LOK SHRINGAR BHARTI, BILASPUR(CG) V. DCIT, CIRCLE-2, BILASPUR(CG)

ITA 42/BIL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60063 (ITAT-RAIPUR)
• Duration Of Justice: 1 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 08-02-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P W ATHAYLE
• Assessee Lawyers: KAMAL BEHARI TIWARI
• Keywords: Opportunity of being heard; Additional evidence

Judgement Text

1 ITA NO. 42/BLPR/2011 LOK SHRINGAR BHARATI IN THE INCOME TAX APPELLATE TRIBUNAL BILASPUR BENCH, BILASPUR BEFORE SHRI SHAILENDRA KUMAR YADAV, J.M. AND SHRI R.K. PANDA, A.M. ITA NO. 42/BLPR/2011 ASSESSMENT YEAR 2007-08 LOK SHRINGAR BHARTI, 24, GAREWAL BHAWAN, LIONS ROAD, INDUSTRIAL AREA, TIFRA, BILASPUR C.G. VS COMMISSIONER OF INCOME-TAX CIR.2(1), BILASPUR (C.G.) (APPELLANT) (RESPONDENT) PAN NO. AAAAL 1964F APPELLANT BY SHRI KAMAL BEHARI TIWARI RESPONDENT BY SHRI P.W. ATHAYLE DATE OF HEARING 01.02.2012 DATE OF PRONOUNCEMENT 08.02.2012 ORDER PER R K PANDA, AM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DTD. 26.10.2010 OF THE LD. CIT(A), BILASPUR RELATING TO A.Y. 2007-08. 2. IN GROUND OF APPEAL NO. 1 THE ASSESSEE HAS CHALL ENGED THE ORDER OF THE LD. CIT(A) IN CONFIRMING THE ADDITION OF RS. 28,600 /- BEING LOAN TAKEN FROM TWO PARTIES AMOUNTING TO RS. 15,000/- AND RS. 13600 /- RESPECTIVELY. 2 ITA NO. 42/BLPR/2011 LOK SHRINGAR BHARATI 2.1 FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE IS A REGISTERED SOCIETY ENGAGED IN IMPLEMENTING GOVERNMENT AND SEMI GOVERNM ENT PROGRAM THROUGH STAGE SHOW, MUSIC AND DANCE TO CREATE AWARE NESS OUT OF FUNDS RECEIVED FROM THE GOVERNMENT, SEMI GOVERNMENT AND D ONATIONS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE A.O. NOTED THA T THE ASSESSE HAS TAKEN PETTY LOAN OF RS. 15,000/- AND RS. 13,600/- RESPECT IVELY FROM TWO DIFFERENT PERSONS. SINCE THE ASSESSEE COULD NOT FILE ANY EXPL ANATION REGARDING THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE T RANSACTION, THE A.O. MADE AN ADDITION OF RS. 28,600/-. IN ABSENCE OF AN Y FURTHER DETAILS BEFORE THE LD. CIT(A) HE CONFIRMED THE ADDITION MADE BY TH E A.O. AGGRIEVED WITH SUCH ORDER OF THE LD. CIT(A) THE ASSESSEE IS IN APP EAL BEFORE US. 2.2 THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT AN AMOUNT OF RS. 15,000/- WAS TAKEN FROM SHRI GULAB SINGH YADAV WHO IS A RESIDENT OF RAJENDRA NAGAR, BILASPUR AND WAS WORKING AS A CLERK IN POST GRADUATE BASIC TRAINING GOVERNMENT COLLEGE, BILASPUR. HE DI ED ON 14 TH OCTOBER, 2008 AND HIS PAN IS AALPY4389F. ANOTHER LOAN OF RS . 13,600/- WAS RECEIVED FROM SHRI M.L. NIRMALKAR WHO IS WORKING AS ASSISTANT GR. II IN GOVERNMENT AT RAIPUR. HE FILED A CONFIRMATION LETT ER OF THE LOAN CREDITOR STATING HE HAS GIVEN THE LOAN OF RS. 13,600/-. HE S UBMITTED THAT THESE ARE ALL ADDITIONAL EVIDENCES AND WERE NOT FILED BEFORE THE A.O. OR THE LD. CIT(A) AND REQUESTED FOR ADMISSION OF THE SAME. HE SUBMITT ED THAT A LENIENT VIEW MAY BE TAKEN AND THE ADDITION MAY KINDLY BE DELETED . IN HIS ALTERNATE 3 ITA NO. 42/BLPR/2011 LOK SHRINGAR BHARATI SUBMISSION HE SUBMITTED THAT THE MATTER MAY BE REST ORED TO THE FILE OF THE A.O. WITH A DIRECTION TO DECIDE THE ISSUE AFRESH AF TER GIVING AN OPPORTUNITY THE ASSESSEE TO SUBSTANTIATE THE CLAIM. 3. THE LD. D.R., ON THE OTHER HAND, SUPPORTED THE O RDER OF THE A.O. AND THE LD. CIT(A) AND SUBMITTED THAT IN ABSENCE OF ANY DETAILS FILED BEFORE THE LOWER AUTHORITIES THE ADDITION SUSTAINED BY THE LD. CIT(A) SHOULD BE UPHELD. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS MADE BY BOTH THE SIDES, PERUSED THE ORDERS OF THE A.O. AND THE LD. CIT(A) A ND THE PAPER BOOK FILED ON BEHALF OF THE ASSESSEE. THERE IS NO DISPUTE TO THE FACT THAT THE ASSESSEE DID NOT FILE ANY CONFIRMATION FROM THE LOAN CREDITORS T O PROVE THE IDENTITY AND CAPACITY OF THE LOAN CREDITORS AND GENUINENESS OF T HE TRANSACTIONS. CONSIDERING THE NATURE AND THE AMOUNT OF THE LOAN A ND THE STATUS OF THE ASSESSEE WE, IN THE INTEREST OF JUSTICE, ADMIT THE ADDITIONAL EVIDENCES FILED BEFORE US IN THE FORM OF PAPER BOOK RELATING TO THE TWO LOAN CREDITORS AND RESTORE THE ISSUE TO THE FILE OF THE A.O. WITH A DI RECTION TO DECIDE THE ISSUE AFRESH AND IN ACCORDANCE WITH LAW AFTER GIVING DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE FIRST GROUND OF THE ASS ESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 5. IN THE REMAINING GROUNDS, THE ASSESSEE HAS CHALL ENGED THE ORDER OF THE LD. CIT(A) IN CONFIRMING THE FOLLOWING EXPENSES MADE BY THE A.O.:- 4 ITA NO. 42/BLPR/2011 LOK SHRINGAR BHARATI (I) RS. 20,000/- - ARTIST EXPENSES (II) RS. 10,000/- - DECORATION AND SOUND EXPENSES (III) RS. 10,000/- - BREAK FAST EXPENSES (IV) RS. 20,000/- - TRAVELLING AND CONVEYANCE EXPENSES -------------- TOTAL RS. 60,000/- 5.1 AFTER HEARING BOTH THE SIDES WE FIND THE A.O. D URING THE COURSE OF ASSESSMENT PROCEEDINGS NOTED THAT THE VOUCHERS FOR THE ABOVE EXPENSES ARE NOT SUPPORTED BY DOCUMENTARY EVIDENCE AND ARE SELF MADE VOUCHERS. THEREFORE, LEAKAGE OF INCOME CANNOT BE RULED OUT. HE THEREFORE DISALLOWED THE FOLLOWING AMOUNTS ON ADHOC BASIS:- SL NO. NATURE OF EXPENSE AMT. CLAIMED (RS) AMT. DISALLOWED (RS) 1 ARTIST REMUNERATION 4,94,167/- 20,000 2 DECORATION & SOUND 1,57,295/- 10,000/- 3 BREAKFAST EXPENSES 1,21,471/- 10,000/- 4 CONVEYANCE. EXP. AND TRAVELLING EXPENSES 3,10,027/- 40,000/- 5.2 IN APPEAL THE LD. CIT(A) CONFIRMED THE ABOVE DI SALLOWANCE MADE BY THE A.O. THE ASSESSEE IN THE INSTANT CASE IS A SMALL AS SESSEE ENGAGED IN IMPLEMENTING GOVERNMENT AND SEMI GOVERNMENT PROGRAM THROUGH STAGE SHOW, MUSIC AND DANCE TO CREATE AWARENESS AMONG THE LOCALS. NO DOUBT THE ASSESSEE HAS NOT MAINTAINED FULL VOUCHERS TO SUPPOR T THE VARIOUS EXPENSES CLAIMED BY IT. THEREFORE SOME DISALLOWANCE IS JUSTI FIED. HOWEVER, THE AMOUNT DISALLOWED BY THE A.O. AND SUSTAINED BY THE LD. CIT(A), IN OUR 5 ITA NO. 42/BLPR/2011 LOK SHRINGAR BHARATI OPINION, APPEARS TO BE ON THE HIGHER SIDE. WE THER EFORE DIRECT THE A.O. TO RESTRICT THE DISALLOWANCE AS UNDER:- ARTIST REMUNERATION R S. 5000/ - DECORATION & SOUND RS. 2000/ - BREAKFAST EXPENSES RS. 1000/- CONVEYANCE. EXP. AND TRAVELLING EXPENSES RS. 2000/- WE HOLD AND DIRECT ACCORDINGLY. THE GROUNDS BY THE ASSESSEE ARE ACCORDINGLY PARTLY ALLOWED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON 08.02.2012. SD/- (SHAILENDRA KUMAR YADAV) JUDICIAL MEMBER SD/- ( R K PANDA ) ACCOUNTANT MEMBER PLACE: BILASPUR : DATED: 08.02.2012 RK COPY FORWARDED TO: 1 APPELLANT 2 RESPONDENT 3 CIT A), BILASPUR 4 CIT, BILASPUR 5 DR BENCH BILASPUR 6 MASTER FILE /TRUE COPY/ BY ORDER SR. PRIVATE SECRETARY, ITAT, BILASPUR BILASPUR.