Afsarali G. mujawar, Belgaum V. Income Tax Officer, Ward-2(2), Belgaum

ITA 193/PAN/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93526 (ITAT-PANAJI)
• Duration Of Justice: 11 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 10-06-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 16-06-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BANGARI LD
• Assessee Lawyers: SANJEEV G ADYAPAK

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI GEORGE MATHAN , HONBLE JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, HON'BLE ACCOUNTANT MEMBER ITA N O . 193 /PNJ/20 14 : (A.Y : 2008 - 09) AFSARALI G. MUJAWAR, BELGAUMKAR GLLI, AT POST NANDGAD, TAL. KHANAPUR, DIST. BELGAUM PAN : ADCPM7034M ( APPELLANT) VS. ITO , WARD 2(2), BELGAUM (RESPONDENT) ASSESSEE BY : SANJEEV G. ADYAPAK, CA REVENUE BY : M.R. BANGARI, LD. DR DATE OF HEARING : 10 / 06 /201 5 DATE OF PRONOUNCEMENT : 10 / 06 /201 5 O R D E R PER GEORGE MATHAN : 1. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A), BELGAUM IN ITA NO. 534/BGM/2012 - 13 DT. 28.4.2014 FOR THE A.Y 2008 - 09. SHRI SANJEEV G. ADYAPAK, CA REPRESENTED ON BEHALF OF THE ASSESSEE AND SHRI M.R. BANGARI, LD. DR REPRESENTED ON BEHALF OF THE REVENUE. 2. IT WAS SUBMITTED BY THE LD. AR THAT THE ISSUES IN GROUND NOS. 1 & 2 WAS AGAINST THE ACTION OF LD. CIT(A) IN CONFIRMING THE ADDITIONS MADE BY THE AO BY DISBELIEVING THE SUNDRY CREDITORS IN RE SPECT OF WHOM THE RECORD OF RIGHTS HAD NOT BEEN PRODUCED. IT WAS THE SUBMISSION THAT THE ASSESSEE IS A COMMISSION AGENT AND DOING TRANSPORTATION WORK. IT WAS THE SUBMISSION THAT THE ASSESSEE USED TO DO COMMISSION BUSINESS IN THE SALE OF AGRICULTURAL PROD UCE. DURING THE 2 ITA NO. 193/PNJ/2014 (A.Y : 2008 - 09) RELEVANT ASSESSMENT YEAR IN THE COURSE OF THE ASSESSMENT IT WAS NOTICED THAT THE ASSESSEE HAD SUBSTANTIAL NUMBER OF CREDITORS. THE ASSESSEE WAS DIRECTED TO SUBSTANTIATE THE SUNDRY CREDITORS WHO WERE CLAIMED TO BE FARMERS. THE ASSESSEE HAD GIVEN NAMES AND ADDRESSES OF THE SUNDRY CREDITORS AS ALSO THE AGENTS WHO WERE DEALING WITH THE FARMERS. MANY OF THE LETTERS ISSUED BY THE AO CAME BACK UN - SERVED AND SOME OF THE AGENTS DID NOT REPLY TO THE LETTERS ALSO. HOWEVER, THE AO ON THE BASIS OF TH E EVIDENCES WHICH HAD BEEN PRODUCED BY THE ASSESSEE REPRESENTING THE DETAILS AND THE RECORD OF RIGHTS HAD ACCEPTED SUNDRY CREDITORS TO AN EXTENT OF RS. 6,59,601/ - OUT OF RS. 37,78,495/ - IN THE CASE OF LUCKY TRADERS AND ADDED ALL THE SUNDRY CREDITORS IN THE CASE OF LUCKY ENTERPRISES TO THE EXTENT OF RS. 14,98,817/ - . IT WAS THE SUBMISSION BY THE LD. AR THAT THE ASSESSEE MAY BE GRANTED ONE MORE OPPORTUNITY TO PRODUCE FURTHER DETAILS BEFORE THE AO. THE LD. AR DREW OUR ATTENTION TO VARIOUS PAGES FILED IN THE P APER BOOK CONTAINING 68 PAGES TO SHOW THAT HE HAD SUBSTANTIAL EVIDENCES IN THE FORM OF RECORD OF RIGHTS OF MANY OF THE OTHER CREDITORS ALSO. IT WAS THE SUBMISSION THAT THE ASSESSEE MAY BE GRANTED ANOTHER OPPORTUNITY TO PRODUCE SUCH EVIDENCES BEFORE THE AO . 3. TO THE SAID SUBMISSION, THE LD. DR DID NOT RAISE ANY SERIOUS OBJECTIONS. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS THE ASSESSEE HAS PRODUCED FRESH EVIDENCES BEFORE US IN THE FORM OF RECORD OF RIGHTS OF SOME OF THE CREDITORS WHO HAVE BEEN DI SBELIEVED AND WHOSE CREDITS HAVE BEEN ADDED IN THE HANDS OF THE ASSESSEE , AS ALSO TAKING INTO CONSIDERATION THE CONFIRMATION GIVEN BY THE LD. AR THAT HE WOULD BE ABLE TO PRODUCE THESE EVIDENCES BEFORE THE AO, THIS ISSUE IS RESTORED TO THE FILE OF THE AO FO R RE - ADJUDICATION AFTER GRANTING THE ASSESSEE ADEQUATE OPPORTUNITY TO SUBSTANTIATE ITS CLAIM. IN THE RESULT, GROUND 3 ITA NO. 193/PNJ/2014 (A.Y : 2008 - 09) NOS. 1 & 2 OF THE ASSESSEES APPEAL STANDS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 5. IN RESPECT OF GROUND NO. 3, IT WAS SUBMITTED BY THE LD. AR THAT THE ISSUE WAS AGAINST THE ACTION OF LD. CIT(A) IN ONLY REDUCING THE DISALLOWANCE MADE BY THE AO OF RS. 1,87,869/ - TO RS. 1,50,250/ - UNDER THE HEAD VEHICLE EXPENDITURE. IT WAS THE SUBMISSION THAT IN THE COURSE OF THE ASSESSMENT , ON THE GROUN D OF POSSIBLE PERSONAL USAGE AND ON THE GROUND THAT THE EXPENSES ARE ACCOUNTED FOR ON THE BASIS OF SELF - MADE VOUCHERS , THE AO HAD DISALLOWED 25% OF THE DIESEL AND VEHICLE EXPENDITURE. IT WAS THE SUBMISSION THAT THE TOTAL OF THE EXPENDITURE WAS RS. 7,51,47 6/ - AND THE AO HAD DISALLOWED 25% OF THE SAME AT RS. 1,87,869/ - . IT WAS THE SUBMISSION THAT ON APPEAL, THE LD. CIT(A) HAD REDUCED THE SAME TO 20%. IT WAS THE SUBMISSION THAT THE ASSESSEE MAY BE GRANTED FURTHER RELIEF AS THE ASSESSEE IS OPERATING IN REMOT E AREA OF BELGAUM AND IT WOULD NOT BE POSSIBLE FOR THE ASSESSEE TO OBTAIN ALL PROPER VOUCHERS AS THE VEHICLES ARE REPAIRED ON LOCAL WORKSHOPS ALSO. IT WAS FURTHER SUBMISSION THAT THE EXPENSES WERE IN RELATION TO TRUCKS AND THE POSSIBILITY OF PERSONAL USE WAS NOT THERE. 6. IN REPLY, THE LD. DR VEHEMENTLY SUPPORTED THE ORDER OF THE AO AND THE LD. CIT(A). 7. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. CONSIDERING THE FACT THAT THE ASSESSEE IS OPERATING IN REMOTE PLACES IN BELGAUM AND ALSO TAKING INTO CONSI DERATION THAT THE EXPENDITURE RELATES TO TRUCKS ALSO, WE ARE OF THE VIEW THAT THE INTEREST OF JUSTICE WOULD BE SERVED IF THE DISALLOWANCE IS RESTRICTED TO 10% OF THE TOTAL EXPENDITURE. 10% OF THE TOTAL EXPENDITURE WOULD COME TO ABOUT RS.75,100/ - WHICH IS ROUNDED OFF TO RS. 75,000/ - . CONSEQUENTLY, THE AO IS 4 ITA NO. 193/PNJ/2014 (A.Y : 2008 - 09) DIRECTED TO RESTRICT THE DISALLOWANCE TO RS. 75,000/ - . IN THE RESULT, GROUND NO. 3 OF THE ASSESSEES APPEAL IS PARTLY ALLOWED. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATI STICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 10/06/2015. S D / - (N.K. BILLAIYA) ACCOUNTANT MEMBER S D / - ( GEORGE MATHAN ) JUDICIAL MEMBER PLACE : PANAJI / GOA DATED : 1 0 /06/ 201 5 *SSL* COPY TO : (1) APPELLANT (2) RESPONDENT (3) CIT(A) CONCERNED (4) CIT CONCERNED (5) D.R (6) GUARD FILE TRUE COPY, BY ORDER , 5 ITA NO. 193/PNJ/2014 (A.Y : 2008 - 09) DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ORDER ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 10/06/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 10/06/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 10/06/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 10/06/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 10/06/2015 SR.PS 6. DATE OF PRONOUNCEMENT 10/06/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 10/06/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER