Appeal details
Counselvise Citation
[2016] 133 COUNSELVISE.COM (IT) 9867 (ITAT-AHMEDABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
4 month(s) 20 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
13-01-2016
Appeal Filed By
Assessee
Order Result
Partly Allowed
Bench Allotted
SMC
Next Hearing Date
09-12-2015
Assessment Year
2012-2013
Appeal Filed On
24-08-2015
Judgement Text
, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ./ ITA NO. 2503/AHD/2015 / ASSESSMENT YEAR: 2012-13 VARUN RADIATORS PVT LTD 1106, GIDC ESTATE, CHHATRAL, TAL-KALOL .. APPELLANT PAN : AAACV 7073 K VS ACIT, MEHSANA CIRCLE, MEHSANA .. RESPONDENT ASSESSEE(S) BY : SHRI A.L. THAKKAR , AR REVENUE BY : SHRI JAMES KURIAN, SR - DR / DATE OF HEARING 09/12/2015 /DATE OF PRONOUNCEMENT 13/01/2016 / O R D E R PER SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE O RDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), GANDHINAG AR, AHMEDABAD DATED 14.07.2015 FOR ASSESSMENT YEAR 2012 -13, ON THE FOLLOWING GROUNDS:- 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HA S ERRED IN CONFIRMING THE DISALLOWANCE OF EXPENSES OF RS.1,37,175/- BEING 1/6 TH OF TOTAL EXPENSES OF RS.8,23,053/- WHICH COMPRISES OF TELEPHONE EXPENSES ITA NO. 2503/AHD/2015 VARUN RADIATORS PVT LTD VS. ACIT AY 2012-13 - 2 - OF RS.2,03,305/-, TRAVELLING EXPENSES OF RS.1,51,73 8/-, VEHICLE EXPENSES OF RS.1,67,890/- AND DEPRECIATION ON CAR OF RS.3,00,120/-. 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HA S ERRED IN CONFIRMING THE DISALLOWANCE OF RS.3,77,546 /- OUT OF PF AND ESIC CONTRIBUTION (RS.3,28,261/- PF & RS.48,285/- ESIC). 3. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR MODIFY ANY OF THE GROUNDS OF APPEAL ON OR BEFORE TH E DATE OF HEARING OF APPEAL. 2. THE FIRST ISSUE IS WITH REGARD TO THE DISALLOWAN CE OF RS.1,37,175/- MADE BY THE ASSESSING OFFICER BEING 1/6 TH EXPENSES OF VARIOUS ACCOUNTS, I.E., TELEPHONE (RS.2 ,03,305), TRAVELLING (RS.1,51,738/-), VEHICLE (RS.1,67,890) A ND DEPRECIATION EXPENSES (RS.3,00,000) [TOTAL RS.8,23, 053]. THE ASSESSING OFFICER HAS MADE THESE DISALLOWANCE MAINL Y ON THE GROUND THAT MOST OF THE BILLS AND VOUCHERS FOR THE EXPENSES CLAIMED WERE SELF-SUPPORTING AND NOT FULLY VERIFIAB LE AND THE ASSESSEE WAS NOT MAINTAINING ANY LOG BOOK FOR THE U SE OF VEHICLE, NO REGISTERS WERE MAINTAINED FOR TELEPHONE AND ALSO FOR THE FACT THAT THE ASSESSEE HAD NOT MADE ANY DISALLO WANCE WHILE COMPUTING ITS INCOME FOR PERSONAL USE OF VEHICLE AN D TELEPHONE EXPENSES. TAKING INTO CONSIDERATION ALL FACTS AND CIRCUMSTANCES OF THE CASE, IN OUR OPINION, IT WOULD MEET THE ENDS ITA NO. 2503/AHD/2015 VARUN RADIATORS PVT LTD VS. ACIT AY 2012-13 - 3 - OF JUSTICE IF THESE DISALLOWANCES ARE RESTRICTED TO RS.4,00,000/-. WE ORDER ACCORDINGLY. THIS GROUND IS PARTLY ALLOWED. 3. NEXT ISSUE IS WITH REGARD TO THE DISALLOWANCE OF RS.3,77,546/- OUT OF PF (RS.3,28,261) AND ESIC (RS.48,285). THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS DEBITED EMPLOYEES CO NTRIBUTION TO PF TO THE TUNE OF RS.3,51,103/- AND ESIC OF RS.54,187/-. ON FURTHER SCRUTINY OF THE MONTHWISE DETAILS FILED BY THE ASSESSEE REVE ALED THAT THE ASSESSEE HAD DEPOSITED AN AMOUNT OF RS.3,28,261 AFT ER THE DUE DATE PRESCRIBED UNDER THE PF ACT AND ESIC OF RS.48,285/- AFTER THE STIPULATED DATE. REPLY OF ASSESSEE TO THE SPECIFIC QUERY RAISED BY THE ASSESSING OFFICER IN THIS REGARD WAS NOT FOUND ACCE PTABLE TO THE ASSESSING OFFICER. THEREFORE, RELYING UPON THE DEC ISION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. GUJARAT S TATE ROAD TRANSPORT CORPORATION, REPORTED IN 223 TAXMAN 398 ( GUJ), THE ASSESSING OFFICER MADE DISALLOWANCE ON THESE COUNTS , WHICH HAS BEEN CONFIRMED BY THE CIT(A) IN THE APPELLATE PROCEEDING S. FROM THE AFORESAID DECISION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF GUJARAT STATE ROAD TRANSPORT CORPORATION, IT WAS CL EAR THAT THE ASSESSEE WAS REQUIRED TO DEPOSIT THE EMPLOYEES PF A ND ESIC CONTRIBUTION INTO THE GOVERNMENT ACCOUNT WITHIN THE DUE DATE, INCLUDING GRACE PERIOD ALLOWED BY THE RESPECTIVE AC TS AND NOT BEFORE ITA NO. 2503/AHD/2015 VARUN RADIATORS PVT LTD VS. ACIT AY 2012-13 - 4 - THE DUE DATE OF FILING THE RETURN OF INCOME AS CONT ENDED BY THE ASSESSEE. THEREFORE, IN OUR OPINION, THE CIT(A) HA S RIGHTLY UPHELD THE DISALLOWANCE MADE BY THE ASSESSING OFFICER AMOUNTIN G TO RS.3,77,546/- [RS.3,51,103/- AND ESIC OF RS.54,187/ -] ON ACCOUNT OF LATE PAYMENT OF EMPLOYEES PF AND ESIC TO THE GOVER NMENT ACCOUNT. NOTHING CONTRARY WAS BROUGHT ON RECORD ON BEHALF OF THE ASSESSEE. SO, WE ARE NOT INCLINED TO INTERFERE WITH THE ORDERS OF THE LOWER AUTHORITIES IN THIS REGARD WHO HAS RIGHTLY MADE/CON FIRMED THIS DISALLOWANCE AS DISCUSSED ABOVE. THIS GROUND IS DI SMISSED. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 13TH OF JANUARY, 2 016 AT AHMEDABAD. SD/- SD/- ( RAJESH KUMAR ) ACCOUNTANT MEMBER ( SHAILENDRA KUMAR YADAV ) JUDICIAL MEMBER AHMEDABAD; DATED 13/01/2016 *BT !'# $#! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A), 5. !'# $$ , , / DR, ITAT, AHMEDABAD 6. #() / GUARD FILE. / BY ORDER, //TRUE COPY// / (DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD
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