ASSOCIATED TRANSPORT CO., MUMBAI V. ACIT 12(1), MUMBAI

ITA 3177/MUM/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2243 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2016
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 26-05-2015
• Court: TRIBUNAL

Judgement Text

, . . , IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, ACCOUNTANT MEMBER ./ ITA NO. 3 177 / MUM/20 1 5 ( / ASSESSMENT YEAR : 20 1 0 - 201 1 ) M/S ASSOCIATED TRANSPORT CO., 9 01, PENINSULA TOWERS, G.K.MARG, LOWER PAREL, MUMBAI - 400013 VS. ACIT - 12(1), MUMBAI ./ ./ PAN/GIR NO. : A A AFA 3293 K ( / APPELLANT ) .. ( / RESPONDENT ) /AS SESSEE BY : SHRI PRAKAS H PANDIT /REVENUE BY : SHRI ARVIND KUMAR / DATE OF HEARING : 08 /0 7 /2016 / DATE OF PRONOUNCEMENT 27 / 0 7 /201 6 / O R D E R TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) , MUMBAI, DATED 31 - 3 - 2015, FOR THE ASSESSMENT YEAR 20 11 - 2012 . 2. IN THIS APPEAL THE ASSESSEE IS AGGRIEVED FOR DISALLOWANCE OF RS. 2,01,161/ - OUT OF UNSUPPORTED CASH EXPENSES. 3 . RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT T HE ASSESSEE IS IN THE BUSINESS OF TRANSPORTATION DERIVING INCOME MAINLY FROM BROKERAGE, SHIFTING INCOME AND FORKLIFT HIRE CHARGES. DURING THE YEAR, THE ASSESSEE HAS SHOWN GROSS RECEIPTS OF RS.10.30 CRORES ON WHICH NET PROFIT OF RS.56.24 LAKHS IS DECLARED, THE RATIO OF WHICH WORKS OUT TO 5.46%. THE ASSESSEE HAS ALSO EARNED DIVIDEND INCOME AND CLAIMED THE SAME AS EXEMPT. 4. DURING THE COURSE OF ASSESSMENT THE AO DISALLOWED 25% OF UNSUPPORTED CASH EXPENSES WHICH WORKS OUT TO BE RS.5,00,401/ - . BY THE ITA NO. 3 177 /1 5 2 IMPUGNED ORDER THE CIT(A) RESTRICTED THE DISALLOWANCE TO 10% OF SUCH EXPENSES. 5. AS PER LD. AR AS PER NATURE OF ASSESSEES BUSINESS, SIMILAR EXPENSES WERE REQUIRED TO BE INCURRED IN CASH AND THERE IS NO PROVISION IN INCOME TAX ACT WHICH PROH IBITS EVEN IF SIMILAR PAYMENT TO BE MADE BY CHEQUES. 6. I HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND THAT DISALLOWANCE HAS BEEN MADE BY THE AO BY OBSERVING THAT IN RESPECT OF SOME OF THE EXPENSES THIRD PARTY EVIDENCE WERE NOT AVAILABLE. BY THE IMPUGNED OR DER CIT(A) RESTRICTED THE DISALLOWANCE TO 10%. CONSIDERING THE NATURE OF BUSINESS VIS - - VIS SMALLNESS OF EXPENSES INCURRED AND KEEPING IN VIEW THE TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE, I RESTRICT THE DISALLOWANCE TO THE EXTENT OF 5%. I DIRECT AC CORDINGLY. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 27/07 / 201 6 . SD/ - ( R.C.SHARMA ) / ACCOUNTANT MEMBER MUMBAI ; DATED 27/07 /201 6 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT , MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, I TAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//