Sri Prakash Chand Agarwal, Ranchi V. DCIT, C,C,-2, Ranchi

ITA 236/RAN/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 1634 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 12-07-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: CHINMAYA ANURANGABADKAR J
• Assessee Lawyers: DEBESH PODDAR
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH E COURT AT KOLKATA BEFORE SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO. 236 / RAN / 2019 ASSESSMENT YEAR :2010-11 SRI PRAKASH CHAND AGARWAL, PASA HOUSE, CIRCULAR ROAD, LALPUR, RANCHI-834001 [ PAN NO.ACLPA 1554 G ] V/S . DCIT, CIRCLE-1, CENTRAL REVENUE BUILDING, 5, MAIN ROAD, RANCHI-834001 /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI DEBESH PODDAR, ADVOCATE /BY RESPONDENT SHRI CHINMAYA ANURANGABADKAR, JCIT-DR /DATE OF HEARING 24-11-2020 /DATE OF PRONOUNCEMENT 09-12-2012 / O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2010-11 ARISES AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-3 PAT NAS DATED 21.05.2019 PASSED IN CASE NO. 243/CIT(A)-3/PAT/2018-19 INVOLVI NG PROCEEDINGS U/S 143(3) R.W.S.250 R.W.S.254; RESPECTIVELY OF THE INC OME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. WITH THE ABLE ASSISTANCE OF BOTH THE LEARNED REP RESENTATIVES, WE NOTICE AT THE OUTSET THAT THE ASSESSEES SUBSTANTIVE GRIEV ANCE(S) RAISED HEREIN ITA NO.236/RAN/2019 A.Y. 2010-11 SRI PRAKASH CHAND AGARWAL VS. DCIT, C.C-2 RAN PAGE 2 CHALLENGE BOTH THE LOWER AUTHORITIES ACTION DISALL OWING EXPENSE CLAIMED UNDER VEHICLE MAINTENANCE, TRAVELLING / TELEPHONE TO THE TUNE OF 3,97,898/- @ 20% OF THE GROSS SUM TOTALING TO 19,89,493/-, CLUB EXPENSES OF 18,646/- AND DEPRECIATION ON MOTOR CAR OF 32,437/-; RESPECTIVELY. LEARNED COUNSELS ONLY ARGUMENT DURING THE COURSE O F HEARING IS THAT BOTH THE LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS IN DECLINING ABUSES THREE FOLDED EXPENSES MERELY ON ESTIMATION B ASIS. THE REVENUE ON THE OTHER HAND, STRONGLY SUPPORTED BOTH THE LOWER AUTHORITIES ACTION UNDER CHALLENGE. 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RI VAL PLEADINGS AGAINST AND IN SUPPORT OF THE IMPUGNED THREE DISALLOWANCE(S ) / ADDITION(S) OF MISCELLANEOUS EXPENSES, CLUB EXPENSE AND DEPRECIATI ON ON MOTOR CAR; RESPECTIVELY. WE FIND NO REASON TO AGAINST EITHER P ARTYS PLEADING IN ENTRETY. THE FACT REMAINS THAT THE WE ARE DEALING WITH AN IN STANCE OF ESTIMATED DISALLOWANCE ONLY @ 20% AFTER ALLEGING ASSESSEES F AILURE IN EXPLAINING THE SAME TO HAVE BEEN INCURRED WHOLLY AND EXCLUSIVELY F OR THE PURPOSE OF HIS BUSINESS. THE VERY FACTUAL POSITION CONTINUES BEFOR E THE TRIBUNAL AS WELL AS SINCE THERE IS NO MATERIAL ON RECORD WHICH COULD IN DICATE THAT THERE IS NO PERSONAL ELEMENT INVOLVED IN ANY OF THE THREE ITEMS . WE THEREFORE DEEM IT APPROPRIATE TO DISALLOW @ 10% OF THE FIRST CLAIM OF 19,89,493/- TO THE TUNE OF 1,98,949/- AND 10,000/- EACH OF THE LATTER TWO HEAD(S) WITH A RIDE R OF THAT SAME SHALL NOT TREATED AS A PRECEDENT IN ANY OTHER ASSESSMENT YEAR. 4. MR. PODDAR AT THIS STAGE SOUGHT TO OUR INVITATIO N TO THE FACT THAT THE CIT(A) HAD ACCEPTED OF THE IDENTICAL CLAIM(S) IN SU CCEEDING ASSESSMENT YEARS. WE FIND NO REASON TO UPHOLD THE FOREGOING CO NTENTION SINCE WE ARE DEALING WITH AN INSTANCE OF ASSESSEES FAILURE TO P ROVE ALL THE IMPUGNED EXPENSES TO HAVE INCURRED WHOLLY AND EXCLUSIVELY FO R THE PURPOSE OF BUSINESS ITA NO.236/RAN/2019 A.Y. 2010-11 SRI PRAKASH CHAND AGARWAL VS. DCIT, C.C-2 RAN PAGE 3 IN THE RELEVANT PREVIOUS YEAR ONLY. THE ASSESSING O FFICER IS THEREFORE DIRECTED TO FINALISE THE NECESSARY COMPUTATION AS PER LAW. 5. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOV E TERMS. ORDER PRONOUNCED IN THE OPEN COURT 09/ 12/2020 SD/- SD/- ( ) ('# ) (J.SUDHAKAR REDDY) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) KOLKATA, *DKP SR.P.S. $- 09 / 12 /20 20 / / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-SRI PRAKASH CHAND AGARWAL, PASA HOUSE, C IRCULAR ROAD, LALPUR, RANCHI-834001 2. /RESPONDENT-DCIT, C.C-2, 7 TH FLOOR, MAHABIR TOWER, OPP. GEL CHURCH COMPLEX, MAIN ROAD, RANCH I-834001 3. / 2 / CONCERNED CIT RANCHI 4. 2- / CIT (A) RANCHI 5. 6 ##/, / , / DR, ITAT, RANCHI 6. < / GUARD FILE. BY ORDER/ , /TRUE COPY/ @A # / SR. PRIVATE SECRETARY, /,