M/s Mohan Roller Flour Mills, Amritsar. V. The Dy. Commissioner of Income Tax Officer, Amritsar.

ITA 211/ASR/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3269 (ITAT-AMRITSAR)
• Duration Of Justice: 2 year(s) 10 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 13-02-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 12-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHAWANI SHANKAR LD
• Assessee Lawyers: PADAM BAHL LD
• Section: 40A(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE T RIBUNAL AMRITSAR BENCH, AMR ITSAR BEFORE SH. N.S.SAINI, ACCOUNTANT MEMBER AND SH. N.K.CHOUDHRY, JUDICIAL MEMBER ITA NO.211(ASR)/2016 ASSESSMENT YEAR:201 2-13 M/S MOHAN ROLLER FLOUR MILLS, O/S BHAGTANWALA GATE, AMRITSAR. [PAN:AAEFM 1591J] VS. DY. CIT, CIRCLE-III, AMRITSAR. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. PADAM BAHL (LD. CA) RESPONDENT BY: SH. BHAWAN I SHANKAR (LD. DR) DATE OF HEARING: 14.02.2019 DATE OF PRONOUNCEMENT: 15.02.2019 ORDER PER N.K.CHOUDHRY, JM: THE INSTANT APPEAL HAS BEEN PREFERRED BY THE ASSESSEE/AP PELLANT AGAINST THE ORDER DATED 18.02.2016 PASSED BY THE LD. CIT(A)-1, AMRITSAR U/S 250(6) OF THE I.T. ACT, 1961 (HEREINAFTER CALLED A S THE ACT). 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEA L. 1. THAT THE LD. COMMISSIONER OF INCOME TAX (APP EALS)-1, AMRITSAR HAS GROSSLY ERRED IN CONFIRMING THE DISALLOWANCE O F RS.3,14,449/ MADE BY DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3, A MRITSAR U/S 40A(3) OF INCOME TAX ACT, 1961. 2. THAT BOTH LD. COMMISSIONER OF INCOME TAX (APPEA LS)-1, AMRITSAR AND DEPUTY COMMISSIONER OF INCOME TAX, C IRCLE-3, AMRITSAR HAVE FAILED TO APPRECIATE THAT THE ASSESSEE HAD MA DE BONAFIDE CASH PAYMENTS FOR FREIGHT PAID ON WHEAT PURCHASED FROM RAJASTHAN UNDER EXCEPTIONAL CIRCUMSTANCES. ITA NO.211 /ASR/2016 (A.Y.2012-13) M/S. MOHAN ROLLER FLOUR MILLS VS. DCIT 2 3. THE ISSUE RAISED BY THE ASSESSEE RELATES TO THE CONFIRMATION OF THE DISALLOWANCE OF RS.3,14,449/- MADE BY THE ASSESSING OFFICE R U/S 40A(3) OF THE ACT. THE ASSESSEE SUBMITTED THAT BOTH THE AUTHORI TIES BELOW HAVING FAILED TO APPRECIATE THE BONAFIDE CASH PAYMENT FOR FREIGHT PAID ON WHEAT PURCHASED FROM RAJASTHAN UNDER EXCEPTIONAL CIR CUMSTANCES. 4. ON THE CONTRARY, THE LD. DR RELIED UPON THE ORDER PA SSED BY THE AUTHORITIES BELOW. 5. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERIAL AV AILABLE ON RECORD. THE ASSESSING OFFICER HAD DISALLOWED THE ALLOWANCES OF RS.8,10,093/- U/S 14A , RS.4,41,017/- U/S 40A(3) OF THE ACT AND RS.2426/- . THE AFORESAID AMOUNTS WERE ADDED IN THE IN COME OF THE ASSESSEE. IN APPEAL , THE LD. CIT(A) PARTLY ALLOWED TH E RELIEF TO THE ASSESSEE, HOWEVER, AFFIRMED THE DISALLOWANCE TO THE TUNE OF RS.3,14,449/- U/S 40A(3) OF THE ACT. THE ASSESSEE HAS DEMO NSTRATED DETAILS OF FREIGHTS PAID AND DISALLOWED BY THE AO U/S 40A(3) OF THE ACT (PAGE NO.2 OF PB). WE REALIZED THAT AMOUNT OF RS.33, 534/- WHICH WAS INCURRED ON DATED 20.06.2011 AS REPAIR EXPENSES AND PAY MENT OF RS.39,734/- WAS MADE ON SATURDAY I.E. 12.11.2012 AS CL AIMED BY THE APPELLANT THAT BECAUSE ON THAT PARTICULAR DATE BANK W AS OPEN UPTO 12 NOON ONLY THEREFORE THE AMOUNT HAS BEEN INCURRED IN CA SH. CONSIDERING THE PECULIAR FACTS AND CIRCUMSTANCES, IN OUR VI EW AS CLAIMED AMOUNT OF RS.33,534/- WAS INCURRED FOR REPAIR IN URGENT CIRCUMSTANCES AND FURTHER THE AMOUNT OF RS.39,734/- WAS PA ID ON DATED 12.11.2011 (SATURDAY BEING HALF WORKING DAY) HENCE I T WOULD BE JUSTIFIABLE TO ALLOW THE SAID ALLOWANCES THEREFORE WE ARE INCLINED TO DELETE THE SAID DISALLOWANCES AND SUSTAIN THE REMAINING D ISALLOWANCES. ITA NO.211 /ASR/2016 (A.Y.2012-13) M/S. MOHAN ROLLER FLOUR MILLS VS. DCIT 3 CONSEQUENTLY, ASSESSEE SHALL GET BENEFIT OF RS. 73,268/- ( RS.33,534+ 39,734) OUT OF TOTAL DISALLOWANCE OF RS. 3,14,449/- AN D THE REMAINING AMOUNT OF 2,41,181/- DISALLOWANCE U/S 40A(3) IS SUSTAINE D. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS P ARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 15.02.2019. SD/- SD/- (N.S.SAINI) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDI CIAL MEMBER DATED: 15.02.2019 /PK/ PS. COPY OF THE ORDER FORWARDED TO: (1) M/S MOHAN ROLLER FLOUR MILLS, O/S BHAGTANWA LA GATE, AMRITSAR (2) THE DY. CIT, CIRCLE-III, AMRITSAR (3) THE CIT(A)-1, AMRITSAR (4) THE CIT CONCERNED (5) THE SR DR, I.T.A.T., AMRITSAR TRUE COPY BY ORDER FILENAME: MOHAN ROLLER FLOUR MILLS, ASR 211-16 DIRECTORY: G: TEMPLATE: C:\USERS\ETC PARMOD\APPDATA\ROAMING\MICROSOFT\TEMPLATES\NORMAL.D OT TITLE: IN THE INCOME TAX APPELLATE TRIBU NAL SUBJECT: AUTHOR: RAHUL PRABHAKAR KEYWORDS: COMMENTS: CREATION DATE: 2/14/2019 1:14:00 PM CHANGE NUMBER: 81 LAST SAVED ON: 2/26/2019 11:29:00 AM LAST SAVED BY: ETC PARMOD TOTAL EDITING TIME: 107 MINUTES LAST PRINTED ON: 2/26/2019 11:30:00 AM AS OF LAST COMPLETE PRINTING NUMBER OF PAGES: 4 NUMBER OF WORDS: 722 (APPROX.) NUMBER OF CHARACTERS: 4,120 (APPROX.)