Santhal Pargana Skilled Development For Rural Mass, Ranchi V. ITO (Exemption) Ward, Ranchi

ITA 260/RAN/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7764 (ITAT-RANCHI)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 31-07-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 234B; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH SMC, RANCHI BEFORE SH. S.S.GODARA, JUDICIAL MEMBER ITA NO.260/RAN/2018 [ASSESSMENT YEAR: 2014 - 15] SANTHAL PARGANA SKILLED DEVELOPMENT FOR RURAL MASS, CHAPU TOLI, ARGORA, RANCHI - 834002. PAN - A ALTS9838D VS ITO , (EXEMPTION) WARD , RANCHI . (APPELLANT) (RESPONDENT) APPELLANT BY SH. DEVESH PODDAR, ADV. RESPONDENT BY SH. P.K.MONDAL, JCIT DATE OF HEARING 07.01.2019 DATE OF PRONOUNCEMENT 09 .01.2019 ORDER PER SH. S.S.GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR AY 2014 - 15 ARISES AGAINST THE ORDER DATED 31.05.2016 PASSED BY THE CIT(A), RANCHI IN APPEAL NO.CIT(A), RANCHI/10325/2016 - 17 IN PROCEEDINGS U/S 144 OF THE INCOME TAX ACT, 1961 (IN SHORT ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. I FIND AT THE OUTSET THAT THE ASSESSEE SOLE GRIEVANCE CHALLENGE S THE CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION DISALLOWING 2 0% OF EXPENSES ON TEACHING STAFF, WITHDRAWALS ON 26.03.2014, DISALLOWANCE OF ACCOUNTING CHARGES AND ME DICINE PURCHASES OF RS.2,57,310/ - , 1,00,000/ - , 1 , 19,736/ - AND 7,648/ - RESPECTIVELY TOTALLING TO RS.3,77,046/ - . L EARNED COUNSEL S ONLY ARGUMENT IS THAT THIS ASSESSEE IS A TRUST AND THEREFORE, IT FOLLOWS FULL PROOF EVIDENCE OF EXPENSES LEAVING NO SCOPE OF ANY ADHOC DISALLOWANCE. HE FAILS TO DISPUTE THE FACT THAT THE ASSESSEE HAS NOT PROVED EACH AND EVERY H E AD OF EXPENDITURE BY FILING ALL NECESSARY DETAILS. THE FACTS ALSO REMAINS T HAT THE LOWER AUTHORITIES HA VE ALLOWED SIMILAR EXPENSES IN PRECEDING AND SU CCEEDING ASSESSMENT YEAR S. B E THAT OR IT MAY, I HOLD IN ALL THE SE PECULIARITIES INVOLVED TO CONCLUDE THAT A LUMPSUM DISALLOWANCE OF ITA NO.26 0 /RAN/201 8 [ASSESSMENT YEAR: 20 1 4 - 1 5] PA GE | 2 RS.1,00,000/ - OUT OF RS.3,77,046/ - WOULD MEET ENDS OF JUSTICE. IT IS MADE CLEAR THAT T H E IMPUGNED ESTIMATION WO ULD NOT BE TREATED AS A PRECEDENT AGAINST THE ASSESSEE IN ANY PRECEDING ASSESSMEN T YEAR. 3. NEXT ARGUMENT RAISED AT THE ASSESSEES BEHEST RELATES TO RE - COMPUTATION OF SECTION 234B INTEREST . HONBLE J URISDICTIONAL H IGH C OURT S DECISION IN AJAY PRA SAD VER MA IN T.A.NO.38/2010 REPORTED IN 2013 (1) TMI 140 HOLDS THAT THE IMPUGNED INTEREST CAN BE LEVIED ON RETURNED AND NOT ON ASSESSED INCOME. I THEREFORE DIRECT THE A SSESSING O FFICER TO RE - COMPUTE THE IMPUGNED I NTEREST STRICTLY IN CONFORMITY TO THE ABOVE DEC ISION OF HONBLE JURISDICTIONAL HIGH COURT . 4 . THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 09 .01.2019. SD/ - (S.S.GODARA) JUDICIAL MEMBER DATE: - 09 .01.2019 *AMIT KUMAR* COPY FORWARDED TO: 1 . APPELLANT - SANTHAL PARGANA SKILLED DEVELOPMENT FOR RURAL MASS, CHAPU TOLI, ARGORA, RANCHI - 834002. 2. R ESPONDENT - ITO , (EXEMPTION) WARD , RANCHI . 3. CIT - RANCHI 4. CIT(APPEALS) - RANCHI 5. DR: ITAT - RANCHI BENCHES SR.P.S./H.O.O ITAT, RANCHI