ACIT, CORP CIR-5(2), CHENNAI V. ROUTE LOGISTICS INDIA PVT LTD, CHENNAI

ITA 3479/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1469 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 21-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M DEVANATHAN
• Assessee Lawyers: S BHARATH

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A BENCH, CHENNAI [ , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A.NO.3479/CHNY/2018 ( [ [ / ASSESSMENT YEAR:2014-15) THE ASST. COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 5(2), CHENNAI 34. VS M/S. ROUTE LOGISTICS INDIA PVT. LTD., 14, JAFFER SYRANG STREET, HARBOUR, CHENNAI 600 001. PAN: AACCR6979E ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI M. DEVANATHAN, ADVOCATE / RESPONDENT BY : SHRI S. BHARATH, CIT /DATE OF HEARING : 13.06.2019 /DATE OF PRONOUNCEMENT : 13.06.2019 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-3, CHENNAI IN APPEAL NO.252/16-17/A-3 DATED 28.09.2018 FOR THE ASSESSMENT YEAR 2014-15. 2. SHRI M. DEVANATHAN REPRESENTED ON BEHALF OF THE ASSESSEE AND SHRI S. BHARATH REPRESENTED ON BEHALF OF THE REVENUE. 2 ITA NO.3479/CHNY/2018 3. IT WAS SUBMITTED BY THE LD.AR THAT THE ASSESSEE IS IN THE BUSINESS OF IMPORT AND EXPORT CARGO MOVER. IT WAS THE SUBMISSION THAT THE RETURN OF THE ASSESSEE WAS TAKEN UP FOR SCRUTINY AND IN RESPECT OF OPERATION EXPENDITURE, THE ASSESSEE WAS ASKED TO PRODUCE EVIDENCES WHICH THE ASSESSEE WAS UNABLE TO PRODUCE ON THE GROUND THAT THE BILLS AND VOUCHERS HAD BEEN DESTROYED IN THE FLOODS DURING NOVEMBER / DECEMBER 2015. IT WAS THE SUBMISSION THAT CONSEQUENTLY THE LD.AO HAD CONSIDERED THE INCREASE IN THE TURNOVER TO THE INCREASE IN THE OPERATING EXPENSES RATIO CONSIDERING THE IMMEDIATE PRECEDING FINANCIAL YEAR. IT WAS THE SUBMISSION THAT THE INCREASE IN THE TURNOVER WAS ONLY 5.25% WHEREAS THE INCREASE IN THE OPERATING EXPENDITURE WAS 22.44%. CONSEQUENTLY IN RESPECT OF THE DIFFERENCES, THE LD.AO HAD MADE AN ADDITION OF RS.78,55,855/-. IT WAS THE SUBMISSION THAT THE LD.CIT(A) DELETED THE SAME BY HOLDING THAT THERE WAS INCREASE IN THE COST OF THE FUEL BY NEARLY 16.63% WHEN COMPARED TO THE IMMEDIATELY PRECEDING FINANCIAL YEAR. IF THIS INCREASE IN THE FUEL COST IS TAKEN INTO CONSIDERATION, ADMITTEDLY THE INCREASE IN THE OPERATING COST WOULD GET SUBSTANTIALLY COVERED. IN REPLY THE LD.DR VEHEMENTLY SUPPORTED THE ORDER OF THE LD.AO. IT WAS THE 3 ITA NO.3479/CHNY/2018 SUBMISSION THAT DETAILS HAD NOT BEEN PRODUCED BEFORE THE LD.AO WHICH HAD LED TO THE ESTIMATION OF INCOME. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. ADMITTEDLY THERE WAS AN INCREASE IN FUEL COSTS BY MORE THAN 16% DURING THE RELEVANT YEAR. ALSO ADMITTEDLY, THE FACT OF FLOODING IN CHENNAI DURING NOVEMBER / DECEMBER, 2015 IS AN UNDISPUTED FACT. FURTHER NOTHING HAS BEEN BROUGHT ON RECORD TO DISLODGE THE FINDING OF FACTS AS RECORDED BY THE LD.CIT(A). CONSEQUENTLY, WE FIND NO REASON TO INTERFERE IN THE SAME. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 13 TH JUNE, 2019 AT CHENNAI. SD/- SD/- /CHENNAI, /DATED 13 TH JUNE, 2019 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( ) /CIT(A) 4. /CIT 5. /DR 6. [ /GF ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER ( [ ) (GEORGE MATHAN) /JUDICIAL MEMBER