M/s Raj Vija Corporation Unit-II, Agra V. A.C.I.T., Circle-4(1), Agra

ITA 208/AGR/2013

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0741 (ITAT-AGRA)
• Duration Of Justice: 5 year(s) 11 month(s) 3 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 24-07-2013
• Assessment Year: 2009-2010
• Appeal Filed On: 12-06-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S D SHARMA
• Assessee Lawyers: SAHIB SATSANGEE
• Keywords: Corroborative evidences

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 208 AGRA/ 2013 ASSESSMENT YEAR 2009-10 M/S RAJ VIJAY CORPORATION UNIT-II VS. ACIT, CIRCLE -4(1), E-6, FOUNDRY NAGAR, AGRA. AGRA. (PAN AADFR 2567 C) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SAHIB SATSANGEE, C.A. RESPONDENT BY : SHRI S.D. SHARMA, JR. D.R. DATE OF HEARING : 24.07.2013 DATE OF PRONOUNCEMENT : 26..07.2013 ORDER PER BHAVNESH SAINI, JUDICIAL MEMBER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-II, AGRA DATED 11.04.2013 FOR THE A.Y. 2009-10, CHALLEN GING THE DISALLOWANCE OF SUM OF RS.2,24,071/- OUT OF VARIOUS EXPENSES. 2. THE A.O. FOUND THAT ASSESSEE HAS DEBITED AN AMOU NT OF RS.13,44,426/- IN THE PROFIT & LOSS ACCOUNT SEVERAL EXPENSES UNDER THE HE AD REPAIRS, MAINTENANCE & ITA NO.208/AG./2013 A.Y. 2009-10 2 REPLACEMENTS ETC. THE A.O. FOUND THAT ASSESSEE HAS FAILED TO FILE ANY CONVINCING EVIDENCE AND REPLY IN SUPPORT OF ITS CLAIM THAT EXP ENSES WERE INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS. THE VOUCHE RS WERE FOUND SELF MADE AND WITHOUT SUPPORTING EVIDENCES. 1/3 RD OF THE EXPENSES OUT OF TOTAL CLAIM WAS DISALLOWED AND ADDITION OF RS.4,48,142/- WAS MADE. THE ASSESSE E SUBMITTED BEFORE LD. CIT(A) THAT IT WAS A ADHOC ADDITION AND ALL THE EXPENSES W ERE SUPPORTED BY THE EVIDENCES. THE SALES HAVE INCREASED MORE THAN 11% AS COMPARED TO EARLIER YEARS, WHEREAS THE EXPENDITURE INCURRED ON REPAIRS, MAINTENANCE AND RE PLACEMENT HAVE DECREASED BY 0.10% AS COMPARED TO EARLIER YEARS. THE COMPARISON IS NOTED AT PAGE NO.3 OF THE APPELLATE ORDER. IN ASSESSMENT YEAR UNDER APPEAL TH E PERCENTAGE OF THE PROFIT WAS 1.95% AS AGAINST PRECEDING A.Y. 2008-09 WHEREIN IT WAS 2.05%. IT WAS, THEREFORE, CLAIMED THAT ADDITION IS WHOLLY UNJUSTIFIED. THE LD . CIT(A) FOUND THAT THE A.O. HAS GIVEN REASONS THAT VOUCHERS WERE FOUND TO BE INTERN AL AND HAND MADE VOUCHERS WHICH ARE NOT OPEN FOR VERIFICATION. HOWEVER, THE A .O. HAS NOT POINTED OUT SPECIFIC INSTANCES FOR MAKING DISALLOWANCE. THE A.O. DID NOT CONDUCT FURTHER ENQUIRY INTO THE MATTER, THEREFORE, DISALLOWANCE WAS RESTRICTED TO EXTENT OF 1/6 TH OF THE EXPENDITURE. APPEAL WAS PARTY ALLOWED. 3. CONSIDERING THE RIVAL SUBMISSIONS OF THE PARTIES , IN THE LIGHT OF THE HISTORY OF THE ASSESSEE AS NOTED ABOVE, WE ARE OF THE VIEW THA T ADDITION IS STILL EXCESSIVE IN ITA NO.208/AG./2013 A.Y. 2009-10 3 NATURE. THERE IS NO DISPUTE THAT THE SALES OF THE A SSESSEE HAVE CONSIDERABLY INCREASED AS COMPARED TO THE EARLIER YEARS, THEREFORE, ACTUAL PROFIT HAVE ALSO INCREASED. THERE IS A SLIGHT FALL IN THE N.P. RATE IN ASSESSMENT YEAR U NDER APPEAL BECAUSE IN ASSESSMENT YEAR UNDER APPEAL PERCENTAGE OF THE PROFIT WAS DECL ARED AT 1.95% WHEREAS IN THE EARLIER YEAR IT WAS 2.05%. THEREFORE, IT IS UNBELIE VABLE THAT ASSESSEE WOULD HAVE INFLATED THE EXPENSES EXORBITANTLY AND UNREASONABLY . THE LD. CIT(A) HAS GIVEN SPECIFIC FINDING THAT A.O. HAS NOT POINTED OUT ANY SPECIFIC INSTANCES OF INADMISSIBLE EXPENDITURE. 4. CONSIDERING THE FACT OF FINDING OF THE CIT(A) AN D HISTORY OF THE ASSESSEE, WE RESTRICT THE DISALLOWANCE OUT OF VARIOUS EXPENSES I N A SUM OF RS.1,00,000/- IN ALL AS AGAINST THE ADDITION CONFIRMED BY THE LD. CIT(A) IN A SUM OF RS.2,24,071/-. ADDITION IS, THEREFORE, MAINTAINED AT RS.1,00,000/- IN ALL. THE ORDERS OF THE AUTHORITIES BELOW ARE MODIFIED TO THE ABOVE EXTENT. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT) SD/- SD/- (A.L. GEHLOT) (BHAV NESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER AMIT/ ITA NO.208/AG./2013 A.Y. 2009-10 4 COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL, AGRA TRUE COPY