Hanumant Construction Pvt.Ltd., Chhattisgarh V. The Dy.CIT.,Circle-1(2), Baroda

ITA 2558/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1499 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 11-05-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 08-11-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P L KUREEL
• Section: 40A(3)

Judgement Text

I.T.A. NO . 2558 /AHD/ 20 1 2 ASSESSMENT YEAR: 200 9 - 10 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD A BENCH, AHMEDABAD [CORAM : PRAMOD KUMAR AM AND S S GODARA JM ] I.T.A. NO. 2558 /AHD/ 20 1 2 ASSESSMENT YEAR : 200 9 - 10 HANUMAN CONSTRUCTION PVT. LTD. .. .......... .APPELLANT GROUND FLOOR, PARWANI COM PLEX, NR. CHHATISGARH CLUB, CIVIL LINES , RAIPUR, CHHATISGARH 492 001. [PAN: AA BCH 7062 D ] VS. DY. COMMISSIONER OF INCOME TAX, CIRCLE 1(2, BARODA. ............. . RESPONDENT APPEARANCES BY: SURENDRA MODIANI , FOR THE APPE LLANT P.L. KUREEL , FOR THE RESPONDENT D ATE OF CONCLUDING THE HEARING : MA Y 11 TH , 201 6 DATE OF PRONOUNCING THE ORDER : MAY 31 ST , 201 6 O R D E R PER PRAMOD KUMAR , AM : 1. THIS APPE A L IS DIRECTED AGAINST LEARNED CIT(A) S ORDER DATED 30 T H AUGUST, 2012, FOR THE ASSESSMENT YEAR 2009 - 10, ON THE FOLLOWING GROUND : - THE LD. COMMISSIONER OF INCOME TAX (APPEALS - I), BARODA HAS ERRED IN LAW AND IN FACTS IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN DISALLOWING AN AMOUNT OF RS.6,08,779/ - BE ING THE EXPENSES INCURRED ON PURCHASE OF DIESEL, OIL AT WORK SITES LOCATED IN REMOTE AREA OF ORISSA NOT PROPERLY SERVICED BY BANKING FACILITIES NOR TH E VENDORS WILLING TO SUPPLY AGAINST PAYMENTS THROUGH CHEQUES REQUIRING TIME FOR CLEARANCE AND THE PURCHASE MADE IN CASH BEING NECESSITATED OUT OF BUSINESS REQUIREMENTS, THE DISALLOWANCE U/S. 40A(3) IS UNWARRANTED AND UNJUSTIFIED. THE APPELLANT PRAYS THE ALLOWANCE OF RS.6,08,779/ - . I.T.A. NO . 2558 /AHD/ 20 1 2 ASSESSMENT YEAR: 200 9 - 10 PAGE 2 OF 3 2. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF CIVIL CONSTRUCTIONS AND HIRING O F EARTH MOVING MACHINES. DURING THE COURSE OF SCRUTINY ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS MADE CASH PAYMENTS, IN EXCESS OF RS.20,000/ - , AGGREGATING TO RS.8,03,388/ - . ACCORDINGLY, HE DISALLOWED RS.8,03,388/ - UNDER SECTION 40A(3) OF THE ACT . AGGRIEVED , ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD . CIT ( A ) BUT WITHOUT COMPLETE SUC C ESS. WHILE HE DELETED T HE DISALLOWANCES IN RESPECT OF PAYMENTS MADE ON SUNDAYS AND BANK HOLIDAYS, HE UPHELD THE REMAINING DISALLOWA NCE AND NOTED THAT JHARSUGADA AND DAMANJODI IN ORISSA , WHERE THESE PAYMENTS WERE MADE, WERE WELL SERVED BY THE BANKS AND THAT THE ASSESSEE S PLEA IN RESPECT OF NON AVAILABILITY OF BANKING FACILITIES W A S FACTUALLY INCORRECT. THE ASSESSEE IS NOT SATISFIED A ND IS IN FURTHER APPEAL BEFORE US. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF THE APPLICABLE LEGAL POSITION. 4. W E HAVE NOTED THAT THERE IS A CATEGORICAL FINDING ABOUT AVAILA BILITY OF BANKING FACILITIES A T THE PLACES WHERE THE IMPUGNED PAYMENTS WERE MADE, AND THE ASSESSEE HAS NOT BROUGHT ON RECORD ANY MATERIAL TO CONTROVERT THIS FACTUAL FINDING. IN THIS VIEW OF THE MATTER, AND IN THE ABSENCE OF ANY OTHER EVIDENCE TO DEMONSTRA TE COMPULSIONS OF CASH PAYMENTS, WE SEE NO NEED TO INTERFERE IN THE MATTER. WE ACCORDINGLY CONFIRM THE DISALLOWANCE. 5. IN THE RESULT, TH E APPE A L IS DISMISS E D. PRONOUNCED IN THE OPEN COURT TODAY ON THE 3 1 ST DAY OF MAY , 2016. SD/ - SD/ - S S GODARA PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) DATED: THE 31 ST DAY OF MAY , 2016. PBN/* I.T.A. NO . 2558 /AHD/ 20 1 2 ASSESSMENT YEAR: 200 9 - 10 PAGE 3 OF 3 COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD