Hindustan Fibers Ltd., New Delhi V. DCIT, New Delhi

ITA 5035/DEL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4249 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 28-04-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 16-11-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MONA MOHANTY
• Assessee Lawyers: RANO JAIN CAS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH C CC C : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI C.L.SETHI, JM AND SHRI BEFORE SHRI C.L.SETHI, JM AND SHRI BEFORE SHRI C.L.SETHI, JM AND SHRI BEFORE SHRI C.L.SETHI, JM AND SHRI K.D.RANJAN K.D.RANJAN K.D.RANJAN K.D.RANJAN, AM , AM , AM , AM ITA NO. ITA NO. ITA NO. ITA NO.5035/DEL/2010 5035/DEL/2010 5035/DEL/2010 5035/DEL/2010 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2006 2006 2006 2006- -- -07 0707 07 M/S HINDUSTAN FIBRES M/S HINDUSTAN FIBRES M/S HINDUSTAN FIBRES M/S HINDUSTAN FIBRES LIMITED, LIMITED, LIMITED, LIMITED, 604, SETH BHAWAN, 604, SETH BHAWAN, 604, SETH BHAWAN, 604, SETH BHAWAN, 7, RAJENDRA PLACE, 7, RAJENDRA PLACE, 7, RAJENDRA PLACE, 7, RAJENDRA PLACE, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 008. 110 008. 110 008. 110 008. PAN NO. PAN NO. PAN NO. PAN NO.AAACH0070J. AAACH0070J. AAACH0070J. AAACH0070J. VS. VS. VS. VS. DY.COMMISSIONER OF INCOME TAX, DY.COMMISSIONER OF INCOME TAX, DY.COMMISSIONER OF INCOME TAX, DY.COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -12(1), 12(1), 12(1), 12(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VED JAIN AND MS.RANO JAIN, CAS. RESPONDENT BY : MS.MONA MOHANTY, SR.DR ORDER ORDER ORDER ORDER PER C.L.SETHI PER C.L.SETHI PER C.L.SETHI PER C.L.SETHI, J , J, J , JM : M : M : M : THE ONLY ISSUE RAISED IN THIS APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 12.10.2010 PASSED BY LEARNED CIT(A) FOR THE AY 2006- 07 IS WITH REGARD TO DISALLOWANCE OF `2,50,000/- MA DE BY THE AO ON ACCOUNT OF VARIOUS EXPENSES ON ESTIMATED BASIS. 2. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE O RDERS OF AUTHORITIES BELOW. 3. IN THIS CASE, AN ADHOC DISALLOWANCE OF `2,50,000 /- HAS BEEN MADE BY THE AO OUT OF VARIOUS EXPENSES DEBITED TO THE PR OFIT & LOSS ACCOUNT BY GIVING A REASON THAT THE VOUCHERS PRODUCED BY TH E ASSESSEE BEFORE THE AO WERE SELF GENERATED AND UNVERIFIABLE. ON AN APPEAL, LEARNED CIT(A) CONFIRMED THE DISALLOWANCE BY PASSING AN EX- PARTE ORDER DATED 12.10.2010. 4. HENCE, THE ASSESSEE IS IN APPEAL BEFORE US. ITA-5035/DEL/2010 2 5. AFTER CONSIDERING THE TOTALITY OF FACTS AND CIRC UMSTANCES OF THE CASE AND AFTER HAVING DELIBERATION WITH THE LEARNED REPRESENTATIVES OF BOTH THE SIDES, WE FIND IT JUST AND PROPER THAT IF DISALLOWANCE OF `1 LAKH IS MADE OUT OF THE VARIOUS EXPENSES DEBITED TO THE PROFIT & LOSS ACCOUNT, THAT WILL MEET THE ENDS OF JUSTICE. WE, T HEREFORE, REDUCE THE DISALLOWANCE FROM `2,50,000/- TO `1 LAKH. THE ASSE SSEE SHALL GET A RELIEF OF `1,50,000/-. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED IN THE MANNER INDICATED ABOVE. DECISION PRONOUNCED IN THE OPEN COURT ON CONCLUSION OF HEARING ON 28 TH APRIL, 2011. SD/- SD/- (K.D.RANJAN (K.D.RANJAN (K.D.RANJAN (K.D.RANJAN) )) ) (C.L.SETHI (C.L.SETHI (C.L.SETHI (C.L.SETHI) )) ) ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER DATED : 28.04.2011. VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR