M/S Neeraj Enterprises, Garhwa V. ITO,Ward-3(5), Daltonganj

ITA 58/RAN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2512 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 11-02-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 143(3); 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH SMC RANCHI BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.58/RAN/2019 ASSESSMENT YEAR:2013-14 M/S NEERAJ ENTERPRISES SAHIJANA, GARWAH, JHARKHAND-822114 [ PAN NO.AAEFN 1128 N ] / V/S . INCOME TAX OFFICER WARD-3(5), DALTONGANJ /APPELLANT .. /RESPONDENT /BY APPELLANT NONE /BY RESPONDENT SHRI AJAY KUMAR ADDL.CIT-DR /DATE OF HEARING 04-03-2020 /DATE OF PRONOUNCEMENT 04-03-2020 /O R D E R (ORAL) THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2013-14 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-RANCHIS ORDER DATED 29.09.2017 PASSED IN CASE NO.CIT(A), RANCHI/10104/2016-17, INVOLVING PR OCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. CASE CALLED TWICE. NONE APPEARS AT ASSESSEES B EHEST. THE REGISTRY HAS ALREADY SENT AN RPAD NOTICE DATED 12.02.20 FOR TODAYS HEAR ING. IT IS ACCORDINGLY PROCEEDED EX PARTE . I HAVE HEARD SHRI AJOY KUMARL, ADDL. CIT-DR AND PER USED THE CASE FILE. 3. THE ASSESSEES FORMER SUBSTANTIVE GRIEVANCE CHAL LENGES CORRECTNESS OF ESTIMATED 5% DISALLOWANCE OF VARIOUS EXPENSES TOTAL ING TO RS.1,01,02,524/-; COMING TO RS.5,05,126/- MADE IN BOTH THE LOWER AUTHORITIES PROCEEDINGS. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE THAT NEITHER THE LO WER AUTHORITIES HAVE REJECTED ASSESSEES CORRESPONDING DETAILS PER SE SINCE THEY HAVE ACCEPTED THE REMAINING 95% COMPONENT NOR THE TAXPAYER HAS SATISFACTORILY DISCH ARGED ITS ONUS OF PROVING THE SAME ITA NO.58/RAN/2019 A.Y 2013-14 M/S NEERAJ ENTERPRISES VS. ITO WD-3(5) DALT ONGONJ PAGE 2 TO HAVE BEEN INCURRED WHOLE AND EXCLUSIVELY FOR THE PURPOSE OF THE BUSINESS. I DEEM IT APPROPRIATE IN THESE FACTS AND CIRCUMSTANCES THAT A LUMP SUM ADDITION DISALLOWANCE OF RS.1 LAKH ONLY OUT THAT MADE IN THE LOWER PROCEEDIN GS OF RS.5,05,126/- SHALL MEET THE ENDS OF JUSTICE. THE ASSESSEE GETS PART RELIEF OF R S.4,05,126/-. 4. NEXT COMES UNVERIFIABLE SUNDRY CREDITORS DISALLO WANCE(S) / ADDITION(S) OF RS.31,26,054/- MADE IN BOTH THE LOWER AUTHORITIES P ROCEEDINGS ON ACCOUNT OF ASSESSEES FAILURE IN PROVING THE CORRESPONDING FOR TY SIX PARTIES. LEARNED LOWER AUTHORITIES APPEAR TO HAVE AFFORDED SUFFICIENT OPPO RTUNITIES TO THE ASSESSEE, COUPLED WITH THE FACT THAT THE CORRESPONDING NOTICES ISSUED U/S. 133(6) OF THE ACT ALSO COULD NOT BE SERVED ON THEM. I CONCLUDE IN THESE FACTS AN D CIRCUMSTANCES THAT BOTH THE LOWER AUTHORITIES HAVE RIGHTLY TREATED THE IMPUGNED SUNDR Y CREDITS AS LIABLE TO BE ADDED SINCE REMAINING UNVERIFIABLE. THE ASSESSEE FAILS IN THE I NSTANT LATTER SUBSTANTIVE GROUND THEREFORE. 5. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOV E TERMS. ORDER PRONOUNCED IN OPEN COURT AT THE CLOSE OF HE ARING ON WEDNESDAY , 4 TH MARCH, 2020 SD/- ( #) (S.S. GODARA) JUDICIAL MEM BER *DKP/SR.PS % - 04/03/2020 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-M/S NERAJ ENTERPRISES SAHIJANA GARWAH, J HARKHAND-822114 2. /RESPONDENT-ITO WD-3(5), DALTONGANJ 3. ) , / CONCERNED CIT 4. , - / CIT (A) 5. - ) , ) / DR, ITAT, RANCHI 6. 1 / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY/P.S (ON TOUR) ),