The ACIT(OSD)-I,Range-4, Ahmedabad V. Globe Ecologistics Ltd., Ahmedabad

ITA 326/AHD/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6355 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 02-05-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 07-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: H K LAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND D. C. AGRAWAL , AM) ITA NO.326/AHD/2011 A. Y.: 2007-08 THE A. C. I., T.(OSD), CIRCLE- 4, NAVJIVAN TRUST BUILDING, OFF. ASHRAM ROAD, AHMEDABAD VS GLOBE ECOLOGISTICS LTD., 61, NEW YORK TOWER-A, THALTEJ CIRCLE, S. G. HIGHWAY, AHMEDABAD PA NO. AAACG 3938 J (APPELLANT) (RESPONDENT) APPELLANT BY SHRI H. K. LAL, DR RESPONDENT BY SHRI VINIT MOONDRA, AR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-VI II, AHMEDABAD DATED 16 TH NOVEMBER, 2010, FOR ASSESSMENT YEAR 2007-08. 2. THE REVENUE ON GROUND NO.1 CHALLENGED THE ORDER OF THE LEARNED CIT(A) IN RESTRICTING THE DISALLOWANCE OUT OF OPERATIONAL EXPENSES TO RS.3,34,200/- AS AGAINST DISALLOWANCE OF RS.13,36,830/. THE AO ASKED THE ASSESSEE TO PRODUCE THE VOUCHERS O F TRANSPORTATION BUSINESS FOR CONSIDERING THE OPERATI ONAL EXPENSES. THE AO ON VERIFICATION OF THE VOUCHERS OF TEN RANDO MLY SELECTED TRIPS FOUND THAT SUBSTANTIAL AMOUNTS CLAIMED UNDER THE HE AD OPERATIONAL EXPENSES WERE NOT SUPPORTED BY VOUCHERS AND EVIDEN CES. THE ASSESSEE PRODUCED THE DETAILS BEFORE THE AO AND FIL ED EXPLANATION WHICH WAS NOT FOUND SATISFACTORY BY THE AO. THE AO ON THE BASIS OF ITA NO.326/AHD/2011 ACIT (OSD), CIRCLE-1, AHMEDABAD VS GLOBE ECOLOGISTI CS LTD. 2 SAMPLE CONCLUDED THAT 9.53% OF THE EXPENSES WERE NO T SUPPORTED BY VOUCHERS AND ACCORDINGLY ADDITION WAS MADE. THE LEA RNED CIT(A) CONSIDERING THE EXPLANATION OF THE ASSESSEE RESTRIC TED THE DISALLOWANCE TO 25% AND RESTRICTED THE ADDITION TO RS.3,34,200/-. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THIS ISSUE WAS CONSIDERED SIMILARLY IN ASSESSMENT YEAR 2006-07 AND SUBSTANTIAL RELIEF IS GRANTED BY THE TRIBUNAL IN THE CASE OF TH E SAME ASSESSEE IN ITA NO.3277/AHD/2009 DATED 31-05-2011 AND THE DISAL LOWANCE IS RESTRICTED TO 10%. COPY OF THE ORDER IS FILED ON RE CORD. THE ASSESSEES COUNSEL ADMITTED THAT THE ASSESSEE DID N OT PREFER ANY APPEAL IN ASSESSMENT YEAR UNDER APPEAL. 4. THE DR ADMITTED THAT SINCE THE TRIBUNAL RESTRICT ED THE ADDITION TO 10% OF THE EXPENSES, THEREFORE, HE MERELY RELIED ON THE ORDER OF THE AO. 5. ON CONSIDERATION OF THE ABOVE FACTS, WE DO NOT F IND ANY MERIT IN THE APPEAL OF THE REVENUE. IN THE PRECEDING ASSESSM ENT YEAR 2006- 07, THE TRIBUNAL ON THE SAME ISSUE RESTRICTED THE A DDITION TO 10% OF THE EXPENSES ON THE SAME ISSUE. HOWEVER, IN THE ASS ESSMENT YEAR UNDER APPEAL THE LEARNED CIT(A) RESTRICTED THE ADDI TION TO 20%. FURTHER, THE ASSESSEE IS NOT IN APPEAL. THEREFORE, BY FOLLOWING THE ORDER OF THE TRIBUNAL, WE DISMISS THE APPEAL OF THE REVENUE. 6. IN THE RESULT, GROUND NO.1 OF THE APPEAL OF THE REVENUE IS DISMISSED. ITA NO.326/AHD/2011 ACIT (OSD), CIRCLE-1, AHMEDABAD VS GLOBE ECOLOGISTI CS LTD. 3 7. ON GROUND NO.2, THE REVENUE CHALLENGED THE DELET ION OF RS.61,925/- ON ACCOUNT OF DELAYED PAYMENT OF EMPLOY EES CONTRIBUTION TOWARDS PROVIDENT FUND THE LEARNED CIT (A) NOTED THAT THE DATE OF PAYMENTS IS 28-02-2007 IN THE IMPUGNED ORDE R, THAT MEANS THE PAYMENTS HAVE BEEN MADE BEFORE THE DUE DATE OF FILING OF THE RETURN. SEVERAL DECISIONS IN SUPPORT OF THE CONTENT ION HAVE BEEN RELIED UPON AND ADDITION HAS BEEN DELETED. WE FIND THAT RETURN OF INCOME IS FILED ON 31-10-2007 AND THE PAYMENTS HAVE BEEN MADE PRIOR TO THE DUE DATE OF FILING OF THE RETURN. THER EFORE, THE LEARNED CIT(A) RIGHTLY DELETED THE ADDITION. THE LEARNED DR SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE D ECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF P. M. ELECTRONICS, 133 ITR 161. ACCORDINGLY, THIS GROUND OF APPEAL OF THE REVENUE I S DISMISSED. 8. NO OTHER POINT IS ARGUED OR PRESSED. 9. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 05-07-2011 SD/- SD/- (D. C. AGRAWAL) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 05-07-2011 LAKSHMIKANT/- ITA NO.326/AHD/2011 ACIT (OSD), CIRCLE-1, AHMEDABAD VS GLOBE ECOLOGISTI CS LTD. 4 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD