIMILARLY THERE WERE DISCREPANCIES IN LABOUR BILL DEBITED AND BILLS FOR THAT PURPOSE PREPARED. SIMILARLY DISCREPANCIES WERE ALSO FOUND I N CONTRACTOR HIRING ITA NO.1867/AHD/2010 ASST. YEAR 2006-07 ITA NO.1867/AHD/2010 ASST. YEAR 2006-07 2 CHARGES. CONSIDERING THESE FACTS AO DISALLOWED A SU M OF RS.4,01,437/-. THE LD. CIT(A) CONFIRMED THE SAME. 3. WE HAVE HEARD THE PARTIES AND CONSIDERING THE FA CTS ON RECORD, WE DIRECT TO RESTRICT THE DISALLOWANCE TO 1/10 TH OF THE EXPENSES CLAIMED. 4. THE SECOND GROUND RELATES TO CONFIRMING DISALLOW ANCE TO THE EXTENT OF 1/5 TH OF THE TOTAL PETROL EXPENSES RESULTING INTO DISALL OWANCE OF RS.65,124/-. THE AO MENTIONED THAT ASSESSEE HAS NOT MAINTAINED LOG BOOK AND, THEREFORE, IT COULD NOT BE PROVED THAT CA R WAS EXCLUSIVELY USED FOR THE PURPOSE OF BUSINESS. AS COMPLETE DETAILS WE RE NOT MAINTAINED, ELEMENT OF PERSONAL USE OF THE VEHICLE WAS CONSIDER ED AND ACCORDINGLY DISALLOWANCE WAS MADE. 5. THE LD. CIT(A) CONFIRMED THE DISALLOWANCE BY HOL DING THAT NO EVIDENCE OF BUSINESS USE OF THE VEHICLE WAS SUBMITT ED. 6. WE HAVE HEARD THE PARTIES AND GOING THROUGH THE MATERIAL ON RECORD WE THINK IT FIT TO RESTRICT THE DISALLOWANCE TO 1/1 0 TH OF THE TOTAL CLAIM MADE. THE ASSESSEE GETS RESULTANT RELIEF. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER WAS PRONOUNCED IN OPEN COURT ON 8/4/11. SD/- SD/- (D. K. TYAGI) (D.C. AGRAWAL) JUDICIAL MEMBER ACCOUNTANT MEMB ER AHMEDABAD, DATED : 8/4/11. MAHATA/- ITA NO.1867/AHD/2010 ASST. YEAR 2006-07 3 COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD 1.DATE OF DICTATION 1/4/2011 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING 5/4/ 2011 MEMBER.OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.. 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..