Surrel Enterprise Pvt.Ltd., Mehsana V. The ACIT.,Mehsana Circle, Mehsana

ITA 3878/AHD/2007

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1829 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-12-2009
• Assessment Year: 2004-2005
• Appeal Filed On: 17-10-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEETA SHAH
• Keywords: Wrong claim; Revised return
• Section: 43B; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD AHMEDABAD B BENCH (BEFORE DR.O.K. NARAYANAN, VICE-PRESIDENT AND SHRI MAHAVIR SINGH, JUDICIAL MEMBER) ITA NO.3878/AHD/2007 [ASSTT.YEAR: 2004-2005] SURREL ENTERPRISE PVT. LTD. 513, NATIONAL HIGHWAY ROAD VILLAGE CHHATRAL TAL. & DIST. KALOL, MEHSANA. VS. ACIT, MEHSANA CIRCLE MEHSANA. ASSESSEE BY : SHRI TUSHAR P. HEMANI REVENUE BY : SMT. NEETA SHAH DATE OF ORDER RESERVED : 16-12-2009 O R D E R PER DR.O.K. NARAYANAN, VICE-PRESIDENT : THIS IS A QUANTUM ASSESSMENT APPEAL FILED BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2004-2005. THE APPEAL IS DIRECTED AGAINST THE ORDER OF CIT(A)- XXI DATED 29.08.2007. THIS APPEAL ARISES OUT OF THE ASSESSMENT COMPLETED UNDER SECTION 143(3) OF THE INCOME TAX AC T, 1961. 2. THE FIRST GROUND RAISED BY THE ASSESSEE IN THIS APPEAL IS THAT THE CIT(A) HAS ERRED IN CONFIRMING THE DISALLOWANCE OF RS.34,404/- AGAINST THE CLAIM OF DIESEL EXPENSES. SECOND GROUN D RAISED BY THE ASSESSEE IS THAT THE CIT(A) HAS ERRED IN CONFIRMING THE DISALLOWANCE UNDER SECTION 43B OF RS.2,67,421/-. PAGE - 2 ITA NO.3878/AHD/2007 -2- 3. THE DISALLOWANCE OF DIESEL EXPENSE HAS MADE BY T HE AO ON THE GROUND THAT NO JUSTIFICATION WAS FURNISHED BY T HE ASSESSEE IN CLAIMING SUCH EXPENSES. WHEN THE EXPENSES ARE SUPP ORTED BY ACCOUNTS AND VOUCHERS, THE JUSTIFICATION IS AUTOMAT ICALLY DEMONSTRATED. THIS POSITION CAN BE CONFRONTED ONLY IF THE AO MAKES OUT A CONCRETE CASE REGARDING BOGUS CLAIM OR NON-BU SINESS CONSUMPTION, IF ANY. NOTHING OF THAT SORT HAS BEEN ESTABLISHED IN THE PRESENT CASE. THE DISALLOWANCE IS THEREFORE UNCALL ED FOR AND THEREFORE IT IS DELETED. 4. REGARDING ADDITION OF RS.2,67,421/- IN VIEW OF O PERATION OF SECTION 43B, THE ADDITION HAS BEEN MADE BY THE AO O N THE BASIS OF ORIGINAL RETURN FILED BY THE ASSESSEE AND AFTER IGN ORING THE REVISED RETURN FILED BY THE ASSESSEE. THE LAW ON THE SUBJE CT IS THAT WHEN A REVISED RETURN IS FILED WITHIN THE PERMISSIBLE TIME AS PRESCRIBED BY THE LAW, THE REVISED RETURN TAKES PRECEDENCE OVER T HE ORIGINAL RETURN AND THE ASSESSMENT HAS TO BE COMPLETED ON THE BASIS OF THE REVISED RETURN. IF THE AO HAS COMPLETED THE ASSESSMENT ON THE REVISED RETURN, THERE IS NO JUSTIFICATION FOR MAKING THIS R ITUAL ADDITION OF RS.2,91,350/-. THE CONDUCT OF THE AO IS UNTENABLE IN LAW. ACCORDINGLY, THE SAID ADDITION OF RS.2,67,421/- IS DELETED. 5. IN THE RESULT, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON FRIDAY THIS 18 TH DAY OF DECEMBER, 2009. SD/- SD/- (MAHAVIR SINGH) JUDICIAL MEMBER (DR.O.K. NARAYANAN) VICE-PRESIDENT PAGE - 3 ITA NO.3878/AHD/2007 -3- PLACE : AHMEDABAD DATE : 18-12-2009 COPY OF THE ORDER FORWARDED TO: 1) : ASSESSEE 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER /DR, ITAT, AHMEDABAD