Shri Harish Bhimandas Rohera, Ahmedabad V. The Income Tax Officer, Ward-2(1), Ahmedabad

ITA 3585/AHD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8500 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 21-12-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ROOP CHAND
• Assessee Lawyers: RAMESHBHAI S PATEL
• Keywords: Gross profit estimation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH AHMEDABAD BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER, AND SHRI S. S. GODARA, JUDICIAL MEMBER. ITA NO. 3585/AHD/2015 (ASSESSMENT YEAR: 2011-12) HARISH BHIMANDAS ROHERA ROHERA ARCADE, OPP. SOTC OFFICE, NR. NAVRANGPURA POLICE STATION, NAVRANGPURA, AHMEDABAD APPEL LANT VS. ITO, WARD 2(1), AHMEDABAD PRATYAKSH KAR BHAWAN, AMBAWADI, AHMEDABAD RESPOND ENT PAN: ABAPR5546F /BY ASSESSEE : SHRI RAMESHBHAI S. PATEL, A.R . /BY REVENUE : SHRI ROOPCHAND, SR. D.R. /DATE OF HEARING : 12.09.2017 /DATE OF PRONOUNCEMENT : 26.09.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2011-12 ARISES AGAINST THE CIT(A)-10, AHMEDABADS ORDER DATED 21 ST OCTOBER, 2015, IN CASE NO. CIT(A)- 10/ITO.WD/1(2)(2)/303/15-16, CONFIRMING DISALLOWANC E/ADDITION OF VEHICLES EXPENSES OF RS.6950/-, TRAVELLING EXPENDITURE OF RS .25,000/-, GP RATIO ADDITION OF RS.2,64,730/- AND UNEXPLAINED CASH FOUND DURING SUR VEY OF RS.15,663/-; RESPECTIVELY; IN PROCEEDINGS U/S. 143(3) OF THE IN COME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH SIDES. CASE FILE PERUSED. ITA NO. 3585/AHD/15 (HARISH B. ROHERA VS. ITO) A.Y. 2011-2012 - 2 - 2. THE ASSESSEES FIRST GRIEVANCE IN THE INSTANT AP PEAL SEEKS TO REVERSE BOTH THE LOWER AUTHORITIES ACTION DISALLOWING VEHICLE EXPEN SES OF RS.6,950/- ON ASSUMPTION THAN ON ACTUAL BASIS. THE ASSESSEE HAD CLAIMED TOT AL VEHICLE EXPENSES OF RS.20,312/- ALONGWITH PETROL EXPENSES OF RS.1,28,62 5/- AGGREGATING TO RS.1,48,937/-. THE ASSESSING OFFICER OBSERVED IN A SSESSMENT ORDER THAT THERE WAS NO LOGBOOK INDICATING RUNNING OF THE VEHICLE IN QUE STION FOR BUSINESS PURPOSES ONLY. HE THEREFORE DISALLOWED 1/5 TH OF THE AMOUNT INCLUDING ASSESSEES SUO MOTTO DISALLOWANCE OF RS.22,836/-. THE CIT(A) CONFIRMS T HE SAME. 3. WE HAVE HEARD RIVAL SUBMISSIONS. IT HAS COME ON RECORD THAT THE ASSESSEE HAD ON HIS OWN OFFERED DISALLOWANCE OF RS.22,836/- IN THE INSTANT HEAD ON ACCOUNT OF PERSONAL USE OF THE RELEVANT VEHICLE(S). THERE IS NO INDICATION IN THE LOWER ORDERS AS TO HOW THE SAME WAS UNREASONABLE. WE THEREFORE DIRECT THE ASSESSING OFFICER TO DELETE THIS FIRST DISALLOWANCE/ADDITION OF RS.6,950 /-. 4. NEXT ISSUE IS THAT OF DISALLOWANCE OF TRAVELLING EXPENDITURE OF RS.25000/- OUT OF RS.1,17,811/-. BOTH THE LOWER AUTHORITIES R EJECTED ASSESSEES CLAIM ON ACCOUNT OF HIS ALLEGED FAILURE IN FILING RELEVANT E VIDENCE SUCH AS TICKET AND HOTEL BILLS ETC. THE SAME ADMITTEDLY TURNS OUT TO BE ALM OST 20% OF THE ABOVE GROSS FIGURE. WE DISCUSS IN THESE FACTS THAT IT IS ON A LITTLE HIGHER SIDE AS MAJORITY OF THE IMPUGNED EXPENDITURE STANDS ACCEPTED IN PRINCIPLE. WE THEREFORE CONFIRM THE IMPUGNED DISALLOWANCE TO THE TUNE OF RS.10,000/- ON LY. THE ASSESSEE GETS PART RELIEF IN HIS INSTANT GROUND. 5. THE THIRD GRIEVANCE ASSAILS CORRECTNESS OF ADDIT ION ON ACCOUNT OF GP ESTIMATION @ 2% INSTEAD OF 1.66% COMING TO RS.2,64, 730/-. THERE IS NO INDICATION IN THE CASE FILE AS TO HOW THE IMPUGNED GROSS PROFI T INVOLVING A MARGINAL VARIATION IS UNJUST OR UNFAIR. WE MAKE IT CLEAR THAT THERE I S NO PLEADING IN ASSESSEES GROUND CHALLENGING REJECTION OF BOOKS. WE THEREFORE UPHOL D THE CIT(A)S ACTION MAKING THE IMPUGNED ADDITION. ITA NO. 3585/AHD/15 (HARISH B. ROHERA VS. ITO) A.Y. 2011-2012 - 3 - 6. THIS LEAVES US WITH THE LAST ISSUE OF UNEXPLAINE D CASH ADDITION OF RS.15,663/- MADE BY BOTH THE LOWER AUTHORITIES ON A CCOUNT OF ASSESSEES FAILURE IN FILING NECESSARY RECONCILIATION OF CASH FOUND OF RS .2.8LACS DURING SURVEY AND ITS EXPLANATION OFFERED. WE OBSERVE IN ABOVE PECULIAR FACTS THAT THE IMPUGNED SUM OF RS.15,663/- CAN BE ASSUMED TO HAVE COME FROM ASSESS EES PAST SAVINGS. THE ASSESSING OFFICER IS DIRECTED TO DELETE THE SAME. 7. THIS ASSESSEES APPEAL IS PARTLY ALLOWED . [PRONOUNCED IN THE OPEN COURT ON THIS THE 26 TH DAY OF SEPTEMBER, 2017.] SD/- SD/- (PRAMOD KUMAR) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL M EMBER AHMEDABAD: DATED 26/09/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 45 / GUARD FILE. BY ORDER / . // . /0