Nav Bharat Krishi Udyog Ltd., HANUMANGARH TOWN V. A.O., HANUMANGARH

ITA 530/JODH/2014

• Counselvise Citation: 53023314 RSA 2014
• Duration Of Justice: 7 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 21-10-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R K SHARDA
• Section: 143(3)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL : JODHPRU BENCH : JODHPUR BEFORE SHRI R.C. SHARMA, HONBLE ACCOUNTANT MEMBER (S.M.C.) ITA NO. 530/JODH/2014 (ASSTT. YEAR 20 10 - 11 ) NAV BHARAT KRISHI UDYOG LTD. VS THE I.T.O NEAR DEENAR THEATRE, WARD - 2, HANUMANGARH TOWN. HANUMANGARH. PAN NO. AAACN7437M (APPELLANT ) (RESPONDENT ) A SSESSEE BY : NONE. DEPARTMENT BY : SHRI R.K. SHARDA, JCIT DATE OF HEARING : 2 2 /05/2015 DATE OF PRONOUNCEMENT : 22 /05/2015 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A), BIKANER DATED 30.09.2014 FOR THE A.Y. 2010 - 11 IN THE MATTER OF ORDER U/S 143(3) OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS THE ACT, FOR SHORT]. 2 2. IN THIS APPEAL THE ASSESSEE IS AGGRIEVED AGAINST THE RESTRICTION OF DISALLOWANCE OF EXPENSES AT 10%. 3. THE CONTENTIONS OF THE LD. D.R. HAVE BEEN HEARD AND RECORDS PERUSED. I FIND THAT THE AO HAD MADE ADHOC DISALLOWANCE OF 15% OUT OF EXPENDITURE CLAIMED UNDER TRAVELLING, HORTICULTURE, CONVEYANCE, OFFICE EXPENSES ETC. THE AO ALSO MADE AN ADHOC DISALLOWANCE OF RS. 25,000/ - OUT OF MANUFACTURING EXPENSES. BY THE IMPUGNED ORDER THE LD. CIT(A) RESTRICTED THE DISALLOWANCE TO THE EXTENT OF 10% , FOR WHICH THE ASSESSEE IS AGGRIEVE D AND HAS COME IN APPEAL BEFORE THE TRIBUNAL. 4. I HAVE HEARD THE LD. D.R. AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND THAT THE AO HAS MADE ADHOC DISALLOWANCE OF 15% WITHOUT PIN - POINTING OUT ANY EXPENDITURE WHICH WERE NOT VERIFIABLE OR WHICH WERE NOT GENUINE. THE LD. CIT(A) HAS RESTRICTED THE DISALLOWANCE TO 10%. AFTER CONSIDERING THE NATURE OF ASSESSEES BUSINESS VIS A VIS THE GENUINENESS OF THE EXPENDITURE, WE RESTRICT THE DISALLOWANCE TO THE EXTENT OF 5%. ACCORDINGLY THE AO IS DIR ECTED TO RESTRICT THE DISALLOWANCE OF THIS EXPENDITURE TO THE EXTENT OF 5%. IN RESPECT OF 3 MANUFACTURING EXPENSES THE DISALLOWANCE IS UPHELD TO THE EXTENT OF RS. 5,000/ - . I DIRECT ACCORDINGLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED IN PART. ORDER PRONOUN CED IN THE COURT ON 22 ND MAY 2015 . SD/ - [R.C. SHARMA] ACCOUNTANT MEMBER DATED : 22 /05/2015 COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 ITO CONCERNED 5 DR, ITAT, JODHPUR. ASSISTANT REGISTRAR