Income Tax Officer, Srinagar V. M/s Rahim Motors, Srinagar

ITA 189/ASR/2015

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4138 (ITAT-AMRITSAR)
• Duration Of Justice: 3 year(s) 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 12-02-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 13-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHAWANI SHANKAR
• Keywords: Search and seizure
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TR IBUNAL AMRITSAR BENCH, AMR ITSAR BEFORE SH. N.S.SAINI, ACCOUNTANT MEMBER AND SH. N.K.CHOUDHRY, JUDICIAL MEMBER ITA NO.189(ASR)/2015 ASSESSMENT YEAR:2010-1 1 INCOME TAX OFFICER, WARD-3(2), SRINAGAR. VS. M/S. RAHIM MOTORS, HYDEPORA BYE PASS, SRINAGAR. [PAN:AAFFR 7731L] (APPELLANT) (RESPONDENT) APPELLANT BY: SH. BHAWANI SHANKAR (LD. DR) RESPONDENT BY: NONE DATE OF HEARING: 12.02.2019 DATE OF PRONOUNCEMENT: 13.02.2019 ORDER PER N.K.CHOUDHRY, JM: THE INSTANT APPEAL HAS BEEN PREFERRED BY THE REVENUE DEPARTMENT AGAINST THE ORDER DATED 29.01.2015 PASSED BY THE LD. CIT(A), JAMMU, U/S 250(6) OF THE I.T. ACT, 1961 (HEREINAFTER CALLED AS T HE ACT). 2. THE ASSESSING OFFICER HAS MADE THE ADDITIONS OF RS.81,30, 860/-, RS.2,58,874/- & RS.3,47,492/- ON ACCOUNT OF UNEXPLAINE D AMOUNT U/S 68, VAT PAYABLE, DISALLOWANCE AND DONATION RESPECTIVELY. ON APPEAL THE LD. CIT(A) PARTLY GRANTED THE RELIEF WHILE PARTLY ALLOW ING THE APPEAL OF THE ITA NO.189 /ASR/2015 (A.Y.2010-11) ITO VS. MS. RAHIM MOTORS, SRINAGAR 2 ASSESSEE. ON AGGRIEVED AGAINST THE PARTLY RELIEF ALLOWED BY TH E LD. CIT(A), THE REVENUE DEPARTMENT CHALLENGED THE DELETION OF AD DITION ON ACCOUNT VAT PAYABLE AND REDUCING THE DISALLOWANCE MADE BY THE AO T O 10% FROM 1/3 RD OF THE EXPENSES. 3. HAVING HEARD THE LD D.R. AND PERUSED THE ORDERS PASSE D BY THE AUTHORITIES BELOW SPECIFICALLY THE IMPUGNED ORDER HERE IN. THE LD. CIT(A) WHILE DELETING THE DISALLOWANCE OF RS.2,58,874/- ON ACCO UNT OF VAT PAYABLE U/S 43B OF THE ACT REASONED THAT THE AMOUNT OF RS.2,58, 874/- REPRESENTS THE VAT PAYABLE OF 4 TH QUARTER OF YEAR UNDER CONSIDERATION WHICH WAS PAID ALO NG WITH RETURN OF INCOME ON 28.04.2010 AS SUPPORTED BY COP Y OF THE CHALLANS. WE DO NOT FIND ANY CONTRARY MATERIAL EITHER ON RECORD OR SUBSTANCE IN THE SUBMISSIONS OF THE LD. DR TO CONTROVERT THE FINDINGS OF T HE LD. CIT(A), HENCE, WE ARE NOT INCLINED TO INTERFERE WITH THE DECIS ION TAKEN BY THE LD. CIT(A) UNDER THE SUBJECTED DISALLOWANCE. 4. GROUND NO.2 RAISED BY THE REVENUE DEPARTMENT RELATE S TO THE DEDUCTION OF DISALLOWANCE TO THE TUNE OF 10% FROM 1/3 RD OF THE EXPENSES (60,63,183) UNDER CONSIDERATION. THE LD. CIT(A) WHILE REDUCING THE DISALLOWANCE TO THE TUNE OF 10% , REASONED THAT THE AO RIGHTLY MADE AD HOC DISALLOWANCE AS THE APPELLANT FAILED TO PRODUCE BILLS/V OUCHERS QUA EXPENSES CLAIMED TO BE INCURRED, HOWEVER, THE DECISION FOR DISA LLOWANCE OF 1/3 RD OF THE EXPENSES ESTIMATED BY THE AO IS ON HIGHER SIDE AS TH E BUSINESS CANNOT BE CARRIED OUT WITHOUT INCURRING EXPENSES. WE HAVE PER USED THE REASONING OF THE CIT(A) AND FIND APPROPRIATE, PROPER AND REASONAB LE ONE AND DO NOT FIND ANY MATERIAL CONTRARY TO THE FINDINGS OF THE LD. CIT( A) AND HENCE WE ARE NOT AFRAID TO HELD THAT THE ORDER UNDER CHALLENGE DOES NO T SUFFER FROM ANY PERVERSITY, ILLEGALITY AND IMPROPRIETY AND THEREFORE THE SAME DO NOT REQUIRE ANY INFERENCE . ITA NO.189 /ASR/2015 (A.Y.2010-11) ITO VS. MS. RAHIM MOTORS, SRINAGAR 3 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE DEPA RTMENT STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13.02.2019. SD/- SD/- (N.S.SAINI) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDI CIAL MEMBER DATED:13.02.2019 /PK/ PS. COPY OF THE ORDER FORWARDED TO: (1) M/S. RAHIM MOTORS, HYDEPORA BYE PASS, SRIN AGAR. (2) THE INCOME TAX OFFICER, WARD-3(2), SRINAGA R. (3) THE CIT(A), JAMMU (4) THE CIT CONCERNED (5) THE SR DR, I.T.A.T., AMRITSAR TRUE COPY BY ORDER FILENAME: RAHIM MOTORS, SRINAGAR 189-15 DIRECTORY: D:\DOCUMENT\NKC ORDERS 2018\NS SAINI & N KC TEMPLATE: C:\USERS\ETC PARMOD\APPDATA\ROAMING\MICROSOFT\TEMPLATES\NORMAL.D OT TITLE: IN THE INCOME TAX APPELLATE TRIBU NAL SUBJECT: AUTHOR: RAHUL PRABHAKAR KEYWORDS: COMMENTS: CREATION DATE: 2/12/2019 5:55:00 PM CHANGE NUMBER: 51 LAST SAVED ON: 2/13/2019 1:24:00 PM LAST SAVED BY: ETC PARMOD TOTAL EDITING TIME: 51 MINUTES LAST PRINTED ON: 2/13/2019 1:29:00 PM AS OF LAST COMPLETE PRINTING NUMBER OF PAGES: 4 (APPROX.) NUMBER OF WORDS: 670 (APPROX.) NUMBER OF CHARACTERS: 3,824 (APPROX.)