Smt. Meena Singh Shekhawat L/H & W/o Late Bhopal Singh Shekhawat, UDAIPUR V. ACIT, UDAIPUR

ITA 280/JODH/2012

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7944 (ITAT-JODHPUR)
• Duration Of Justice: 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 20-11-2012
• Assessment Year: 2001-2002
• Appeal Filed On: 10-07-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G R KOKANI
• Assessee Lawyers: RAJESH DEOPURA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL: JODHPUR BENCH : JODHPUR BEFORE SHRI HARI OM MARATHA, HONBLE JUDICIAL MEMBE R AND SHRI N.K. SAINI, HONBLE ACCOUNTANT MEMBER ITA NO. 280/JODH/2012 ASSESSMENT YEAR 2001-02 SMT. MEENA SINGH SHEKHAWAT L/H & W/O LATE BHOPAL SINGH SHEKHAWAT P/O M/S SHEKHAWAT (I) EXPORTS 16 NEW LAXMI NAGAR HIRANMAGRI, SECTOR NO. 8 UDAIPUR PAN NO. ADAPS 8616 D VS. ACIT CIRCLE- 1 UDAIPUR (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI RAJESH DEOPURA DEPARTMENT BY : SHRI G.R. KOKANI (DR) DATE OF HEARING : 20/11/2012. DATE OF PRONOUNCEMENT : 17/12/2012. ORDER PER HARI OM MARATHA, J.M.: THIS APPEAL OF THE ASSESSEE, FOR A.Y. 2001-02, IS DIRECTED AGAINST THE ORDER OF LD. CIT(A), DATED 26/04/2012. 2 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE DERIVES INCOME FROM EXPORT OF MARBLE BLOCKS AND SLABS. FOR THE A.Y. 2001-02, HE FILED HIS RETURN OF INCOME (ROI) ON 19/11/2001 D ECLARING TOTAL INCOME OF RS. 16,07,900/-. A AUDIT REPORT IN FORM 3 CB AND 3CD WAS ALSO FILED. THE ASSESSEE IS THE PROPRIETOR OF M/S SHEKHAWAT INDIA EXPORT, UDAIPUR. HE HAS SHOWN EXPENSES UNDER THE H EAD EXHIBITION RENT AND EXPENSES OF RS. 16,53,221/- IN THE EXPORT ACCOUNT. THE ASSESSEE HAS CLAIMED THESE EXPENSES TOWARDS TRAVELL ING MADE TO FOREIGN COUNTRIES FOR BUSINESS PURPOSES. THESE EXP ENSES INCLUDE AIR TRAVEL EXPENSES, BOARDING AND LODGING CHARGES AND E XHIBITION CHARGES IN THE CITY OF SHANGAI, CHINA FROM 7.4.2000 TO 22.4 .2000, AND AT BEIJING, CHINA FROM 9.3.2001 TO 23.3.2001. AFTER E XAMINATION OF THE DETAILS OF THESE EXPENSES, IT WAS NOTICED THAT THE ASSESSEE HAS NOT MAINTAINED PROPER VOUCHERS TO THE EXTENT OF 50% OF SUCH EXPENSES. ACCORDINGLY, CONSIDERING THE FACTS AND CIRCUMSTANCE S OF THE CASE, HE HAS DISALLOWED RS. 2 LAKHS ON LUMP-SUM BASIS OUT OF TOTAL EXPENDITURE CLAIMED IN THIS ACCOUNT AND HAS ADDED THE SAME IN T HE HANDS OF THE ASSESSEE. THIS MATTER TRAVELLED UPTO TRIBUNAL AND FOR THE LACK OF FULL FACTS OF THE ISSUE, THE TRIBUNAL REMANDED IT BACK T O THE FILE OF THE LD. 3 CIT(A) FOR ITS DE NOVO CONSIDERATION. AGAIN THIS IS SUE HAS COME IN THE SECOND ROUND BEFORE US. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE HAVE FOUND THAT THE ASSESSEE ORGANIZED EXHIBITION OF ITS GOODS IN CHINA AND THE FACTS OF EXHIBITION HAS NOT BEEN DISPUTED RATHER HAS BEEN AC CEPTED BY THE A.O. HIMSELF, WE ARE UNABLE TO UNDERSTAND AS TO HOW, EVE N IF VOUCHERS FOR EXPENSES TOWARDS LUNCH, DINNER, TAXI, TELEPHONE, ET C. ARE NOT AVAILABLE, THE RELEVANT EXPENSES CAN BE DENIED. WHE N THE ASSESSEE WAS IN FOREIGN LAND AND NORMALLY ANYBODY AND EVERYB ODY IS SUPPOSED TO TAKE BREAKFAST, LUNCH AND DINNER AND ALSO MAKE CALL S, PARTICULARLY, WHEN SUCH AN ASSESSEE IS A BUSINESS-MAN. THEREFORE , IN OUR CONSIDERED OPINION, THIS ADHOC DISALLOWANCE OF RS. 2 LAKHS IS NOT AT ALL JUSTIFIED. ACCORDINGLY, WE ORDER TO DELETE THE IMPUGNED ADDITI ON AND ALLOW GROUND NO. 1 OF THIS APPEAL. 4. HAVING DECIDED AS ABOVE, GROUND NO. 2 BECOMES ON LY ACADEMIC IN NATURE. MOREOVER THIS ISSUE WAS NOT A SUBJECT-MATT ER OF REMAND BY THE TRIBUNAL. THEREFORE, GROUND NO. 2 STANDS DISMIS SED. 4 5. IN THE RESULT, THIS APPEAL OF THE ASSESSEE IS PA RTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH DECEMBER, 2012. SD/- SD/- [N.K. SAINI] [HARI OM MARATH A] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 17 TH DECEMBER, 2012 COPY TO ALL CONCERNED. 1- ASSESSEE 2- DEPARTMENT BY ORDER 3- CIT(A) 4- CIT CONCERNED. 5- D.R., ITAT, JODHPUR. ASSISTANT REGISTRAR JODHPUR BENCH