Mohamadsafi Abdulrahim Shaikh, Panchmahal V. The Income Tax Officer, Ward-1, Godhra

ITA 2070/AHD/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6237 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 12-04-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 09-07-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.2070/AHD/2014 (ASSESSMENT YEAR:2009-10) MOHAMADSAFI ABDULRAHIM SHAIKH, PATEL FALIA, SANTRAMPUR, TAL. SANTRAMPUR, DIST. PANCHMAHAL APPELLANT VS. THE INCOME TAX OFFICER, WARD-1, GODHRA RESPO NDENT PAN: AOWPS5330M /BY ASSESSEE : WRITTEN SUBMISSIONS /BY REVENUE : MR. PRASOON KABRA, SR. D.R. /DATE OF HEARING : 12.04.2017 /DATE OF PRONOUNCEMENT : 12.04.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2009-10 ARISES AGAINST THE CIT(A)-VI, BARODAS ORDER DATED 03.03.2014, PASSED IN APPEAL NO. CAB/VI- 458/11-12, PARTLY UPHOLDING ASSESSING OFFICERS ACT ION IN DISALLOWING ITA NO. 2070/AHD/2014 (MOHAMADSAFI ABDULRAHIM SHAIK H VS. ITO) A.Y. 2009-10 - 2 - VARIOUS EXPENSES OF RS.60,54,957/- TO THE TUNE OF 1 2% COMING TO RS.7,26,595/- TO 10% INVOLVING THE SUM IN QUESTION OF RS.6,05,496/- , IN PROCEEDINGS U/S.143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. CASE CALLED TWICE. NONE APPEARS AT ASSESSEES B EHEST. IT IS EVIDENT THAT THE ASSESSEE HAS PREFERRED HAND WRITTEN SUBMISSIONS IN CHALLENGING THE ABOVESTATED DISALLOWANCE OF EXPENSES AS UPHELD FROM 12% OF THE GROSS AMOUNT TO 10% IN COURSE OF THE LOWER APPELLATE PROC EEDINGS. IT IS EVIDENT THAT THE EXPENDITURE IN QUESTION INVOLVES VARIOUS H EADS OF DIESEL EXPENSES, EARTH WORK, FREIGHT CHARGES, JCB RENT, LABOUR CHARG ES, MATERIALS, SITE EXPENSES, STAFF SALARY, TESTING CHARGES AND TRAVELL ING EXPENSES TOTALING TO RS.60.54LACS. THE ASSESSEE CLAIMED TO HAVE INCURRE D THE SAME IN HIS CIVIL CONTRACTOR BUSINESS. THE ASSESSING OFFICER QUOTED ASSESSEES FAILURE IN FILING ALL RELEVANT RECORDS/BILLS TO DISALLOW THE SAME @12 %; COMING TO RS.7,26,595/-. LD. CIT(A) HOWEVER TERMS THE SAID D ISALLOWANCE @ 12% TO BE EXCESSIVE. HE THEREFORE RESTRICTS THE SAID DISA LLOWANCE TO THAT @10%. THIS LEAVES THE ASSESSEE AGGRIEVED. 3. WE HAVE HEARD LD. DEPARTMENTAL REPRESENTATIVE ST RONGLY SUPPORTING REVENUES CASE. HE PLEADS THAT THE LD. CIT(A) HAS ALREADY GRANTED SUFFICIENT RELIEF TO THE ASSESSEE. HE HOWEVER FAILS TO DISPUT E THE FACT THAT BOTH THE LOWER AUTHORITIES HAVE AGREED TO ASSESSEES CLAIM IN PRIN CIPLE QUA THE BALANCE 90% OF THE EXPENDITURE AMOUNT. AND ALSO THAT THE SAID TEN HEADS OF EXPENDITURE FORM DISTINCT NATURE WHEREIN A FLAT RATE OF 10% HAS BEEN WRONGLY APPLIED. THE FACT HOWEVER ALSO REMAINS THAT THE ASSESSEE HAS NOT BEEN ABLE TO FILE ALL THE RELEVANT DETAILS OF HIS PAYEES THEREBY ENABLING THE LOWER AUTHORITIES TO CONDUCT NECESSARY VERIFICATION. WE THEREFORE ARE O F THE OPINION THAT A LUMP SUM DISALLOWANCE OF 8.5% OF THE ABOVE GROSS AMOUNT OF RS.60.54LACS WOULD SERVE ENDS OF JUSTICE. IT IS MADE CLEAR THAT OUR I NSTANT ESTIMATION WOULD NOT BE ITA NO. 2070/AHD/2014 (MOHAMADSAFI ABDULRAHIM SHAIK H VS. ITO) A.Y. 2009-10 - 3 - TREATED AS A PRECEDENT IN ANY PRECEDING OR SUCCEEDI NG ASSESSMENT YEAR. THE ASSESSING OFFICER SHALL FRAME CONSEQUENTIAL COMPUTA TION. 4. THIS ASSESSEES APPEAL IS PARTLY ALLOWED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 12 TH DAY OF APRIL, 2017.] SD/- SD/- ( MANISH BORAD ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 12/04/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) 5 )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 45 / GUARD FILE. BY ORDER / . // . /0