Bhola Dass, Burdwan V. I.T.O Wd - 2(4),Asansol, Asansol

ITA 1894/KOL/2013

• Counselvise Citation: 189423514 RSA 2013
• Duration Of Justice: 1 year(s) 11 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2015
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 13-06-2013
• Court: TRIBUNAL
• Department Lawyers: SANJAY SR DR
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH: KOLKATA [BEFORE HON BLE SHRI B.P.JAIN, AM] I.T.A NO.1894 /KOL/2013 ASSESSMENT YEAR: 2007 - 08 BHOLA DASS VS I.T.O., WARD - 2(4) BURDWAN ASANSOL (APPELLANT) ( RESPONDENT) (PAN: AD FPD 1109 F) FOR THE APPELLANT : NONE FOR THE RESPONDENT : SHRI SANJAY, SR.DR, ADDL. C.I.T. DATE OF HEARING : 01.06 .2015. DATE OF PRONOUNCEMENT: 01.06 .2015. ORDER PER SHRI B.P.JAIN, AM : THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER OF LD.CIT(A) - ASANSOL DATED 10.05.2013 FOR ASSESSMENT YEAR 2007 - 08. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1. THAT ON THE FACT AND CIRCUMSTANCE OF THE CASE THE LD. CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF RS .1,40,461/ - CALCULATED @5% OF TOTAL LABOUR CHARGES DEBITED WHEREAS REGULAR BOOKS OF ACCOUNTS INCLUDING BILLS & VOUCHERS WERE PRODUCED BEFORE THE AO IN COURSE OF ASSESSMENT PROCEEDING WHEREAS ADHOC DISALLOWANCE WAS UNCALLED FOR. 2. THAT ON THE FACT AND CIRC UMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF RS.2,60,025/ - OUT OF SUNDRY CREDITORS CONFIRMING OF WHICH WERE FILLED & THE LIABILITY WAS PAID BACK IN THE SUBSEQUENT YEAR. 3. THAT ON THE FACT AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN CONFIRMING RS.34,848/ - DISALLOWED BY THE A/O @ 10% ON ADHOC BASIS OUT OF TRANSPORT CHARGES WHEREAS REGULAR BOOKS OF ACCOUNTS WERE PRODUCED BEFORE THE A/O AND THE EXPENSES WERE INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF THE BUSI NESS. 4. THE APPELLANT CRAVES LEAVE TO ALTER, AMEND OR SUBSTITUTE ANY GROUND OR GROUNDS BEFORE OR AT THE TIME OF HEARING OF THE APPEAL. 3. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSMENT IN THIS CASE HAS BEEN MADE U/S 143(3) OF THE ACT. A DISALLOWANCE OF RS.1,61,316/ - OUT OF LABOUR CHARGES AMOUNTING TO RS.28,09,225/ - DEBITED IN THE PROFIT AND LOSS ACCOUNT ON ADHOC BASIS @5% WAS MADE. SIMILARLY, HE MADE DISALLOWANCE OF R S. 4,17,105/ - IN RESPECT OF SUNDRY CREDITORS IN THE ITA NO. 1894/KOL/2013 BHOLA DASS A.YR. 2007 - 08 2 ABSENCE OF ANY EVIDENCE OF THE TRA NSACTIONS IN SPITE OF THE CONFIRMATION FURNISHED BY THE ASSESSEE. THE AO HAD ALSO MADE DISALLOWANCE OF 10% OF TRANSPORT CHARGES CLAIMED TO THE EXTENT OF RS.34,848/ - . 3.1. THE LD. CIT(A) IN FACT SUSTAINED THE DISALLOWANCES ON AC COUNT OF LABOUR CHARGES AT R S.1, 40,461/ - AND ON ACCOUNT OF SUNDRY CREDITORS SUSTAINED THE DISALLOWANCE OF RS.2,60,025/ - AND SUSTAINED THE DISALLOWANCE OF RS.34,848/ - ON ACCOUNT OF TRANSPORT CHARGES. 4. NONE APPEARED ON BEHALF OF THE ASSESSEE. AFTER HEARING THE LD. DR AND PERUSING TH E MATERIALS AVAILABLE ON RECORD, I FIND THAT THE AO HAD MADE DISALLOWANCE ON ACCOUNT OF LABOUR CHARGES, SUNDRY CREDITORS AND TRANSPORT CHARGES. IN FACT ALL THE DISALLOWANCES HAVE BEEN MADE OUT OF THE PROFIT AND LOSS ACCOUNT ON ADHOC BASIS. BUT THE AO HAS NOT REJECTED THE BOOKS OF ACCOUNT. WITHOUT INVOKING THE PROVISIONS OF SECTION 145(3) OF THE ACT AND WITHOUT POINTING OUT ANY DEFECT IN THE LABOUR CHARGES , PURCHASES AND TRANSPORT CHARGES CLAIMED, THE AO CANNOT MAKE ANY ADDITION ON ADHOC BASIS. THE LD. CIT (A) HAS ALSO NOT TAKEN CARE OF THIS ASPECT. IN THE CIRCUMSTANCES AND FACTS OF THE CASE, I FIND THAT WITHOUT INVOKING THE PROVISIONS OF SECTION 145(3) OF THE ACT AND WITHOUT POINTING OUT ANY DEFECT IN THE BOOKS OF ACCOUNT, NO ESTIMATION OF PROFIT AND NO D ISALLOWANCE ON ACCOUNT OF EXPENSES CAN BE MADE AND ACCORDINGLY ADDITION MADE BY THE AO ARE DIRECTED TO BE DELETED. ACCORDINGLY THE ORDER OF THE LD. CIT(A) IS ALSO REVERSED TO THE EXTENT OF THE ADDITIONS SO SUSTAINED. THUS ALL THE GROUNDS OF ASSESSEE S APPE AL ARE ALLOWED. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDE R PRONOUNCED IN THE OPEN COURT ON 01.06 .2015. SD/ - [ B.P.JAIN ] ACCOUNTANT MEMBER DATE: 01.06 .2015. R.G.(.P.S.) ITA NO. 1894/KOL/2013 BHOLA DASS A.YR. 2007 - 08 3 C OPY OF THE ORDER FORWARDED TO: 1 . BHOLA DA SS, SOUTH DHADKA, ASANSOL, DIST.BURDWAN, 713302. 2 I.T.O., WARD - 2(4), ASANSOL. 3 . CIT(A) - ASANSOL 4. CIT - KOLKATA. 5. CIT - DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES