Appeal details
Counselvise Citation
21624914 RSA 2013
Assessee PAN
Bench
Appeal Number
Duration Of Justice
8 month(s) 1 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
09-01-2014
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
DB
Next Hearing Date
09-01-2014
Assessment Year
2009-2010
Appeal Filed On
08-05-2013
Judgement Text
, IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT. BEFORE SHRI T. K. SHARMA JM AND SHRI B. R. JAIN AM ITA NO. 216/RJT/2013 / ASSESSMENT YEAR 2009-10. THE INCOME TAX OFFICER, WARD 1(3), JAMNAGAR. ( / APPELLANT V/S SHALIBHADRA ENTERPRISE, PLOT NO. 13, HARIBHAI NIWAS, GIDC, STU, JAMNAGAR PAN- AAOFS9702R / RESPONDENT ! '# / REVENUE BY DR. J.B. JHAVERI, D.R. $% ! '# / ASSESSEE BY SHRI J.C. RAMPURA, C.A. ' & ' %( / DATE OF HEARING 09/01/2014 ) %( / DATE OF PRONOUNCEMENT 09/01/2014 / ORDER PER B. R. JAIN, A. M. : THIS APPEAL BY THE REVENUE AGAINST THE ORDER DATED 28/02/2013 OF SHRI S.K. MOHANTY, THE LEARNED CIT(A), JAMNAGAR RA ISES FOLLOWING GROUNDS:- 1 THE CIT(A) ERRED IN LAW AND IN FACTS IN DELETING THE ADDITION OF RS. 8,41,531/- MADE BY THE A.O. ON ACCOUNT OF DISAL LOWANCE OF DELAY PAYMENT CHARGES. 2 THE CIT(A) ERRED IN LAW AND IN FACTS IN DELETING THE ADDITION OF RS. 2,88,696/- BEING 10% DISALLOWANCE OUT OF SHORTI NG CHARGES AND TRANSPORTATION CHARGES AND ADDITION OF RS. 20,000/- OUT OF VARIOUS OTHER EXPENSES. 3 THE CIT(A) ERRED IN LAW AND ON FACTS IN NOT APPRE CIATING THE FACT THE ASSESSEE DID NOT PRODUCE BOOKS OF ACCOUNTS AND OTHER RELEVANT DETAILS BEFORE THE AO AND ASKED FOR ADJOURNMENT ON ROUTING GROUNDS WHICH WAS REJECTED B Y THE AO AND THAT NON-COMPLIANCE ON THE PART OF THE ASSESSEE COMPELLED THE AO TO MAKE LUMP SUM ADDITIONS FOR WAN T OF PROPER VERIFICATION OF THE GENUINENESS OF SUCH EXPE NSES. ITA 216/RJT/2013 2 4 THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESS ING OFFICER. 5. IT IS THEREFORE PRAYED THAT THE ORDER OF THE LD. CIT(A) BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED . 6. THAT THE REVENUE CRAVES LEAVE TO ADD, AMEND, ALT ER OR WITHDRAW ANY GROUNDS OF APPEAL. 2. IN GROUND NO. 1 IN APPEAL, BRIEFLY THE FACTS ARE THAT THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS PAID DELAY PAYM ENT CHARGES AGGREGATING TO RS. 8,41,531/-. THE SAME WERE TREATE D AS THE PENAL PAYMENTS FOR NON-BUSINESS PURPOSE AND ACCORDINGLY S TOOD DISALLOWED. 3. IN APPEAL, THE LD. CIT(A) FOUND THAT THE DISALLO WANCE OF RS. 8,41,531/- MADE BY THE A.O. WITH REGARD TO THE DELA YED PAYMENTS TO COAL SUPPLIERS AND TREATED THE SAME AS PANEL IN NATURE, IS FACTUALLY INCORRECT. THIS WAS HELD TO BE A GENUINE PAYMENT MADE IN DUE C OURSE OF BUSINESS AND DELETED THE DISALLOWANCE. 4. HEARD PARTIES WITH REFERENCE TO MATERIAL ON RECO RD. THE PAYMENTS MADE ON ACCOUNT OF LATE PAYMENT TO THE SUPPLIERS IS COMPENSATORY IN NATURE AND IS A BUSINESS EXPENDITURE. THE LD. CIT(A ) FOR JUSTIFIABLE REASONS DELETED THE ADDITION. IN ABSENCE OF ANY CON TRARY MATERIAL ON RECORD, WE FIND NO REASON TO INTERFERE WITH THE DEC ISION REACHED BY THE LD. CIT(A). ACCORDINGLY, GROUND NO. 1 RAISED IN APPEAL STANDS REJECTED. 5. IN GROUND NO. 2 IN APPEAL, THE LD. CIT(A) ALSO D ELETED THE DISALLOWANCE OF RS. 20,000/- ON LUMP SUM BASIS OUT OF OTHER EXPENSES AND THE SAME BEING WITHOUT ANY BASIC JUSTIFICATION, STO OD DELETED. THE LD. CIT(A) ALSO DELETED THE ADDITION OF RS. 2,88,696/- DISALLOWED AS 10% OUT OF SHORTING CHARGES. HE FOUND NO JUSTIFICATION IN SUCH DISALLOWANCE AS THE LD. A.O. NEITHER DOUBTED THE GENUINENESS OF THE PAYMENT S NOR POINTED OUT ANY DEFECTS IN THE ACCOUNTS. ITA 216/RJT/2013 3 6. HEARD PARTIES WITH REFERENCE TO MATERIAL ON RECO RD. ON THE PECULIAR FACTS AND FINDINGS REACHED BY THE LD. CIT(A), WE FI ND NO REASON TO INTERFERE WITH THE DECISION TO DELETE THE DISALLOWANCES. THE GROUNDS RAISED IN APPEAL, THEREFORE, STAND REJECTED. 7. IN THE RESULT, APPEAL BY REVENUE STANDS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 09/01/2014. SD/- SD/- ( T. K. SHARMA ) ( B. R. JAIN ) '* /JUDICIAL MEMBER #( '* / ACCOUNTANT MEMBER *#+ ,*-/ ORDER DATE 09/01/2014 /RAJKOT *RANJAN / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT- THE INCOME TAX OFFICER, WARD 1(3), JAM NAGAR. 2. /RESPONDENT- SHALIBHADRA ENTERPRISE, JAMNAGAR. 3. '-2- % & 3% / CIT-I, RAJKOT. 4. & 3%- / CIT (A), JAMNAGAR. 5. 789 % , , / DR, ITAT, RAJKOT 6. 9; <= / GUARD FILE. *#+ '# / BY ORDER , TRUE COPY PRIVATE SECRETARY, , INCOME TAX APPELLATE TRIBUNAL, RAJKOT. ITA 216/RJT/2013 4 1.DATE OF DICTATION :09/01/2014. 2.DATE OF PLACING THE DRAFT. :09/01/2014. 3.DATE OF APPROVAL OF DRAFT. : 4.DATE OF RETURN FROM JM : 5.DATE OF PRONOUNCEMENT : 09/01/2014 6.DATE OF SENDING TO BENCH CLERK : 09/01/2014 7.DATE OF RECEIPT BY BENCH CLERK : 8.DATE OF PLACING IT FOR ENDORSEMENT : 9.DATE OF ENDORSEMENT : 10.DATE OF DISPATCH :
