ACIT, Cuttack V. M/s. Eastern Piling & Construction Pvt. Ltd, Cuttack

ITA 261/CTK/2012

• Counselvise Citation: 26122114 RSA 2012
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2012
• Appeal Filed By: Department
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 13-04-2012
• Court: TRIBUNAL
• Department Lawyers: S MISHRA
• Assessee Lawyers: S C MOHANTY

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK ( ) BEFORE . . , , HONBLE SHRI K.K.GUPTA, ACCOUNTANT MEMBER. /AND . . . , H ONBLE SHRI K.S.S.PRASAD RAO, JUDICIAL MEMBER / I.T.A.NO. 261/CTK/2012 / ASSESSMENT YEAR 2007 - 08 ASST.COMMISSIONER OF INCOME - TAX, CIRCLE 2(2), CUTTACK. - - - VERSUS - M/S.EASTERN PILING & CONSTRUCTION P. LTD., KAMALPUR, BA DAMBADI, CUTT A CK PAN: AAACE 3935 H ( /APPELLANT ) ( / RESPONDENT ) / FOR THE APPELLANT : / SHRI S.MISHRA, AR / FOR THE RESPONDENT: / SHRI S.C.MOHANTY, DR / DATE OF HEARING: 21.08 .2012 / DATE OF PRONOUNCEMENT: 14.09.2012 / ORDER . . , , SHRI K.K.GUPTA, ACCOUNTANT MEMBER. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME - TAX (APPEALS) DT.30.1.2012 IN DIRECTING TH E ASSESSING OFFICER TO RESTRICT THE DISALLOWANCE OUT OF EXPENDITURE ON DIESEL & LUBRICANT TO 1% INSTEAD OF 20% MADE BY THE ASSESSING OFFICER. 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE IMPUGNED ORDERS OF THE AUTHORITIES BELOW AND THE MATERIAL O N RECORD. BEFORE US, THE LEARNED DR CONTENDED THAT WHEN THE ASSESSEE COMPANY HAS CLAIMED TWO FOLD INCREASES IN EXPENSES ON DIESEL AND LUBRICANT AS COMPARED TO LAST YEAR BUT HAS FAILED TO SUBSTANTIATE THE SAME, WHICH THE LEARNED AR OF THE ASSESSEE DID NOT DISPUTE , THE ASSESSING OFFICER WAS JUSTIFIED IN MAKING DISALLOWANCE OF 20% OUT OF SUCH EXPENDITURES. BUT THE LEARNED CIT(A) HAS REDUCED SUCH I.T.A.NO. 261/CTK/2012 2 DISALLOWANCE TO ONLY 1% WITHOUT ANY RHYME AND REASON AND AS SUCH THE SAME IS LIABLE TO BE SET ASIDE. THE ASSESSING OFFICER OBSERVED IN HIS ORDER THAT DURING THE ASSESSMENT YEAR UNDER CONSIDERATION THE ASSESSEE CLAIMED EXPENDITURE OF 62,36,863 ON DIESEL AND LUBRICANT WHEN THE CONTRACT RECEIPT IS 5,02,89,394 AS AGAINST SUCH EXPENDITURE OF 36,75,758 IN THE PRECEDING ASSESSMENT YEAR WHEN THE CONTRACT RECEIPT WAS 3,68,34,601. THE ASSESSEE COULD NOT EXPLAIN TO SUCH STEEP INCREASE OF EXP ENDITURE ON THIS COUNT. NEITHER THE ASSESSEE COULD PRODUCE PRIMARY EVIDENCES SUCH AS BILLS AND VOUCHERS ETC. THEREFORE, THE ASSESSING OFFICER DISALLOWED 20% OF SUCH EXPENDITURE, WHICH ACCORDING TO THE LEARNED CIT(A) WAS ON HIGHER SIDE AND THUS CONSIDERED F IT FOR REDUCTION OF THE SAME TO WHICH WE AGREE. BUT CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE AND THE ASSESSEE BEING A CIVIL CONTRACTOR, IN OUR CONSIDERED VIEW THE REDUCTION OF SUCH DISALLOWANCE TO 1% AS DIRECTED BY THE LEARNED CIT(A) APPEARS US TO BE TOO LOW, AS RIGHTLY CONTENDED BY THE LEARNED DR, WHICH WE REASONABLY ENHANCE TO 10% (TEN PERCENT) . IN VIEW THEREOF, WE SET ASIDE THE IMPUGNED ORDER OF THE LEARNED CIT(A) ON THIS ISSUE AND DIRECT THE ASSESSING OFFICER TO MAKE DISALLOWANCE OF 10% OUT OF THE EXPENDITURES ON DIESEL AND LUBRICANTS. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS PARTLY ALLOWED. SD/ - SD/ - ( . . . ) , (K.S.S.PRASAD RAO), JUDICIAL MEMBER ( . . ) , , (K.K.GUPTA), ACCOUNTANT MEMBER. ( ) DATE: 14.09.2012 ( ), (H.K.PADHEE), SENIOR.PRIVATE SECRETARY. I.T.A.NO. 261/CTK/2012 3 - COPY OF THE ORDER FORWARDED TO: 1. / THE APPELLANT : ASST.COMMISSIONER OF INCOME - TAX, CIRCLE 2(2), CUTTACK. 2 / THE RESPONDENT: M/S.EASTERN PILING & CONSTRUCTION P. LTD., KAMALP UR, BADAMBADI, CUTTACK 3. / THE CIT, 4. ( ) / THE CIT(A), 5. / DR, CUTTACK BENCH 6. GUARD FILE . / TRUE COPY, / BY ORDER, APPENDIX XVII SEAL TO BE AFFIXED ON THE ORDER SHEET BY THE SR. P.S./P.S. AFTER DICTATION IS GIVEN 1 . DATE OF DICTATION 11.09.2012.. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 12.09.2012OTHER MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.... 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S 29.06.2012. 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 18.9.2012 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER ................ 9. DATE OF DESPATCH OF THE OR DER ..