Musafir Jaiswal, Rourkela V. ITO, Rourkela

ITA 568/CTK/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2646 (ITAT-CUTTACK)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2013
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 05-06-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 20-11-2012
• Court: TRIBUNAL
• Department Lawyers: S C MOHANTY
• Assessee Lawyers: D PATI
• Section: 43B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK ( ) BEFORE . . , , HONBLE SHRI K.K.GUPTA, ACCOUNTANT MEMBER. /AND , HONBLE SHRI GEORGE MATHAN, JUDICIAL MEMBER / I.T.A.NO. 568/CTK/2012 / ASSESSMENT YEAR 2008 - 09 SRI MUSAFIR JAISWAL, H/4/5, CIVIL TOWNSHIP, ROURKELA PAN: ABQPJ 4560 P - - - VERSUS - INCOME - TAX OFFICER, WARD 1, ROURKELA. ( /APP ELLANT ) ( / RESPONDENT ) / FOR THE APPELLANT : / SHRI D.PATI, AR / FOR THE RESPONDENT: / SHRI S.C.MOHANTY, DR. / DATE OF HEARING: 05.06.2013 / DATE OF PRONOUNCEMENT: 05.0 6.2013 / ORDER . . , , SHRI K.K.GUPTA, ACCOUNTANT MEMBER. THIS APPEAL BY THE ASSESSEE RAISES ISSUES WITH RESPECT TO DISALLOWANCE OF EXPENDITURE BY THE ASSESSING OFFICER UNDER THE PROVISIONS OF SECTION 43B INSPITE OF THE ASSES SEE HOLDING THAT PAYMENTS HAVE BEEN MADE BEFORE THE DUE DATE OF FILING OF THE RETURN AS PERMISSIBLE BY THE SAID SECTION. THE ASSESSEE IS ALSO IN APPEAL ON THE ADHOC DISALLOWANCE OF GENERAL EXPENSES WHEN THE ASSESSING OFFICER HAS DISALLOWED THE SAME WITHOUT BRINGING OUT ANY SPECIFIC DEFECT ON RECORD IN THE SUBMISSION OF VOUCHERS PRODUCED BEFORE IT AND THE DISALLOWANCE HAS BEEN CONFIRMED BY THE LEARNED CIT(A) WITHOUT NOTING THE SAME. 2. THE ASSESSEE BEING AN INDIVIDUAL DERIVING INCOME FROM DEALING IN IRON STE EL SCRAPS FILED ITS RETURN OF INCOME OF RS.4,66,340 WHICH WAS CONSIDERED UNDER THE PROVISIONS OF SECTION 143(3). THE ASSESSING OFFICER IN HIS ORDER 2 I.T.A.NO. 568/CTK/2012 HAS NOTED THAT THE ASSESSEE HAD SHOWN VALUE ADDED TAX (VAT) PAYABLE AMOUNTING TO RS.85,150 IN HIS BALANCE SH EET WHICH HE DISALLOWED ON THE ASSESSEES IN ABILITY TO PRODUCE THE PAYMENT VOUCHERS BEFORE FILING THE RETURNS. THE ASSESSING OFFICER ALSO DISALLOWED THE PROFESSIONAL TAX AND ENTRY TAX PAYABLE UNDER THE PROVISIONS OF SECTION 43B AMOUNTING TO RS.9,310. FURT HER MORE ON THE CLAIM OF GENERAL EXPENSES DEBITED IN THE P&L ACCOUNT AMOUNTING TO RS.72,.550 THE ASSESSING OFFICER HELD THAT THE CLAIMS WERE MADE ON SELF MADE VOUCHERS DISALLOWED ADHOC RS.5,000 WHICH BOTH ISSUES WERE BEFORE THE FIRST APPELLATE AUTHORITY. T HE LEARNED CIT(A) CONFIRMED THESE DISALLOWANCES ON THE ASSESSEE - APPELLANTS INABILITY TO FURNISH ANY FURTHER EVIDENCE AS REQUIRED BY THE ASSESSING OFFICER. 3. WE HAVE HEARD THE RIVAL PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON OUR CAREFUL CON SIDERATION OF THE FACTS AND CIRCUMSTANCES OF CASE THE LEARNED COUNSEL OF THE ASSESSEE HAS SUBMITTED THAT THE PAYMENT VOUCHERS WERE AVAILABLE TO THE ASSESSEE INSOFAR AS THE ASSESSING OFFICER HAS MERELY DISALLOWED THE SAME BY HOLDING THAT THEY WERE PAYABLE ON THE DATE OF THE CLOSE OF THE PREVIOUS YEAR RELATING TO THE IMPUGNED ASSESSMENT YEAR WHEN THE LAW PROVIDES THAT THE SAID SUM COULD BE ALLOWED FOR DEDUCTION WHEN THE SAME HAS BEEN PAID PRIOR TO FILING OF THE RETURN U/S.139(1). HE PRAYED THAT THE SAME MAY KINDLY BE VERIFIED BY THE ASSESSING OFFICER INSOFAR AS THE ASSESSEE COULD NOT PRODUCE THE SAME BEFORE THE ASSESSING OFFICER OR THE LEARNED CIT(A) BY GRANTING AN OPPORTUNITY. WE ACCEDE TO THE PRAYER OF THE LEARNED COUNSEL OF THE ASSESSEE AND RESTORE THE I SSUE OF DISALLOWANCE MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LEARNED CIT(A) U/S.43B BY AFFORDING AN OPPORTUNITY TO THE ASSESSEE TO PRODUCE THE PAYMENT VOUCHERS TO BE VERIFIED BY THE ASSESSING OFFICER HAVING BEEN PAID IN 3 I.T.A.NO. 568/CTK/2012 ACCORDANCE WITH THE PROVI SIONS OF SECTION 43B BEFORE THE DUE DATE OF FILING OF THE RETURN. 3.1. WITH RESPECT TO THE DISALLOWANCE OF GENERAL EXPENSES, ON OUR PERUSAL OF THE ORDERS OF THE AUTHORITIES BELOW WE DO FIND THAT NO SPECIFIC DEFECT HAS BEEN FOUND IN THE CLAIM OF THE EXPENSE S WHICH ARE PETTY AND GENERAL IN NATURE CANNOT BE DISALLOWED ON ADHOC BASIS. THE SUM OF RS.5,000 DISALLOWED ON THIS COUNT IS DIRECTED TO BE DELETED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. SD/ - SD/ - ( ) , (GEORGE MATHAN),JUDICIAL MEMBER ( . . ) , , (K.K.GUPTA), ACCOUNTANT MEMBER. ( ) DATE: 05.06.2013 (PRONOUNCED IN OPEN COURT) - COPY OF THE ORDER FORWARDED TO: 1. / THE APPELLANT : SRI MUSAFIR JAISWAL, H/4/5, CIVIL TOWNSHIP, ROURKELA 2 / THE RESPONDENT: INCOME - TAX OFFICER, WARD 1, ROURKELA. 3. / THE CIT, 4. ( ) / THE CIT(A), 5. / DR, CUTTACK BENCH 6. GUARD FILE . / TRUE COPY, / BY ORDER, APP ENDIX XVII SEAL TO BE AFFIXED ON THE ORDER SHEET BY THE SR. P.S./P.S. AFTER DICTATION IS GIVEN 1. DATE OF DICTATION 05.06.2013 . 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE D ICTATING MEMBER 06.06.2013 OTHER MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.... 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S . 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 07.06.2013 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER ................ 9. DATE OF DESPATCH OF THE ORDER .. ( ), (H.K.PADHEE), SENIOR.PRIVATE SECRETARY.