M/s. Kundan Minerals & Processing Co-operative Society Limited, UDAIPUR V. ACIT, UDAIPUR

ITA 284/JODH/2012

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7947 (ITAT-JODHPUR)
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 05-11-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 17-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G R KOKANI
• Assessee Lawyers: SHAILENDRA BARADIA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI N.K.SAINI, ACCOUNTANT MEMBER ITA NO. 284/JODH/2012 [ASSESSMENT YEAR 2008-09] M/S. KUNDAN MINERAL PROCESSING VS THE I.T.O CO-OPERATIVE SOCIETY LTD WARD 1(1) 205, VINAYAK BUSINESS CENTER UDAIPUR FATEHPURA, UDAIPUR PAN NO. AAAJK 1105 C (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. SHAILENDRA BARADIA . DEPARTMENT BY : SHRI G.R. KOKANI DATE OF HEARING : 05.11.2012 DATE OF PRONOUNCEMENT : 17.12.2012 ORDER PER HARI OM MARATHA, J.M. THIS APPEAL OF THE ASSESSEE FOR ASSESSMENT YEAR 200 8-09 IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A), UD AIPUR DATED 22/05/2012. 2 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE IS DOING BUSINESS IN THE STATUS OF CO-OPER ATIVE SOCIETY AND HAS MAINTAINED PROPER BOOKS OF ACCOUNT ALONGWITH VOUCHERS FOR EACH EXPENSE. THE ASSESSEE HAS SHOWN GROSS RECEIPTS OF RS. 1,24,58,969/- AND HAS D ISCLOSED GROSS PROFIT OF RS. 22,97,047/- GIVING GROSS PROFIT RATE OF 18.44%. THE A.O. DISALLOWED LUMPSUM RS. 5 LAKHS OU T OF TOTAL EXPENDITURE CLAIMED UNDER VARIOUS HEADS, NAME LY, INTERNAL SHIFTING CHARGES, MINING EXPENSES, SURFACE RIGHT CHARGES, WAGES-GOTAN, DIESEL EXPENSES, EXPLOSIVE AN D HOLE CHARGES, ETC. THE REASON FOR THIS ADHOC DISALLOWAN CE HAS BEEN GIVEN THAT SOME OF THE VOUCHERS FOR ABOVE EXPE NSES WERE NOT PRODUCED AND SOME OF THE VOUCHERS WERE SEL F-MADE. AS PER THE A.O, COMPLETE ADDRESSES OF THE LABOURERS AND WORK ASSIGNED TO THEM FOR WHICH EXPENSES HAVE BEEN DEBITED UNDER THE HEAD WAGES WERE NOT FURNISHED AND SO AL SO DETAILS OF DIESEL EXPENSES WERE NOT FILED. HE FOUN D THAT THE ABOVE EXPENSES ARE NOT VERIFIABLE. ACCORDINGLY, HE MADE LUMPSUM DISALLOWANCE OF RS. 5 LAKHS AND ADDED TO TH E INCOME OF THE ASSESSEE. IN FIRST APPEAL, THE ASSESSEE WAS SUCCESSFUL 3 IN GETTING LUMPSUM DISALLOWANCE REDUCED TO RS. 1.5 LAKHS AND BALANCE AMOUNT OF RS. 3.5 LAKHS WAS DELETED. ASSESS EE IS FURTHER AGGRIEVED. THE LD. A.R. SHRI SHAILENDRA BA RDIA VEHEMENTLY ARGUED THAT ALL EXPENSES ARE FULLY RECOR DED AND PROPERLY VOUCHED AND NONE OF THE EXPENSES ARE UNVER IFIABLE. THEREFORE, HE STERNLY PLEADED FOR DELETION OF ADHOC DISALLOWANCE SO MADE BY THE AUTHORITIES BELOW. 3. ON THE OTHER HAND, THE LD. D.R. SUPPORTED THE AC TION OF THE LD. CIT(A). 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE HAVE FOUND THAT THE A.O. HAS NOT FOUND ANY SPECIFIC INSTANCE O F EXPENSES WHICH CAN BE SAID EITHER TO BE INFLATED OR TO BE NO T PROPERLY VOUCHED. BY SIMPLY MENTIONING SOMETHING HERE AND SO METHING THERE, HE HAS MADE ADHOC LUMPSUM DISALLOWANCE WHICH CANNOT BE JUSTIFIED IN LAW. ACCORDINGLY, WE AGREE WITH THE SUBMISSIONS OF THE LD. A.R. AND DELETE THE ENTIRE S USTAINED ADDITION OF RS. 1.5 LAKHS AND ALLOW THE APPEAL OF T HE ASSESSEE. 4 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH DECEMBER, 2012. SD/- SD/- (N.K.SAINI) [HARI OM MARATHA] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 17 TH DECEMBER , 2012 VL/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) BY ORDER 5. THE DR ASSISTANT REGISTRAR ITAT, JODHPUR