M/s. Marketers, Jalandhar V. The Income-tax Officer, Jalandhar

ITA 331/ASR/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68147 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 07-08-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 03-08-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: R D CHATRATH

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. 331 (ASR)/2012 ASSESSMENT YEAR: 2007-08 PAN:AAEFM2482Q M/S MARKETERS BASTI VS. INCOME TAX OFFICER-I(2), DANISHMANDAN, JALANDHAR JALANDHAR (APPELLANT) (RESPONDENT) APPELLANT BY: SH. R.D. CHATRATH, CA RESPONDENT BY: SH. MAHAVIR SINGH, SR. DR DATE OF HEARING: 07.08.2013 DATE OF PRONOUNCEMENT:12.08.2013 ORDER PER BENCH 1) THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST THE IMPUGNED ORDER DATED 23.05.2012 PASSED BY LEARNED CIT(A), JA LANDHAR, FOR THE ASSESSMENT YEAR 2007-08 ON THE FOLLOWING GROUNDS: I. THE ORDER PASSED BY THE ASSESSING OFFICER AGAINST T HE FACTS AND LAW II. THE CIT(A) HAS ERRED IN UPHOLDING THE ORDER OF THE A.O. PARTLY WITHOUT ASSIGNING ANY COGENT REASONS FOR THE SAME. III. THE CIT(A) HAS FURTHER ERRED IN UPHOLDING THE ADDIT ION FOR A SUM OF RS. 200000/- THEREBY COMPLETELY IGNORING THE CONTEN TIONS OF THE ASSESSEE. IV. THE CIT(A) HAS GROSSLY ERRED IN AGAIN RESORTING THE SUSTAINING THE ADDITION ON ESTIMATE BASIS EVEN AFTER MENTIONING IN HIS ORDER THAT THE AMOUNTS DISALLOWED BY THE I.T.O. ARE NOT VERIFIED B Y THE A.O. IN THE ABSENCE OF THE PROPER DETAILS EXAMINED BY HIM. THE ESTIMATED ADDITIONS HAVE BEEN MADE BY A.O. 2 I.T.A. NO. 331 (ASR)/2012 ASSESSMENT YEAR: 2007-08 V. THE ASSESSEE CRAVES TO LEAVE TO ADD, AMEND, ALTER O R DELETE ANY OF THE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING OF APPEAL. 2) THE FACTS RELATING TO THE ISSUE IN DISPUTE ARE N OT DISPUTED BY BOTH THE PARTIES; THEREFORE, THERE IS NO NEED TO RE PEAT THE SAME. 3) AT THE TIME OF HEARING, LEARNED COUNSEL FOR THE ASSESSEE STATED THAT THE REVENUE AUTHORITY HAS MADE THE ADDITION IN DISPUTE PURELY ON ESTIMATE BASIS WITHOUT BEING ANY EVIDENCE AGAINST T HE ASSESSEE. HE STATED THAT THE ASSESSING OFFICER HAS MADE THE ADDITION OF RS. 3,21,687/- ON ACCOUNT OF UNVERIFIED VOUCHERS AND THE LEARNED FIRS T APPELLATE AUTHORITY HAS REDUCED THE DISALLOWANCE FROM RS. 3,21,687/- TO RS. 2,00,000/- WHICH IS STILL EXCESSIVE, THEREFORE, HE REQUESTED THAT TH E SAME MAY BE DELETED BECAUSE THE REVENUE AUTHORITY HAS NOT GIVEN ANY REA SON IN REJECTING THE DOCUMENTARY EVIDENCE PRODUCED BY THE ASSESSEE BEFOR E HIM. 4) ON THE CONTRARY, LEARNED DR RELIED UPON THE ORDE R PASSED BY THE LEARNED FIRST APPELLATE AUTHORITY AND STATED THAT T HE ORIGINAL RELIEF HAS BEEN GIVEN BY THE LEARNED FIRST APPELLATE AUTHORITY TO THE ASSESSEE. THUS, THE APPEAL FILED BY THE ASSESSEE MAY BE DISMI SSED. 5) WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ELEVANT RECORDS AVAILABLE WITH US, ESPECIALLY THE ORDERS PASSED BY THE REVENUE AUTHORITIES AND FOUND THAT THE LEARNED FIRST APPELL ATE AUTHORITY HAS 3 I.T.A. NO. 331 (ASR)/2012 ASSESSMENT YEAR: 2007-08 REDUCED THE DISALLOWANCE FROM RS. 3,21,687/- TO RS. 2,00,000/-. KEEPING IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE PRESE NT CASE AND THE NATURE OF EVIDENCE PRODUCED BY THE ASSESSEE, WE ARE OF THE VIEW THAT THE ESTIMATE MADE BY THE LEARNED FIRST APPELLATE AUTHOR ITY BY REDUCING THE DISALLOWANCE TO THE TUNE OF RS. 2 LACS IS ON HIGHER SIDE. THEREFORE, TO MEET THE ENDS OF JUSTICE, WE CONSIDER IT VERY REASO NABLE BY REDUCING THE DISALLOWANCE OF RS. 1 LAKH INSTEAD OF RS. 2 LAKHS M ADE BY LEARNED FIRST APPELLATE AUTHORITY IN THE PRESENT CASE. THE ASSESS ING OFFICER IS DIRECTED TO MODIFY THE DISALLOWANCE ACCORDINGLY. ORDER IS MO DIFIED ACCORDINGLY BY PARTLY ALLOWING THE APPEAL FILED BY THE ASSESSEE . 6) IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH AUGUST, 2013 SD/./- SD/./- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 12 TH AUGUST, 2013 /RK/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: M/S MARKETERS BASTI DANISHMANDAN, JAL ANDHAR 2. INCOME TAX OFFICER-I(2), JALANDHAR 3. THE CIT(A), JALANDHAR 4. THE CIT, JALANDHAR 5. THE SR DR, I.T.A.T., ASR TRUE COPY BY ORDER 4 I.T.A. NO. 331 (ASR)/2012 ASSESSMENT YEAR: 2007-08 (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.