DCIT, Sonepat V. M/s. Toyo Springs Ltd., Sonepat

ITA 3560/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3897 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2010-2011
• Appeal Filed On: 13-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SAMPURNANAND

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SH.N.K.SAINI, ACCOUNTANT MEMBER AND SH.K.N.CHARY, JUDICIAL MEMBER ITA NO. 3560/DEL/2014 (ASSESSMENT YEAR: 2010 -11) APPELLANT BY NONE RESPONDENT BY SH. SAMPURNANAND, SR.DR DATE OF HEARING 28 .0 9 .2017 DATE OF PRONOUNCEMENT 27 . 1 0.2017 ORDER PER K.N.CHARY, JUDICIAL MEMBER AGGRIEVED BY THE ORDER DATED 18.03.2014 IN APPEAL N O.94/2013-14 PASSING BY THE COMMISSIONER OF INCOME TAX (APPEAL) [IN SHORT CIT(A)], ROHTAK FOR 2010-11 ASSESSMENT YEAR, THE REVENUE FIL ED THIS APPEAL. 2. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE FILED RETURN OF INCOME FOR THE AY 2010-11 ON 26.09.2010 DECLARING A TOTAL INCOME OF R S.3,69,42,490/-. DURING SCRUTINY PROCEEDINGS, THE AO FOUND THAT THE ASSESSE E CLAIMED THE EXPENSES TO THE TUNE OF RS.2,04,66,574/- TOWARDS ADVERT, PUBLIC ITY, SALES PROMOTION AND MISCELLANEOUS EXPENSES AND FOUND THAT THE ASSESSEE DID NOT FURNISH A COMPLETE VOUCHERS IN SUPPORT OF SUCH EXPENDITURE. THE AO DISALLOWED 20% THEREOF WHICH COMES TO RS.40,93,314/-. IN APPEAL, LD.CIT(A) OBSERVING THAT IT IS NOT OPEN FOR THE AO TO MAKE ANY ADHOC DISALLOWAN CE WITHOUT POINTING OUT DCIT, SONEPAT CIRCLE, SONEPAT. VS TOYO SPRING LTD., G.T.ROAD, RAI, DISTT.SONEPAT, SONEPAT. PAN-AABCT0481G (APPELLANT) (RESPONDENT) ITA NO. 3560/DEL/2014 2 ANY SPECIFIC INSTANCE OF EXPENSES NOT BEING PROPERL Y VOUCHED, DELETED THE ADDITION. HENCE, THE REVENUE FILED THIS APPEAL. 3. WE HAVE GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. THE AO RECORDED A FINDING THAT THE GROSS PROFIT SHOWN BY T HE ASSESSEE FOR THE AY 2010- 11 @ 11.55% IS MORE THAN THE SAME @ 9.78% FOR THE I MMEDIATELY PRECEDING YEAR. HAVING RECORDED SO, THE AO DISALLOWED 20% OF THE EXPENSES ON THE GROUNT OF THE ASSESSEE FAILING TO DISCHARGE HIS ONU S BY NOT FURNISHING COMPLETE VOUCHERS. ADMITTEDLY BOOKS OF ACCOUNTS ARE AUDITED AND NO DISCREPANCY COULD BE FOUND OUT BY THE AO. AS RIGHTLY POINTED OUT BY THE LD. CIT(A), HAVING ACCEPTED THE BOOKS OF ACCOUNTS AS WELL AS THE G.P.R ATE, WITHOUT POINTING OUT IN SPECIFIC INSTANCE OF EXPENSES NOT BEING PROPERLY VO UCHED, IS NOT OPEN FOR THE AO TO MAKE DISALLOWANCE. WE, THEREFORE, UPHOLD THE FINDINGS OF THE LD. CIT(A) AND FIND THAT THE APPEAL IS DEVOID ON MERITS. WE, THEREFORE, PROCEED TO DISMISS THE APPEAL. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 27 TH OCTOBER, 2017. SD/- SD/- (N.K.SAINI) (K.N.CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER *AMIT KUMAR* DATE:- 27.10.2017 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT AS SISTANT REGISTRAR ITAT NEW DELHI