AAKASH STONE INDUSTRIES LTD, MUMBAI V. ACIT RG 8(1), MUMBAI

ITA 1871/MUM/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2178 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2010
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 12-04-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 24-03-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIKRAM GAUR
• Assessee Lawyers: PARAS S SAVLA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, A, MUMBAI BEFORE SHRI R V EASWAR, SENIOR VICE PRESIDENT AND SHRI J SUDHAKAR REDDY, ACCOUNTANT MEMBER I T A NO: 1871/MUM/2009 (ASSESSMENT YEAR: 2005-06) M/S AKASH STONE INDUSTRIES LIMITED, MUMBAI APPEL LANT (PAN: AAACA9755H) VS ASSISTANT COMMISSIONER OF INCOME TAX, RANGE 8(1) RESPONDENT MUMBAI APPELLANT BY: SHRI PARAS S SAVLA RESPONDENT BY: SHRI VIKRAM GAUR O R D E R R V EASWAR, SENIOR VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE RELATES TO THE ASSESSM ENT YEAR 2005-06 AND IS DIRECTED AGAINST THE DISALLOWANCE OF THE TRAVELLING EXPENSES OF RS.8,36,636/-. 2. THE ASSESSEE IS A COMPANY MANUFACTURING MARBLE S LABS. IT CLAIMED TRAVELLING EXPENSES OF RS.20,91,591/- AND W HEN THE ASSESSING OFFICER CALLED FOR THE DETAILS OF THE SAME, IT FURN ISHED SOME DETAILS BUT DID NOT GIVE THE BASIC DETAILS SUCH AS THE NAME OF THE PERSON TRAVELED, PLACE AND PURPOSE OF VISIT, ETC. IN THE ABSENCE OF THESE DETAILS, THE ASSESSING OFFICER DISALLOWED ON ESTIMATE 40% OF THE EXPENSES, WHICH CAME TO RS.8,36,636/-. BEFORE THE CIT(A), SOME FUR THER DETAILS WERE FURNISHED BUT HE NOTED THAT EVEN THESE DETAILS DO N OT GIVE THE NAME OF 2 THE PLACE VISITED AND THE PURPOSE OF THE VISIT, WHI CH ACCORDING TO HIM WERE NECESSARY TO PROVE THAT THE EXPENDITURE WAS IN CURRED FOR BUSINESS PURPOSES. HE, THEREFORE, SUSTAINED THE DI SALLOWANCE. 3. IN THE FURTHER APPEAL BEFORE THE TRIBUNAL, IT IS SEEN THAT SO FAR AS THE FURNISHING OF THE DETAILS RELATING TO THE EXPEN DITURE IS CONCERNED, THERE IS NOT MUCH OF AN IMPROVEMENT, THE ONLY IMPRO VEMENT BEING THAT AT PAGE 22 OF THE PAPER BOOK, THE NAMES OF THE PERS ONS TRAVELED AND THE DESTINATION AS WELL AS THEIR STATUS IN THE ASSE SSEE FIRM HAVE BEEN GIVEN. ALL THE VISITS ARE STATED TO BE FOR THE PUR POSE OF THE BUSINESS BUT THE ASSESSEE HAS NO BOARD RESOLUTION, TOUR REPORT, CORRESPONDENCE WITH THE FOREIGN CUSTOMER, ETC. TO SUPPORT ITS CLAI M THAT ALL THE EXPENSES WERE INCURRED FOR THE PURPOSE OF ITS BUSINESS. THE LEARNED COUNSEL FOR THE ASSESSEE FAIRLY STATED THAT NO FURTHER DETAILS ARE AVAILABLE WITH HIM BUT ARGUED THAT THE DISALLOWANCE WAS EXCESSIVE AND PRAYED FOR SCALING DOWN THE SAME. AFTER HEARING THE LEARNED DEPARTMEN TAL REPRESENTATIVE AND AFTER LOOKING INTO THE DETAILS F ILED BEFORE US, WE DO FEEL THAT THE DISALLOWANCE IS SOMEWHAT ON THE HIGHE R SIDE. WE, THEREFORE, SCALE IT DOWN TO 10% OF THE TOTAL EXPENS ES OF RS.20,65,141/- AND ALLOW THE APPEAL OF THE ASSESSEE IN PART. NO C OSTS. ORDER PRONOUNCED ON 20 TH APRIL 2010. SD/- SD/- (J SUDHAKAR REDDY) (R V EASWAR) ACCOUNTANT MEMBER SENIOR VICE PRESI DENT MUMBAI, DATED 20 TH APRIL 2010 SALDANHA 3 COPY TO: 1. M/S AAKASH STONE INDUSTRIES LTD. SANTACRUZ AIRPORT SIDE, MARBLE MARKET WESTERN EXPRESS HIGHWAY VILE PARLE (EAST), MUMBAI 400 099 2. ACIT RANGE 8(1) 3. CIT-VIII 4. CIT(A)-VIII 5. DR A BENCH TRUE COPY BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI