INERNATIONAL BOOK HOUSE. P.LTD, MUMBAI V. ITO WD 2(2)1, MUMBAI

ITA 5085/MUM/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2570 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2016
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 19-10-2015
• Court: TRIBUNAL
• Department Lawyers: G NANTHAKUMAR
• Assessee Lawyers: DR P DANIAL

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL H , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI PAWAN SINGH , JM ./ ITA NO. 5 085 / MUM/20 1 5 ( / ASSESSMENT YEAR : 20 11 - 2012 ) INTERNATIO NAL BOOK HOUSE PVT. LTD., INDIAN MERCANTILE MANSION (EXTN.), MADAM CAMA ROAD, MUMBAI - 400039 VS. ITO WD - 2(2)(1), MUMBAI - 20 ./ ./ PAN/GIR NO. : A A A C I 1028 F ( / APPELLANT ) .. ( / RESPONDENT ) /ASS ESSEE BY : DR P. DANIAL /REVENUE BY : SHRI G.NANTHA KUMAR / DATE OF HEARING : 26 / 0 9 /201 6 / DATE OF PRONOUNCEMENT 28/09/2016 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - MUMBAI, FOR THE ASSESSMENT YEAR 20 1 1 - 201 2 , IN THE MATTER OF ORDER PASSED UNDER SECTION 143 (3) OF THE I.T. ACT. 2. IN THIS APPEAL, ASSESSEE IS AGGRI EVED FOR AN ADHOC DISALLOWANCE OF EXPENSES @5% INCU RRED ON CAR EXPENSES , OFFICE EXPENSES AND TRAVELLING AND CONVEYANCE. THE AO OBSERVED THAT ASSESSEE DID NOT PRODUCE ALL THE BILLS / VOUCHERS FOR SUPPORTING THE CLAIM OF EXPENSES AND AS SOME OF THE EXPENSES WERE MADE IN CASH 5% OF THE SAME WERE WORK ED OUT TO BE RS. 5,48,189/ - , ACCORDINGLY THE SAME WAS DISALLOWED AND ADDED TO THE TOTAL INCOME. ITA NO. 5 085 / 1 5 2 3. BY THE IMPUGNED ORDER CIT(A) CONFIRMED THE ACTION OF THE AO AGAINST WHICH ASSESSEE IN FURTHER APPEALED BEFORE US. 4. IT WAS ARGUED BY THE LEARNED AR THAT NO SUCH ADH OC ALLOWANCE WAS MADE EITHER IN THE EARLIER OR SUBSEQUENT YEARS EVEN WHILE PASSING SCRUTINY ASSESSMENT ORDER UNDER ORDER 143 (3) AND FURTHER CONTENDED THAT THERE WAS NO JUSTIFICATION FOR MAKING ANY ADHOC DISALLOWANCE. 5. ON THE OTHER HAND, LEARNED DR RELIE D ON THE ORDER OF THE LOWER AUTHORITIES. 6. WE HAVE CONSIDERED RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. FROM THE RECORD WE FOUND THAT T HE AO HAS MADE A DISALLOWANCE O N ADHOC BASIS WITHOUT POINTING OUT AS TO WHICH EX PENSES WERE NOT VERIFIABLE OR WHICH WAS THE EXPENSES PAID IN CASH OVER THE PRESCRIBED LIMIT. KEEPING IN VIEW THE TOTALITY AND FACTS AND CIRCUMSTANCES OF THE CASE, VIS - - VIS NATURE OF ASSESSEES BUSINESS AND NATURE OF EXPENSES, WE DIRECT THE AO TO RESTRICT THE DISALLOWANCE TO THE EXTENT OF 1%. WE DIRECT ACCORDINGLY. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 28/09 /201 6 . S D/ - ( PAWAN SINGH ) S D/ - ( R.C. SHARMA ) / JUDIC IAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 28/09 /201 6 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT ITA NO. 5 085 / 1 5 3 / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//