PURSHOTTAM DAS GIDWANI, Ajmer V. ITO, Ajmer

ITA 557/JPR/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5389 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 11-08-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA JCIT DHK
• Assessee Lawyers: SUDHIR SOGANI
• Keywords: Revised return
• Section: 143(3); 37(1)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH EQDQY DS-JKOR] U;KF;D LNL; DS LE{K BEFORE: SHRI MUKUL K. SHRAWAT, JUDICIAL MEM BER VK;DJ VIHY LA-@ ITA NO. 557/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10. SHRI PURSHOTTAM DAS GIDWANI, NEW FRUIT MANDI, AJMER. CUKE VS. THE INCOME TAX OFFICER, WARD 1(3), AJMER. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: ACAPG 9723 C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI SUDHIR SOGANI (C.A.) JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJ MEHRA (JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 03/03/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 9/03/2016. VKNS'K@ ORDER PER MUKUL K. SHRAWAT, JM : THIS IS AN APPEAL FILED BY THE ASSESSEE ARISING FR OM THE ORDER OF LD. CIT (A), AJMER DATED 29.05.2014. GROUNDS RAISED ARE HEREBY DECIDED AS FOLLOWS :- 1. THAT THE LEARNED COMMISSIONER OF INCOME TAX (A PPEALS) IS NOT JUSTIFIED IN CONFIRMING THE DISALLOWANCE OF EXPENSE S OF RS. 5,03,730/-. 2. THE FACTS IN BRIEF AS EMERGED FROM THE CORRESPON DING ASSESSMENT ORDER PASSED UNDER SECTION 143(3) DATED 22.12.2011 WERE THAT THE ASSESSEE IN INDIVIDUAL CAPACITY IS STATED TO BE A COMMISSION AGENT OF VEGETABLE AND FR UITS TRADING IN KRISHI UPAJ MANDI SAMITI, AJMER. THE TURNOVER OF THE ASSESSEE WAS RS. 4,18,09,600/- FOR THE YEAR UNDER 2 ITA NO. 557/JP/2014 SHRI PURSHOTTAM DAS GIDWANI VS. ITO CONSIDERATION. ON THE SAID TURNOVER THE ASSESSEE H AD DECLARED BROKERAGE (AADAT) OF RS. 12,54,288/-. THE RETURN WAS REVISED AND AN INCOME ON THE SAID BUSINESS WAS SHOWN AT RS. 5,45,372/-. THE ASSESSEE HAD CLAIMED THE EXPEN DITURE AS UNDER :- LABOUR CHARGES RS. 1,90,350/- BARDANA RS. 2,07,285/- ARTIAS EXPENSES RS. 46,820/- TRAVELLING EXP. RS. 54,275/- AUDIT FEE EXPENSES RS. 4,000/- ------------------------ TOTAL : RS. 5,02,730/- ------------------------ THE AO HAS ASKED THE ASSESSEE TO SUBMIT THE EVIDENC ES. HOWEVER, THE CLAIM WAS DISALLOWED BY THE AO ON THE GROUND THAT THOSE EXPEN DITURES WERE ADDITIONALLY CLAIMED BY THE ASSESSEE ONLY THROUGH A REVISED RETURN. BE ING AGGRIEVED, THE MATTER WAS CARRIED BEFORE THE FIRST APPELLATE AUTHORITY. 3. THE LD. CIT (A) HAS EXAMINED THE FACTS OF THE CA SE AND COMPARED THE SAME WITH THE FACTS OF A.Y. 2008-09 AND THEREAFTER AFFIRMED T HE ACTION OF THE AO. NOW THE ASSESSEE IS FURTHER IN APPEAL. 4. ON THIS SHORT ISSUE, I HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERIAL PLACED BEFORE ME. MY ATTENTION WAS DRAWN ON A COMPARATIVE CHART TO DEMONSTRATE THAT FOR THE YEAR UNDER CONSIDERATION THE TURNOVER WAS ALMOST DO UBLED FROM THE ASSESSMENT YEAR 2008-09. FOR A.Y. 2008-09 THE TURNOVER WAS RS. 2,65 ,93,800/- WHEREAS FOR THE ASSESSMENT YEAR UNDER CONSIDERATION THE TURNOVER WA S AT RS. 4,18,09,600/-. ON THE BASIS OF THIS FACT, A SIMPLE ARGUMENT IS THAT ONLY AFTER INCURRING CERTAIN EXPENSES VIZ. LABOUR CHARGES, BARDANA, TRAVELLING AND ARTIA EXPEN SES, THE ASSESSEE WAS ABLE TO 3 ITA NO. 557/JP/2014 SHRI PURSHOTTAM DAS GIDWANI VS. ITO INCREASE THE TURNOVER. IT HAS ALSO BEEN PLEADED TH AT ALL THESE EXPENSES WERE WHOLLY AND EXCLUSIVELY FOR THE PURPOSES OF THE BUSINESS TH EREFORE ADMISSIBLE UNDER SECTION 37(1) OF THE IT ACT. HOWEVER, THE OBJECTION OF THE REVENUE WAS THAT AS PER THE ORIGINAL RETURN, NO SUCH CLAIM WAS MADE BUT IT WAS CLAIMED O NLY THROUGH A REVISED RETURN. HENCE THE CRUX OF THE ISSUE IS THAT ON ONE HAND CER TAIN ADDITIONAL EXPENDITURES WERE CLAIMED WHICH WERE OBJECTED BY THE REVENUE DEPARTME NT BUT SIMULTANEOUSLY THERE WAS HIKE IN THE TURNOVER, WHICH WAS ALSO AN ADMITTED FA CTUAL POSITION. TO MAINTAIN THE BALANCES, IT IS JUSTIFIABLE TO HOLD THAT AT LEAST 5 0% OF THE TOTAL CLAIM OF EXPENDITURE OF RS. 5,02,730/- SHOULD HAVE BEEN INCURRED BY THE ASS ESSEE TO ACHIEVE THE TARGET OF THE TURNOVER, WHICH WAS ADMITTEDLY HIGHER THAN THE PAST YEAR. REST OF THE EXPENDITURE BEING NOT FULLY VERIFIABLE, HENCE HEREBY DIRECTED T O BE DISALLOWED. IN THIS MANNER, A PART RELIEF IS HEREBY GRANTED. GROUND NO. 1 IS PARTLY AL LOWED. GROUND NO. 2 : THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEA LS) IS NOT JUSTIFIED IN NOT CONSIDERING THE CLAIM OF THE A SSESSEE FOR DELETING THE INTEREST INCOME OF DAUGHTER JAYA AMOUN TING TO RS. 4,287/- AS SHE HAD BECOME MAJOR DURING THE YEAR . 5. AN INTEREST OF RS. 2,787/- WAS CLAIMED TO BE IN THE NAME OF THE DAUGHTER WHO WAS NO MORE MINOR FOR THE YEAR UNDER CONSIDERATION HENCE REQUESTED THE AO NOT TO INCLUDE THE SAID INTEREST INCOME IN THE HANDS OF TH E ASSESSEE. ALTHOUGH THE ASSESSEE HAS PRODUCED A CERTIFICATE BUT THAT WAS REJECTED ON THE GROUND THAT EVEN AT THE TIME OF FILING OF THE REVISED RETURN NO SUCH CLAIM WAS MADE . HOWEVER, AFTER CONSIDERING THE EVIDENCE ON RECORD AS WELL AS CONSIDERING THE DATE OF BIRTH ETC. OF THE DAUGHTER OF THE ASSESSEE, I HEREBY HOLD THAT THERE WAS NO JUSTIFIAB LE REASON GIVEN BY THE AO TO REJECT 4 ITA NO. 557/JP/2014 SHRI PURSHOTTAM DAS GIDWANI VS. ITO ALL THOSE EVIDENCES WHICH WERE VERY MUCH PLACED BEF ORE THE AO. IN THE LIGHT OF THE EVIDENCES ON RECORD, THIS GROUND OF THE ASSESSEE IS HEREBY ALLOWED. 6 IN THE RESULT, ASSESSEES APPEAL IS PARTLY ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON 9/03/2016 . SD/- EQDQY DS-JKOR (MUKUL K. SHRAWAT) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 9/03/2016. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI PURSHOTTAM DASS GIDWANI, AJMER. 2. IZR;FKHZ@ THE RESPONDENT- THE ITO WARD 1(3), AJMER. 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.557/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 5 ITA NO. 557/JP/2014 SHRI PURSHOTTAM DAS GIDWANI VS. ITO