Mayur Enterprises, Baripada V. ITO, Ward-1, Baripada

ITA 267/CTK/2023

AI Insights

This case involves an appeal by Mayur Enterprises against the order of the CIT(A), NFAC, Delhi, concerning the assessment year 2013-14. The primary issues in the appeal included the addition of Rs.3,44,522 as interest income from a deposit with Bank of Baroda, an adhoc disallowance of travelling expenses, and discrepancies in financial reconciliations. The Tribunal considered the arguments and evidence presented by both the assessee and the revenue, leading to the restoration of certain issues to the AO for further verification and the deletion of an unsubstantiated income addition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 300438 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 16-10-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 13-08-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS
• Section: 64

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE Mayur Enterprises,C Sanat Kumar Dash, Ward No.5, Ambika Sahi, Baripada PAN/GIR No. (Appellant This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi 24/1053820292(1) 2. Shri Mohit Dass, ld Sr DR appeared for the revenue. 3. It was submitted by ld AR that the Assessing Officer has made an addition of Rs.3,44,522/ deposit with Bank IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK ‘SMC’ BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL ITA No.267/CTK/2023 Assessment Year : 2013-14 Mayur Enterprises,C/O Sanat Kumar Dash, Ward No.5, Ambika Sahi, Baripada Vs. ITO, Ward Baripada PAN/GIR No.AADFM 6056 D (Appellant) .. ( Respondent Assessee by : Shri Mohit Seth, Adv Revenue by : Shri Charan Dass, Date of Hearing : 17/10 Date of Pronouncement : 17/10 O R D E R This is an appeal filed by the assessee against the order of the ld , NFAC, Delhi dated 20.6.2023 in Appeal No.ITBA/NFAC/S/250/023 24/1053820292(1) for the assessment year 2013-14. Shri Mohit Sheth, ld AR appeared for the assessee and Shri Charan Dass, ld Sr DR appeared for the revenue. It was submitted by ld AR that the Assessing Officer has made an addition of Rs.3,44,522/- representing the interest income from deposit with Bank of Baroda. It was the submission that no TDS in respect Page1 | 5 IN THE INCOME TAX APPELLATE TRIBUNAL, , CUTTACK JUDICIAL MEMBER ITO, Ward-1, Respondent) Mohit Seth, Adv : Shri Charan Dass, Sr DR 10/2023 Date of Pronouncement : 17/10/2023 This is an appeal filed by the assessee against the order of the ld ITBA/NFAC/S/250/023- 14. Sheth, ld AR appeared for the assessee and Shri Charan It was submitted by ld AR that the Assessing Officer has made an resenting the interest income from the fixed of Baroda. It was the submission that no TDS in respect ITA No.267/CTK/2023 Assessment Year : 2013-14 Page2 | 5 of the alleged interest income has been made by the Bank of Baroda nor the assessee has been issued interest certificate for the relevant assessment year. It was the submission that interest income has been offered to tax on receipt basis during the assessment year 2015-16. 4. In reply, ld Sr DR submitted that no evidence has been produced to show that interest income has been offered to tax during the relevant assessment year 015-16. 5. I have considered the rival submissions. As the assessee has not produced any evidence in regard to offering of the interest income from the fixed deposit with Bank of Baroda during the assessment year 2015-16, this issue is restored to the file of the AO for verification as to whether the assessee has offered the interest income from the fixed deposit with Bank of Baroda for the assessment year 2015-16. If the interest income has been offered for the assessment year 2015-16, then no addition is to be made for the impugned assessment year. 6. The next issue is in regard to adhoc disallowance of travelling expenses. 7. It was the submission by the ld AR of the assessee that the adhoc disallowance is not called for. It was the submission by ld AR that Shri Sanat Kumar Dash is 64 years old and he needs assistance. It was the ITA No.267/CTK/2023 Assessment Year : 2013-14 Page3 | 5 submission that the wife of Shri Sanat Kumar Dash has accompanied him only for health issue. 8. In reply, ld Sr DR vehemently supported the order of the Assessing Officer and ld CIT(A). 9. I have considered the rival submissions. A perusal of the assessment order shows that the travelling expenses is in respect of partner Shri Sanat Kumar Dash and his wife Mrs Nandita Dash from Bhubaneswar to New Delhi and back to an extent of Rs.32,458/-. The AO mentions that the wife of Shri Sanat Kumar Dash is not a partner of the firm and consequently disallowed 50% of the said partner expenses. 10. As it is noticed that Mrs Nandita Dash has accompanied the partner to Delhi on account of the health issue of the partner and as it is also noticed that the travel expenses has been accepted by the revenue as being for the purpose of business. In these circumstances, the disallowance made by the AO and confirmed by the ld CIT(A) stands deleted. 11. The next issue is in regard to mismatch of the closing balance of Rs.5,006/-. 12. It was the submission that the books of account of the assessee are audited. It was the prayer that if an opportunity is given, the assessee would be to substantiate the said mismatch. ITA No.267/CTK/2023 Assessment Year : 2013-14 Page4 | 5 13. In reply, ld Sr DR vehemently supported the order of the AO and ld CIT(A). 14. I have considered the rival submissions. As the issue of interest income of fixed deposit from Bank of Baroda has already been restored to the file of the AO for verification, in the interest of justice, the difference in closing balance of bank account is also restored to the file of the AO for verification after granting the assessee adequate opportunity to substantiate the mismatch in closing balance. 15. The next issue is in regard to un-reconciled amount of Rs.1,812/- in respect of sundry creditor M/s. M&M FES ltd., A perusal of the assessment order shows that unreconciled difference is a negative figure. As the amount shown in assessee’s books is less than what has been shown by M&M Fes ltd., after reconciliation, obviously, it cannot be treated as income of the assessee. The addition of Rs.1,812/- stands deleted. 16. In the result, appeal of the assessee stands partly allowed for statistical purposes. Order dictated and pronounced in the open court on 17/10/2023. Sd/- (George Mathan) JUDICIAL MEMBER Cuttack; Dated 17/10/2023 B.K.Parida, SPS (OS) ITA No.267/CTK/2023 Assessment Year : 2013-14 Page5 | 5 Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Cuttack 1. The Appellant : Mayur Enterprises,C/O Sanat Kumar Dash, Ward No.5, Ambika Sahi, Baripada 2. The Respondent: ITO, Ward-1, Baripada 3. The CIT(A)- NFAC, Delhi 4. Pr.CIT, Cuttack 5. DR, ITAT, Cuttack 6. Guard file. //True Copy//