M/s Shivam Marketing, Gondal, RAJKOT-GUJARAT V. The Income Tax Officer, Ward-1(2), RAJKOT-GUJARAT

ITA 315/RJT/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80084 (ITAT-RAJKOT)
• Duration Of Justice: 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 28-05-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 08-05-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Assessee Lawyers: DR ADHIA
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBULAL, SMC BENCH, RAJKOT BEFORE SHRI T. K. SHARMA, JM ITA NO.315/RJT/2014 ASSESSMENT YEAR : 2009-10 M/S. SHIVAM MARKETING, C/O. BHOLA PANWALA, BUS STAND CHOWK, GONDAL PAN : ABBFS 8088 E ( / APPELLANT) THE I.T.O. WARD-1(2), RAJKOT / RESPONDENT / ASSESSEE BY SHRI D.R. ADHIA, AR / REVENUE BY SHRI M.K. SINGH, DR / DATE OF HEARING 28.05.2014 !'# / DATE OF PRONOUNCEMENT 13.06.2014 / ORDER THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER DA TED 24.04.2014 OF CIT (A)-I, RAJKOT FOR THE ASSESSMENT YEAR 2009-10. 2. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE IS A FIRM, ENGAGED IN BUSINESS OF DISTRIBUTION OF CEMENT OF SANGHI INDUSTRIES LTD. FO R THE ASSESSMENT YEAR UNDER APPEAL, IT FILED THE RETURN OF INCOME ON 23.03.2009 DECLARING TOTAL INCOME AT RS.6,070/-. THE ASSESSING OFFICER FRAMED ASSESSMENT U/S 143(3) OF THE ACT ON 01.12.2011 AT A TOTAL INCOME OF RS.56,360/-. IN THE ASSESSMENT ORDER, THE ASSESSING OFFICER DISALLOWED 15% OF OFFICE EXPENSES, PETROL & DIESEL EXPENSES AS UNDER:- 1. OFFICE EXPENSES RS.158927/- 15% RS.23,839/ - 2. PETROL & DIESEL EXP. RS.176319/- 15% RS.26,488/- RS.335246/- RS.50,287/- ON APPEAL BEFORE THE LD. CIT(A), THE ASSESSEE CONT ENDED THAT THE DISALLOWANCE SHOULD BE REDUCED TO TOKEN 5% KEEPING IN VIEW THE NET INCOME DECLARED BY THE ASSESSEE WHICH IS RS.6,070/-. AS A GAINST THIS, LD. DR POINTED OUT THAT THE ADDITION OF RS.50,287/- HAS BEEN MADE ON A GREED BASIS, THEREFORE THE APPEAL OF THE ASSESSEE IS NOT MAINTAINABLE. IN REJOINDER, THE LD. COUNSEL OF THE ASSESSEE POINTED OUT THAT BEFORE THE ASSESSING OFFICER THE A R OF THE ASSESSEE AGREED FOR SOME PARTIAL DISALLOWANCE ONLY AND NOT DISALLOWANCE @ 15%. 3. HAVING HEARD BOTH THE SIDES, I HAVE CAREFULLY GO NE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. IN MY CONSIDERED OPINION, AD-HOC DISALLOWANCE OF 15% IS EXCESSIVE, KEEPING IN VIEW OF THE TOTAL INCOME DECL ARED BY THE ASSESSEE WHICH IS 2 315-RJT-2014 - SHIVAM MARKETING 143(3) (SMC) RS.6,070/-. AT THE SAME TIME, KEEPING IN VIEW OF T HE FACT THAT THE SOME VOUCHERS OF OFFICE EXPENSES AND PETROL & DIESEL EXPENSES WERE I LLEGIBLE, TORN ETC., I AM OF THE VIEW THAT IT WILL MEET THE ENDS OF JUSTICE IF THE D ISALLOWANCE IS RESTRICTED TO 7.5%. ON THIS BASIS, THE TOTAL DISALLOWANCE WORKS OUT TO RS. 25,144/- (I.E. RS.3,35,246/- X 7.5%), AS AGAINST RS.50,287/- MADE BY THE ASSESSING OFFICE R. I HOLD ACCORDINGLY. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON THE DATE MEN TIONED HEREINABOVE. SD/- ( $.. &' / T. K. SHARMA) ( ) /JUDICIAL MEMBER *)& +) ,/ ORDER DATE: 13.06.2014 !$ /RAJKOT *BT / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT- M/S. SHIVAM MARKETING, C/O. BHOLA PAN WALA, BUS STAND CHOWK, GONDAL 2. / RESPONDENT- THE I.T.O., WARD-1(2),RAJKOT 3. ,0,1 * * 2 / CONCERNED CIT-I, RAJKOT 4. * * 2- / CIT(A)-I, RAJKOT 5 . 567 1, * 1#, !$ / DR, ITAT, RAJKOT 6 . 79 :; / GUARD FILE *)& / BY ORDER TRUE COPY PRIVATE SECRETARY, ITAT, RAJKOT