Sh. Shyam Kumar Tiwari, Kannauj V. I.T.O., Ward2(4), Kannauj

ITA 321/AGR/2013

• Counselvise Citation: 32120314 RSA 2013
• Duration Of Justice: 9 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 24-06-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 10-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S D SHARMA
• Assessee Lawyers: SWARAN SINGH; S K GUPTA CAS
• Keywords: Depreciation
• Section: 40A(3); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER ITA NO.321/AGRA/ 2013 ASSESSMENT YEAR: 2007-08 SHRI SHYAM KUMAR TIWARI, VS. INCOME TAX OFFICER, SUBHASH NAGAR, WARD 2(4), KANNAUJ. CHHIBRAMAU, KANNAUJ. (PAN ADVPT 0255 A) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SWARAN SINGH &. SHRI S.K. GUPTA, CAS. RESPONDENT BY : SHRI S.D. SHARMA , JR. D.R. DATE OF HEARING : 24.06.2014 DATE OF PRONOUNCEMENT : 27.06.2014 ORDER PER PRAMOD KUMAR, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AND IS DIRE CTED AGAINST THE ORDER DATED 13.06.2013 PASSED BY THE LD CIT(A) IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961, FOR THE ASSESSM ENT YEAR 2007-08. 2. THE EFFECTIVE GRIEVANCES RAISED BY THE ASSESSEE ARE AS FOLLOWS:- 1. CIT APPEALS HAS ERRED IN LAW AND ON FACTS AND CI RCUMSTANCES OF THE CASE IN SUSTAINING THE FOLLOWING ADHOC ADDITIONS MA DE BY THE AO, AFTER ACCEPTING THE BOOKS OF ACCOUNTS AND WITHOUT POINTIN G OUT ANY SPECIFIC DEFECT(S). ITA NO.321/AGRA/2013 A.Y. 2007-08 2 (A) DISALLOWANCE OUT OF CONSUMABLES U/S 40A(3) - 1 ,15,689/- (B) DISALLOWANCE OUT OF WAGES - 53,423/- (C) DISALLOWANCE OUT OF LOADING & UNLOADING - 13,1 25/- (D) DISALLOWANCE OUT OF TRAVELLING & CONVEYANCE - 1 0,000/- (E) DISALLOWANCE OUT OF STAFF WELFARE - 3,000/- (F) DISALLOWANCE OUT OF PRINTING AND STATIONERY - 5,000/- (G) DISALLOWANCE OUT OF DEPRECIATION - 1,14,575/- 2. C.I.T. APPEALS HAS ERRED IN LAW AND ON FACTS AND CIRCUMSTANCES OF THE CASE IN SUSTAINING THE ADHOC ADDITIONS MADE BY THE AO MENTIONED IN GROUND NO.1 HERE ABOVE, WITHOUT ANY COGENT MATERIAL ON REC ORD. 3. CIT APPEAL HAS ERRED IN LAW AND ON FACTS IN CONF IRMING THE ASSESSMENT ORDER PASSED AGAINST THE PRINCIPLE OF NATURAL JUSTI CE. 3. THE MATERIAL FACTS ARE LIKE THIS. THE ASSESSEE IS A CIVIL CONTRACTOR. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE A.O. NOTED THAT MANY OF THE VOUCHERS FOR EXPENSES ETC. PRODUCED BY THE ASSESSEE FOR VERIFICA TION ARE SELF-MADE VOUCHERS ON PLAIN PAPER, WITHOUT BEARING NAME AND FULL ADDRESS OF THE RECIPIENTS AND WERE NOT OPEN TO PROPER VERIFICATION. IT WAS IN THIS BACKDR OP AND HAVING OBSERVED SUSPICIOUS NATURE OF THESE VOUCHERS THE EXPENSES WERE DISALLOWED ON ADHOC BASIS AS FOLLOWS:- HEAD OF EXPENDITURE EXPENDITURE DEBITED TO P&L A/C. AMOUNT OF UNVERIFIABLE EXPENSES CONSUMABLES RS.87,68,920/- RS.1,15,689/- WAGES RS.36,42,321/- RS.53,423/- LOADING & UNLOADING RS.1,95,550/- RS.13,125/- TRAVELLING & CONVEYANCE RS.95,550/- RS.10,000/- STAFF WELFARE RS.25,550/- RS.3,000/- PRINTING & STATIONERY RS.59,580/- RS.5,000/- ITA NO.321/AGRA/2013 A.Y. 2007-08 3 4. AGGRIEVED, THE ASSESSEE CARRIED THE MATTER IN AP PEAL BEFORE THE LD. CIT(A) BUT WITHOUT ANY SUCCESS. THE ASSESSEE IS NOT SATIS FIED AND IS IN FURTHER APPEAL BEFORE US. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT AS RIGHTLY POINTED OUT BY THE LD. COUNSEL , THERE IS NO SPECIFIC REASON FOR THE IMPUGNED DISALLOWANCES EXCEPT FOR SIMPLER GENER ALIZATION ON SUSPICIOUS NATURE AND VOUCHERS. IN CASE THE A.O. WAS NOT SAT ISFIED ABOUT THE SPECIFIC VOUCHER, IT WAS OPEN TO HIM TO DISALLOW THE EXPENSE S SO CLAIMED, OF COURSE, AFTER PUTTING THE ASSESSEE TO NOTICE IN THIS REGARD. HOW EVER, THE MERE FACT THAT THE A.O. IS NOT SATISFIED WITH SELF-MADE VOUCHERS, OR THAT T HE A.O. BELIEVES THAT VOUCHERS COULD HAVE NOT BEEN MORE ELABORATE AND SPECIFIC, IT CANNOT BE A REASON ENOUGH TO RESORT TO ADHOC DISALLOWANCES. OUR CAREFUL PERUSAL ON THE MATERIAL ON RECORD DOES NOT INDICATE ANY SPECIFIC QUESTION HAVING BEEN PUT TO THE ASSESSEE WHICH HAS REMAINED TO BE COMPLIED WITH. IN THESE CIRCUMSTANC ES AND BEARING IN MIND THE ENTIRETY OF THE FACT OF THE CASE, WE CONSIDER IT FI T AND PROPER TO DELETE THE IMPUGNED ADHOC DISALLOWANCE. THE ASSESSEE GETS RELIEF ACCOR DINGLY. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 27.06.2014) SD/- SD/- (BHAVNESH SAINI) (PRAMOD KUMAR) JUDICIAL MEMBER ACCOU NTANT MEMBER DATE: 27 TH JUNE, 2014 ITA NO.321/AGRA/2013 A.Y. 2007-08 4 PBN/* COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL, AGRA TRUE COPY