Libra Auto &General Finance Ltd, Jalandhar V. The Addl.Commissioner of Income-tax, Jalandhar

ITA 310/ASR/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2221 (ITAT-AMRITSAR)
• Duration Of Justice: 2 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 10-06-2013
• Assessment Year: 2005-2006
• Appeal Filed On: 24-05-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R L CHHANALIA
• Assessee Lawyers: SSH PREM SINGH; GUNJEET S INGH ITP
• Keywords: Maximum Marginal Rate; Reasonable cause
• Section: 234B; 37

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO.310(ASR)/2011 ASSESSMENT YEAR:2005-06 PAN :AAACL2361E M/S. LIBRA AUTO & GENERAL FINANCE LTD. VS. ADDL. CO MMR. OF INCOME TAX, JALANDHAR. RANGE-IV, JALANDHAR. (APPELLANT) (RESPONDENT) APPELLANT BY:S/SH. PREM SINGH ADVOCATE & GUNJEET SINGH, ITP RESPONDENT BY:SH.R.L.CHHANALIA, DR DATE OF HEARING: 10/06/2013 DATE OF PRONOUNCEMENT:13/06/2013 ORDER PER BENCH ; THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER OF THE CIT(A), JALANDHAR, DATED 28.02.2011 FOR THE ASSESSMENT YEAR 2005-06. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: 1. THAT THE LD. CIT(A) JALANDHAR HAS WRONGLY CONF IRMED THE ADDITION OF RS. 5 LACS IN RESPECT OF EXPENSES DEB ITED TO THE PROFIT & LOSS ACCOUNT WITHOUT ANY BASIS, JUSTIFICATION A ND IS CHALLENGED. 2. THAT THE SYNOPSIS FILED BY THE APPELLANT SHOULD HAVE BEEN CONSIDERED IN PROPER CONTEXT. ITA NO.311(ASR)/2011 2 3. THAT THERE IS NO JUSTIFICATION FOR CONFIRMING T HE AFORESAID ADDITION. 4. THAT THE LD. CIT(A) JALANDHAR HAS WRONGLY DISMI SSED AN APPEAL OF THE APPELLANT IN RESPECT OF INTEREST CHARGED U /S 234B AND 234D. 5. THAT PROPER OPPORTUNITY SHOULD HAVE BEEN ALLOWED. 6. THAT THE ORDER IS AGAINST LAW AND FACTS OF THE CASE . 7. ANY OTHER GROUND IS PRESSED AT THE TIME OF HEARING. 2. THE BRIEF FACTS OF THE CASE ARE THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE WAS ASKED TO PRODUCE BOOK S OF ACCOUNT WITH SUPPORTING BILLS/VOUCHERS. ON 19.12.2007, THE ASSES SEE PRODUCED SOME VOUCHERS IN RESPECT OF REPOSSESSION OF VEHICLES, AS SET VERIFICATION AND RECOVERY EXPENSES, THESE VOUCHERS WERE SELF MADE VO UCHERS BY THE ASSESSEE. ON THIS DATE, THE ASSESSEE WAS AGAIN ASKE D TO PRODUCE VOUCHERS IN RESPECT OF OTHER EXPENSES CLAIMED AND THE CASE WAS FIXED FOR 26.12.2007. ON THE FIXED DATE, NO VOUCHERS WERE PRODUCED. THOUGH ASSESSEE IS CLAIMING HUGE EXPENDITURE IN PROFIT & LOSS ACCOUNT ESPECIALL Y UNDER THE HEADS OFFICE REPAIR AND MAINTENANCE, STAFF WELFARE, FESTI VAL EXPENSES, ADVERTISEMENT EXPENSES, MEETING EXPENSES WITH TRANS PORTERS, BUSINESS PROMOTION EXPENSES ETC. YET NO VOUCHERS WERE PRODU CED TO VERIFY THE GENUINENESS AND ALLOWABILITY OF THESE EXPENSES. IN THE ABSENCE OF VOUCHERS, ITA NO.311(ASR)/2011 3 COMPLETE EXPENDITURE CLAIMED COULD NOT BE ALLOWED. ACCORDINGLY, AN EXPENDITURE OF RS.5,00,000/- WAS DISALLOWED AND ADD ED TO RETURNED INCOME OF THE ASSESSEE BY THE A.O. 3. THE LD. CIT(A) CONFIRMED THE ACTION OF THE ASSES SING OFFICER VIDE PARA 3 TO 3.2 OF HIS ORDER. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE FACTS OF THE CASE AS MENTIONED IN THE ORDER OF THE LD. CIT(A), THE AS SESSEE WAS GIVEN MANY OPPORTUNITIES FOR PRODUCING VOUCHERS WITH RESPECT T O EXPENSES INCURRED ON REPOSSESSION OF VEHICLES, ASSET VERIFICATION AND RE COVERY EXPENSES, OFFICE REPAIR AND MAINTENANCE, STAFF WELFARE, FESTIVAL EXP ENSES, ADVERTISEMENT EXPENSES, MEETING EXPENSES, BUSINESS PROMOTION EXPE NSES ETC. BUT NO VOUCHERS WERE PRODUCED TO VERIFY THE GENUINENESS AN D ALLOWABILITY OF THE EXPENSES. THOUGH A REQUEST WAS MADE TO THE LD. CIT( A) FOR PRODUCING THE VOUCHERS BEFORE HIM BUT THERE WAS NO APPLICATION UN DER RULE 46A BEFORE THE LD. CIT(A) AND ALSO NO CIRCUMSTANCES WERE SHOWN AS PROVIDED IN RULE 46A BEING A REASONABLE CAUSE FOR NOT HAVING PRODUCED TH ESE VOUCHERS DURING ASSESSMENT PROCEEDINGS. ALSO BEFORE US, THERE IS NO PRAYER THAT THE ASSESSEE IS MAINTAINING THE PROPER VOUCHERS WITH WHICH CLA IM OF THE ASSESSEE COULD BE ACCEPTED AND THAT EXPENSES HAVE BEEN INCURRED WH OLLY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS UNDER SECTION 37 OF THE ACT . IN THE FACTS AND ITA NO.311(ASR)/2011 4 CIRCUMSTANCES OF THE CASE, WE FIND NO INFIRMITY IN THE ORDER OF THE LD. CIT(A), WHO HAS RIGHTLY CONFIRMED THE ACTION OF THE A.O. THUS, ALL THE GROUNDS OF THE ASSESSEE ARE DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IN ITA NO.310(ASR)2011 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13TH JUNE, 2013. SD/- SD/- (H.S. SIDHU) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 13TH JUNE, 2013 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE:M/S. LIOBRA AUTO & GENERAL FINANCE LTD ; JALANDHAR. 2. THE ADDL. CIT, RANGE-IV, JALANDHAR. 3. THE CIT(A), JALANDHAR. 4. THE CIT, JALANDHAR. 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR. ITA NO.311(ASR)/2011 5