REEHAL ROADLINES, MUMBAI V. CIT (A) 33, MUMBAI

ITA 4424/MUM/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3939 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-05-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 03-05-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 23-07-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DR MUKESH JAIN
• Keywords: Depreciation

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER ITA NO.4424/MUM/2015 ASSESSMENT YEAR: 2010-11 M/S REEHAL ROADLINES, 17, GROUND FLOOR, SWASTIK CHAMBER, UMARSHI BAPPA CHOWK, CHEMBUR, MUMBAI-400071 / VS. ITO, WARD-22(2)(2), MUMBAI ( /ASSESSEE) ( ! / REVENUE) PAN. NO . AAEFR0749M / ASSESSEE BY SHRI MADHUR AGARWAL ! / REVENUE BY DR. MUKESH JAIN CIT-DR ' !# $ % / DATE OF HEARING : 03/05/2016 $ % / DATE OF ORDER: 17/05/2016 ITA NO.4424/MUM/2015 M/S REEHAL ROADLINES 2 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 18/06/2014 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI. THE FIRST GROUND RAISED IN THE PRESENT APPEAL PERTAINS TO CONFIRMING THE DISALLOWANCE OF INTEREST PAID TO NBF C ON ACCOUNT OF NON-DEDUCTION OF TDS U/S 40(A)(IA) OF TH E INCOME TAX ACT, 1961 (HEREINAFTER THE ACT). 2. THE CRUX OF ARGUMENT ADVANCED BY SHRI MADHUR AGARWAL, LD. COUNSEL FOR THE ASSESSEE, IS THAT LOAN WAS REPAID BY POST DATED CHEQUE TO THE PERSON FROM WHOM LOAN W AS TAKEN. THE AMOUNT WAS CLAIMED TO BE ALREADY PAID. O N THE OTHER HAND, THE LD. DR, DR. MUKESH JAIN, DEFENDED T HE CONCLUSION ARRIVED AT IN THE IMPUGNED ORDER. 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON PERUSA L OF PROFIT & LOSS ACCOUNT OF THE ASSESSEE, IT WAS FOUND BY THE ASSESSING OFFICER, THAT THE ASSESSEE HAS NOT DEDUCTED TDS ON INTEREST PAID TO THE TUNE OF RS.9,57,369/-, CONSEQUENTLY, TH E SAME WAS DISALLOWED U/S 40(A)(IA) OF THE ACT AND ADDED TO TH E TOTAL ITA NO.4424/MUM/2015 M/S REEHAL ROADLINES 3 INCOME OF THE ASSESSEE. IT WAS ALSO OBSERVED THAT T HE ASSESSEE PAID A SUM OF RS.2,76,000/- ON ACCOUNT OF CABIN MAK ING CHARGES FOR FOUR NEW VEHICLES, PURCHASED DURING THE YEAR, WITHOUT DEDUCTING TDS, THUS, THE DEPRECIATION WAS D ISALLOWED. HOWEVER, BEFORE US, IT WAS EXPLAINED BY THE LD. COU NSEL THAT THE AMOUNT HAD ALREADY BEEN PAID. CONSIDERING THE A RGUMENT OF THE ASSESSEE, THIS ISSUE IS SENT TO THE FILE OF THE ASSESSING OFFICER FOR VERIFICATION AND AFTER CONSIDERING THE FACTUAL MATRIX TO ADJUDICATE THE ISSUE ON MERIT. THUS, THIS GROUND OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 3. NEXT GROUND PERTAINS TO ADHOC DISALLOWANCE OF RUPEES ONE LAKH OUT OF TRIP EXPENSES. THE TOTAL TRI P EXPENSES, CLAIMED BY THE ASSESSEE FIRM WERE EXPLAINED TO BE T O THE TUNE OF RS.83,79,428/-. IT WAS CONTENDED THAT SINCE IT IS ADHOC DISALLOWANCE PART RELIEF MAY BE GRANTED TO THE ASSE SSEE. HOWEVER, THE LD. DR, DEFENDED THE CONCLUSION ARRIVE D AT IN THE IMPUGNED ORDER. 3.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE LD. A SSESSING OFFICER MADE ADHOC ADDITION OUT OF TRIP EXPENSES. T HE CLAIM OF ITA NO.4424/MUM/2015 M/S REEHAL ROADLINES 4 THE ASSESSEE IS THAT THE ACCOUNT OF THE ASSESSEE IS AUDITED U/S 44AB, THUS, THE VOUCHERS ARE FULLY VERIFIABLE. ALL THE EXPENSES WERE CLAIMED TO BE INCURRED IN CASH. CONSIDERING TH E ADHOC NATURE OF DISALLOWANCE AND THE FACTUAL MATRIX THAT THE ACCOUNTS OF THE ASSESSEE ARE AUDITED ONE, THE ADHOC DISALLOWANCE OF RS. 1 LAKH IS REDUCED TO RS.50,000/ -, THUS, THIS GROUND OF THE ASSESSEE IS PARTLY ALLOWED. FINALLY, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOW ED FOR STATISTICAL PURPOSES. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 03/05/2016. SD/- SD/- ( ASHWANI TANEJA ) (JOGINDER SINGH) '# / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER ' # MUMBAI; ' DATED :17/05/2016 F{X~{T? P.S/. .. %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. )*+, / THE APPELLANT 2. -.+, / THE RESPONDENT. 3. / / ' 0 ( )* ) / THE CIT, MUMBAI. 4. / / ' 0 / CIT(A)- , MUMBAI ITA NO.4424/MUM/2015 M/S REEHAL ROADLINES 5 5. 2!3 - , / )*% ) 4 , ' # / DR, ITAT, MUMBAI 6. 5 6# / GUARD FILE. / BY ORDER, .2* - //TRUE COPY// / (DY./ASSTT. REGISTRAR) , ' # / ITAT, MUMBAI