PROMINENT TOURS & TRAVELS P.LTD, MUMBAI V. DCIT CIR 3(1), MUMBAI

ITA 2069/MUM/2012

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 3111 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2015
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 31-08-2015
• Assessment Year: 2003-2004
• Appeal Filed On: 28-03-2012
• Court: TRIBUNAL
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K ** LH U;K;IHB EQACBZ ESAA IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI JH TH + ,L + IUUW] YS[KK LNL; ,OA JH IOU FLAG ] U;KF;D LNL; DS LE{KA BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH , JUDICIAL MEMBER VK;DJ VIHY LA[;K@ ITA NO 2069 /MUM/2012 ( FU/KKZJ.K OKZ / ASSESSMENT YEAR: - 2003 - 04 ) VK;DJ VIHY LA[;K@ ITA NO 2070/MUM/2012 ( FU/KKZJ.K OKZ / ASSESSMENT YEAR: - 2006 - 07) VK;DJ VIHY LA[;K@ ITA NO 2071/MUM/2012 ( FU/KKZJ.K OKZ / ASSESSMENT YEAR: - 2007 - 08) PROMINENT TOURS & TRAVELS PVT. LTD. 601/602, QUARTER DECK, J.P. ROAD, VERSOVA, ANDHERI (W), MUMBAI 4000061. VS.` ACIT - CC - 32, MUMBAI, ROOM NO. 4 - A, AAYKAR BHAVAN, M.K. ROAD, MUMBAI 400 020. LFKK;H YS[KK LA[;K@TH VKB VKJ LA[;K@ PAN/GIR NO. AAACP4602Q APPELLANT RESPONDENT ORDER PER G.S. PANNU, AM THE CAPTIONED THREE APPEAL S PREFERRED BY THE ASSESSEE ARE DIRECTED AGAINST THREE SEPARATE BUT SIMILARLY WORDED ORDER S OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] ALL DATED FU/KZKFJFR FD VKSJ LS @ ASSESSEE BY NONE JKTLO FD VKSJ LS @ REVENUE BY DEEPKANT PRASAD LQUOKBZ FD RKJH[K @ DATE OF HEARING 31.08.2015 ?KKSK.KK FD RKJH[K@ DATE OF PRONOUNCEMENT 30 .9 .2015 PROMINENT TOURS & TRAVELS PVT. LTD. ` PAGE 2 OF 4 13.12.2011 , WHICH IN TURN HAS ARISEN FROM THE RESPECTIVE ORDER PASSED BY THE ASSESSING OFFICER U/S 143(3) R.W.S 153C OF THE INCOME TAX ACT, 1961 ( HEREINAFTER REFERRED TO AS THE ACT) DATED 31.12.2010 PERTAINING TO ASSESSMENT YEAR S 200 3 - 04, 2006 - 07 AND 2007 - 08. 2 . AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE IN SPITE OF ISSUANCE OF NOTICE OF HEARING BY RPAD. ACCORDINGLY, IN VIEW O F RULE 24 OF THE APPELLATE TRIBUNAL RULES, 1963, THE APPEAL IS BEING DISPOSED EX - PARTE QUA THE APPELLANT AFTER HEARING THE RESPONDENT - REVENUE ON MERITS. 3 . IN ALL THE THREE APPEALS, A COMMON ISSUE HAS BEEN RAISED WHICH RELATES TO CERTAIN ADHOC DISALLOWAN CES SUSTAINED BY THE CIT(A). 4. IN ALL THE APPEALS, DISPUTE ARISES FROM THE ASSESSMENTS MADE BY THE ASSESSING OFFICER U/S 143(3) R.W.S 153C OF THE ACT FOR ASSESSMENT YEARS 2003 - 04, 2006 - 07 AND 2007 - 08. FOR ASSESSMENT YEAR 2003 - 04, THE ASSESSING OFFICER DISALLOWED 10% OF THE ADMINISTRATIVE EXPENSES AND THUS, AN AMOUNT OF RS. 4,72, 527/ - WAS ADDED TO THE RETURNED INCOME. SIMILARLY FOR ASSESSMENT YEAR S 2006 - 07 AND 2007 - 08, THE ASSESSING OFFICER DISALLOWED 5% OF ADMINISTRATIVE EXPENSES ON ADHOC BASIS AND ACCORDINGLY ADDITIONS OF RS. 5,59,057/ - AND RS. 10,15,222/ - RESPECTIVELY, WERE MA DE TO THE RETURNED INCOME. 5. BEFORE THE CIT(A), THE PRIMARY PLEA OF THE ASSESSEE WAS THAT IN THE COURSE OF SCRUTINY ASSESSMENT MADE PRIOR TO THE DATE OF SEARCH, THE ASSESSING OFFICER HAD DISALLOWED 10% OF MOTOR CAR EXPENSES, TRAVELLING EXPENSES AND DEPR ECIATION ON VEHICLES AND THAT THERE WAS NO DISALLOWANCE PROMINENT TOURS & TRAVELS PVT. LTD. ` PAGE 3 OF 4 OUT OF THE ENTIRE ADMINISTRATIVE EXPENDITURE. THE CIT(A) HAS CONSIDERED THE SUBMISSIONS OF THE ASSESSEE AND CONCLUDED AS UNDER: - 2.5 ON THE OTHER HAND, THE A.R. OF THE APPELLANT HAS SUBMITTED BEFOR E ME THAT IN THE SCRUTINY ASSESSMENTS MADE BEFORE THE DATE OF SEARCH THE A.O. HAS DISALLOWED 10% OF MOTOR CAR EXPENSES, TRAVELLING EXPENSES AND DEPRECIATION ON VEHICLES AND 5% OF THE OTHER ADMINISTRATIVE EXPENSES ARE DISALLOWED. THEREFORE, IT WAS REQUESTED THAT THE SAME DISALLOWANCE MAY BE CONSIDERED IN THE YEAR UNDER CONSIDERATION. FROM THE PERUSAL OF THE SCRUTINY ASSESSMENTS MADE BY THE A.O. IN THE CASE OF THE APPELLANT BEFORE THE DATE OF SEARCH, IT WAS NOTICED THAT 10% OF MOTOR CAR, TRAVELLING AND CONVEY ANCE AND DEPRECIATION EXPENSES ARE DISALLOWED AND 5% OF OTHER ADMINISTRATIVE EXPENSES WERE DISALLOWED. THEREFORE, THE CONTENTION OF THE APPELLANT SEEMS TO BE CORRECT. SINCE THERE IS NO OTHER EVIDENCE FOUND DURING THE COURSE OF SEARCH, THEREFORE THE A.O. IS DIRECTED TO RESTRICT THE DISALLOWANCE AT THE RATE OF 10% OUT OF CAR EXPENSES, TRAVELLING EXPENSES AND DEPRECIATION ON VEHICLES AND 5% ON THE ADMINISTRATIVE EXPENSES AS DISALLOWED IN THE SCRUTINY ASSESSMENTS BEFORE SEARCH. THUS THE BALANCE ADDITION IS DELE TED. GROUND OF APPEAL PARTLY ALLOWED. 6. I N THE APPEAL FOR ASSESSMENT YEAR 2003 - 04, PLEA OF THE ASSESSEE BEFORE US, AS CONTAINED IN GROUND OF APPEAL NO. C (4), IS THAT THE CIT(A) HAS ERRED IN UPHOLDING THE ADHOC DISALLOWANCE OF 10% OUT OF MOTOR CAR AND T RAVELLING EXPENSES AND 5% OUT OF ADMINISTRATIVE EXPENSES. WE FIND THAT THERE IS NO JUSTIFICATION FOR THE AFORESAID PLEA INASMUCH AS THE CIT(A) HAS MERELY SUSTAINED THE DISALLOWANCE MADE IN THE SCRUTINY ASSESSMENT MADE BY THE ASSESSING OFFICER PRIOR TO THE DATE OF SEARCH , AND THE SAID A P P R O A C H OF THE CIT(A) WAS IN RESPONSE TO A SIMILAR POSITION CANVASSED BY THE ASSESSEE BEFORE HIM. THUS, WE FIND NO REASONS TO INTERFERE WITH THE ORDER OF CIT(A) FOR THE ASSE SSMENT YEAR 2003 - 04, WHICH IS HEREBY AFFIRMED. 7. SIMILARLY , FOR ASSESSMENT YEAR S 2006 - 07 AND 2007 - 08 ALSO, THE ONLY GRIEVANCE OF THE ASSESSEE IS AGAINST THE ORDER OF CIT(A) UPHOLDING A DISALLOWANCE OF 5% OUT OF ADMINIST RATIVE EXPENSES. ON THIS ASPECT ALS O , WE AFFIRM THE ORDER OF THE CIT(A) AS NO INFIRMITY IN THE SAME HAS BEEN PROMINENT TOURS & TRAVELS PVT. LTD. ` PAGE 4 OF 4 ESTABLISHED BY THE APPELLANT. THUS, ASSESSEE FAILS IN ASSESSMENT YEAR 2006 - 07 AND 2007 - 08 ALSO. 8. IN THE RESULT, CAPTIONED APPEALS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUN CED IN THE OPEN COURT ON THIS 3 0 T H DAY OF SEPTEMBER 2015. S D / - S D / - ( PAWAN SINGH ) (G.S. PANNU) (JUDICIAL MEMBER/ U;KF;D LNL; ) (ACCOUNTANT MEMBER/ YS[KK LNL; ) MUMBAI DATED 3 0 - 09 - 2015 SKS SR. P.S, COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, C BENCH, ITAT, MUMBAI BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI