A.R.Chinna Nachimuthu, Tirupathur V. ITO Ward 1(3), Tirupur

ITA 2725/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6996 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 24-09-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: T S LAKSHMIVENKATARAMAN
• Keywords: Opportunity of being heard

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A.NO.2725/CHNY/2018 / ASSESSMENT YEAR: 2013-14 SHRI A.R. CHINNA NACHIMUTHU, NO. 342, MAIN ROAD, KUNNATHUR, TIRUPUR 638 103. [PAN: AFFPC6464C] VS. THE INCOME TAX OFFICER, WARD 1(3), TIRUPUR. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI T.S. LAKSHMIVENKATARAMAN, C.A. / RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT / DATE OF HEARING : 23.04.2019 /DATE OF PRONOUNCEMENT : 29.04.2019 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 3, COIMBATORE, DATED 07.06.2018 RELEVANT TO THE ASSESSMENT YEAR 2013-14. THE GROUND RAISED IN THE APPEAL OF THE ASSESSEE IS THAT THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF .76,151/- AND .91,650/- BEING 20% OF THE CLAIM OF GENERATOR EXPENSES AND 10% OF THE CLAIM OF DIESEL & OIL EXPENSES RESPECTIVELY. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURNED OF INCOME FOR THE ASSESSMENT YEAR 2013-14 ON 21.09.2013 ADMITTING TOTAL INCOME OF I.T.A. NO. 2725/CHNY/18 2 .11,24,300/-. THE RETURN FILED BY THE ASSESSEE WAS SELECTED FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) OF THE ACT WAS ISSUED. AFTER CONSIDERING VARIOUS DETAILS FURNISHED BY THE ASSESSEE, THE ASSESSMENT WAS COMPLETED BY MAKING VARIOUS ADDITIONS. 2.1 WITH REGARD TO THE DISALLOWANCE OF GENERATOR EXPENSES AND DIESEL & OIL EXPENSES, THE ASSESSING OFFICER DISALLOWED 20% OF THE CLAIM OF GENERATOR EXPENSES AND 10% OF THE CLAIM OF DIESEL & OIL EXPENSES RESPECTIVELY ON THE GROUND THAT THE BILLS/VOUCHERS ARE NOT PROPERLY MAINTAINED. ON APPEAL, THE LD. CIT(A) CONFIRMED THE DISALLOWANCES. 3. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. WE HAVE ALSO PERUSED THE WRITTEN SUBMISSIONS ENCLOSING BUNCH OF BILLS. THE ASSESSEE WAS OPERATING PETROL BUNK AT KUNNATHUR AND ALSO OPERATES A TANKER LORRY AT THE ABOVE PLACE. THE ASSESSEE WAS ALSO OPERATING ANOTHER PETROL BUNK AT GOBICHETTIPALAYAM. IT WAS THE SUBMISSIONS OF THE LD. COUNSEL THAT THE EXPENSES INCURRED BY THE ASSESSEE ARE TOWARDS DIESEL CONSUMPTION IN THE GENERATOR BEING PUT TO USE AT THE ABOVE TWO PETROL BUNKS. IT WAS ALSO SUBMITTED THAT THE DIESEL AND OIL EXPENSES ARE INCURRED FOR THE TANKER LORRY. BY FILING COPY OF THE INVOICES AT RANDOM FOR THE ENTIRE ACCOUNTING YEAR ENDED I.T.A. NO. 2725/CHNY/18 3 31.03.2013 TO SUBSTANTIATE THAT NO AD-HOC DISALLOWANCE NEED TO BE MADE, THE LD. COUNSEL FOR THE ASSESSEE HAS PRAYED FOR DELETING THE DISALLOWANCES MADE BY THE ASSESSING OFFICER. IT IS AN UNDISPUTED FACT THAT THE ASSESSEE WAS OPERATING TWO PETROL BUNKS ONE AT KUNNATHUR AND THE OTHER AT GOBICHETTIPALAM AND ALSO OPERATING TANKER LORRY. THE GENERATOR/TANKER LORRY CANNOT BE OPERATED WITHOUT FUEL. JUST BECAUSE, THE ASSESSEE HAS NOT PROPERLY MAINTAINED THE BILLS AND VOUCHERS, THE DISALLOWANCE MADE IN THIS CASE IS NOT ACCEPTABLE. ONCE THE GENUINENESS OF THE CLAIM OF THE ASSESSEE IS NOT IN DISPUTE, THE ASSESSING OFFICER IS DIRECTED TO ALLOW THE CLAIM OF THE ASSESSEE AFTER VERIFICATION OF THE BILLS FURNISHED BY THE ASSESSEE BY ALLOWING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 29 TH APRIL, 2019 IN CHENNAI. SD/- SD/- (A.MOHAN ALANKAMONY) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 29.04.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.