KUNDANMAL MUKANMAL & SONS, Kota V. ITO, Kota

ITA 368/JPR/2011

• Counselvise Citation: 36823114 RSA 2011
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 25-10-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 25-04-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K MEENA
• Assessee Lawyers: G G MUNDRA

Judgement Text

1 ITA 368-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR. ( BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ) ITA NO. 368/JP/2011 ASSTT. YEAR : 2005-06. M/S. KUNDANMAL MUKANMAL & SONS, VS. THE INCOME-TA X OFFICER, KOTA. WARD 1(1), KOTA. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI G.G. MUNDRA RESPONDENT BY : SHRI D.K. MEENA DATE OF HEARING : 24.01.2012. DATE OF PRONOUNCEMENT : 02.02.2012. ORDER DATED : 02/02/2012. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2005-06. 2. THE ASSESSEE IS OBJECTING IN CONFIRMING DISALLOW ANCE OF TELEPHONE EXPENSES OF RS. 14,340/-, CAR & CONVEYANCE EXPENSES OF RS. 30,036/ -, SHOP EXPENSES OF RS. 2500/-, OFFICE EXPENSES OF RS. 25,248/-, TRAVELING EXPENSE S OF RS. 5463/- AND RASTA EXPENSES OF RS. 6,29,430/-. 3. THE AO MADE THE ABOVE DISALLOWANCES ON THE GROUN D THAT CERTAIN EXPENSES ARE CLAIMED ON THE BASIS OF CERTAIN INTERNAL VOUCHERS O NLY. THEREFORE, HE DISALLOWED 20% OF 2 THE EXPENSES CLAIMED. DETAILED SUBMISSIONS WERE FI LED BEFORE LD. CIT (A). HOWEVER, HE HAS ALSO CONFIRMED THE DISALLOWANCES MADE BY THE AO , IN PART. 4. AFTER CONSIDERING THE ORDERS OF THE AO AND LD. C IT (A), WE FIND THAT ALL THESE EXPENDITURES ARE DISALLOWED ONLY ON ADHOC BASIS. TH E ASSESSEE IS CARRYING ON BUSINESS OF KIRANA GOODS IN HEAD OFFICE AT RAMGANJMANDI AS WELL AS KIRANA DIVISION AT JAIPUR AND BUSINESS OF TRANSPORTATION BY TRUCKS AND TRAILORS. ASSESSEE HAS BRANCH AT JAIPUR WHICH MANAGES THE BUSINESS AT JAPUR. DETAILED SUBMISSIONS HAVE BEEN FILED BY LD. A/R. WE NOTED THAT THE NP RATE SHOWN BY ASSESSEE IS MUCH BE TTER AS COMPARED TO EARLIER YEAR AS NP RATE SHOWN IN THE YEAR UNDER CONSIDERATION IS 10 .57% AS AGAINST NP RATE OF 8.73% IN THE IMMEDIATELY PRECEDING YEAR. IN THE YEAR UNDER CONSIDERATION, THE TURNOVER OF THE ASSESSEE IS RS. 2.5 CRORE AGAINST RS. 1.94 CRORE IN THE EARLIER YEAR. LOOKING TO THE QUANTUM OF BUSINESS AND OTHER FACTORS EXPLAINED IN THE WRITTEN SUBMISSIONS, WE ARE OF THE VIEW THAT IF A TOTAL ADDITION OF RS. 1,50,000/- IS SUSTAINED OUT OF VARIOUS EXPENSES THAT WILL MEET THE ENDS OF JUSTICE. ACCORDINGLY, AGAINST ENT IRE ADDITION SUSTAINED BY LD. CIT (A), AN ADDITION OF RS. 1,50,000/- IS SUSTAINED AND REMA INING ADDITION IS DELETED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART. 6. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 02. 02.2012. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/ 3 COPY FORWARDED TO :- M/S. KUNDANMAL MUKANMAL & SONS, KOTA. THE ITO WARD 1(1), KOTA. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 368/JP/2011) BY ORDER, AR ITAT JAIPUR.