PRAVEEN KUMAR SHRIMAL, Jaipur V. ITO, Jaipur

ITA 598/JPR/2014

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9040 (ITAT-JAIPUR)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 01-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N S VYAS CA DH R LS

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 VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA- @ ITA NO. 598/JP/2014 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2008-09 PRAVEEN KUMAR SHRIMAL PROP.- TIMBER & PLYWOOD TRADERS F-17/A, MALVIYA INDUSTRIAL AREA, JAIPUR. CUKE VS. THE I.T.O., WARD-4(1), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ L A-@ PAN/GIR NO.: AJQPS 3351 K VIHYKFKHZ @ APPELLANT IZR;FKHZ @ RESPONDENT FU/KZKFJRH DH VKSJ LS @ ASSESSEE BY : SHRI N.S. VYAS (CA) JKTLO DH VKSJR LS @ REVENUE BY : SHRI RAJESH OJHA (JCIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 28/01/2015 ?KKS'K .KK DH RKJH[ K @ DATE OF PRONOUNCEMENT : 29/01/2015 VKNS'K @ ORDER PER: R.P. TOLANI, J.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 26/06/2014 BY THE LEARNED CIT(A)-II, JAIPUR FOR A.Y . 2008-09 CHALLENGING THE ADDITION OF RS. 77,707/- BEING 10% OF TELEPHONE AND CONVEYANCE EXPENSES. 2. LEARNED COUNSEL FOR THE ASSESSEE CONTENDS THAT L IKE EARLIER YEARS, THE ASSESSEES BOOKS OF ACCOUNT HAVE BEEN REJECTED AND TRADING ITA 598/JP/2014_ PRAVEEN KUMAR SHRIMAL VS. ITO 2 ADDITIONS HAVE BEEN MADE. IN THESE CIRCUMSTANCES, T HERE IS NO JUSTIFICATION IN MAKING A SEPARATE AD HOC DISALLOWAN CE OUT OF TELEPHONE AND CAR EXPENSES. THIS ISSUE ALSO AROSE IN A.Y. 200 7-08 AND THE ITAT DELETED THE SIMILAR TYPE OF AD HOC DISALLOWANCE OVER AND ABOVE THE TRADING ADDITION CONSEQUENT TO REJECTION OF BOOKS B Y FOLLOWING OBSERVATIONS:- 3.2 IN THIS CASE, THE A.O. DISALLOWED CERTAIN EXPEN SES BY OBSERVING THAT THEY ARE NOT FULLY VOUCHED ETC. THE L EARNED CIT(A) HAS ALSO CONFIRMED THE ACTION OF THE A.O.. 3 .3 AFTER CONSIDERING THE SUBMISSIONS OF THE PARTIES AND PERU SING THE MATERIAL ON RECORD, WE ARE OF THE VIEW THAT ASSESSEE DESERVES TO SUCCEED IN THIS GROUND. IN THIS CASE, THE PROVIS IONS OF SECTION 145(3) ARE INVOKED AND THEREAFTER THE PROFI T OF THE ASSESSEE HAS BEEN DETERMINED BY APPLYING THE HIGHER GROSS PROFIT RATE. ONCE THE PROVISIONS OF SECTION 145(3) ARE APPLIED THEN NO SEPARATE ADDITION IS TO BE MADE AS HELD BY HONBLE ALLAHABAD HIGH COURT IN THE CASE OF CIT VS. BANWARI L AL BANSIDHAR, 229 ITR 229. IN VIEW OF THE JUDICIAL PRONOUNCEMENT, WE HOLD THAT THE SEPARATE DISALLOWANCE S ON ACCOUNT OF VARIOUS EXPENSES WERE NOT JUSTIFIED. THERE FORE, WE DELETE THE DISALLOWANCE. WE ORDER ACCORDINGLY. FACTS AND CIRCUMSTANCES OF THE CASE BEING SAME, THE ADDITION MAY BE DELETED. 3. THE LEARNED SR.DR SUPPORTED THE ORDER OF THE LOWER AUTHORITIES. ITA 598/JP/2014_ PRAVEEN KUMAR SHRIMAL VS. ITO 3 4. I HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE P ARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. I FIND MERIT IN THE ARGUMENTS OF LEARNED COUNSEL FOR THE ASSESSEE THAT WHEN THE BOOK S OF ACCOUNT ARE REJECTED AND TRADING ADDITIONS ARE MADE, THERE IS N O JUSTIFICATION IN MAKING FURTHER AD HOC DISALLOWANCE QUA TELEPHONE AND CONVEYANCE EXPENDITURE. THIS VIEW IS SUPPORTED THE ITAT IN ASSES SEES OWN CASE FOR PRECEDING YEAR. IN VIEW THEREOF, THE ADDITION IS DEL ETED. 5. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29/01/2015. SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ @ JAIPUR FNUKAD @ DATED:- 29 TH JANUARY, 2015 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- PRAVEEN KUMAR SHRIMAL, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE I.T.O., WARD-4(1), JAIPUR. 3. VK;DJ VK;QDR @ CIT(A)-II, JAIPUR 4. VK;DJ VK;QDR @ CIT, JAIPUR 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 598/JP/2014) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR